DBBL Accounting Reporting

Chapter One
Introduction
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1.1 Introduction
Generally by the word “bank” we can easily understand that the financial institution dealing with
money. The whole scenario of the economy of country can be ascertained by examining the
condition of the banking sector. Banking sector has a vital role to play in the economic activities
and development of any country. There are different types of banks like Central Banks,
Commercial Banks, Savings Banks, Investment Banks, Industrial Banks, and Co-operative banks
etc. But when we use the term “bank” without any prefix or restriction, it refers to the Commercial
Banks. Commercial Banks are the primary contributors to the economy of a country like
Bangladesh. In Bangladesh, the commercial banks are dominating the financial sector and
macroeconomic management largely depends on the performance of the commercial banks as well
as banking sector. Banking grew primarily in the public sector with main emphasis on restructuring
of the financial system and development needs of the war-torn economy with gradual liberalization
in subsequent years. It was increasingly felt that banks should be allowed in the private sector for
giving a fillip to development process on the basis of private initiative. In the 80’s for the first time
a number of banks in the private sector were allowed. Dutch Bangla Bank is one of them. Today
the banking concept is not continuing inside the branches or the cabin of the branches. The bankers
are now practicing the non-cabin banking. The assurance of the availability of the service provider
is main factor in bank service. As a result, it has become essential for every person to have some
idea on the bank and banking procedure. At present, there are 56 scheduled banks operating all
over the country. Out of these, 9 are state-owned (including five specialized banks), 38 are private
commercial banks and the rest 9 are foreign commercial banks.
Even though banking sector in Bangladesh is going through a radical change, it still suffers from
chronic inefficiency. The biggest problem of Bangladesh banking system is the bank loan default
problem. Various initiatives have been undertaken to tackle the loan default problem in
Bangladesh. One of them is to have a credit policy and procedures guideline mandated by the
Bangladesh Bank.
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1.2 Origin of the Study
Internship Program of International Islamic University of Chittagong is a Graduation requirement

for the BBA students, which is also a partial requirement of the Internship program of BBA
curriculum. The main purpose of internship is to get the student exposed to the job world. Being
an intern the main challenge was to translate the theoretical concepts into real life experience. The
internship program and the study have following purposes:
 To get and organize detail knowledge on the job responsibility.

 To experience the real business world.
 To compare the real scenario with the lessons learned in the University.
 To fulfill the requirement of BBA Program.
To accomplish the internship, I was placed at Dutch Bangla Bank Limited, Halishahar Branch,
under the guidance of Tania Sultana, my academic supervisor. The report topic was approved by
the supervisor to satisfy the organizational requirements and fulfillment of the internship program.
As a requirement of the completion of the internship program, I had to submit this report, which
includes an overview of the organization and financial performance analysis of Dutch Bangla Bank
Limited.
1.3 Objectives of the Study
The main objective of this study is to evaluate the Accounting Practices of Dutch Bangla Bank
Limited, Halishahar Branch. In order to achieve the main objective the specific objectives are:
1. To expose an accounting practices of Dutch Bangla Bank Ltd, Halishahar Branch.

2. To reveal the contributors as well as shortcomings of accounts department of the Dutch
Bangla Bank Ltd.
3. To make recommendations regarding the Dutch Bangla Bank Limited’s accounting
practices.
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1.4 Scope of the Study
The report plots a chronicle outline of Dutch Bangla Bank Limited and its operation. The
information consists of the observation and the job experience acquired throughout the internship
era. The report also particularizes the internship research focus, financial performance of Dutch
Bangla Bank Limited. This report has been prepared according to extensive analysis of accounting
statements and review of literatures.
1.5 Methodology of the Study
In order to generate this report only secondary data has been used. The source that have been used
to gather and collect data is given below-
1.5.1 Secondary Sources
a. Annual Report of Dutch Bangla Bank Limited from 2013-2017.

b. Brochures of Dutch Bangla Bank Limited
c. Different written document of Dutch Bangla Bank Limited.
d. Newspaper.
e. Web site.
1.6 Limitations of the Study
It was a great opportunity for me to work in Dutch Bangla Bank Limited as an Intern and a make
a report on the financial performance of it but there were surely some limitations while making
this report. They are-
 Getting the information and interpreting it, on the basis of my understanding and then
implementing it.
 Bankers are very busy people. I tried to contact with some high officials for more detailed
information and consultation but they could not manage time for me.
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Chapter Two
Background of Dutch Bangla Bank Limited
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2.1 An Overview of Dutch Bangla Bank Limited (DBBL)
Dutch Bangla Bank Limited is the leading private sector bank in
Bangladesh offering full range of Personal, Corporate, International Trade, Foreign Exchange,
Lease Finance and Capital Market Services. Dutch Bangla Bank Limited is the preferred choice in
banking for friendly and personalized services, cutting edge technology, tailored solutions for
business needs, global reach in trade and commerce and high yield on investments, assuring
Excellence in Banking Services.
2.2 Background of Dutch Bangla Bank Limited Dutch Bangla Bank Limited is a
scheduled bank that was incorporated under the Companies Act 1994, Dutch-Bangla Bank started
operation is Bangladesh's first joint venture bank. The bank was an effort by local shareholders
spearheaded by M Sahabuddin Ahmed (founder chairman) and the Dutch company FMO.. Aiming
at offering commercial banking service to the customers’ door around the country. This
organization achieved customers’ confidence immediately after its establishment. Within this time
the bank has been successful in positioning itself as progressive and dynamic financial institution
in the country. This is now widely acclaimed by the business community, from small entrepreneur
to big merchant and conglomerates, including top rated corporate and foreign investors, for modern
and innovative ideas and financial solution.
2.3 Corporate Information
Name of the Bank Dutch Bangla Bank Limited

Status Public Limited Company
Chairman Mr. Sayem Ahmed
Managing Director Mr Abul Kashem Md. Shirin
Registered Office Sena Kalyan Bhaban, 4th Floor 195 Motijheel
C/A, Dhaka-1000 Bangladesh.
Telephone: 47115155
Swift Code: DBBLBDDH
Email info@dbblbank.com.bd
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2.4 Mission
Dutch-Bangla Bank engineers’ enterprise and creativity in business and industry with a
commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's
operation; because "man does not live by bread and butter alone".
2.5 Vision
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music
and entertainment, science and education, health and hygiene, clean and pollution free
environment and above all a society based on morality and ethics make all our lives worth living.
Dutch-Bangla Bank 's essence and ethos rest on a cosmos of creativity and the marvel-magic of a
charmed life that abounds with spirit of life and adventures that contributes towards human
development.
2.6 Objectives
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and
satisfaction and to become their first choice in banking. Taking cue from its pool esteemed
clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and
epitomizes its vaunted marquees "Your Trusted Partner"
2.7 Corporate values
a. Customer focus
b. Integrity
c. Quality
d. Teamwork
e. Respect for individuals
f. Responsible citizenships
2.8 Corporate Social Responsibility
DBBL involves itself in charity, social welfare and other benevolent activities towards the
promotion of the objective of its foundation which would act as a catalyst in creating awareness
on development issues and as a facilitator for building bridges with the common goal of sustainable
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development of the society, providing direct assistance to various
development projects and people. Dutch Bangla Bank Ltd. has formed a
five member CSR committee headed by the Managing Director to oversee the overall activities
and management of the CSR fund of the bank. Dutch Bangla Bank Foundation, established in 2002
as a non-profitable, non-governmental organization, is solely devoted to the cause of charity, social
welfare and other benevolent activities towards the promotion of the objective of the foundation.
Dutch Bangla Bank has taken the decision to provide 2% of the pre-tax profit each year as its CSR
activities.
2.8.1 Health
a. Donation of passenger lifts and two haemodialysis machines to BIRDEM Hospital and Tk.
1.2 million per year from 2006 for supporting operating costs.
b. Donation of Tk. 10 million to Centre for Women and Child Health Hospital for setting up
pathological laboratory.
c. Setting up of a 10-bed ward at the proposed Ahsania Mission Cancer and General Hospital,
sponsoring Society for the Welfare of Autistic Children (SWAC).
d. Donating to Bangladesh Eye Hospital, Sponsorship for Shield Trust.
2.8.2 Disaster Relief
a. Among Dutch Bangla Bank’s contribution as corporate social responsibility, a few

initiatives are donation to Asiatic Society of Dhaka.
b. Relief operation for flood victims at a cost of Tk. 5.0 million.
c. The bank distributed 10 kg rice, 1 kg pulse, and 1 kg salt to each of the 10,000 distressed
families of Araihazar, Sirajdikhan and Belkuchi.
2.8.3 Social Welfare
a. Renovation of the auditorium of Dhaka Reporters Unity.

b. Sponsoring of Anti-Drug Debate Festival, Distribution of winter cloths by the employees
of the bank.
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c. Sponsoring of Bangladesh Under-19 cricket team.
d. Awareness creation for Road Safety, Blood Donation, Eye
Donation, Prevention of AIDS.
e. Provided financial assistance for Educational Development Trust of Scholastica to support
and nurture academically gifted students.
f. Sponsorship for BADC School.
2.8.4 Environment
a. Sponsored the city beautification program initiated by Dhaka City Corporation by

refurbishing.
b. Dutch Bangla Bank Fountain in front of Ministry of Foreign Affairs and Dutch Bangla
Bank Park in front of Dutch Bangla Bank Head Office, beautification at Jashimuddin
Crossing at Uttara costing 1.5 m, and also in front of Dutch Bangla Bank Head Office
costing 1.2 m.
2.9 Branches
The Bank has 184 Branches, 3 SME Service Centers, 6 CMS Units, 2 offshore Banking Unit across
the country and a wide network of correspondents all over the world. The Bank has plans to open
more Branches in the current fiscal year to expand the network.
2.10 Management Information System
Since its journey as a Commercial Bank in 1995 Dutch Bangla Bank Limited (DBBL) has been
laying great emphasis on the use of improved Technology. It has gone to Online Operation System
since 2003 when two new banking software namely FLEXCUBE & DBCUBE was installed. As
a result the Bank is able to give the services of international standards. The bank has launched its
Corporate Portal (Intranet), which was initiated by IT/BPR with the primary goal to provide
comprehensive and collaborative content management, paperless communication and information
management, and to provide a gateway to the web application across the enterprise within one
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integrated platform, instead of relying of separate fragmented systems.
Dutch Bangla Bank Limited invested Tk. 50 crore to install the software
and to establish separate IT division.
2.11 Divisions
If the jobs are not organized considering their interrelationship and are not allocated in a Particular
department it would be very difficult to control the system effectively. If the departmentalization
is not fitted for the particular works there would be haphazard situation and the performance of a
particular department would not be measured. Dutch Bangla Bank Limited has done this work
very well. They are:
i. Human Resources Department.

ii. Central Accounts Department.
iii. Operation Department.
iv. Credit Department.
v. Investment Department.
vi. Personal Banking Department.
vii. Global trade services.
viii. Audit and Risk Management Division.
ix. Information Technology Department.
x. Dutch Bangla Bank Training Institute.
2.11.1 Human Resources Department
Dutch Bangla Bank Limited strongly believes that competent and skilled human resources are the
cornerstone of success. In order to attract talented, well-qualified staff with outstanding
qualifications, Dutch Bangla Bank Limited maintains a fully functioning Human Resources
Department in all business units of the bank. In order to remain as the employer of choice, Dutch
Bangla Bank offers a broad range of benefits and compensation to employees with clear career
path. Dutch Bangla Bank has successfully introduced Dutch Bangla Bank Employees Service
Manual which contains all the important aspects relevant for an employee. Starting from
recruitment to termination, the Human Resource of Dutch Bangla Bank Limited deals with
anything and everything related to an employee.
2.11.2 Central Accounts Department
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Dutch Bangla Bank Limited has a central accounts department from which
the accounts departments of respective branches are monitored. This
department is responsible for developing policies and guideline for respective branches and at the
same time monitor the activities. All the relevant accounts information and calculation is
maintained in this department under special monitoring.
2.11.3 Operations Department
For the success of any branch a fully functioning operations department is absolutely important.
This department is responsible to ensure that all the works are done. This department is responsible
for making policies, setting guidelines, developing performance measures and monitoring
standards and designing reward policies. This department is the soul of the institution and
contributes to the success of the organization.
2.11.4 Credit Department
Credit Department is at the heart of the banking division of Dutch Bangla Bank Limited. This
department is responsible to provide loans to clients, measure the risk assessment of clients, judge
the feasibility of process and recover the sanctioned loans on time. This department is continuously
trying to develop new schemes to attract new clients. This department is also responsible for
deciding the lending and investment rates, the loan issuing and loan recovery measures. Some of
the main components of the credit department are Overdraft, Consumer Credit Loan, PAD, LTR,
Packing Credit, Term Loan, Staff Loan, House–Building Loan, Demand Loan, Lease Financing,
Letter of Credit and Bank guarantee.
2.11.5 Investment Department
Dutch Bangla Bank Limited has a significant presence in the country's capital market operations.
A specialized unit of the Bank, the ‘Investment Division', deals in the sale and purchase of shares
in the stock market and manages the Bank's own portfolio. Investment Division offers clients the
latest updates on the stock prices and trading of stocks. The facility may be availed by maintaining
an account with the Investment Division. A minimum balance is required to be maintained in the
account at the same time as a Commission is charged for undertaking the trade deals.
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2.11.6 Personal/General Banking Division
The Personal banking Division of Dutch Bangla Bank Limited is also known as the General
banking Division. This department is mainly responsible for providing general services to client
i.e. opening and closing accounts, deposit and withdrawal funds, issuing pay orders and gift
cheques etc. The main responsibility of this department is to develop schemes to attract clients. As
a result of the relentless performance of this department, Dutch Bangla Bank is continuously
coming up with new products to satisfy its clients.
2.11.7 Global Trade Services
Dutch Bangla Bank Limited started providing remittance services through its local & foreign
correspondents in 2004. Dutch Bangla Bank has formed separate Remittance Operations
Department in each of its branches. This department mainly deals with foreign remittance and
currency exchange. This department is also responsible for developing policies on foreign trade
and investment. The main activities of this department include Issuing, advising and confirming
Documentary Credits Arranging forward exchange cover. Pre-shipment and post-shipment finance
Negotiation and purchasing of Export Bills, Discounting of Bills of Exchange, Collecting Bills
and assisting customers to insure all risks. The major activities of this department are to Issue L/C,
L/C Advising & Conforming, L/C Collection & Negotiating, FDRP, selling TC & Dollars
Endorsement.
2.11.8 Audit and Risk Management Division
The Bank has designed its internal control System based on the guidelines framed by Bangladesh
Bank in Managing Core Risks in Banking: Internal Control & Compliance and Guideline on
Information & Communication Technology for Scheduled Banks and Financial Institutions. The
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Audit and Internal Control Division covers all areas of banking operational
activities including IS/IT Infrastructure and IS/IT Governance where risk
of operational losses may arise. This division also monitors and follow-up the ethical standards
through Departmental Control Function Check List (DCFCL), Loan Documentation Check List
(LDCL) and Quarterly Operation Reports. These measures have helped to maintain a strong
internal and audit control in Dutch Bangla Bank Limited.
2.11.9 Information Technology Department
ICT is at the core of Dutch Bangla Bank’s operational processes. The technological advantage is
embedded in all the products and services. Dutch Bangla Bank has built its processes and delivery
channels on the world class core banking system which provides seamless and efficient services
to all our customers. At Dutch Bangla Bank, continuous improvement and upgrading of system
and processes is reflected in its investment in ICT. All the branches are now connected with online
services and Dutch Bangla Bank operates on one bank concept. Dutch Bangla Bank Limited is
expanding its ATM booths and has a comprehensive program to expand its networks in 2010. To
ensure that everything is going smoothly Dutch Bangla Bank Limited has a separate information
and technology department which consists of highly skilled technicians who instantly solves IT
problem.
2.11.10 Dutch Bangla Bank Training Institute
Human resources development through training is the most essential part for organizational growth
since it enriches knowledge, skill and professional expertise. The utter need for professional
development of employees is really important for the success of any organization and as a result
of that the Dutch Bangla Bank Training Institute was formed. Dutch Bangla Bank Training
Institute is committed to develop the human resources through structured modular training
programs. With a view to achieve professional excellence in Banking, Dutch Bangla Bank
Training Institute conducts various courses, workshops, executive development programs mainly
for officers and executives of the Bank. These trainings are mostly provided so that the employees
can function properly in the original banking environment. Dutch Bangla Bank Training Institute
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invites experienced and knowledgeable external resource persons from
Ministries, Bangladesh Bank, Bangladesh Institute of Bank Management,
Universities and other relevant organizations to deliver lecture and conduct practical sessions.
2.12 Business Units
There are seven different business units generating business Dutch Bangla Bank Limited:
i. Small & Medium Enterprise (SME)

ii. Corporate Banking
iii. Personal Banking
iv. Islamic Banking
v. Information Technology
vi. International Trade and Foreign Exchange
vii. Capital Market Services
All the units are being operated in a centralized manner to minimize costs and risks.
2.12.1 Small & Medium Enterprise (SME)
Dutch Bangla Bank was among the first commercial banks to initiate SME banking in Bangladesh.
Over the years continuous time and effort has been put in to understand the target market and their
needs. The SME unit has worked on risk management system to cover the typical needs that the
clients might have and has come up with flexible payment patterns which will help all the clients
in the long run. SME Banking at Dutch Bangla Bank Limited is now able to meet all sorts of
working capital requirements relating to bidding for, obtaining and executing work orders. The
product range has been extended to cover guarantees, bid bonds and working capital requirements
for different work/purchase orders issued by Government, Autonomous, Multinational and Private
Sector Companies. In addition, clients are able to avail Trade finance products that facilitate
export, import and distribution of goods, Leasing for power generation, equipment and machinery
as well as working capital loans aimed at supporting business needs An interesting feature about
the SME portfolio is that 52% of clients are rural, borrowing between Tk.12.00 Lac to Tk.15.00
Lac and thus consists mainly of small enterprises across Bangladesh.
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2.12.2 Corporate Banking
Dutch Bangla Bank’s Corporate Banking team provides banking services as well as financial
support to local large and medium organization. Corporate Banking is the most conventional mode
of business in low risk sectors. Dutch Bangla Bank Limited has also designed a comprehensive
risk management system to monitor and control their asset quality. Dutch Bangla Bank recognizes
that corporate customers' needs vary from one to another and a customized solution is critical for
the success of their business. Dutch Bangla Bank offers a full range of tailored advisory, financing
and operational services to its corporate client groups combining trade, treasury, investment and
transactional banking activities in one package, which has made Dutch Bangla Bank Limited the
favorable option in the corporate sector.
2.12.3 Personal Banking
Dutch Bangla Bank Limited exerts special effort to develop and introduce new products and
services through extensive market research to meet every facet of modern business. Dutch Bangla
Bank Limited introduced its personal banking division in 2003 which included restructuring the
existing products and services and introducing new products, particularly electronic banking
products like DUTCH BANGLA BANK LTD Credit Card, ATM card and automated Phone
Banking service from selected branches. Such services were highly appreciated by our customers.
Amongst Private Sector banks, Dutch Bangla Bank has already made its mark in the retail banking
segment. The promotions like "Baishakhi Offer", a strategic tie up with Electra International
Limited, distributor of Samsung brand products, and "Freeze the Summer Campaign" a strategic
tie-up with Esquire Electronics Limited, distributor of Sharp/General Brand electrical appliances
saw Dutch Bangla Bank to experience more than a reasonable growth on the Retail Banking
business in 2004. The Personal Banking Division of Dutch Bangla Bank Limited has 4 sections:
Product Development, Operations, Personal Loan and Cards. The Depository Products and
services that are currently available are given below:
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i. Savings A/C
ii. Current A/C
iii. STD A/C
iv. Fixed Deposit A/C
v. DPS A/C
vi. Salary A/C
2.12.3.1 Interest Rate Paid to Different Deposit Liabilities
2.12.3.2 New Product and services
The bank has its concentration for new product and services development for satisfying its
customer and increasing its customer base. The bank firmly believes that technology based product
and services will play significant role in the performance of the bank as people are getting more
conscious about their service quality. They prefer now faster service with least cost. For delivering
faster service the bank has introduced online banking service from the very beginning. There are
some new products and services that Dutch Bangla Bank Limited has lately introduced. These are:
2.12.4 Islamic Banking
Islamic Banking is based on interest-free economic transactions; mutual participation and sharing
of profit and loss through various modes of finance with its unique human face approach. Islamic
banking has become quite popular in Bangladesh and due to that Dutch Bangla Bank Limited
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opened its first Islamic Banking branch on July 02, 2003 at Motijheel
Commercial Area, Dhaka. These Islamic Banking branches offer fully
Sarah-based, interest free, Profit-loss sharing Banking Services. Dutch Bangla Bank Limited has
shown tremendous performance in Islamic Banking. The operating profit of Islamic Banking
Branches, Import & Export business generated by the Islamic Banking Branches showed
remarkable performance and which has increased the overall profitability of Dutch Bangla Bank
to a great extent. Dutch Bangla Bank Limited is also an active member of
2.12.5 Information Technology
Dutch Bangla Bank Limited is currently running countrywide true online fully automated banking
system. The system allows their customers to do transactions all around the country. The bank
cheques are all marked with Barcodes that makes each cheque unique and disallows it to be
duplicated. All the signature and customer information with their pictures can be verified from any
console at any branch on the bank. Dutch Bangla Bank Limited’s Goal is to provide a true online
banking system, which will not only fulfills the demand of time but also set new benchmarks in
twenty-first centuries banking world.
2.12.6 International Trade and Foreign Exchange
International Trade forms the major business activity undertaken by Dutch Bangla Bank Limited.
The Bank with its worldwide network of correspondents and close relationships with key financial
institutions provides an extensive trade services network to handle the required transactions
efficiently. The key branches in Dhaka are Narayanganj, Chittagong and Sylhet deals with this.
These offices are the focal point for processing Import and Export transactions for both small and
large corporate customers Dutch Bangla Bank Limited offers a complete range of Trade Finance
services.
2.12.7 Capital Market Services
Dutch Bangla Bank Limited has a significant presence in the country's capital market operations.
A specialized unit of the Bank, the ‘Investment Division', deals in the sale and purchase of shares
in the stock market and manages the Bank's own portfolio. Investment Division offers clients the
latest updates on the stock prices and trading of stocks. The facility may be availed by maintaining
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an account with the Investment Division. A minimum balance is required
to be maintained in the account at the same time as a Commission is
charged for undertaking the trade deals.
2.13 Management Structure of Dutch Bangla Bank Limited
2.2.1 Owner’s Level
CHAIRMAN
VICE CHAIRMAN
DIRCETOR
Note: One Director Appointed By Bangladesh Bank.
2.2.2 Executive’s Level
Managing Director (MD)
Executive Vice President
Senior Vice President
Vice President
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First Vice President
Senior Assistant Vice

President
Assistant Vice President
First Assistant Vice President
2.2.3 Officer’s Level
Senior Executive Officer (SEO) Executive Officer (EO)
Senior Officer Principal Officer (PO)
Officer Probationary Officer
Assistant Officer Junior Officer
Trainee Assistant Officer
2.2.4 Management Hierarchy of Dutch Bangla Bank Limited
SVP
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SPO
Principal Senior Officer Junior Assistant Trainee

Officer Officer Officer Officer Assistant
Officer
2.14 About Halishahar Branch

Particular Details
Name Halishahar Branch
Journey of Starting December 29, 2009
Location of Branch 1st floor, 14/A, Block- G,
Port Connecting Road, Halishahar Housing
Estate, Chittagong 4216
Telephone: 031-251 8923-4, Fax: 0312
Total Employees 26
VP & Branch Manager Mrs. Rezowana Begum
Working Station a) General Banking
b) Investment
c) Foreign Exchange
d) Cash
Deposit & Investment Profit: 3,12,25,788/-
Investment: 161,61,13,906/-
Income & Expenses Income: 32,82,52,333/-
Expenses: 29,20,22,160/-
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Chapter Three
Accounting & Reporting Practices Policy
Followed by Dutch Bangla Bank Limited
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3.1 Introduction:
Accounting systems are the main highway for successful business operations. Just as Luca Piccioli
discovered all those hundreds of years ago, an accounting system provides the through fare along
which all business transactions accomplished. It keeps a proper record of financial transaction to
prepare the records of fund, investment, revenue, and expenses. It provides all financial data,
statistics and other information required for financial administration and control. It provides proper
guidance for the preparation and implementations.
3.2 Accounting Principles Followed by Dutch Bangla Bank Limited:
a) Principle of Regularity
The accountant has adhered to GAAP rules and regulations as a standard.
b) Principle of Consistency
Professionals commit to applying the same standards throughout the reporting process to
prevent errors or discrepancies. Accountants are expected to fully disclose and explain the
reasons behind any changed or updated standards.
c) Principle of Sincerity
The accountant strives to provide an accurate depiction of a company’s financial situation.
d) Principle of Permanence of Methods
The procedures used in financial reporting should be consistent.
e) Principle of Non-Compensation
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Both negatives and positives should be fully reported with transparency
and without the expectation of debt compensation.
f) Principle of Prudence
Emphasizing fact-based financial data representation that is not clouded by speculation.
g) Principle of Continuity
While valuing assets, it should be assumed the business will continue to operate.
h) Principle of Periodicity
Entries should be distributed across the appropriate periods of time. For example, revenue
should be divided by its relevant periods.
i) Principle of Materiality / Good Faith
Accountants must strive for full disclosure in financial reports.
3.3 Basis of Preparation and Significant Accounting Policies
3.3.1 Basis of accounting

The financial statements of the Bank are made up to December 31, each year and are prepared
under the historical cost convention and in accordance with the First Schedule {section 38(4)} of
the Bank Companies Act 1991, Bangladesh Bank circulars, Bangladesh Accounting Standards,
Companies Act 1994, Securities and Exchange Rules 1987 and other laws and rules applicable in
Bangladesh on a going concern basis.
3.3.2 Consolidation
The consolidated financial statements include the financial statements of Dutch Bangla Bank
Limited and Off-shore Banking Units made up to the end of the financial year.
3.3.3 Revenue recognition
a) Interest income
i) In terms of provision of Bangladesh Accounting Standard (BAS) -18 the interest receivable is
recognized on accrual basis. Interest on loans and advances ceases to be taken into income when
such advances are classified and is kept in interest suspense account. Interest on classified
advances is accounted for as and when realized.
ii) Interest on unclassified loans and advances is calculated on a daily product basis but charged
and accounted for quarterly on accrual basis.
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iii) Commission and discounts on bills purchased and discounted are
recognized on realization basis.
b) Investments income
i) Interest on investment in government and other trust securities, debentures and bonds, etc. is
accounted for as income on accrual basis.
ii) Dividends on shares of Oman International Exchange LLC, Nepal Bangladesh Bank Ltd and
NIB Bank Limited and shares of the listed companies of Dhaka and Chittagong stock exchanges
have been accounted for on receipt basis.
c) Fees and commission income
Fees and commission arises on services provided by the bank is recognized on cash basis.
Commission charged to customers on letters of credit and letters of guarantee are credited to
income at the time of effecting the transaction.
3.3.4 Valuation of investment
The basis of valuation of investment has been shown as under:
Items Applicable Accounting Value

Government treasury bills At Present value
Government treasury bonds At Present value
Prize bond At cost price
Zero coupon bond At redeemable value
Debenture At redeemable value
Investment in shares (quoted) At cost or market price whichever is lower at
balance sheet date
Investment in shares (un-quoted) At cost price
3.3.5 Loans and advances
a) Loans and advances have been stated at gross value as pre requirements of Bank Companies
Act, 1991.
b) Provision for loans and advances are made on the basis of information furnished by the branches
and instructions contained in Bangladesh Bank BRPD Circular No. 16 of 6 December 1998, 9 of
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14 May 2001, 02 of 15 February 2005, 09 of 20 August 2005, 17 of 06
December 2005, 19 of 20 December 2005 and 05 of 05 June 2006.
(c) Interest is calculated on classified loans and advances as per BRPD circular no. 16 of 1998, 9
of 2001 and 10 of 2005 and recognized as income on realization.
The classification rates are given below:
(d) Loans and advances are written off to the extent that,
i. There is no realistic prospect of recovery, and

ii. Against which legal cases are filed and classified as bad/loss for more than five years as
per guidelines of Bangladesh Bank. These write off however, will not undermine/affect the
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claim amount against the borrower. Detailed memorandum record
for all such write off accounts are meticulously maintained and
followed up.
3.3.6 Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation. Depreciation is computed
consistently by using diminishing balance method at the following rates:
3.3.7 Cash Flow Statement
Cash flow statement is prepared principally in accordance with IAS 7 “Cash Flow Statement” and
the cash flow from the operating activities has been presented under direct method.
3.3.8 Foreign Currency Transactions/ Translations
Foreign currency transactions are converted into equivalent Taka currency using the ruling
exchange rates on the dates of such transactions. Excess/shortage of translated figures over book
figures at year end is transferred to Profit and Loss Account. Assets and liabilities as at December
31, 2010 in foreign currencies are translated into Taka currency at the prevailing WAR (Weighted
Average Rate) of the concerned foreign currency of that day. All differences arising from this
conversion are charged/credited to the profit and loss account.
3.3.9 Dutch Bangla Bank Securities Limited
Dutch Bangla Bank Securities Limited a subsidiary of Dutch Bangla Bank Limited, has been
incorporated as a Public Limited company on 02 November 2010 with an authorized capital of Tk.
3,000,000,000 (Taka three hundred crore) only and an initial paid-up capital of Tk. 800,000,000
26
(Tk. eighty crore) only. The Securities & Exchange Commission (SEC) has
accorded consent for transferring membership of Dhaka Stock Exchange
(DSC) from Dutch Bangla Bank Limited to Dutch Bangla Bank Securities Limited under the
registration certificate no. 3.1/DSE-192/2011/455 dated 15 February 2011 for Stock broker
operation and registration certificate no. 3.1/DSE-192/2011/456 dated 15 February 2011 for Stock
Dealer Operation. Pursuant to the formation of Dutch Bangla Bank Securities Limited as a
subsidiary of Dutch Bangla Bank Limited to act as a stock broker and dealer, Dutch Bangla Bank
Limited confirms that effective from 10 March 2011 all its operations in the securities trading
business including stock broker and under stock dealer activities will be taken over by Dutch
Bangla Bank Securities Ltd.
3.3.9.1 Credit Risk Management
Risk is inherent in all commercial operation. In Bank, credit risk is an obvious factor that needs to be
managed. Credit risk is the possibility that a borrower or counter party may fail to meet its obligation
pursuance to agreed terms. Credit risk, therefore, arises from the banks’ dealings with or lending to
corporate, individuals and other banks or financial institutions.
3.3.9.2 Asset Liability Management

Assets Liability Management is the most important aspect for the Financial Institution to manage
Balance Sheet Risk, especially for managing of liquidity risk and interest rate risk. Change in
Market Liquidity and interest rate expose bank business to the risk of loss. Failure to identify the
risks associated with business and failure to take timely measures in giving a sense of direction
may threaten the survival of institution. As such, it is important that senior management as well as
the Board of Directors must understand the existence of such risk on the balance sheet and they
should ensure that the structure of the banks business and the level of balance sheet risk it assumes
are effectively managed and appropriate policies and procedures are established to control and
limit these risks, and that resources are available for evaluating and controlling interest rate risk.
3.3.9.3 Prevention of Money Laundering
The Chief Anti Money Laundering Compliance Officer (CAMLCO) regularly submitted the status
report to the Managing Director and Bangladesh Bank on the areas like hundi activities, abnormal
transaction, Suspicious Transaction Report (STR), Cash Transaction Report (CTR) procedures and
similar other areas as required.
27
3.3.9.4 Internal Control and Compliance
In a Banking institution a system of effective Internal Control strengthens
the base of safe & sound banking. The operational performance of the Bank is depended on
efficient and sound internal control system for establishing corporate governance, transparency &
accountability in the bank. As a part of Core Risk Management, Internal Control & Compliance
Division with three departments namely; Compliance, Monitoring and Audit & Inspection is an
integral part of daily activities of the Bank working as ongoing process to ensure smooth operation
of the bank. In line with Bangladesh Bank guidelines, formulation of policy guideline, set up of
separate organizational structure, segregation of duties and introduction of internal control process,
such as Departmental Control Function Checklist (DECFL), Quarterly Operation Report (QOR),
Unified Calendar of returns, Ethics/Code of Conduct of employees have meanwhile been done for
successful implementation of effective internal control system. Compliance Department is
functioning to ensure compliance with statutory & regulatory requirement and also Bank’s own
policy & procedures for developing compliance culture. Monitoring department is responsible for
operational performance of branches and Head office Divisions by minimizing/ avoiding risk
factors.
3.3.9.5 Foreign Exchange Risk Management
As per directives of Bangladesh Bank, Treasury Manual has been formulated and implemented for
managing foreign exchange risks. Functions of Treasury Front Office and Treasury Back Office
have been segregated and a Mid Office established. Operational Guidelines have been also been
formulated defining the roles and responsibilities of Front, Back and Mid Office so that various
foreign exchange transactions can be conducted according to the Policy Guidelines of Bangladesh
Bank and the risks can be measured, monitoring and mitigated.
3.3.9.6 Information and Communication Technology (ICT)
The Bank is aware of the method of ICT Risk Management which is based on the syntax of Risk
Management. Information assets are critical of the services provided by the Bank to its customers.
Protection and maintenance of these assets are critical to its sustainability. The Bank has already
taken initiatives for protecting the information from unauthorized access, modification, disclosure
and destruction to protect customers’ interest. The Bank has already developed its own ICT
28
policies for different operation and services. Those are very detailed and
are closely in line with the ICT guidelines of Bangladesh Bank.
3.3.10 Management Committee (MANCOM)
The Management Committee (MANCOM) is functioning since the year 1994 as a structured unit
to take important management decisions. Presently, it comprises of 13(thirteen) members holding
key positions in the management of the Bank. The Committee is headed by the Managing Director
who is assisted by a Senior Management Group consisting of the 02 (two) Deputy Managing
Director, 03(three) Senior Executive Vice President (SEVP) who are the Company Secretary,
Chief Financial Officer (CFO) and Head of Human Resources Division and 04 (four) Executive
Vice President (EVP) who are Head of Credit Risk Management, Corporate Banking & Marketing,
Corporate Communication and Support Service and Internal Control and Compliance Division and
01(one) Senior Vice President who is head of IT and 01 (one) First Vice President who is head of
Card. The VP & Managing Director’s Secretariat also Acts as the member secretary of the
committee. The Divisional Heads who are the members of the Committee are concerned with
management of respective Division as well as monitoring day to day activities taking place in the
Branches and have long experience in commercial banking actives.
3.3.11 Taxation
3.3.11.1 Current Tax
Provision for income tax has been made @ 42.50% as prescribed in the Finance Act 2010 on accounting
profit made by the Bank after considering some of the taxable add backs of income and disallowance of
expenditure.
3.3.11.2 Deferred Tax
Deferred tax liabilities are the amounts of income taxes payable in the future period in respect of taxable
temporary differences. Deferred tax assets are the amount of income taxes recoverable in future periods in
respect of taxable temporary difference. Deferred tax assets and liabilities are recognized for the future tax
consequences of timing difference arising between the carrying values of assets, liabilities, income and
expenditure and their respective tax basis. Deferred tax assets and liabilities are measured using tax rates
and tax laws that have been enacted or substantially enacted at the balance sheet date.
29
3.4 Notes to the Financial Statement
3.4.1 Legal status and nature of the Bank
Dutch Bangla Bank Limited is a scheduled bank that was incorporated under the Companies Act
1994, started its operation on July 1995 with a target to play the vital role on the socio-economic
development of the country. Aiming at offering commercial banking service to the customers’
door around the country. When the Government decided to open up banking in the private sector
in 1983, this finance company was converted into a commercial bank and incorporated in
Bangladesh as a bank company in the same year under the Companies Act 1913 (now 1994) under
the name and style “Dutch Bangla Bank Limited”.
3.4.2 Nature of business activities
All types of commercial banking services are provided by the Bank within the stipulations laid
down by Bank Companies Act 1991 and directives as received from Bangladesh Bank from time
to time. It has 95 branches and 02 SME Centre all over Bangladesh. The Bank is listed in the
Dhaka and Chittagong Stock Exchanges as a publicly quoted company for its’ “A class” ordinary
share.
3.4.3 Off-shore Banking Unit
The Bank obtained the Off-shore Banking Unit permission vide letter no. BRPD (P-3) 744
(104)/2009-4233 dated 17 November 2009. The Bank commenced operation of this unit from May
06, 2010. Presently the bank has 01 (one) Off-shore Banking Unit in Bangladesh. The Off-shore
Banking Unit is governed under the rules and guidelines of Bangladesh Bank. Separate Financial
Statements of Off -shore Banking Unit are shown in Annexure-F. The principal activities of the
Bank are to provide all kinds of commercial banking services to its customers through its branch
in Bangladesh.
3.4.4 Principal Activities
The principal activities of the Bank are to provide all kinds of conventional and Islamic
commercial banking services to its customers through its branches, SME centers, and vibrant
alternative delivery channels (ATM booths, Mobile banking, internet banking) in Bangladesh.
30
3.4.5 Statement of compliance
The financial statements of the Bank have been prepared in accordance

with the “First Schedule (Section 38) of the Bank Company Act 1991 (amended upto 2018),
BRPD circular no. 14 dated 25 June 2003, other Bangladesh Bank Circulars, Bangladesh Financial
Reporting Standards (BFRSs), Bangladesh Accounting Standards (BAS), etc. The Financial
Reporting Act 2015 (FRA) has been enacted in 2015. Under the FRA the Financial Reporting
Council (FRC) yet to be formed and they will issue financial reporting standards for public interest
entities such as banks. Section 38 of the Bank Company Act 1991 (amended upto 2018) has been
replaced through BRPD Circular no. 10 dated October 04, 2015. The FRC is yet to be formed and
as such no financial reporting standards have issued as per the provisions of the FRA. The Bank
complied with the requirement of the following regulatory and legal authorities:
a) Bank Company Act 1991 (amended up to 2018)

b) Companies Act 1994
c) Rules, regulations and circulars issued by the Bangladesh Bank from time to time.
d) The Securities and Exchange Ordinance 1969 .
e) The Securities and Exchange Rules 1987.
f) Bangladesh Securities and Exchange Commission Act 1993.
g) Bangladesh Securities and Exchange Commission (Public Issues) Rules 2015.
h) Income Tax Ordinance and Rules 1984.
i) Value Added Tax Act 1991.
j) Dhaka Stock Exchange Ltd. (DSE), Chittagong Stock Exchange Ltd. (CSE) and Central
Depository Bangladesh Ltd. (CDBBL) rules and regulations.
3.4.6 Basis of Measurement
The financial statements of the Bank have been prepared on historical cost basis except for the
following:
 Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present
value using marked to market with gains, if any, credited to revaluation reserve.
31
Government Treasury Bills and Bonds designated as ‘Held to
Maturity (HTM)’ at present value using amortization concept.
 Zero Coupon Bonds at present value using amortization concept.
3.4.7 Use of Estimates and Judgments
The preparation of the financial statements in conformity with BAS/ BFRS requires management
to make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimate is revised and
in any future periods affected.
Key estimates include the following:
 Provision on loans and advances.

 Deferred tax assets/liabilities.
 Gratuity fund.
3.4.8 Cash Flow Statement
Cash Flow Statement is prepared principally in accordance with BAS 7 “Statement of Cash Flows”
under the guidelines of BRPD circular no.14 dated 25 June 2003. The Cash Flow Statement shows
the structure of and changes in cash and cash equivalents during the year. Cash Flows during the
year have been classified as operating activities, investing activities and financing activities.
3.4.9 Statement of Changes in Equity
Statement of Changes in Equity has been prepared in accordance with BAS 1 “Presentation of
Financial Statements” and following the guidelines of Bangladesh Bank BRPD circular no.14
dated 25 June 2003.
32
3.5 Compliance of Bangladesh Accounting Standards (BAS)
and Bangladesh Financial Reporting Standards (BFRS)
Followed by Dutch Bangla Bank Limited
3.5.1 BAS Method by ICAB

Presentation of Financial Statements
Inventories
Statement of Cash Flows
Accounting Policies, Changes in Accounting
Estimates and Errors
Events after the Reporting
Period
Construction Contracts
Income Taxes
Property, Plant & Equipment
Leases
Revenue
Employee Benefits
3.5.2 BFRS Method by ICAB
First-time adoption of International financial Reporting Standards

Share-based Payment
Business Combinations
Insurance Contracts
Non-current Assets Held for Sale and Discontinued Operations
Exploration for and Evaluation of Mineral Resources
Financial Instruments: Disclosures
Operating Segments
Financial Instruments
Consolidated Financial Statements
Joint Arrangements
Disclosure of Interests in other Entities
33
Fair Value Measurement
3.5.3 BAS Method Followed By Dutch Bangla Bank Limited
The following table mainly focuses on the compliance of some relevant rules and regulations
under BAS (Bangladesh Accounting Standard) 1 in preparing the financial statement of Dhaka
Bank Limited.
Compliance with BAS-1:
 BAS (Bangladesh Accounting Standard 1.9
 BAS (Bangladesh Accounting Standard) 1.10
34
A complete set of financial statements comprises all the above particulars but Dutch Bangla
Bank Limited is not following the similar components.
35
An audit involves obtaining evidence about the amounts and disclosures in the financial
statements is sufficient to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error.
3.5.4 BFRS Method Followed By Dutch Bangla Bank Limited
a) Investment in shares and securities
BFRS: As per requirements of Bangladesh Accounting Standards (BAS) 39 Financial Instruments:
Recognition and Measurement, investment in shares and securities generally falls either under at
Fair Value through Profit and Loss (FVTPL) or under Available for Sale (AFS) where any change
in the fair value (as measured in accordance with BFRS 13 Fair Value Measurement) at the yearend
is taken to profit and loss account or revaluation reserve, respectively.
b) Revaluation gains / losses on Government securities
BFRS: As per requirement of BAS 39, where securities fall under the category of Held for Trading
(HFT), any change in the fair value of held for trading securities is recognized through profit and
loss account. Securities designated as Held to Maturity (HTM) are measured at amortized cost
method and interest income is recognized in the profit and loss account.
c) Repo and Reverse Repo Transactions
BFRS: As per BAS 39 when an entity sells a financial asset and simultaneously enters into an
agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (repo), the
arrangement is treated as a loan and the underlying asset continues to be recognized in the entity’s
36
financial statements. The difference between selling price and repurchase
price will be treated as interest expense. Same rule applies to the opposite
side of the transaction (reverse repo).
d) Provision on loans and advances
BFRS: As per BAS 39, an entity should start the impairment assessment by considering whether
objective evidence of impairment exists for financial assets that are individually significant. For
financial assets that are not individually significant, the assessment can be performed on an
individual or collective (portfolio) basis.
e) Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per
BAS 39 and interest income is recognized through effective interest method over the term of the
loan. Once a loan is impaired, interest income is recognized in profit and loss account on the same
basis based on revised carrying amount.
f) Other comprehensive income

BFRS: As per BAS 1 Presentation of Financial Statements Other Comprehensive Income (OCI) is
a component of financial statements or the elements of OCI are to be included in a single other
Comprehensive Income Statement.
g) Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the terms of a debt instrument. Financial guarantees are
recognized initially at fair value, and the initial fair value is amortized over the life of the financial
guarantee. The financial guarantees is subsequently carried at the higher of this amortized amount
and the present value of any expected payment when a payment under the guarantee has become
probable.
37
3.6 Accounting Cycle:
Reversing
Journals
Entries
Post Closing
Ledger (T-
Trial
Accounts)
Balance
Income
Trial
Summary
Accounting Balance
Account
Cycle
Closing Adjusting
Entries Entries
Adjusted
Accounting
Trial
Worksheet
Financial Balance
Statements
a) Journals
38
In accounting and bookkeeping, a journal is a record of financial
transactions in order by date. A journal is often defined as the book of
original entry.
b) Ledger (T-Accounts)
A T-account is an informal term for a set of financial records that use double-entry bookkeeping.
The term T-account describes the appearance of the bookkeeping entries. A T-account is also
called a ledger account.
c) Trial Balance
A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into
debit and credit account column totals that are equal. A company prepares a trial
balance periodically, usually at the end of every reporting period.
d) Adjusting Entries
Adjusting entries, also called adjusting journal entries, are journal entries made at the end of a
period to correct accounts before the financial statements are prepared. This is the fourth step in
the accounting cycle.
e) Adjusted Trial Balance

An adjusted trial balance is a listing of all company accounts that will appear on the financial
statements after year-end adjusting journal entries have been made. Preparing an adjusted trial
balance is the fifth step in the accounting cycle and is the last step before financial statements can
be produced.
f) Financial Statements:
Financial statements (or financial report) is a formal record of the financial activities and position
of a business, person, or other entity. A balance sheet or statement of financial position, reports on
a company's assets, liabilities, and owner’s equity at a given point in time.
g) Accounting Worksheet
An accounting worksheet is a tool used to help bookkeepers and accountants complete
the accounting cycle and prepare year-end reports like unadjusted trial balances, adjusting journal
entries, adjusted trial balances, and financial statements.
h) Closing Entries
39
Closing entries, also called closing journal entries, are entries made at the
end of an accounting period to zero out all temporary accounts and transfer
their balances to permanent accounts. In other words, the temporary accounts are closed or reset
at the end of the year. This is commonly referred to as closing the books.
i) Income Summary Account
The income summary account is a temporary account used to store income statement account
balances, revenue and expense accounts, during the closing entry step of the accounting cycle.
J) Post-Closing Trial Balance
The post-closing trial balance is a list of all accounts and their balances after the closing entries
have been journalized and posted to the ledger. In other words, the post-closing trial balance is a
list of accounts or permanent accounts that still have balances after the closing entries have been
made.
k) Reversing Entries:
Reversing entries, or reversing journal entries, are journal entries made at the beginning of an
accounting period to reverse or cancel out adjusting journal entries made at the end of the previous
accounting period.
3.7 Users of Accounting Reports
3.7.1 Internal Users of Accounting

Internal users are the primary users of accounting. Following are the 3 types of internal users and
their information needs:
a) Owners
Owners need to assess how well their business is performing. Financial statements provide
information to owners about the profitability of the overall business as well as individual
products and geographic segments. Owners are also interested in knowing how risky their business
is.
b) Managers
Managers need accounting information to plan, monitor and make business decisions. Managers
need to allocate the financial, human and capital resources towards competing needs of the
business through the budgeting process. Preparing and monitoring budgets effectively requires
40
reliable accounting data relating to the various activities, processes,
products, services, segments and departments of the business.
c) Employees
For the employees operating in the finance department, using accounting information is usually
part of their job description. This includes for example preparing and reviewing various financial
reports such as financial statements. Employees are interested in knowing how well a company is
performing as it could have implications for their job security and income.
3.7.2 External Users of Accounting
External users are the secondary users of accounting. Following are the 8 types of external users
and their information needs:
a) Investors
Investors need to know how well their investment is performing. Investors primarily rely on the
financial statements published by companies to assess the profitability, valuation and risk of their
investment. Investors use accounting information to determine whether an investment is a good fit
for their portfolio and whether they should hold, increase or decrease their investment.
b) Lenders
Lenders use accounting information of borrowers to assess their credit worthiness, i.e. their ability
to pay back any loan. Lenders offer loans and other credit facilities on terms that are based on the
assessment of financial health of borrowers.
c) Suppliers
Just like lenders, suppliers need accounting information to assess the credit-worthiness of its
customers before offering goods and services on credit.
d) Tax Authorities
Tax authorities determine whether a business declared the correct amount of tax in its tax returns.
Occasionally, tax authorities conduct audits of the tax returns filed by businesses in order to verify
the information with the underlying accounting records.
e) Government
41
Government ensures that a company's disclosure of accounting information
is in accordance with the regulations that are in place to protect the interest
of various stakeholders who rely on such information in forming their decisions.
f) Auditors
External auditors examine the financial statements and the underlying accounting record of
businesses in order to form an audit opinion.
42
Chapter Four
Accounting Practices of Dutch Bangla Bank
Limited
43
4.1 Accounting Practice:
A firms accounting practice refers to the method by which its accounting policies are implemented
and adhere to on routine basis typically by an accountant or auditor or a team of accounting
professionals.
4.2 Accounting Practice Process of DBBL
An accounting practice is intended to enforce a firms accounting guidelines and policies. It exists
as the daily recording of financial data that is important to the evaluation and monitoring of the
firms at economic activities. Accounting practice refers to the normal, practical application of
accounting and/or auditing policies that occurs within a business.
a) Journals:
In accounting and bookkeeping, a journal is a record of financial transactions in order by date. A

journal is often defined as the book of original entry.
Dutch Bangla Bank Limited Ltd. keeps the following journal:
i) Journal Entry (Contra Voucher) of L/C
When L/C is opened, the journal entry would be as follows.

Date Particulars Dr. Cr.
Customer’s Liability Xxx
Banker’s Liability Xxx
When documents come to L/C issuing bank, the journal entry would be as follows.
Paid Account xxx
Dutch Bangla Bank Limited Ltd. General Xxx
Account Xxx
Exchange Gain Account
(As the documents are received)
ii) Lodgment of the Documents

After receiving the documents from the exporters, at Dutch Bangla Bank Limited Ltd. write it in
the PAD Registrar. PAD Register contains date, PAD number, L/C number, and flame of the
drawer, name of the drawer, amount, and number of copies of various documents, name of the
imported items.
 IFDBC (Inward Foreign Documentary Bill for Collection) Creation,
44
 Journal for interest on document.

PAD Account xxx
Interest on PAD Account Xxx
(The interest is calculated on documents)
Exchange Gain Account
(As the documents are received) Xxx
iii) Process of Calculating Interest on Document in Dutch Bangla Bank Limited Ltd.
Calculation of Interest on Document
(Document value – Margin)* interest rate*days paid for interest = amount of
interest
Journal entries for receiving payment
Party Account xxx
Margin Account xxx
PAD Account
(When the bank receive money from the importer) Xxx
When L/C issuing bank Pay to the seller, the journal entry would be as follows:
FDBP Account xxx
Xxx
Postage Account
Source Tax Xxx

Customer Account Xxx
( When the bank purchases bill through negotiation before
realization)
iv) Negotiation of export documents

Negotiation stands for payment of value to the exporter against the documents fixed in the L/C. If
documents are in order, Dutch Bangla Bank Limited Ltd. purchases (negotiates) the same on the
basis of banker- customer relationship. This is known as Foreign Documentary Bill Purchase
(FDBP).
Payment of Bill
Dutch Bangla Bank Limited General Account xxx
45
FDBP Account Xxx
Income Account
( When the bank pay for the bill )
Xxx
v) Journal Entries for Purchase of Local Bills

Purchasing the local bill which is known as Inland Documentary Bills for Purchase (IDBP). The
bank has to purchase the local bills through some process. The Inland documentary bills for
purchase (IDBP) is done in the following ways,-
a. Dutch Bangla Bank Limited Ltd. gets L/C from other Bank.
b. Then Dutch Bangla Bank Limited Ltd. officer advising the L/C to the party/Beneficiary.
c. Customers then present the documents for negotiation to Dutch Bangla Bank Limited
Ltd.
d. Dutch Bangla Bank Limited Ltd. officials examine the documents to confirm the terms
and conditions of L/C.
Journal entries when the bank purchase local bill before realization
IDBP xxx
Xxx
Party
Commission
Xxx
Charge Account Xxx
(When the bank negotiate the local bill. )
Journal entries when the bank pay the amount of local bill:
Sundry Deposit xxx
Xxx
IDBP
Party Account (If Surplus)
Xxx
( When the bank pay for the local bill )
46
b) Ledger (T-Accounts):
Daily Responsibilities:
1. Authorizing Checks drawn on Dutch Bangla Bank Limited Ltd.

2. Authorizing Deposit Receipts.
3. Closing Accounts on the Death of Account Holder or on Order of account Holder or on
Zero Deposit etc.
4. Transferring Money Specified in the Check from One Account to another.
5. Collecting Journals or Vouchers from Different Department and preparing supplementary
for them.
6. Preparing Extracts of Daily Advices and sending them to Head office of Dutch Bangla
Bank Limited Ltd.
7. Providing Statements of Account on Requisition of Clients.
8. Preparing Voucher of Everyday Expenses of the Branch.
47
c) Trial Balance:
Category Debit Credit

Income Sales
Expense Sales return
Asset Sales ledger control
Expense Purchases
Income Purchases returns
Liability Purchase ledger control
Income Discount received
Expense Discount allowed
Expense Wages
Expense Rent
Expense General expenses
Asset Vehicles
Asset Machinery
Asset Office equipment
Asset Property
Asset Stock
Asset Cash in the bank
Liability Overdraft
Liability Loans
Liability Tax owing
Asset Tax rebate due
Capital Capital
Drawings Drawings
d) Adjusting Entries:
Adjusting entries, also called adjusting journal entries, are journal entries made at the end of a
period to correct accounts before the financial statements are prepared. This is the fourth step in
the accounting cycle.
e) Adjusted Trial Balance
48
An adjusted trial balance is a listing of all company accounts that will
appear on the financial statements after year-end adjusting journal entries
have been made. Preparing an adjusted trial balance is the fifth step in the accounting cycle and is
the last step before financial statements can be produced.
f) Financial Statements
Preparing general-purpose financial statements; including the balance sheet, income statement,
statement of retained earnings, and statement of cash flows; is the most important step in the
accounting cycle because it represents the purpose of financial accounting. In other words, the
concept financial reporting and the process of the accounting cycle are focused on providing
external users with useful information in the form of financial statements. These statements are the
end product of the accounting system in any company. Basically, preparing these statements is
what financial accounting is all about.
Preparing general-purpose financial statements can be simple or complex depending on the size of
the company. Some statements need footnote disclosures while other can be presented without
any. Details like this generally depend on the purpose of the financial statements. For instance,
banks often want basic financials to verify the company can pay its debts, while the SEC required
audited financial statements from all public companies. Financial statements are prepared by
transferring the account balances on the adjusted trial balance to a set of financial statement
templates. We will discuss the financial statement form in the next section of the course.
g) Accounting Worksheet:
An accounting worksheet is a tool used to help bookkeepers and accountants complete the accounting
cycle and prepare year-end reports like unadjusted trial balances, adjusting journal entries, adjusted
trial balances, and financial statements.
h) Closing Entries:
Closing entries, also called closing journal entries, are entries made at the end of an accounting
period to zero out all temporary accounts and transfer their balances to permanent accounts. In
49
other words, the temporary accounts are closed or reset at the end of the
year. This is commonly referred to as closing the books.
i) Income Summary Account:
The income summary account is a temporary account used to store income statement account
balances, revenue and expense accounts, during the closing entry step of the accounting cycle.
J) Post-Closing Trial Balance:

The post-closing trial balance is a list of all accounts and their balances after the closing entries
have been journalized and posted to the ledger. In other words, the post-closing trial balance is a
list of accounts or permanent accounts that still have balances after the closing entries have been
made.
4.3 Accounting Department of the Branch:
The accounts department is responsible for the entire accounting process of the organization
regarding transaction accounting system, preparing financial statements. The account department
reserves the each type of documents of the branch and account officer performs financial &
accounting activities related to collecting, recording, analyzing & presenting accounting practices
in organization. There are only three officer working in this department. Because accounting
software helps the account officers as well as the bank to do their task smoothly.
4.4 Account System Maintenance:

Dutch Bangla Bank Limited normally maintains its accounting system in four different
departments these are given below:
1. Accounts Department
2. Customer Service Department
3. Credit Department
4. Foreign Exchange Department
4.4.1 Accounts Department
50
The accounting department’s main functions are recording and reporting
the cash flows, accounts receivable, accounts payable, payroll, financial
controls, financial reporting.
4.4.2 Direct payment of General Expense

When any general expense is paid directly then the journal entry is made in that fashion:
Payment of general expense (particular head) Dr

Cash/Pay order/Customer account Cr
4.4.3 Advance of Direct Payment

When any general expense is paid before its actual period which means in advance then the bank
will pass this journal entry:
Advance payment of general expense (particular head) Dr

4.4.4 Expire of Certain Period
If a certain period of advance payment expires then the bank will pass this journal entry:
Particular expense Dr.

Advance payment Cr
4.4.5 After expiring the Full Period

When the period of advance payment becomes fully expired then the bank will write this journal
entry:
Adjusted account/expense head Dr.

4.4.6 Payment of Provision/ Particular Period

When the bank pays the amount of provision of a particular period then it will pass this journal
entry:
Adjusting account Dr
General expense/particular head Cr
51
4.4.7 After Expiring of Full Provision Period
When the bank pays the whole amount of provision which means after
expiring of full provision period the bank passes this journal entry:
General expense Dr
Cash/Pay order/customer account Cr
4.5 Customer Service Department
4.5.1 Opening of Account
First job of Customer service is to open account of client’ as per nature of operation and clients
requirements. There is prescribed form to apply for opening of account. By fulfilling the form the
operation starts.
Cash: In cash department the following books of records are maintained:
 Main Cash Book

 Tellers’ Cash Book
Main cash book shows the total cash movement and the tellers’ cash book show the detail cash
movements (Receive and Payments) of Tellers’. In computerized recording system a print out of
“Cash Journal” to be obtained after closing of the day’s transaction. It will show a summary of
Cash Transactions and detail of cash movements by Tellers.
4.5.2 Cash Deposit

Cash can be deposited to the customer’s account either by deposit slip or for P.O., DD., TT, and
for any other purpose:
4.5.3 Cash Withdrawal by cheque

Customer’s account Dr
Cash Cr
Vat entry in customer’s journal book:
52
Vat account Dr.
Customer’s account Cr.
4.5.4 Deposit of Tax/ Excise Duty deducted at Source
Amount of Tax deducted from the interest of FDR and Excise Duty would be deposited to
Bangladesh Bank through TR challan and report on that need to be submitted to the Tax Authority.
Income tax on Interest Dr

P.O/ BBK Cr
Excise Duty Dr
P.O/ BBK Cr
4.5.5 Payment at maturity

At maturity FDR amount is paid to the client with interest after deducting @10% Tax on interest.
Interest paid on Fixed Deposit (Amount of interest) Dr

Fixed Deposit (Amount of interest) Cr
Fixed deposit (Amount of tax) Dr
Income tax on interest Cr
Fixed Deposit (Amount of excise duty) Dr
Excise duty Cr
Fixed Deposit (FDR + Interest – Tax - Excise Dr

duty)
4.5.6 Internal Transfer

On request of the customer bank may transfer the fund from one account to another account. This
transfer could be made by the written request or by issuing cheque in favor of the beneficiary
account. The journal entry will be like this:
Customer’s a/c Dr
Beneficiary a/c Cr
4.5.7 Prize Bond
53
Prize Bond is purchased from Bangladesh Bank and Bank sells it to the
public on cash. Entry will be like this:
Prize Bond Dr
BBK a/c Cr
(Entry on sale to the public)
Cash/Customer’s a/c Dr
Prize Bond a/c Cr
4.5.8 Clearing House Operation

When cheques are received on account of Customers’ a/c. for collection. On the next day all
cheques are placed before the clearing house of Bangladesh bank. This is called Out-ward
Clearing. Same day in the clearing house the Clearing Man receive the cheques drawn by the other
bank. That is called In-ward Clearing.
After 1st clearing the following entries are passed:
(Entry for Out-Ward and In-Ward clearing Cheques in the book of collecting branch)
Bangladesh Bank a/c Dr

Exchange for Clearing a/c Dr
BAL general a/c Cr
Exchange for Clearing Cheques Cr
After 2ndclearing the following entries are passed:

Clients’ a/c Dr
BAL general a/c Dr
Exchange for clearing cheques Cr
4.5.9 Collection of Local Bill/Cheque

Two items are used for collection of local bills. They are given as follows:
54
OBC (Outward Bills for Collection): When one branch sends the cheques
to another branch for collection of the proceeds that is called OBC. Contra
entry to be passed on sending the cheques for collection:
Customer’s Liability OBC a/c Dr

Banker’s Liability OBC a/c Cr
(Entry of getting payment from collecting branch)
Banker’s liability OBC a/c Dr
Customer’s Liability OBC a/c Cr
(Entry for payment after collection)
BAL General a/c or BBK a/c Dr
Customer’s a/c Cr
Postage a/c Cr
Commission a/c Cr
4.5.10 Local Remittance
Sale of Pay Order (P.O) & amp, Demand Draft (D.D):
Cash account/ Customer’s account Dr

Pay Order Cr
Commission Cr
4.5.11 Credit Department
Credit department deals with the lending of the bank. There are the following broad head of loan
and advances in a bank.
1) Loan
2) Overdraft
3) Cash Credit
4.5.11.1 Loan
Loan can be sanctioned to a customer in a lump sum amount. Repayment of loan may be fixed in
installment or in a lump sum amount within the expiry period with interest. There will be Auxiliary
ledgers of each head of Loan and Customer wise Subsidiary ledger for each category of loan. There
will be three types of loan short term, middle term and long term.
(For sanctioning loan)
Loan a/c of concerned customer Dr

Customer’s current a/c / savings a/c Cr
55
4.5.11.2 Overdraft (OD)
Overdraft is sanctioned to the customer in their OD account with a drawing limit up to certain
amount. Journal entry will be like this;
Overdraft Dr
Interest on OD Cr
4.5.11.3 Cash Credit
Banks very often make advances against Hypothecation/Pledge of Goods, Products and
Merchandise. These advances are known as cash credit.
(Disbursement of cash credit)
Customer’s cash credit Dr

Cash/ Pay Order Cr
4.5.12 Foreign Remittance
It covers the transaction relating to foreign exchange Out-ward/ In-ward Telegraphic Transfer
(FTT), Draft (FDD), Cheques (Bank’s and individual’s) and Travelers’ cheque (T.C).
Issuance FDD
Cash Dr
Exchange Transaction Cr
Foreign Currency (USD) Dr
FDD payable (USD) Cr
Commission on FDD Cr
4.6 Analysis of Accounting Policy of Dutch Bangla Bank Limited:
Accounting Policy:
Accounting policies are the specific principles, rules and procedures implemented by a company's
management team and are used to prepare its financial statements. These include any methods,
measurement systems and procedures for presenting disclosures. Accounting policies differ
56
from accounting principles in that the principles are the accounting rules
and the policies are a company's way of adhering to those rules.
4.6.1 GAAP (Generally Accepted Accounting Principles)
GAAP is a combination of authoritative standards (set by policy boards) and the commonly
accepted ways of recording and reporting accounting information.
4.6.2 BAS Method by ICAB:
Presentation of Financial Statements

Inventories
Statement of Cash Flows
Accounting Policies, Changes in Accounting
Estimates and Errors
Events after the Reporting Period
Construction Contracts
Income Taxes
Property, Plant & Equipment
Leases
Revenue
Employee Benefits
4.7 Accounting System:

1. How Dutch Bangla Bank Limited Ltd. Follows Double Entry System:
There are two different ways to memorize the effects of debits and credits on accounts in the double
entry system of bookkeeping. They are the Traditional Approach and the Accounting Equation
57
Approach. Irrespective of the approach used, the effect on the books of
accounts remains the same, with two aspects (debit and credit) in each of
the transactions.
2. How Dutch Bangla Bank Limited Ltd. Follows Cash Entry Accounting System:
There are five main method of cash entry system followed by Dutch Bangla Bank Limited Ltd.
The critical functions consist of:
1. Reporting all financial transactions for each student activity account within the overall
fund. An accounting of all cash receipts and cash disbursements must be maintained.
2. Categorizing financial transactions into the correct student activity account of the fund.
3. Summarizing transactions on a periodic basis and reporting on the summary both
individually to each activity sponsor and on the consolidated school-wide basis to the
Accounting Services Department;
4. Ensuring the establishment of an audit trail for all transactions.
5. Reconciling the transactions of the student activity fund to an independent source (typically
a monthly bank statement) to ensure that the amounts were accounted for correctly.
3. How Dutch Bangla Bank Limited Ltd. Follow Accrual Accounting System:
a) Breaking Down 'Modified Accrual Accounting
The modified accrual method of accounting costs less to maintain than full accrual accounting.
b) Modified Accrual Accounting Method in Government
The Government Accounting Standards Board (GASB), which is recognized as the official
source of generally accepted accounting principles (GAAP) for state and local governments,
establishes modified accrual accounting standards.
c) Breaking Down 'Modified Cash Basis
Because both accounting methods have limitations, a business may use a modified cash method
to develop what it feels is a more accurate picture of its finances.
4.8 Reporting Practices of Dutch Bangla Bank Limited
Dutch Bangla Bank Limited reports its Financial Statement according to Bangladesh Accounting
Standard (BAS) 1 “Presentation of Financial Statements”. Where it includes:
 A statement of financial position at the end of the period,

 A statement of comprehensive income for the period,
 A statement of changes in equity for the period
58
 A statement of cash flows for the period
4.9 Accounting Practices System Guide of DBBL
In recent years the broker-dealer industry has undergone significant change. These changes add
challenges for broker-dealers assessing their operations and internal controls for regulatory
considerations. The 2017 edition gives you the up-to-date industry-specific guidance you need to
be able to tailor your operations with the most current standards and regulations. From new best
practices to interpretive guidance to industry-specific considerations, this guide has you covered.
This edition offers "best practice" discussion of industry-specific issues such as fair value
accounting and related disclosures, as well as compliance with regulatory requirements. Further,
new guidance on initial margin has been approved in accordance with applicable AICPA
requirements. Key Features and Benefits:
 Coverage of regulatory updates from key industry regulators (SEC, CFTC, and FINRA).
 Illustrative sample compliance report and sample exemption report.
 Comprehensive examples of financial statements, disclosures, and supplementary schedules.
 Discussion and interpretive guidance associated with industry specific financial reporting and
regulatory compliance.
4.10 Software Being Used In Dutch Bangla Bank Limited, Halishahar Branch:
Dutch Bangla Bank Limited, Halishahar Road branch uses the software named “Flora” software.
Flora software is a very popular software is being used in various renowned bank. Here’s some
description & uses of it below:
4.10.1 Flora Software
Kiosk software is the system and user interface software designed for an interactive flora or
Internet flora software locks down the application in order to protect the flora from users. Flora
software may offer remote monitoring to manage multiple kiosks from another location.
4.10.2 Flora Software Features:
59
It is critical that the flora software prevent the user from ever reaching the
desktop or file system. This type of security can be difficult because
standard print dialog allows the content to be printed to a file and enable the user access to the file
system. The same is true for many email links that load the default email tool and allows the email
to be saved to a file.
1. If the flora includes a keyboard, the flora software must also disable all problematic specialty
keys and keystroke sequences such as Control-Alt-Delete.
2. With browser-based or Internet kiosks, the standard browser menus must be disabled
because these provide too much configuration control to the user. It is important to prevent
the user from accessing URLs not applicable to the function of the kiosk. This can be
accomplished by hiding the address bar and incorporating domain and page blocking into
the flora system software or browser lockdown software. Custom toolbars and navigation
options are often a feature utilized by flora software.
3. Oftentimes, a touch screen keyboard is used in place of a physical keyboard. The touch
screen "virtual" keyboard is often built into the flora software and have custom design
options.
4. Additional feature sets of flora software include external devices (allowing for barcode
readers, credit card readers, proximity mats, or retractable printing)
5. More advanced deployments may also utilize management features such as usage, statistics,
health & content management.
6. One critical feature of flora software is the ability to clear the cache, user history and data
between uses and users. This prevents users from accessing private data and protects both
the device & the user from unauthorized data access.
4.10.3 Advantages & disadvantages of Flora Software
Advantages:
1. Large screen for navigation.

2. More Ad space (Revenue)
3. Flora's location specific Ads.
60
Disadvantages:
1. Regular maintenance at intervals.

2. Initial hardware cost
3. High installation & authorization cost.
4.10.4 Many banks worldwide rely on flora Solutions for
 Account management, maintenance, openings and cancellations.

 Credit card automation, application processing, credit scoring and risk approval, financial
screenings, credit card approvals, transactions.
 Loan requests, approvals and post approval activities for mortgage loans, personal loans,
car loans and private enterprise loans.
61
Chapter Five
Summary of the Findings,
Recommendations
&
Conclusion
62
5.1 Summary of the Findings:
1. Dutch Bangla Bank Limited uses Flora banking Software.
2. The accounting department’s main functions are recording and reporting the cash flows,
accounts receivable, accounts payable, payroll, financial controls, financial reporting.
3. DBBL follows accounting cycle properly.
4. Every year DBBL submits Statement of Asset & Liability, Government Deposits and
Government Borrowings, Break-up of Bills and Bonds, statement of E-banking and E-
commerce, Interest Rates of NFCD and statement of Income, Expenditure and Profitability
to Bangladesh Bank.
5. DBBL accounting information system functions are accurate and reliable.
6. DBBL maintains Bangladesh Accounting Standards (BASs) and Bangladesh Financial
Reporting Standards (BFRSs) accordingly.
7. The IT section of the branch helps them to protect the accounting system form various
threats like hacking.
8. The branch office has accounting practices at limited scale. Most of the financial statements
are prepared from the Head office of the bank.
9. AIS through computerized systems makes accounting jobs more easier which can compile
financial, tax and payroll data and other book keeping functions with very short time in
bank.
10. Accounting practices of the branch are mostly dependent on the computerized systems.
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5.2 Recommendations:
Though Dutch Bangla Bank Limited tries to give the best customer support, they have some lake
and linkage compare to other bank of the same generation. The recommendations for this report
are‐
1. Accounting system should be developed by using centralized system as they use

decentralized web based transaction and data storing system.
2. There should be accounting practices at the branch level with proper facilities.
3. DBBL should maintain accounting policy.
4. Need to follow orientation process properly.
5. The system of online banking should be updated.
6. There should be separate training programs at the branch level for the employees who have
less understanding about Accounting Systems and less proficient in running relevant
software/applications.
7. Information should be available for internship students.
8. Accounting software should be developed.
64
5.3 Conclusion:
Dutch Bangla Bank Limited Ltd. invests comparatively more funds in profitable businesses. It
has been operating its activities with great success and been able to make positive contribution to
the economy of Bangladesh by virtue of its devoted and expert personnel. Dutch Bangla Bank
Limited Ltd is considered to be specialized in Financial Operation. That is exactly why within a
very short period of time, Dutch Bangla Bank Limited Ltd. has positioned itself one of the leading
bank in Bangladesh.
Dutch Bangla Bank Limited is one of the most promising private commercial banks in
Bangladesh. Every day Dutch Bangla Bank Limited makes an effort to increase its product and
services although it provides a wide range of product and services. It is aimed at providing high
quality financial service to contribute and the growth of industrialization, boosting up export,
creating employment opportunity for the educated youth, raising standard of living of limited
income group and overall sustainable socioeconomic development of the country.
65
References
 Books
 Accounting Principles and Practice by S. Hall.
 Interpretation and application of generally accepted accounting principles by

Joanne M. Flood.
 Documents
 Statement of Affairs, Prepared by accounts section of Halishahar Branch.
 Various information’s supplied by Dutch Bangla Bank Limited, Halishahar Branch,
Chittagong.
 Dutch Bangla Bank Limited Corporate Intranet.
 Annual Report of DBBL 2013-2017.
 Websites
 http://www.dhakabankltd.com.bd/
 www.bangladeshbank.org.
 Websites of other banks.
 Articles
 https://www.researchgate.net/publication/310765190_Accounting_Practice_and_Fin
ancial_Reporting_Quality_Evidence
 http://journals.sagepub.com/doi/abs/10.1177/14614456030054003
66

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Chapter One

Internship Program of International Islamic University of Chittagong is a Graduation requirement

 To get and organize detail knowledge on the job responsibility.

1.3 Objectives of the Study

1. To expose an accounting practices of Dutch Bangla Bank Ltd, Halishahar Branch.

1.5 Methodology of the Study

1.5.1 Secondary Sources

a. Annual Report of Dutch Bangla Bank Limited from 2013-2017.

1.6 Limitations of the Study

2.3 Corporate Information

Name of the Bank Dutch Bangla Bank Limited

2.7 Corporate values

2.8 Corporate Social Responsibility

2.8.2 Disaster Relief

a. Among Dutch Bangla Bank’s contribution as corporate social responsibility, a few

2.8.3 Social Welfare

a. Renovation of the auditorium of Dhaka Reporters Unity.

a. Sponsored the city beautification program initiated by Dhaka City Corporation by

2.10 Management Information System

i. Human Resources Department.

2.11.1 Human Resources Department

2.11.2 Central Accounts Department

2.11.3 Operations Department

2.11.4 Credit Department

2.11.5 Investment Department

2.11.7 Global Trade Services

2.11.8 Audit and Risk Management Division

2.11.9 Information Technology Department

2.11.10 Dutch Bangla Bank Training Institute

2.12 Business Units

i. Small & Medium Enterprise (SME)

2.12.1 Small & Medium Enterprise (SME)

2.12.3 Personal Banking

2.12.3.1 Interest Rate Paid to Different Deposit Liabilities

2.12.3.2 New Product and services

2.12.4 Islamic Banking

2.12.5 Information Technology

2.12.6 International Trade and Foreign Exchange

2.12.7 Capital Market Services

2.13 Management Structure of Dutch Bangla Bank Limited

2.2.1 Owner’s Level

2.2.2 Executive’s Level

Managing Director (MD)

Executive Vice President

Senior Vice President

Senior Assistant Vice

Assistant Vice President

First Assistant Vice President

2.2.3 Officer’s Level

Senior Executive Officer (SEO) Executive Officer (EO)

Senior Officer Principal Officer (PO)

Officer Probationary Officer

Assistant Officer Junior Officer

Trainee Assistant Officer

2.2.4 Management Hierarchy of Dutch Bangla Bank Limited

Principal Senior Officer Junior Assistant Trainee

2.14 About Halishahar Branch

3.3 Basis of Preparation and Significant Accounting Policies

3.3.1 Basis of accounting

3.3.4 Valuation of investment

The basis of valuation of investment has been shown as under:

Items Applicable Accounting Value

3.3.5 Loans and advances

The classification rates are given below: