National University

Gazipur, Bangladesh

INTERNSHIP RESEARCH REPORT ON

“Foreign Exchange Transactions of
First Security Islami Bank Ltd”

Submitted To:
Controller of Examination
National University
Gazipur-1704

Supervised By:
Md. Tushar Hossain, Lecturer
Department of Business Administration
Southern Institute of Business and Information Technology (SIBIT),
Jessore

Submitted By:
Refat Rahman
Roll: No: 41
Exam Roll: 1300213
Reg. No.: 2099729
Session: 2012-13
Major: Finance
Department of Business Administration (BBA)

Southern Institute of Business and

Information Technology (SIBIT), Jessore
Date of Submission: 23/01/2018
INTERNSHIP RESEARCH REPORT ON

“Foreign Exchange Transactions of

First Security Islami Bank Ltd”

i
 Letter of Transmittal

23rd January, 2018

To
Md. Tushar Hossain
Lecturer
Department of Business Administration
Southern Institute of Business and Information Technology
Jessore

Subject: Submission of Internship Report on Foreign Exchange Transactions

of First Security Islami Bank Ltd.

Sir,
It gives me enormous pleasure to submit the internship report on “Foreign Exchange
Transactions of First Security Islami Bank Ltd” as per the Advisor’s instruction. I
expect this report to be informative as well as comprehensive.

Working in First Security Islami Bank Ltd. was an inspiring experience for me. I feel the
immense knowledge and experience will facilitate me a lot in my future career life. With
my limited knowledge, I have tried my level best to prepare the report worthwhile.

Your acceptance and appreciation would surely inspire me. For any further
explanations about the report, I will be gladly available to clarify the ins and outs.

Sincerely Yours,

-------------------------------------
Refat Rahman
Exam Roll: 1300213
Reg. No.: 2099729
Course: BBA
Session: 2012-13
Major: Finance

ii
 Letter of Endorsements

The Internship Research Report entitled “Foreign Exchange Transactions in

First Security Islami Bank Ltd” has been submitted to the Controller of
Examination, National University, Gazipur, in partial fulfillment of the requirements for
the degree of Bachelor of Business Administration (BBA), Major in Finance,
Department of Business Administration of 2012-13 Session by Refat Rahman, Exam
Roll: 1300213, Reg. No.: 2099729. The report has been accepted and may be
presented to the Internship Defense Committee for evaluation.
(Any opinions, suggestions made in this report are entirely that of the author of the
report. The University does not condone nor reject any of these opinions or
suggestions).

______________________
Md. Tushar Hossain
Internship Supervisor & Lecturer
Department of Business Administration
Southern Institute of Business and Information Technology
Jessore

iii
 Acknowledgement

Thanks to Almighty Allah for blessing to completing the report within the schedule
time. I am indebted to a whole lot of people for their kind recommendation,
submission, direction, Co-operation and their collaboration.

It is my pleasure to them and my grateful appreciation goes to FSIBL’s authority for

rendering me their expertise, knowledge and giving me the opportunity of having a
practical experience through this internship program.

I would like to show my gratitude towards Md. Saidur Rahman, Md. Sahnewaz
Anower of General Banking Department and Md. Abu Noman and Shaidur Rahman
of Foreign Exchange Department and all the staff of First Security Islami Bank
Limited, Jessore Branch who co-operate with me friendly. They have explained
everything I asked for in details. Throughout time they were never impatience. They
did not allow me to feel uncomfortable for even a single moment. I am really grateful
to all for their supportive and friendly behavior.
I would like to give Special thanks to my dear friend SN Alahi and Farzana Naznin
other interns in First Security Islami Bank Limited, Jessore Branch, who helped
me a lot and provided me useful information about the Foreign Exchange Transaction,
Remittance and General Banking.

iv
 Executive Summary
Today’s business world is dynamic and competitive therefore organizations looking
for Talent, extrovert graduates who belong to high degree of adaptability quality.
Today’s business graduates will be the core part of business organization. Therefore,
business graduates need to have both theoretical & practical knowledge to manage the
business activity properly. In order to be familiar with organizational culture and to
gain some practical knowledge about an organization our Department provides a (90
days) Ninety days internship program as a part of the BBA program.

First Security Islami Bank Ltd. is one of the best & secure private banks in
Bangladesh. It started its operation as a commercial bank on the 25th October, 1999
with a branch at Dilkusha. Now a day it has 84 branches all over the country. This
report is based on the “Foreign Exchange Transactions in First Security Islami
Bank Ltd.”

This report is divided in to two parts. The first part of the report describes
Organization Overview or Profile of the Organization.

The second part of the report is divided in few parts. Those are Introduction to the
Report/Study, and Methodology of the Study, Analysis and Interpretation of the Data,
Findings of Study, Recommendations, and Conclusions

In Introduction part of the report describes Rationale of the Study, Statement of the
Problems, Scope and Delimitation of the Study, Objectives of the Report/Study &
Review of Related Literature part of the report describes about where the other
information is collected to complete the report such as Book, Reports, Journals, and
Studies.

In Methodology of the Study part of the report describes the methods used in data
collection, sources of data (primary or secondary), number and type of respondents,
observation, if any, statistical application, use of graphics, tables, etc.

v
In Analysis and Interpretation of the Data part of the report describes the basis of
the data and information collected which are usually presented in tables, matrices and
graphs, analysis and interpretation can be made. Some implications, explanations or
justification should be made why this obtaining situation exist. The sequence of the
analysis should be made based on the statement of the Problems or Objectives of the
study. Some Issues and Problems can be an offshoot of the analysis and interpretation.

In Findings of Study part of the report specific significant findings of the study after
the analysis and interpretation of the Data have been made.

In Recommendations of the report are suggestions based on the findings of the study
for improvement or sustainability of the organization, strengthening of the systems
and procedures, possible revision of policies, and other relevant suggestions. All
suggestions must be based on the study and not just personal perception, hypothetical
or arbitrary)

The last part is Conclusions of the report are specific and direct answers to the
questions in the statement of the problems or objectives of the study.

vi
 Table of Contents
Title Page i
Letter of Transmittal ii
Letter of Endorsements iii
Acknowledgment iv
Executive Summary v-vi
Table of Contents vii
Body of the Report
Part – I 01
Organization Overview of First Security Islami Bank Limited 02
Background of First Security Islami Bank Limited 02
Vision 03
Mission 03
Strategy Statement 03
Objective of the FSIBL 04
Company Information 04
Organogram of First Security Islami Bank Limited 06
Hierarchy of First Security Islami Bank Limited 07
Product & Service of FSIBL 08
Financial Highlight 10

Part – II 11
Chapter 1: Introduction 12
1.01 Rationale of the Study 12
1.02 Statement of the Problems 12
1.03 Scope and Delimitation of the Study 13
1.04 Objectives of the Study 13
1.05 Review of Related Literature 14
Chapter 2: Methodology of the Study 15
2.01 Primary Data Sources 15
2.02 Secondary Data Source 15

vii
Chapter 3: Analysis and Interpretation of the Data 16
3.01 Foreign Exchange 16
3.01.01 Authorized Dealer Branches 17
3.01.02 Authorized Money Exchange 17
3.01.03 Legal basis of Foreign Exchange Transaction 17
3.01.04 Functions of Foreign Exchange Department 18
3.02.05 Foreign Trade 18
3.01.06 Role of Foreign Trade in Economic Development 19
3.01.07 Sale and Payment term in Foreign Exchange Business 19
3.01.08 Letter of Credit 20
3.01.09 General condition of import of goods 26
3.01.10 The Mechanism of Letter Of Credit is as follows 29
3.02 Import 30
3.02.01 Import Trade Control 30
3.02.02 Import Policy 30
3.02.03 Importer 31
3.02.03 Regulations behind Import 32
3.02.04 Registration of Importer 32
3.02.05 Import Procedure 33
3.02.06 Common discrepancies of the imported document 34
3.02.07 Financing related with Import 35
3.03 Export 36
3.03.01 Export Policy 36
3.03.02Export Incentives 36
3.03.03 Export procedures 37
3.03.04 Documents needed for export procedure 38
3.03.05 Export documentary checking 39
3.03.06 Types of Payment 40
3.03.07 Export Financing 42
3.03.07 Export Flow Chart 44
3.04 Foreign Remittance 45
3.04.01 Types of Remittance 45

viii
3.05 Evaluation of company performance 47
3.05.01 Analysis of Total Assets 47
3.05.02 Analysis of Total Capital 48
3.05.03 Analysis of Shareholders Equity 49
3.05.04 Analysis of Liabilities 49
3.05.05 Analysis of Import 50
3.05.06 Analysis of Export 50
3.05.07 Analysis of Foreign Remittance 51
3.05.08 Analysis of Total Foreign Exchange 51
3.05.09 Analysis of No. of Foreign Correspondent 52
3.06 Risk assessed in Foreign Exchange Business 52
3.06.01. Identifying Risk 52
3.06.02. Measures of controlling risk 53
Chapter 4: Findings of Study 53
Chapter 5: Recommendations 54
Chapter 6: Conclusion 55
References 56
Appendix 57

ix
Part - I

1
Organization Overview of FSIBL
Background of First Security Islami Bank Limited:
First Security Islami Bank Limited (FSIB) was incorporated in Bangladesh on 29
August 1999 as a banking company under Companies Act 1994 to carry on banking
business. It obtained permission from Bangladesh Bank on 22 September 1999 to
commence its business. The Bank carries banking activities through its 84 branches in
the country. The commercial banking activities of the bank encompass a wide range
of services including accepting deposits, making loans, discounting bills, conducting
money transfer and foreign exchange transactions, and performing other related
services such as safe keeping, collections and issuing guarantees, acceptances and
letter of credit.

From January 01, 2009 bank has converted into islami Shariah based banking system
instead of conventional banking system. The bank has constituted a Sariah council
consisting prominent Ulama, bankers, lawyer and Economists to advice and guide on
the implementation of islami Sariah in business activates.

All the 84 Branches are computerized. Among them 62 Branches are under
distributed server environment, other are running with our Core Banking Software
(CBS). All the Branches will be migrated from distributed server to CBS. FSIBL has
already started their on-line, SMS and ATM banking facilities for their clients. FSIBL
will add mobile banking and e-banking facilities within short period of time.

Diversification of products and services and innovation of products suited to the

needs of the customers in keeping with relevant rules and laws have made it different
from other commercial banks of the country. The general image is that it is the
“Symbol of Security”.

In 31st December 2011 the authorized capital of the bank was BDT Tk.4, 600.00
million and paid up capital was TK. 3, 400.00 million. By the end of 2008 the paid up
capital was BDT 1000,000,000. The consent of IPO was 4th June, 2008. The Bank
entered Initial Public Offering (IPO) on July 20th, 2008.

2
 Vision
FSBL mission is to provide banking services to our valued clientele with utmost
proficiency & sincerity reinforced by an efficient workforce and the latest state of the
art technology.

Mission
The Mission of FSBL is to always strive to achieve superior financial performance, be
considered a leading Islamic Bank by reputation and performance.

  To contribute the socio-economical development of the country.

 To attain highest level of satisfaction through extension of services by
dedicated and motivated professional.
  To maintains continuous growth of market share ensuring quality.
  To ensure ethics and transparency in all levels.
 To ensure sustainable growth and establish full value of the honorable
 shareholders and
 Above all, to add effective contribution to the national economy.

Strategy statement
 To strive our customers best satisfaction & win their confidence.

 To manage & operate the bank in the most effective manner.

 To identify customers’ needs & monitor their perception towards meeting
those requirements.

 To review & updated policies, procedures & practices to enhance the ability to
extend better customer services.

 To train & develop all employees & provide them adequate resources so that
the customers’ needs reasonably addressed.

 To promote organizational efficiency by communicating company plans
policies & procedures openly to the employees in a timely fashion.

 To ensure a congenial working environment.

 To diversify portfolio in both retail & wholesale markets.

3
 Objective of the FSIBL
  We are aggressive in business and self-driven
  We empower people, create leaders and drive change
  We treat people with respect and dignity
 Commitments to build high-trust relation with customers and to ensure
 customer delight
  We focus on managing risks and costs in order to be doubly profitable
 We act in ways that reflect the highest standards of integrity

Company Information

Name of the Company First Security Islami Bank Ltd.

Chairman Mohammad Saiful Alam

Vice Chairman Alhaj Mohammad Abdul Maleque

Managing Director A.A.M. Zakaria

Company Secretary Abdul Hannan Khan

Legal Status Public Limited Company

Date of Incorporation August 29, 1999

Date of Commencement of Business August 29, 1999

Date of Permission from Bangladesh September 22, 1999

Bank

Date of Opening of First Branch October 25, 1999

Registered Office House- SW(I) 1/A, Road-8, Gulshan-1,

Dhaka-1212, Bangladesh

Line of Business Banking

Authorized Capital Tk.4,600 Million

Paid up Capital Tk. 3,400Million

Date of consent of IPO 04 June 2008

Phone 88-02-9888446 (Hunting),

9565594/9554208 (IT Division)

4
Fax 880-02-9891915

E-mail bcs@fsiblbd.com , info@fsiblbd.com

Website www.fsiblbd.com
SWIFT FSEBBDDH
Auditors Syful Shamsul Alam & Co .
Chartered Accountants
Table 1: Company Information

5
Organogram First Security Islami Bank Limited

Board of
Directors

Executive Policy Board Board Audit

Committee of Committee of Secretariat Cell
the Board the Board

Managing
Director

Senior D.M.D Corporate Research &

Executive Vice Affairs Development
President Division

H.R.D
Marketing Credit
Division Committee
F.A.D

Investment
Division General
Service
Division
International
Division

Monitoring
&
Treasury Unit Inspection
Division

Public Relation
Computer
Division
Division

Figure 1: Organ gram First Security Islami Bank Limited

6
 Hierarchy of First Security Islami Bank Limited
\
\

Managing Director (MD)

Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

First Assistant Vice President (FAVP)

Senior Executive Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Officer

Junior Officer (JO)

Assistant Officer (AO)

Figure 2: Hierarchy of First Security Islami Bank Limited

7
 Product & Service of FSIBL
Deposit Scheme

  Al-Wadiah Current Deposit

  Mudarabah Savings Deposit @ 6.00%
 Mudarabah Term Deposit
o One Month @ 11.00%
o Three Months @ 12.50%
o Six Months @ 12.50%
o Twelve Months @ 12.50%
o Twenty Four Months @ 12.50%
o Thirty Six Months @ 12.50%
 Mudarabah Term Deposit @ 7.50%
  Foreign Currency Deposit
  Mudarabah Savings Scheme
  Monthly Savings Scheme
  Monthly Profit Scheme
  More than Double the deposit in 6 years
 Consumer Finance Scheme

Bank also emphasizing on non-fund business and fee based income. Bid bond/ bid
security can be issued at our customer's request.

FSIBL is posed to extend L/C facilities to its importers / exporters through

establishment of correspondent relations and Nostro Accounts with leading banks all
over the world.

Investment / Deployment of Funds:

  Bai-Murabaha (Deferred Lump Sum/ Installment Sale)
  Bai-Muajjal (Deferred Installment / Lump Sum Sale)
  Ijara (Leasing)
  Musharaka (Joint-Venture Profit-Sharing)
  Mudaraba (Trustee Profit-Sharing)
  Bai-Salam (Advance Sale and Purchase)
  Hire-Purchase
  Direct Investments
  Post Import Investment
  Purchase and Negotiation of Export Bills
  Inland Bills Purchased
  Murabaha Import Bills
  Bai-Muajjal Import Bills
  Pre Shipment Investment
 Quard-ul-Hasan (Benevolent Investment)

8
 Letter of Guarantee

  Tender Guarantee
  Performance Guarantee
  Guarantee for Sub-Contracts
  Shipping guarantee
  Advance Payment guarantee
  Guarantee in lieu of Security Deposits
  Guarantee for exemption of Customs Duties
 Others

Letter of Credit (L/C) / Back to Back Letter of Credit (L/C)
Specialized Schemes
  Consumer Investment Scheme,
  SME Investment Scheme,
  Lease Investment Scheme,
  Hire Purchase,
  Earnest Money Investment Scheme,
  Mortgage Investment,
  Employees House Building Scheme,
 ATM, VISA Investment Card, EEF, etc.
Service
  Online Banking
  SMS Banking
  Lockers
  Utility Bills
 ATM Banking


















 Financial Highlight
First Security Islami Bank Limited
Financial Highlight
For the year ended 31 December 2010
(Amount in Million TK)
Sl. No Particulars 2008 2009 2010
01 Authorized Capital 4,600.00 4,600.00 4,600.00
02 Paid-up Capital 2,300.00 2,300.00 3,036.00
03 Shareholders Equity 2,538.57 2,865.41 3,920.01
04 Total Capital 2,862.19 3,379.03 4,582.21
05 Total Assets 31,239.00 47,978.55 63,619.79
06 Total Liabilities 28,700.82 45,113.14 59,699.78
07 Deposits 42,423.09 42,423.09 56,344.95
08 Total Investment & Advances 25,094.65 38,725.87 52,123.90
09 Total Contingent Liabilities 4,611.28 5,971.67 8,859.66
10 Total Risk Weight Asset 17,356.54 31,113.43 50,423.90
11 Total Fixed Asset 184.36 376.47 573.61
12 Operating Income 572.78 1,327.63 2,085.20
13 Operating Expenditure 383.17 576.79 881.60
14 Profit before provision & Tax 189.60 750.88 1,203.60
15 Profit Before Tax 189.60 646.83 983.60
16 Net Profit After Provision & Tax 104.28 326.83 548.60
17 Foreign Exchange Business 14,017.84 20,208.92 35,103.57
a. Import Business 9,287.00 16,101.17 28,391.20
b. Export Business 4,145.00 3,549.00 5,868.90
c. Remittance 585.84 558.75 843.47
18 No. of Foreign Correspondent 235 240.00 240.00
19 Profit Earning Asset 28,529.06 41,371.52 56,040.95
20 Non Profit Earning Asset 2,710.32 6,607.02 7,578.84
21 Investment as a % of total Deposit 96.39% 91.28% 92.51%
22 Capital Adequacy Ratio 9.15% 10.91% 9.09%
23 Dividend :
Cash Nil Nil Nil
Bonus Nil 10% 12%
Right Share Nil Nil 20%
24 Cost of fund 11.37% 9.28% 8.90%
25 Earning Per Share (EPS) 7.35 1.42 2.33
26 Price Earning Ration (time) 23.74 15.39 17.49
27 Return On Assets (ROA) 0.61% 1.56% 1.89%
28 No. of Shareholders 1,29,174.00 54,400.00 82,230.00
30 Number of Employees 458.00 775.00 929.00
31 Number of Branches 29.00 52.00 66.00
Table 2: Financial Highlight

10
Part - II

11
 Chapter 1
1.0 Introduction
1.01 Rationale of the Study:
Foreign Exchange Transaction is very important for business. Most of the Foreign
Exchange Transaction is done by Bank. So it is very important for banking business
also. In banking business there are lots of tasks in Foreign Exchange Transaction
those are Export, Import, and Remittances etc. The implication of the Foreign
Exchange Transaction is very essential to achieve the organizational goal. As I am a
student of Finance & Accounting, by this report I want to know -
 To know the Foreign Exchange Transaction of First Security Islami Bank Ltd.

 How to Export tasks are doing by the Bank?

 How to Import tasks are doing by the Bank?

 What are the other Remittances in Commercial Bank?
And Finally I have maked this report because it was an academic requirement of my
BBA program.

1.02 Statement of the Problems

It’s a short time to understand details about Foreign Exchange Transaction and I am
not directly doing all these tasks practically. Other hand I do not get these kind of
experience form our in past and also it’s different from our course out line. I have
observing in a few days. It’s not easy to do everything within a few months even
Bank Officers are facing problems because of day by day new system are updating.
Regarding the preparation of the report, it has been tried to focus on identifying the
following matters:
 Determination of the present state of Foreign Transaction of FSIBL

 The problems that a FSIBL faces during Foreign Transaction

 Problems of making documents

 L/C related to it and it’s procedure
Without these, many important things will also expect to come over through this
report.

12
 1.03 Scope and Delimitation of the Study
The study has basically covered the followings—
 Theoretical aspects of the new integrated rules & regulations of the
foreign exchange business.

 Current Payment procedures exercised by FSIBL

 Categorization of different types of income from foreign exchange transaction.

 Rationale behind deploying the new system.

 Practical orientation of the proposed system.

1.04 Objectives of the Study

The primary objective of the study will be to meet compulsory requirements of
submitting a report which is an integral part of the Internship Program focusing on all
the workings and understanding I want to gather during my attachment in FSIBL. The
document will also been focused to capture an overall view of the Foreign Exchange
Transactions performed by FSIBL.

The Secondary objectives of the report would encompass the following:

 To obtain an overall view of the current foreign exchange transaction

performed by FSIBL – Jessore Branch.

 To gather knowledge of existing procedures regarding L/C opening ,L/C
Advising, L/C Confirmation ,Reimbursement Authorizations , Payment
Instructions , Export Bill Collections, Negotiation etc.

 To focus on the problems associated with the foreign exchange business in
FSIBL – Jessore Branch.

 To document the Schedule of charges in the case of foreign exchange business.


 To highlight on various issues regarding the calculation of different rates like
BC selling rate ,TT/OD selling & buying rates, TT clean ,TT (Doc) , OD sight

13
 export , Usages Export bills selling rates, Forward rates to public, Cash &
Travelers Cheques buying & selling rate ,cross rates &Libor rates etc.

 To recommend for further improvement of the proposed system.

1.5 Review of Related Literature

To complete the report I have to Review of Related Literature those are –
1. A book of “Islamic Banking by Dr. Norhashimah Mohd Yasin
2. Observation of Previews Report on General Banking & Investment of FSIBL
3. Journal of Islami Economics Banking & Finance - Volume 6, Number 3 July
– September 2010 (Islami Bank Training & Research Academy)
- M. Kabir Hassan, Ph.d

14
 Chapter 2
2.0 Methodology of the Study
This report is basically based on the topic named “Foreign Exchange Transactions
of First Security Islami Bank Ltd” (In case of Commercial Bank). Since I did my
internship program on this particular department, therefore, in preparing the report I
concentrated on the issues exclusively focused by FSIBL in this project. The report is
based on both Primary & Secondary data that means on the support documents related
to “Foreign Exchange Transactions of FSIBL – Jessore Branch”. Moreover my
three months’ practical orientation in FSIBL Jessore Branch and visit to FSIBL ex-
head office in Dilkhusha & (Gulshan Branch – New Head Office) also helping me to
have a very concrete idea regarding the procedures and the related issues as well.

2.01 Primary Data Sources

During the completion of this report, I relied mainly on the primary data. The tools
used for the collection of primary data are observations, interviews, File inspections
& Internal Records.
 Personal observation

 Personal Interview

 File inspection

 Internal Records
To get primary data I also performed some practical work
2.02 Secondary Data Source
The secondary data was mainly used for as a background material and for purpose of
reference. The major sources of secondary data were the annual report 2009 & 2010;
other printed material of the Bank and internet played a vital role as a source of
secondary data.
 Annual Report of FSIBL

 Audit Reports

15
  Website

 Internet and various study selected reports.

Chapter 3
3.0 Analysis and Interpretation of the Data
3.01 Foreign Exchange

The term Foreign Exchange has different connotations in different contexts. Foreign
Exchange is a process which is converted one national currency into another and
transferred money from one country to other countries.

According to Mr. H. E. Evitt. Foreign Exchange is that section of economic science

which deals with the means and method by which right to wealth in one country's
currency are converted into rights to wealth in terms of another country's currency.

In terms of section 2(d) of the foreign Exchange Regulation (FER) Act 1947, as
adopted in Bangladesh, foreign exchange means foreign currency and includes any
instrument drawn, accepted, made or issued under clause 13 of article 16 of the
Bangladesh Bank Order, 1972, all deposits, credits and balances payable in any
foreign currency and draft, travelers cheques, letter of credit and bill of exchange
expressed or drawn in Bangladesh currency and payable in any foreign currencies.

The business of foreign exchange is getting increasingly complex and intensely

competitive. However, in the backdrop of phenomenal growth of Bangladesh’s
external sector, foreign exchange business provides a challenge as well as an excellent
opportunity to accelerate growth of bank’s own business. This is the Institution that
facilitates international trade payment as banking channel is the way of settlements.
Besides, banks meet the other need of foreign exchange transactions of the people of
the country as they are authorized to deal in foreign exchange upon receipt of
permission from Central Bank under Foreign Exchange Regulation Act. All exports

16
 and imports are executed through the intervention of banks. Side by side, they provide
funded and non funded credit facility in execution of International Trade.

3.01.01 Authorized Dealer Branches

Bangladesh bank has issued licenses to certain branches of our bank to deal in foreign
exchange. These branches are known as authorized dealer branches. Licenses to deal
in foreign exchange are normally granted only to scheduled banks which have offices
in Bangladesh after satisfying that they have adequate number of staff/officers
properly trained in handling foreign exchange transactions and will be able to comply
fully with requirements of the administration to exchange control. No other person
except the authorized dealer can deal in foreign exchange.

3.01.02 Authorized Money Exchange

Licenses are also granted by Bangladesh Bank to persons or firms to exchange foreign
currency instruments such as T, C, and currency Notes and Coin. They are known as
authorized moneychangers. They are not, however, authorized to make any other
transaction in foreign exchange. The authorized Moneychangers are, however,
required to deposit the foreign exchange encased by them with an Authorized Dealer
at Official rate and submit Returns of such purchase and deposit of foreign currency
notes, T/CS etc. to Bangladesh Bank.

3.01.03 Legal basis of Foreign Exchange Transaction

Foreign exchange transactions are performed under some legal regulations, as
follows:
 Foreign Exchange Regulation Act – 1947

 Import and Export Control Act- 1950

 Customs Act-1969

 Import Policy Issued by Ministry of Commerce

17
  Export Policy Issued By Ministry of Commerce

 International Rules Issued by International Chamber of Commerce (ICC)/
Uniform Rules and Practices

 Different Foreign Exchange Circulars issued by Bangladesh Bank

3.01.04 Functions of Foreign Exchange Department

Foreign Exchange Department performs many functions to facilitate the foreign
exchange transactions. These are:
 Facilitating Import Trade

 Facilitating Export Trade

 Providing Funded and Non-funded Credit Facility.

 Provide Non Commercial Remittance

 Maintaining Foreign Currency Accounts

 Selling of Foreign Currency Bond

 Rate of Exchange

 Preparation and Submission of Statements

3.02.05 Foreign Trade

Foreign Trade is defined as the exchange of goods and services between nations.
Goods can be defined as finished products as intermediate goods used in producing
other goods or an agricultural products and foodstuffs. International trade enables a
nation to specialize in those goods it can produce most cheaply and efficiently. Trade
also enables a country to consume more than it would be able to produce if it depends
only on its own resources. Finally foreign trade enlarges the potential market for the
goods of a particular economy. Foreign Trade has always been the major force behind
the economic relations among nations.

When two countries adopt a direct import and export relationship then bilateral trade
occurs and when countries deal worldwide there is multilateral trade. In international
trade the values in terms of money are never equal. The balance of trade payments

18
 refers the difference between the monetary value of exports and imports of output in
an economy over a certain period of time. It is the relationship between a nation’s
imports and exports. A favorable balance of trade is known as a trade surplus and
consists of exporting more than is imported; an unfavorable balance of trade is known
as a trade deficit or informally, a trade gap.

3.01.06 Role of Foreign Trade in Economic Development

 Foreign Trade is an important stimulator of economic growth. It enlarges
countries consumption capacities, increase world output and provide access to
scarce resources and worldwide markets for products without which poor
countries would be unable to grow.

 International trade tends to promote greater international and domestic
equality by equalizing factor prices, raising real income of the trading
countries and making efficient use of each nation’s and the world’s resource
endowments.

 In a world of free trade, international prices and costs of production determine
how much a country should trade in order to maximize its national welfare.

 Finally to promote growth and development, an outward-looking international
policy is required. In all cases, self-reliance based on partial or complete
isolation is asserted to be economically inferior to participation in a world of
unlimited free trade.

3.01.07 Sale and Payment term in Foreign Exchange Business

Every Foreign trade transactions are the result of a sale contract between the seller &
buyer. In a sale contract seller agrees to sell & buyer agrees to buy a specified
quantity of goods on terms of mutually agreed upon.

A sale contract incorporates a number of terms and conditions relating to the various
aspects of the deal, the most important among them being the terms relating to the
place & mode of delivery, the terms of payments of freight & insurance charges, the
mode of payment for the goods, prices, quality, quantity and the period of supply of
the goods to be bought & sold.

19
 The payment term shows where & how payment will be effected. It has five principal:
1. Cash in advance
2. Letter of credit
3. Drafts
4. Consignment
5. Open account

Cash in advance
The buyer places the funds at the disposal of the seller prior to shipment of the goods
or provision of services. It involves maximum risk to exporter used where there are
political unrest goods made to order new unfamiliar customer.

Letter of credit
The documentary credit or letter of credit is an undertaking issued by a bank on
account of buyer (the applicant) or for its own behalf to pay the beneficiary the value
of the draft and/or documents provided that the terms and conditions of the
documentary credit are compiled with.

Drafts are unconditional order in writing showing exporter’s order for importer to pay
at once (sight draft) or in future (time draft) including three functions are clear
evidence of financial instrument (i.e. may be converted to a banker’s acceptance)

Open account is an arrangement between the buyer and the seller whereby the goods
are manufactured and delivered before payments is required. The benefits of open
accounts are greater flexibility in making a trade and lower transactions costs. On the
other hand, the major disadvantage is highly vulnerable to government currency
controls.

3.01.08 Letter of Credit

Letter of Credit is a guarantee or undertaking or commitment to the
beneficiary/exporter for making payment issued by the issuing bank on behalf of the
importer upon fulfillment of some conditions. Central Banks, therefore assure these
things to happen simultaneously by opening Letter of Credit guaranteeing payments

20
 to seller and goods to buyer. By opening a Letter of Credit on behalf of buyer in favor
of seller, commercial banks undertake to make payments to a seller subject to
submission of documents drawn on in strictly compliance with Letter of Credit terms
giving title of goods to the buyer. It is a conditional guarantee. The Letter of Credit
thus constitutes one of the most important methods of financing foreign trade.

Parties involves in L/C

Buyer/Applicant Who applies for L/C
Issuing Bank It is the bank which open/issues a L/C on behalf of the
importer
Advising/Notifying It is the bank through which the L/C is advised to the
Bank exporters. This bank is actually situated in exporter’s country.
It may also assume the role of confirming and/or negotiating
bank depending upon the condition of the credit.
Seller/Beneficiary The party, normally supplier of the goods, in whose favor the
L/C is opened
Confirming Bank It is the bank which adds its confirmation to the credit and it is
done at the request of issuing bank. Confirming bank may or
may not be advising bank.
Negotiating Bank It is the bank, which negotiates the bill and pays the amount of
the beneficiary. The advising bank and the negotiating bank
may or may not be the same. Sometimes it can also be
confirming bank.
Accepting Bank It is the bank on which the bill will be drawn (as per condition
of the credit). Usually it is the issuing bank.
Paying/Reimbursing It is the bank, which would reimburse the negotiating bank
Bank after getting payment-instructions from issuing bank.
Table 3: Parties involves in L/C
Types of Letter of Credit
There are many types of Letter of Credits that are used in different countries of the world.
But International Chamber of Commerce (ICC) vides their UCPDC- 500, which denotes
only two types of LETTER OF Credits; mentioned
 Revocable Letter of Credit

 Irrevocable Letter of Credit

21
Revocable Letter of Credit - If any letter of credit can be amendment or charge of any
clause or canceled without the consent of the exporter and importer is known as
revocable letter of credit. It can be amended or canceled by the issuing bank at any
time without prior notice to the beneficiary. It does not constitute a legally binding
undertaking by the bank to make payment. Revocable is possible only until the
documents have been honored by the issuing bank or its correspondent. Thus a
revocable credit does not usually provide adequate security for the beneficiary.
Irrevocable Letter of Credit - If any letter of credit cannot be changed or amendment
without the consent of the importer and exporter is known as irrevocable letter of
credit. It constitutes a firm undertaking by the issuing bank to make payment. It
therefore, gives the beneficiary a high degree of assurance that he will be paid to his
goods or services provide he complies with terms of the credit.
In the issuance of Irrevocable Letter of Credit both the Issuing and Conforming Bank
have some liability, mentioned bellow, as per UCPDC -500.

The following types of Letter of Credits are used in the FSIBL, Jessore Branch:
 Sight L/C
Sight L/C means payment is immediately made to the beneficiary on
presentation of the stipulated documents and on condition that all the terms of the
credit have been compiled with. It is advantageous to the exporter as he can get the
payment quickly.
 Deferred L/C
Under a deferred L/C the beneficiary does not receive payment when his
presents the documents but at a later date specified in the credit. On presenting the
required documents, he received the authorized banks written undertaking to make
payment of maturity. In this way the importer gains possession of the documents
before being debited for the amount involved.
 Back to back L/C
Back-to-Back L/C is a type of import L/C either in inland or in abroad, which
open against lien on valid export L/C. In our country in export of garments, this
method of finance is widely used and is very well known to the manufactures of
garments. Suppose Bangladeshi exporter received an irrevocable L/C for supply of
readymade shirts, from an American Bank. For manufacture of the ordered shirts the

22
 exporter does not have the required raw materials. To execute the order he is to
import raw materials from Korea. Then the Bangladeshi exporter will have to open an
import L/C favoring Korean supplier for import of fabrics and accessories. The L/C is
opened by the Bangladeshi bank lien against the American Banks L/C. under bonded
warehouse system.
Documents needed from Importer for opening L/C
 Prescribed L/C Application and Agreement form duly stamped and signed

 A set of LCAF duly filled & signed

 IMP form in duplicate duly signed

 Proforma Invoice (PI) Indent duly accepted

 Marine Insurance Cover Note along with original Money Receipt in case of
import under CFR/FOB

 Valid membership Certificate from a registered local Chamber of Commerce
& Industries or any registered association where the respective Importer
belongs

 IRC evidencing payment of fee for current year i.e. duly renewed

 Tax Identification Number (TIN) Certificate

 PSI related papers (where PSI) required

 Papers/documents for import of any special items as required as per Import
Policy

 Letter of Authority to recover Bank’s Charges & Margin from Importer’s
Account

 Necessary Charges Documents duly stamped & signed
Procedure of opening L/C
There are some steps involves in L/C process. These are describing here below.
The importer and exporter have made a contract before opening a L/C.
The importer applies for a L/C from his banker known as the issuing bank. He
may have to use his credit lines.
The issuing bank opens the L/C that is channeled through its overseas
correspondent bank, known as advising bank.
The advising bank informs the exporter of the arrival of the L/C.

23
 Exporter ships the goods to the importer or other designated place as
stipulated in the L/C.
Meanwhile the exporter also prepares his own documents and collects
transport documents or other documents from relevant parties. All these
documents will be sent to the banker, which is acting as the negotiating bank.
Negotiation of export bills happens when the banker agrees to provide him
with finance. In such case he obtains payment immediately upon presentation
of documents. If not the documents will be sent to the issuing bank for
payment or on an approval basis as in the next step.
Documents are sent to the issuing bank for reimbursement or payment.
Issuing bank honor it’s undertaking to pay the negotiating bank on condition
that the documents comply with the L/C terms and conditions.
Issuing bank releases documents to the importer when the letter makes
payment to the former or against the letter of trust receipt.
The importer takes delivery of goods upon presentation of the transport documents.
Important features of an L/C
 Charges

 Country of origin of goods

 Currency and amount

 Date and place of expiry of the Documentary credit

 Description of goods and quantity

 Documents required for negotiation

 Instruction for negotiating bank

 Last date of shipment

 Letter of credit authorization (LCA) number, IRC (Import Registration
Certificate) number and Harmonized System (H.S.) Code

 Mode of carrying –Air/Ship/Truck

 Name and address of beneficiary, advising bank, the applicant & issuing bank
and branch

 Number of letter of credit and date of opening

 Payment term-sight/Deferred

24
  Period of negotiation & presentation

 Port of loading and port of discharge

 Reimbursing bank and payment mode

 Terms and conditions regarding transshipment and partial shipment

 Insurance clause & B.L clause

 Other clauses as required as per Import Policy Order and as per contract
executed in between buyer and seller
Documents used in Documentary Credit
1. Bills of Lading
2. Airway Bill
3. Truck Receipt
4. Commercial Invoice
5. Bills of Exchange
6. Insurance Cover Note
7. Inspection certificate
8. Certificate of Origin
9. Packing List
10. Proforma Invoice

Bills of Lading
Bills of Lading are showing ‘shipped on board’ and it has to be properly endorsed to
the bank. A bill of lading specified states that goods are loading for ultimate
destination specifically mentioned in the credit. It also constitutes a document that is,
or may be, needed to support an insurance claim.

Commercial Invoices
It has to be verified that the commercial invoice has been properly drawn and signed
by the beneficiary according to the terms and conditions of L/C.

Bills of Exchange
The most important instrument in international trade by which seller can obtain the
payment from the buyers for the invoice value of goods is bill of exchange.

25
Inspection Certificate
This is usually issued by an independent inspection company located in the exporting
country certifying or describing the quality, specification or other aspects of the
goods, as called for in the contract and/or the L/C. the buyer who also indicates the
type of inspection he wishes the company to undertake usually nominates the
inspection company
Packing List
This is unique documents and not combined with other documents. This is a listing of
the contents of each package, cartoon etc. and other relevant information.

Insurance Document:
Insurance is a contract whereby the insurer is undertaking to indemnify the assured to
the agreed manner and extent against fortuitous losses.

Proforma Invoice
Proforma Invoice (PI)/indent are the sale contract between seller and buyer in export-
import business. There is slight difference between indent and PI. The sales contract,
which direct correspondence between importer and exporter, is called Proforma
Invoice (PI). On the other hand, there may be an agent of exporter in importer’s
country. In this regard, if the sale contract is occurred between the agent of at
importer and exporter then it is called indent.

Certificate of Origin
A certificate of origin is a signed statement providing evidence of the origin of the
goods. The chamber of commerce of the importing country usually issues this
certificate.

3.01.09 General condition of import of goods

Import Trade Control Schedule Number

26
For import purpose, use of ITC Number (H.S. Code) with at least six digits
corresponding to the classification of goods as given in the Import Trade Control
Schedule 1988, based on the
Harmonized Commodity Description and Coding System shall be mandatory. The
seven Digit H.S. Code published by Bangladesh Bureau of Statistics may also be
mentioned in the Letter of Credit. Form, Letter of Credit and other relevant paper
within a bracket in addition to normal H. S. Code as mentioned above. No bank shall
issue Letter of Credit Authorization form or open Letter of Credit without properly
mentioning I. T. C. number (H. S. Code) thereon.
NOC (No Objection Certificate) On the basis of ROR (Right of Refusal)
a. No Objection Certificate on the basis of Right of Refusal (ROR) form any authority
shall not be required for import of any freely importable item by any Public Sector
agency.
b. In case of import of banned/restricted items for approval projects financed under
foreign aid the concerned Government Department/Agency will approach the Chief
Controller of the Import and Export directly for necessary permission together with a
list of items duly certified under proper seal and signature giving description,
quantity/number, price and H.S. Code Number against each item required to be
imported. The details about the aided project and specific provision of the relevant
contract and other necessary information shall also have to be furnished along with
the list of the items. The Chief Controller shall issue permission /permit on the basis
of above documents.

Restriction regarding source of procurement of goods

a. Goods form Israel or goods originating from that country shall not be importable.
Goods also not are importable in the flag vessels of that country.
b. All kinds of import form and export to Serbia and Montenegro, fragments of

former Socialist Republic of Yugoslavia, shall be banned.

Pre-shipment inspection
Unless otherwise specified, pre-shipment inspection of imported goods shall not be
obligatory in case of import by private sector importers.

Shipment of Bangladesh Flag Vessels

27
 a. Goods weighing up to 20 MT for import by individual importer and up to 100
MT import by group importers can be shipped on a non Bangladeshi vessel.
While exceeding said quantity shipment to be made on Bangladeshi vessel,
otherwise general waiver from the Director General, Shipping Directorate to
be obtained.
b. In case of import and export of goods by export oriented industries shipment
may be made in non-Bangladeshi flag vessel

Import by Mentioning “Country of Origin”

1. In all cases of import, “country if origin shall be mentioned clearly on goods,
package/container. A certificate regarding “country of origin” issued by the concerned
Government agency/approved authority/organization of the exporting country must be
submitted, along with import documents to the Customer Authority at the time of
release of goods.. Besides, 100% export oriented industries, which are recognized by
Custom Authority, shall be waived from the restriction of “country of origin” subject
to the conditions imposed by the Foreign Exchange Regulation Act, Bangladesh Bank
and Commercial bank.
2. In case of import of Limestone, in different consignments/lot by the rope-way
or by river, as raw-materials for Chattak Cement Factory, “country of origin”
certificate from the exporting country’s Government/approved authority/organization
shall be submitted once to the Customs authority at the time of release of goods,
instead of each consignment/lot for the quantity mentioned in Letter of Credit in case
of river way and as per supplied carrying list as case of rode-way.

28
3.01.10 The Mechanism of Letter Of Credit is as follows:

INDENTOR

confirms
n
d

o
a

r
/
BUYER/ SELLER/ BENEF ICIARY

IMPORTER EXPORTER/
Present doc

Advises
oacppAit
Mak esdocpay mumeentnts aga ins t

ucodmbuSti nemt

Makes payment
il
LgnneporoiC/
fn

Issue L/C
ADVISING BANK/
NEGOTIATING BANK
ISSUING BANK

Forward Pays or
Ins rrut eictmboni urotsepayor

Markets

FIG: FOREIGN EXCHANGE MECHANISM

Or

REIMBURSING
BANK

Figure 3: The Mechanism of Letter Of Credit is as follows

29
3.02 Import
Import is the purchase of foreign goods and services from abroad by Consumer,
Firms, Companies Government, and Semi-Government organization in Bangladesh. It
is an international Trade. It is also called Cross-Border Transaction.
3.02.01 Import Trade Control
Physical imports of goods into Bangladesh are regulated by the ministry of
commerce. Govt. of Bangladesh in accordance with Import Control Act 1950 and
public notifications issued there under from time to time, through the Chief Controller
of Imports & Exports (CCIE) while Bangladesh Bank through its Exchange Control
Dept. Controls the financial aspects, such as payments for imports, rates of exchange,
methods of remittances against imports, under the provision of F.E.R. Act 1947.

On the other hand the customs authorities at the import points physically supervise the
imports of goods and ensure that the items of goods imported are permissible under
I.T.C. regulations before release of the same for consumption in the country on
payment of import duty, sales taxes etc. where applicable.

Imports of goods from South Africa and Israel or goods originated from these two
countries & on Flag Vessels of Taiwan, South Africa and Israel is prohibited.

3.02.02 Import Policy

Import Policy of the Govt. is embodied in the Import Policy order issued by the Govt.
at the end of June or at the beginning of each financial year in July. The CCIE
announces the Import Policy covering various aspects of imports during the relative
shipping periods. The import Policy order covers the following main issues:

A. Items eligible for imports during the shipping period including list of banned
items.
B. Sources of finance and items permissible for import against:
1. Cash foreign exchange;
2. Foreign aids/credits/grants/barter and under
3. Wage Earner's Scheme/Secondary Exchange Market Scheme.

30
C. The Procedure for imports by Industrial consumers, commercial importers and
actual users, including formation of groups by smaller importers.
D. Basis of licensing for the category holders of various permissible items including
repeat licensing procedure.
E. The dates of opening of L/C and shipment and procedure for submission of Letter
of Credit authorization (LCA) forms covering various items of imports.
F. Conditions for entry of new comers into Import Trade.
G. Conditions for Import by established Importers and Industrial consumers.
H. Procedure for imports under O.G.L., if any.
I. Import by TCB and other Govt. Agencies.
J. Validity of licenses with regard to L/C opening and shipment thereof.
K. Rules relating to revalidation of license (LCA FORM) and extension of L/C.
L. Change of items by the commercial Importers.

Before going to discuss the task of import section of the AB Bank Limited, here I
have given the types of importer and import procedure at first.

3.02.03 Importer
The person who deals in import business obtaining Import Registration Certificate
(IRC) in terms of Importers, Exporters and Indentors (Registration) Order-1981 from
the CCI & E is treated as Importer.
Types of Importer
There are mainly two types of importer on which FSIBL deals with. They are:
1. Commercial importer
It means an importer registered under the importer, exporters and Indenters
registration under 1981 that import goods for sale. When issued to a commercial
importer, gives the category held by him ITC classification and public notice
against which they are admitted into import trade.
2. Industrial Importer
When issued to an industrial customer gives the items of import raw materials and
packing materials and spare parts, the value of entitlement and ITC classification.

31
 3.02.03 Regulations behind Import
Import of goods and services and payment there against are mainly regulated by
Bangladesh Bank under the purview of following rules and regulations:
1. Foreign Exchange Regulation Act-1947
2. Import & Export (Controls) Act-1950
3. Importer, Exporters and Indentors (Registration) Order-1981
4. ICC Publication-UCPDC-600
5. Import Policy Order issued periodically by the Ministry Of Commerce
6. Public Notices issued time to time by the office of the CCI& E.

3.02.04 Registration of Importer

As per import and export control act, 1950, no person can indent, import or export
any goods into Bangladesh except in case of exemption issued by the government of
Bangladesh.

The first thing one need to carry out a business of import is called Import Registration
Certificate (IRC). But registration is not required for import goods, which do not
involved remittance of foreign exchange like medicine; the users within monetary
limit can import reading materials etc. without registration.

Procedure for obtaining Import Registration Certificate

Through public notice or import policy the Chief Controller of Imports and Exports
invites applicants usually for registration of importers.

The following papers are required for submission to CCI and E

 Valid Trade license

 Income tax clearance Certificate, Nationality Certificate, Asset Certificate

 TIN Certificate, Bank Solvency Certificate, VAT Registration Certificate

 Trade Association Certificate

 Memorandum & Articles of Association

 Certificate of Incorporation ( Incase of Limited Company)

32
 Persons exempted from registration
The following persons/items don’t require IRC for Import
 Government Department

 Local Authorities and Autonomous Bodies

 Recognized Education Institutions

 Hospitals

 Import of goods for which no Foreign Exchange Remittance is required

 Import of Capital Machinery and initial Spares to set up a new industry
This registration number is invariable required to mention in IMP form, LCAF, L/C
etc. Importers must be known to AD (Authorized Dealer).

3.02.05 Import Procedure

To import through AB Bank Limited a customer/credit required a set of document
which is to be produce before the concerned official of the foreign department. The
following are the required documents:
1. Bank Account
2. Import Registration Certificate (IRC)
3. Tax paying Identification Number (TIN)
4. Proforma Invoice/indent
5. Membership certificate
6. L/C application form duly attested
7. One set of IMP form
8. Insurance cover note with money receipt
9. Others
The procedures that follow at the time of imports are as follows:
 The buyer and seller conclude a sale of contract provided for payment by
documentary credit.

 The buyer gives an instruction to his bank (the issuing bank) to issue a credit
in favor of the seller----

 The issuing bank then send message to another bank (advising bank) usually
situated in the country of seller, advice or confirm the credit issue.

33
  The advising bank then informs the seller through his bank that the credit has
been issued.

 As soon as the seller receives the credit, if the credit satisfies him then he can
reply that, he can meet his terms and conditions, he is in position to load the
goods and dispatch them.

 The seller then sends the documents evidencing the shipment to the bank
where the credit is available; this can be the issuing bank or confirming bank.
Bank named in the credit as the paying, accepting and negotiating bank.

 The bank then checks the documents against the credit. If the documents meet
the requirements of the credit, the bank then pay accept or negotiating
according to the terms of credit.

3.02.06 Common discrepancies of the imported document

The followings are the discrepancies usually found in the documentary operation;

1) Inadequate number of invoice.

2) Submission of shipping documents after expiry of L/C
3) Late shipment.
4) Stale documents.
5) Excess drawing.
6) Shipping made from and to ports other than those permitted in the relevant
L/C
7) No indication of “ freight prepaid”
8) Difference in weight in the invoice and with certificate.
9) Specification of goods are not as per terms of L/C
10) Short submission of documents.
11) LCA no. Bangladesh bank permission no are not mention in the invoice.
12) Goods short shipped etc.
The above discrepancies must be carefully noted and referred to the Importer for
acceptance other wise bank would be liable for any problems arising out of them.

34
3.02.07 Financing related with Import
 Loan Against Imported Merchandise (LIM)
Parties who are not in position to retire the documents, they maybe allowed to retire
the PADs through LIM Account on retaining sufficient margin n the landed cost of
the goods or as prescribed by Bangladesh Bank. Even if they are reluctant to provide
aforesaid margin, goods may be allowed to be cleared through LIM account under
forced circumstances to same the consignment form incurring demurrage, pilferage,
and auction and to protect the interest of the Bank.

 Loan Against Trust Receipts (LTR)

Advances against a Trust Receipt obtained from the Customer are allowed to only
first class tested parties when documents covering an import shipment of other goods
pledged to the
Bank as scrutiny are given without payment. However, for such advances prior
permission/sanction form Head Office must be obtained. The customer holds the
goods or their sale –proceeds in trust for the Bank, till such time, the loan allowed
against the Trust Receipts is fully paid off.

 Collateral Security
Collateral security valuing double of the amount of LTR is to be obtained. Any
exception to this rule requires approval by Head Office.

35
3.03 Export
Export means goods and services that are produced domestically and sold to buyers in
another country. Export brings foreign currency in the economy. Higher the export
higher the reserved of foreign currency, the exports department of FSIBL, Jessore
Branch engage with various export-related activities for encouraging the exporter.
The major function of this section is comprises with purchase, collection and
negotiate the export bill, provide the exporter export financing and helps the exporter
in different issues.

3.03.01 Export Policy

Export policies formulated by the ministry of commerce, GOB provide the guidelines and
incentives for promotion of export in Bangladesh. Export policies also set out commodity
wise annual target. It has been decided to formulate these policies to cover a five year
regime. The export-oriented private sector, through their representative bodies and
chambers are consulted in the formulation of export policies and are also represented in
the various export promotion bodies set up by the government.

3.03.02Export Incentives
 Financial Incentives
o Restructuring of export credit guarantee scheme
o Convertibility of Taka in current account
o Exporters can deposits 40% of FOB value of their export earning in
own accounts in dollar and pound sterling
o Export development fund
o Expansion of export period from 180 days to 270 days
o Tax rebate on exports earning
o Duty draws back

36
 o Bonded warehouse facilities to 100% export oriented firms
o Duty-free import if capital equipment for 100% export oriented firs

 General Incentives:

o Trading course on external trade
o Arrangement of international trade fairs, commodity-based exhibits in
the country and participation in foreign trade fair
 Other Incentives:

o Assistance in improvement of quality and packing of exportable items.
o Simplification of exports procedures.

3.03.03 Export procedures

The import and export trade in our country are regulated by the import and export
control act 1950 under the export policy of Bangladesh the exporter has to get valid
Export Registration Certificate (ERC) from Chief Controller of Import & Export (CCI
& E). The ERC is required to renew every year.
i. Registration of exporters:
For obtaining ERC intending Bangladeshi exporters are required to
apply to the controller/joint controller/deputy controller/assistant controller of import
and export, in the prescribed form along with the following documents:
Nationality and assets certificate
Memorandum and Articles of Association and Certificate of
Incorporation in case of Limited company
Bank certificate
Income tax certificate
Tax certificate
ii. Securing the order:
After getting ERC the exporter may proceed to secure the export
order. He can do this by contracting the buyer and directly or through agent. In this
purpose the exporter may get help from:
License officer

37
 Buyer’s local agent
Export promoting organization
Bangladesh Mission Board
Chamber of Commerce
Trade Fair etc.
iii. Signing the contract
After communicating buyer, exporter has to get (writing or oral) for
exporting exportable items from Bangladesh detailing commodity, quality, price,
shipment, insurance and marks, inspection and arbitration etc.
iv. Receiving Letter of Credit
After getting the contract for sale, exporter should ask the buyer for
Letter of Credit clearly starting terms and conditions of export and conditions of
export and payment (here the regulatory framework is foreign exchange regulation of
B. Bank & UCPDC 600 published by ICC):
The terms of the L/C are in conformity with those of the contract
The L/C is an irrevocable one preferably confirmed bye the advising
bank
The L/C allows sufficient time for shipment and negotiation.
Terms and conditions should be stated the contract in case of other mode of payment:
Cash in advance
Open account
Collection basis
v. Procuring the materials
After making the deal and on having the L/C opened in his favor the
next step for the exporter is to set about the task of procuring or manufacturing the
contracted merchandise.
vi. Shipment of Goods
Then the exporter should take the preparation for exporting
arrangement for delivery of goods as per L/C and in terms prepare and submit
shipping documents for payment/acceptance/negotiation in due time.

3.03.04 Documents needed for export procedure

38
  Export Registration Certificate (ERC) from CCI & E

 L/C document

 EXP form duly signed by the exporter

 Certificate of origin

 Shipping documents

 Inspection certificate

 Packing list & Bill of Lading

 Invoice

 Transport documents

 Quality control certificate

 Customer Duty Certificate

 Bill of Exchange

3.03.05 Export documentary checking

1) General Verification
 L/C restricted or not
 Exporter submitted documents before expire date of credit 
Shortage of documents etc.
2) Particular Verification
 Each and every document should be verified with the L/C

3) Cross Verification
 Verification of one documents to another
Parties involved in L/C, particularly the seller and the buyer cannot always satisfy the
terms and conditions in full as expected due to the some obvious and genuine reasons.
In such a situation the credit should be amended. The seller being satisfied with the
terms and conditions of the credit proceed to dispatch the required goods to the buyer
and after that have to present the documents evidencing dispatching goods to the
negotiating bank on or before the stipulated expiry date of the credit. After receiving
all the documents the negotiating bank then checks the documents against the credit.
If the documents are found in order the bank will pay, accept or negotiate to the

39
 issuing bank. The issuing bank also checks the documents and if they are found as per
credit requirement, either effects payment or reimburse in the pre-agreed manner.
Settlement means fulfill the commitment of issuing bank in regard to effecting
payment subject to satisfying the credit terms fully. This settlement may be done
under three separate agreements as stipulated in the credit. These are:
 Settlement by payment

 Settlement by acceptance

 Settlement by negotiation

3.03.06 Types of Payment

There are different types of payment method used in international trade and letter of
credit may include one of them.

 Direct cash payment

1. Direct cash remittance
Exporter may receive value of export in advance from importer before the
actual shipment of goods. This may be done by cheque, draft, and M.T. or T.T.
favouring exporters. The exporters collect the remittance and subsequently export
goods as per terms of the contract.

2. C.A.D (Cash Against Document)

Sometimes goods are exported on Cash Against Document basis. In this case
the export documents are presented to importer though a bank in the country of
importer and if the importer is satisfied with the documents he pays the bill in cash
and takes delivery of the shipping documents (B/L, Invoice, etc.).

3. Consignment sales
Goods may be exported on consignment sales basis. Exporters ship goods to
the agent who receives and sells the same ad remit sale proceeds to the exporter after
deduction of commission and other charges along with a statement called Account
Sale. The exporter retains title to the goods exported. As per exchange control
regulation only non-traditional item can be sent on consignment basis. Export of
goods on consignment sale basis request prior permission from Exchange Control
Authorities. In case of sale on consignment basis the exporter must have sufficient
knowledge regarding financial status of the agent. The exporter signs an agreement

40
with importer to act as an agent of the exporter. As in this method generally no bill of
exchange is drawn on the importer, the seller (exporter) is exposed to possible default
on the part of the importer.

4. Documentary sight draft (D/P)

This is one of the most widely used methods of case payment in export trade.
The exporters ship goods and draw a sight bill of exchange (draft) on the importers
and the same is presented to the drawee (importer) along with the shipping documents
for payment. Drawee pays the draft (bill of exchange) and takes delivery of
documents. Bank in importing country gives delivery of documents to importers only
against payment of the bill.

5. Delivery of documents against trust receipt

Sometimes drawee may take possession of the goods against "Trust Receipt"
and in this case responsibility for repatriation of export proceeds lies with the foreign
bank that allows release of the goods to the importers against Trust Receipt. In this
method exporter retains the title to the goods till the importer finally pays the bill.

6. Documentary Usance Bill

Sometimes the usance bill of exchange, which is payable after a certain fixed
period of time says, 90 d/s, 60 dld etc., is drawn on importers. Bank presents the
drafts to the drawee for acceptance. Drawee accepts the draft, which is retained by the
Bank along with shipping documents with them till payment is made in full. If goods
arrive at the port of destination, the foreign bank, at the request of exporter takes
delivery and keeps the same in warehouse. Drawee pays the accepted draft on due
date and take delivery of the documents. But the drawee may also pay the draft before
the due date and consequently take possession of the goods. In this case drawee is
entitled to some rebate at an agreed rate for the unexpired period of the draft i.e.
difference between the due date and the date of payment.

41
  Credit payment

1. Documents against Acceptance (D.A. Bill)
Sometimes drawee may take possession of the goods against "Trust Receipt"
and in this case responsibility for repatriation of export proceeds lies with the foreign
bank that allows release of the goods to the importers against Trust Receipt. In this
method exporter retains the title to the goods till the importer finally pays the bill.

3.03.07 Export Financing

Financing report constitutes an important part of a bank’s activities. Exporters require
financial services at two different stages of their export operation.

1. Pre-shipment credit
Pre-shipment credit is given to finance the activities of an exporter prior to the
actual shipment of the goods for export. The purpose of such credit is to meet
working capital needs starting from the point of purchasing of raw materials to final
shipment of goods for foreign country. Pre-shipment credit is given for the
following purposes:
 Cash for local procurement and meeting related expense

 Procuring and processing of goods for export

 Packing and transporting of goods for export

 Payment of insurance premium

 Inspection fees.
An exporter can obtain credit facilities against lien on the irrevocable, confirmed and
unrestricted export letter of credit in form of the following:

A) Export cash credit (Hypothecation)

42
 Under this agreement, a credit is sanctioned against hypothecation of the raw
materials. Such facility is allowed to the first class exporters. As the bank has
got no normally insists on the furnishing collateral security.

B) Export cash credit (Pledge)

Such credit facilities are allowed against pledge of exportable goods or raw
materials. In this case credit facilities are extended against pledge of goods to
be stored in the warehouse under bank’s control by signing letter of pledge &
other pledge document. In the event of failure of the exporter to honor his
commitment, the bank can sell the pledge merchandise for recovery the
advance
C) Export cash credit against trust receipt
Under this agreement credit is allowed against trust receipt & the exportable
goods remain in the custody of the exporter but he is required to execute a
stamped trust receipt in favor of the bank, wherein a declaration in made that
goods purchased with financial assistance of the bank are held by him in order
to utilize the credit for processing & rendering the goods in exportable
condition.

D) Packing Credit
Packing credit means any loans or advances granted or any other credit
provided by an institution to an exporter for financing the purchase,
processing, or packing of goods on the basis of L/C.

E) Back-to-back letter of credit

After receiving order from the importer very frequently exporters face
problems of scarcity of raw materials because some raw materials are not
available in the country. These have to be collected from abroad. In that case
exporter gives lien of export L/C to bank as security and opens as L/C against
it for importing raw materials. This L/C is called back-to-back L/C.

2. Post-shipment credit

43
 The need for post-shipment finance arises because exports that sell goods
abroad have to wait for a long time before payment is received from the overseas
buyers. The actual period of waiting depends on the payment terms. In the
meantime, the exporter needs funds to carry on his normal export activities. Banks
are the main source for the exporters to seek the finance.

Bank generally finances the exporters at post-shipment stage on verifying of the

credit-worthiness and financial soundness of both the buyers and sellers. Post-
shipment credit ordinarily takes the following shape.
 Negotiation of documents under L/C

 Purchase of Foreign Bill under D.P and D.A bills

 Advance against Foreign Bill under collection.

3.03.07 Export Flow Chart

Receiving the order Asking to open L/C

Booking of freight Booking of exchange rate

Procurement of goods Getting the goods insured

Shipment of goods Advice of shipment

Preparing export papers Securing payment

Close of transaction

Figure 4: Export Flow Chart

44
3.04 Foreign Remittance
Foreign remittance means remittance of foreign currencies from one place/person to
another place/person. In broad sense foreign remittance includes all sale and purchase
of foreign currencies on account of import, export, Travel and other purpose.
However specifically foreign remittance means sale and purchase of foreign
currencies for the purpose other than export and import.
On March 24, 1994 Bangladesh Taka was declared convertible for current account
International Transaction. Only a few remittance of special nature require Bangladesh
prior approval.

3.04.01 Types of Remittance

All foreign remittance transactions are grouped into two broad categories
i) Foreign inward remittance
ii) Foreign outward remittance

Inward Remittance
Inward remittance covers remittance on account of export and private remittance on
sundry items, purchase of traveler’s cheques, foreign currency notes and coins.
Actually inward remittance means remittance received in form abroad through normal
banking channel in the form of foreign TT, MT, DD, Cheques, Bills and Drafts, TCs
etc. favoring a beneficiary in Bangladesh.
Purpose of inward remittances:
Family maintenance
Indenting commission
Donation
Gift
Foreign investment Export proceeds Others

45
Mode of inward remittance
Telegraphic Transfer
(TT) Mail Transfer (MT)
Foreign Demand Draft
(FDD) Payment Order (PO)
Traveler’s Cheque (TC)

Foreign currency Notes.

Outward Remittance
The term “outward remittance” includes not only remittance i.e. sale of foreign
currency by TT, MT, Drafts, Traveler’s Cheque but also includes payment against
imports into Bangladesh and local currency credited to non-resident Taka account of
foreign banks or convertible taka account.

Mode of outward remittance:

Foreign Telegraphic Transfer (FTT)
Foreign Mail Transfer (FMT)
Foreign Demand Draft (FDD)
Traveler’s Cheque (TC) Foreign currency Notes

Local branches can draw TT to those banks with which they have accounting
relationship & message should contain test & brief description of the beneficiary. Any
Authorized Dealer (AD) branches can issue foreign drafts draw on the bank with
which they have an accounting relationship. AD branches can issue foreign currency
notes as per ceiling fixed by Bangladesh Bank.
AD branches can sale Travelers Cheques as per the ceiling fixed by Bangladesh Bank.
Foreign remittance can be cancelled such as unitized foreign currency against
passport endorsement or cancellation of loyalty issued foreign demand etc.

46
3.05 Evaluation of Company Performance
Foreign exchange business plays a crucial role in the overall business of a country.
Financial centers around the world function as anchors of trading between a wide
range of different types of buyers and sellers around the clock. In exercise of the
powers conferred by the foreign exchange regulation act 1947 certain schedule banks
authorized by the Bangladesh Bank to deal in Foreign Exchange; the selected
branches of the bank can transact such business. They are known as authorized
dealers.
For this reason FSIBL is also engaged in trade financing. I have analyzed the
performance of last three years from 2008 to 2010.

3.05.01 Analysis of Total Assets

(Amount in million TK)
Years 2008 2009 2010
Total Assets 31,239.00 47,978.55 63,619.79
Table 4: Analysis of Total Assets

Figure 5: Analysis of Total Assets

From the above figure it is clear that the volume of Total Assets is increasing
gradually and mentionable that 2008-2010 is noteworthy. In 2008 Total Assets of
FSIBL was 31,239.00 million TK, 2009 Total Assets of FSIBL was 47,978.55 million
TK and in 2010 Total Assets of FSIBL was 63,619.79 million TK.

47
3.05.02 Analysis of Total Capital
(Amount in million TK)
Years 2008 2009 2010
Total Capital 2,862.19 3,379.03 4,582.21
Table 5: Analysis of Total Assets

Figure 6: Analysis of Total Assets

From the above figure it is clear that the volume of Total Capital is increasing
gradually and mentionable that 2008-2010 is noteworthy. In 2008 Total Capital of
FSIBL was 2,862.19 million TK, 2009 Total Capital of FSIBL was 3,379.03 million
TK and in 2010 Total Capital of FSIBL was 4,582.21 million TK.

48
3.05.03 Analysis of Shareholders Equity
(Amount in million TK)
Years 2008 2009 2010
Shareholders Equity 2,538.57 2,865.41 3,920.01
Table 6: Analysis of Shareholders Equity

Figure 7: Analysis of Shareholders Equity

From the above figure it is clear that the volume of Shareholders Equity is increasing
gradually and mentionable that 2008-2010 is noteworthy. In 2008 Shareholders
Equity of FSIBL was 2,538.57 million TK, 2009 Shareholders Equity of FSIBL was
2,865.41 million TK and in 2010 Shareholders Equity of FSIBL was 3,920.01 million
TK.

3.05.04 Analysis of Liabilities

(Amount in million TK)
Years 2008 2009 2010
Liabilities 28,700.82 45,113.14 59,699.78
Table 7: Analysis of Liabilities

Figure 8: Analysis of Liabilities

From the above figure it is clear that the volume of Liabilities is increasing gradually
and mentionable that 2008-2010 is noteworthy. In 2008 Liabilities of FSIBL was
28,700.82 million TK, 2009 Liabilities of FSIBL was 45,113.14 million TK and in
2010 Liabilities of FSIBL was 59,699.78 million TK.

49
3.05.05 Analysis of Import
(Amount in million TK)
Years 2008 2009 2010
Import 9,287.00 16,101.17 28,391.20
Table 8: Analysis of Import

Figure 9: Analysis of Import

From the above figure it is clear that the volume of Import is increasing gradually and
mentionable that 2008-2010 is noteworthy. In 2008 Import of FSIBL was 9,287.00
million TK, 2009 Import of FSIBL was 16,101.17 million TK and in 2010 Import of
FSIBL was 28,391.20 million TK.

3.05.06 Analysis of Export

(Amount in million TK)
Years 2008 2009 2010
Export 4,145.00 3,549.00 5,868.90
Table 9: Analysis of Export

Figure 10: Analysis of Export

From the above figure it is clear that the volume of Export is Different and
mentionable that 2008-2010 is noteworthy. In 2008 Export of FSIBL was 4,145.00
million TK, 2009 Export of FSIBL was 3,549.00 million TK and in 2010 Export of
FSIBL was 5,868.90 million TK.

50
3.05.07 Analysis of Foreign Remittance
(Amount in million TK)
Years 2008 2009 2010
Remittance 558.75 843.47 1,011.80
Table 10: Analysis of Remittance

Figure 11: Analysis of Remittance

From the above figure it is clear that the volume of Remittance is increasing and
mentionable that 2008-2010 is noteworthy. In 2008 Remittance of FSIBL was 558.75
million TK, 2009 Remittance of FSIBL was 843.47 million TK and in 2010
Remittance of FSIBL was 1,011.80 million TK.

3.05.08 Analysis of Total Foreign Exchange

(Amount in million TK)
Years 2008 2009 2010
Total Foreign Exchange 14,017.84 20,208.92 35,103.57
Table 11: Analysis of Total Foreign Exchange

Figure 12: Analysis of Total Assets

From the above figure it is clear that the volume of Total Foreign Exchange is
increasing gradually and mentionable that 2008-2010 is noteworthy. In 2008 Total
Foreign Exchange of FSIBL was 14,017.84 million TK, 2009 Total Foreign Exchange
of FSIBL was 20,208.92 million TK and in 2010 Total Foreign Exchange of FSIBL
was 35,103.57 million TK.

51
 3.05.09 Analysis of No. of Foreign Correspondent
Years 2008 2009 2010
No. of Foreign Correspondent 235 240 240
Table 12: Analysis of Total Assets

Figure 13: Analysis of Total Assets

From the above figure it is clear that the volume of Foreign Correspondent is different
and mentionable that 2008-2010 is noteworthy. In 2008 No. of Foreign Correspondent
of FSIBL was 235, In 2009 No. of Foreign Correspondent of FSIBL was 240 and In
2010 No. of Foreign Correspondent of FSIBL was 240.

3.06 Risk assessed in Foreign Exchange Business

Risk is uncertainty of outcome leading to loss of money, loss of reputation and/or
destabilization of cash flows. It is an inherent part of foreign exchange trade and
money market operation. It never can be avoided but to minimize. Foreign exchange
risk management involves two steps:
 Identifying Risks

 Measures of controlling Risks

3.06.01. Identifying Risk

a. Credit risk/counterparty risk- It is the risk of loss due to inability or
unwillingness of the counterparty to meet its obligation.
b. Liquidity risk- Liquidity risk is the risk that a bank will be unable to meet its
funding requirements or execute a transaction quickly and at a reasonable
price.

52
 c. Market risk- There is two types of market risk as and when investment is
made in foreign currency i.e. (i) currency exchange rate risk and (ii) interest
rate risk.
d. Operational risk- operational risk can arise out of many situations i.e. on
account human error or faulty systems and procedures.
e. Other risks viz., country risk, legal risk etc.

3.06.02. Measures of controlling risk

a. Credit risk- Through selection of counter party and fixation of counter party
limits.
b. Liquidity and market risk- To minimize these types of risks we can follow a
benchmark. Currency composition, investment portfolio, duration etc. are included in
the benchmark.
c. Operational risk- To ensure the minimum level of operational risk there are
three offices/groups/desks viz. (i) front office, (ii) middle office and (iii) back office.
d. Others- open position limit:- day-light limit/intra-day-limit-overnight limit,
stop-loss limit, currency-wise limit, dealer-wise limit, country limit etc.

Chapter 4
Findings of Study
From the practical implementation of customer dealing procedure during the whole
period of my practical scope in FSIBL, Jessore Branch, I have reached a firm and
concrete conclusion in a very confident way.
The foreign exchange of FSIBL, Jessore Branch is facing the following problems
which are barrier to improve their performance and distinguish from others:

 Want of modern technical equipment such as good software & computer the
mechanism of L/C process sometimes makes complication.

 In case of big L/C payment exchange rate or fluctuation of currency create
problem which is harmful for foreign exchange business

53
  Foreign exchange house relationship & non-resident account, remittance
business is not enough than other competitor.


 According to some clients opinion introducer is one of the problems to open
an account. If a person who is new in the city wants to open an account, it is a
problem for him/ her to arrange an introducer.

 Lack of variety of service is also a drawback of the general Banking area of
the FSIBL. The bank provides only some traditional limited service to its
client. As result Bank is falling behind in competition.

Chapter 5
Recommendations

Here are the following recommendations embedded with:

 Bank will have to arrange more training program for the FOREX officers to
improve their analytical ability, communication skill & professional standard
regarding the customer dealing & different foreign exchange operation.

 For better profit than others we have to create good relationship with renewed
corporate client who have huge amount of Import & Export & remittance
business.

 Bank should make more relationship with the foreign exchange house &
special strategies will have to take for increasing non resident account,
indenting & shipping line account.

54
  The bank needs to create new marketing strategy which will attract more
clients including priority customer and thereby increase the total export import
business.

 New updated banking software should be installed for foreign exchange
department and bank should take proper step for implementation of BASEL II.

 Payments for L/C’s could also made through pre arranged credit facilities that
the customer may have with the bank. Usually the rates of interest on these
credits are excessively high which actually discourages the customers.
Reducing interest on such credit facilities would induce the clients to do more
global trade thus increasing bank’s profit as well as the well being of the
country’s economy

 Bank should consider exchange rate at the time of big payment & L/C margin
& commission should be uniform.

 There is no customer complain desk which causes dissatisfaction about
document negotiation.

Chapter 6
Conclusion
Now a day the world is called global village. Because business does not have national
boundaries, it reaches around the world. First Security Islami Bank Limited wants
to cross the nation boundaries. Already they develop a global network. FSIBL plays
an important role in our national economy. The employees of the FSIBL are well
organized. They maintain a good employee relation policy.

It was huge gratification for me to do my internship program in a venerated

organization like FSIBL, Jessore Branch. It presents me sufficient opportunity to
scrutinize the functions of bank through the superior assistance of its members.

55
 FSIBL is a company which has so far shown good performance and holds the
strongest position in the banking market. Overall the bank must make a positive
attempt to be more outward looking in their goals and aware of what is happening.

I hope in spite of my all limitations this experience of sharing works with such
working environment will help me a lot in professional life.

References:
 Gordon E. & Natarajan K. : Banking Theory, Law and Practice (Himalayan

Publishing House, 2000)

 International Trade Finance-Journal (Bangladesh institute of Bank
Management)

 Foreign Exchange – L.R Chowdhury

 Import & Export Policy – Publication of Ministry of Commerce

 Guidelines for Foreign Exchange Transaction & Documentary Credits-
Publication of Bangladesh Bank

 Banking Manual Of FSIBL

 Prospects of FSIBL

 Annual Report of FSIBL

56
Appendix

List of Tables
Table 1: Company Information 04
Table 2: Financial Highlight 09
Table 3: Parties involves in L/C 20
Table 4: Analysis of Total Assets 46
Table 5: Analysis of Total Assets 47
Table 6: Analysis of Shareholders Equity 47
Table 7: Analysis of Liabilities 48
Table 8: Analysis of Import 48
Table 9: Analysis of Export 49

57
Table 10: Analysis of Remittance 49
Table 11: Analysis of Total Foreign Exchange 50
Table 12: Analysis of Total Assets 50

List of Figures
Figure 1: Organ gram First Security Islami Bank Limited 05
Figure 2: Hierarchy of First Security Islami Bank Limited 06
Figure 3: The Mechanism of Letter Of Credit is as follows 28
Figure 4: Export Flow Chart 43
Figure 5: Analysis of Total Assets 46
Figure 6: Analysis of Total Assets 47
Figure 7: Analysis of Shareholders Equity 47
Figure 8: Analysis of Liabilities 48
Figure 9: Analysis of Import 48
Figure 10: Analysis of Export 49
Figure 11: Analysis of Remittance 49
Figure 12: Analysis of Total Assets 50
Figure 13: Analysis of Total Assets 50

58