The New Nation - Internet Edition

BUSINESS REPORT

The 32nd Annual General Meeting of the shareholders of ICB was held on 28 October at the auditorium of National Sports Council (NSC tower) in the city.

Chaired by Feroz Ahmed, Chainnan of Board of Directors of ICB and Secretary, Ministry of Commerce, the meeting was attended by Managing Director of ICB Md. Ziaul Haque Khondker and other directors of ICE. A large number of shareholders were present at the meeting and took part in deliberations.

The shareholders discussed at length various aspects of the Annual Report and Audited Accounts as well as the activities of ICB and its subsidiary companies during 2007-2008. The AGM was particularly significant as the Corporation achieved record-breaking results in various areas particularly net profit after tax, earning per share and shareholders benefits.

ICB earned a net profit of Tk 101.19 crore in 2007-08 as compared to net profit of Tk. 30.23 crore earned in 2006-07. The shareholders approved 100% stock dividend and 10% cash dividend for the FY 20072008. The shareholders observed that this was for the first time ICB has declared stock dividend (100%) in addition to cash dividend. The dividend was 685.71 % higher than that of previous year. The Corporation had earlier declared very attractive dividends on its Eight Mutual Funds and on the Unit Fund, including 265% on the ICB First Mutual Fund, which was the highest cash dividend in the country.

During FY 2007-2008, the Corporation continued to extend financial assistance to projects by purchasing shares, bonds, debentures and preference shares and by providing advance against equity and lease finance. During the year it assumed the responsibility of Trustee to the issue of Bonds of two companies of Tk. 400.00 crore and of Trustee and Custodian to the issue of three Mutual funds of Tk. 140.00 crore. The Corporation recovered an amount of Tk. 635.19 crore in respect of margin loans, project loans and other loans/advances, which was 83.00% more than that of the previous year. Under the Investor's Account Rehabilitation Scheme, up to 30th June 2008, the Corporation rehabilitated 18,607 Investment Accounts, which suffered huge losses due to the abnormal stock market situation in 1996-1997.

During 2007-2008 securities worth of Tk. 4312.00 crore was traded in both the bourses on behalf of ICB and its Subsidiaries and other different portfolios. The total transaction in 2007-2008 was 230.14% higher than that of previous year. The qualitative and quantitative improvement in various activities of ICB won appreciation of the shareholders.

The shareholders lauded the adequate disclosure and transparency made in the audited accounts and annual report on activities of ICE.

The financial results of ICB's three subsidiary companies in 2007-2008 were excellent. In 2007-2008, net profits earned by the three subsidiary companies were much higher than those in the previous year. The activities of the subsidiary companies expanded and grew tremendously. During the year, ICB Capital Management Ltd. (ICML) opened two new branches at Bogra and Sylhet and ICB Securities Trading Company Ltd. (ISTCL) opened a new branch at Bogra. As a result, total number of branches of each of the two these companies stood at six. These branches have paved the way for expansion of the network of the stock market activities.

The activities of ICB and its subsidiary companies have attached paramount priority to the interest of the investors, rightful requirement of the issuers, compliance of relevant rules and regulations and maintenance of transparency.

Participants in the meeting lauded that ICB and its subsidiaries play very important role in maintaining depth, stability, reliability, and liquidity of the stock market as well as in maintaining a buoyant and effective capital market in the country. They however, stressed the need to sustain ICB's solid and crucial role in the securities market.

The shareholders noted with appreciation that these unprecedented results of ICB and its subsidiaries was the manifestation of untiring and dedicated efforts of the officers and staff generated by professional attitude. The shareholders were happy to note that the Board of Directors of ICB provided guidance and support from time to time.

The meeting put on record the unwavering support extended by the valued shareholders.