About ICB Islamic Bank Limited

Introduction :

The Bank has been incorporated on April, 1987 as a public limited company under the Companies Act, 1913 to undertake and carry out all kinds of banking, financial and business activities, transactions and operations in strict compliance with the principles of Islamic Law (Shariah)  relating to business  activities in  particular  avoiding  usury  in credit and sales transactions  and  any practice which amounts to usury.  Certificate for commencement of business has been issued to the bank on April, 30, 1987. The Bank has been authorized by the Bangladesh Bank to carry on the banking business in Bangladesh with effect from May 4, 1987. However, actual banking operations commenced on May 20, 1987.

Nature of Business :

All kinds of commercial banking services are provided by the bank to the customers observing the provisions of the Bank Company Act 1991, Bangladesh Bank's directives and the principles of Islamic Shariah.

Significant Accounting Polices Basis of Accounting :

The accompanying financial statements, comprising Balance Sheet, Profit and Loss Account and Notes thereto have been prepared according to Banking Companies Act, 1991 and  Bangladesh  Bank circulars  applicable to  accounts, on  a going concern basis, under historical cost convention and are based on generally accepted accounting principles.

Consolidation :

A separate set of records for consolidating the Statement of Affairs and Income and Expenditure Statements of the branches are maintained at the Head Office of the bank in Dhaka from which these financial statements are drawn up. Branch managers of respective bank branches  have  certified the statement  of affairs  for the year ended December 31, 2001.

Balance with other banks and exchange gains or losses :

Balances with foreign banks at year-end are translated at the average of telegraphic transfer of buying and selling rates. Excess/shortage of translated figures over book figures at year-end is transferred to Profit and Loss Account.

Investments :

Investment are stated at amount as reduced by balance of Profit suspense account and provision for bad and doubtful debts; Profit is not charged on bad and doubtful investments from the date of filing money suits against the borrowers; Income which were charged on Investment classified by Bangladesh Bank Inspection Team  and  by  the Bank management as sub-standard, doubtful and bad were kept in profit suspense account as per Bangladesh Bank BCD Circulars and such income is not accounted for as profit until realized from borrowers.




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