INDEPENDENT AUDITOR’S REPORT To the Shareholders of Infrastructure Development Company Limited Report on the Audit of Financial Statements Opinion We have audited the financial statements of Infrastructure Development Company Limited (the ”Company”), which comprise the balance sheet as at 31 December 2021 and the profit and loss account, statement of changes in equity and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements of the company give a true and fair view of the financial position of the company as at 31 December 2021, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as explained in Note 2. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and the guidelines issued by Bangladesh Bank, and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Matter The financial statements of Infrastructure Development Company Limited for the year ended 31 December 2020 were audited by another auditor who expressed an unmodified opinion on these financial statements on 12 June 2021. Other Information Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the financial statements and our auditor’s report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the board of directors of the Company. Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal Controls Management is responsible for the preparation and fair presentation of the financial statements of the Company in accordance with IFRSs as explained in Note 2, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. 230 Go to Contents Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from Information Company material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also Stewardship •• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. •• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. IDCOL About •• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. •• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material Governance Corporate uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. •• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Management Risk •• Obtain sufficient appropriate audit evidence regarding the financial information of the entity or business activities of the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Sustainability Report We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Report on other Legal and Regulatory Requirements Financial Performance In accordance with the Companies Act, 1994, the Financial Institutions Act, 1993 and the rules and regulations issued by Bangladesh Bank, we also report that Analysis (i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof; (ii) in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination of those books; Auditor’s Report and Audited Financial Statements (iii) the balance sheet and profit and loss account together with the annexed notes dealt with by the report are in agreement with the books of account and returns; (iv) the expenditures incurred were for the purpose of the Company’s business for the year; (v) the financial statements of the Company have been drawn up in conformity with the Financial Institutions Act, Go to Contents Annual Report 2021 231 1993 and in accordance with the accounting rules and regulations which were issued by Bangladesh Bank to the extent applicable to the Company; (vi) adequate provisions have been made for loans, advances, leases, investment and other assets which are, in our opinion, doubtful of recovery and Bangladesh Bank’s instructions in this regard have been followed properly; (vii) the financial statements of the Company conform to the prescribed standards set in the accounting regulations which were issued by Bangladesh Bank after consultation with the professional accounting bodies of Bangladesh; (viii) the records and statements which were submitted by the branches have been properly maintained and recorded in the financial statements; (ix) statements sent to Bangladesh Bank have been checked on sample basis and no inaccuracy has come to our attention; (x) taxes and other duties were collected and deposited in the Government treasury by the Company as per Government instructions has been satisfactory based on test checking; (xi) nothing has come to our attention that the Company has adopted any unethical means i.e. ‘window dressing’ to inflate the profit and mismatch between the maturity of assets and liabilities; (xii) proper measures have been taken to eliminate the irregularities mentioned in the inspection report of Bangladesh Bank and the instructions which were issued by Bangladesh Bank and other regulatory authorities have been complied properly as disclosed to us by management; (xiii) based on our work as mentioned above under the auditor’s responsibility section, the internal control and the compliance of the Company is satisfactory, and effective measures have been taken to prevent possible material fraud, forgery and internal policies are being followed appropriately; (xiv) the Company has complied with relevant laws pertaining to capital, reserve and net worth, cash and liquid assets and procedure for sanctioning and disbursing loans/leases have been found satisfactory; (xv) we have reviewed over 80% of the risk weighted assets of the Company and we have spent around 815 person hours for the audit of the books and accounts of the Company; (xvi) the Company has complied with relevant instructions which were issued by Bangladesh Bank relevant to classification, provisioning and calculation of interest suspense; (xvii) the Company has complied with the ‘First Schedule’ of Bank Companies Act, 1991 in preparing these financial statements; and (xviii) all other issues which in our opinion are important for the stakeholders of the Company have been adequately disclosed in the audit report. The engagement partner on the audit resulting in this independent auditor’s report is Mr. M Mehedi Hasan. M Mehedi Hasan, Partner, Enrolment number 1000 Rahman Rahman Huq, Chartered Accountants Firm Registration Number [N/A] Dated, Dhaka 7 June 2022 DVC: 2206141000AS882245 232 Go to Contents Infrastructure Development Company Limited BALANCE SHEET Information as at 31 December Company 2021 2020 Particulars Notes Taka Taka Property and assets Cash 3 Stewardship Cash in Hand 13,942 15,796 Balance with Bangladesh Bank and its agent bank (including 144,102,297 2,462,902,192 foreign currencies) 144,116,239 2,462,917,988 Balance with other banks and financial institutions 4 In Bangladesh 23,135,622,313 14,249,438,353 Outside Bangladesh - - 23,135,622,313 14,249,438,353 IDCOL About Money at call and short notice 5 - - Investments 6 Government - - Others 416,666,667 700,000,000 416,666,667 700,000,000 Loans and advances 7 Loans, cash credit, overdraft etc. 75,141,947,836 79,127,139,056 Governance Corporate Bill purchased and discounted - - 75,141,947,836 79,127,139,056 Fixed assets including land, building, furniture and fixtures 8 112,896,539 115,652,613 Other assets 9 1,177,735,512 1,546,101,980 Non-banking assets - - Total assets 100,128,985,106 98,201,249,989 Liabilities and capital Management Liabilities Risk Borrowings from other banks, financial institutions and agents 10 81,911,871,991 82,374,212,572 Deposit and other accounts - - Other liabilities 11 8,122,353,558 6,598,162,842 90,034,225,549 88,972,375,414 Shareholders' equity Paid-up Capital 12 7,380,000,000 7,150,000,000 Sustainability Statutory Reserve 12.1 - - Report Retained earnings 13 2,714,759,557 2,078,874,575 Total shareholders' equity 10,094,759,557 9,228,874,575 Total liabilities and shareholders' equity 100,128,985,106 98,201,249,989 Financial Performance Analysis Auditor’s Report and Audited Financial Statements Go to Contents Annual Report 2021 233 Infrastructure Development Company Limited BALANCE SHEET (CONTINUED) as at 31 December 2021 2020 Particulars Notes Taka Taka Off-Balance Sheet Items Contingent Liabilities Acceptances and Endorsements - - Letters of Guarantee - - Irrevocable Letters of Credit - - Bills for Collection - - Other Contingent Liabilities 39 24,029,147 24,029,147 24,029,147 24,029,147 Other commitments Documentary credit and short term trade-related transactions - - Forward assets purchased and forward deposits placed - - Undrawn note issuance and revolving underwriting facilities - - Undrawn formal standby facilities, credit lines and other - - commitments Total Off-Balance Sheet Items 24,029,147 24,029,147 Net Asset Value (NAV) per share 34 136.79 125.05 The annexed notes 1 to 42 and annexure A, B, C, D, E, F, G and H form an integral part of these financial statements. Company Secretary Executive Director & CEO Director Director Chairman As per our report of same date Dated, Dhaka 7 June 2022 M Mehedi Hasan, Partner Enrolment number 1000 Rahman Rahman Huq, Chartered Accountants KPMG in Bangladesh Firm Registration Number [N/A] DVC: 2206141000AS882245 234 Go to Contents Infrastructure Development Company Limited PROFIT AND LOSS ACCOUNT Information for the year ended 31 December Company 2021 2020 Particulars Notes Taka Taka Operating income Interest income 15 4,879,535,336 4,201,577,931 less: Interest on deposits, borrowings etc 16 913,523,851 777,474,472 Stewardship Net interest income 3,966,011,485 3,424,103,459 Investment income 17 62,001,850 70,350,000 Commission, fees, exchange and brokerage 18 152,537,520 162,126,582 Other operating income 19 196,588,337 48,127,144 Total operating income (A) 4,377,139,192 3,704,707,186 Operating expenses Salaries and allowances 20 199,504,209 234,475,362 Rent, taxes, insurance, electricity etc. 21 9,678,845 7,710,971 IDCOL About Professional & Legal expenses 22 5,651,591 15,892,031 Postage, stamp, telecommunication etc. 23 3,698,770 2,989,278 Stationery, printing, advertisement etc. 24 5,492,170 10,237,865 Chief Executive's salary and benefits 25 8,675,083 14,692,175 Directors' fees 26 3,286,704 3,215,068 Auditors' fees 27 453,663 453,663 Depreciation and repair of Company's assets 28 25,674,807 28,470,286 Governance Corporate Other operating expenses 29 138,336,166 204,875,937 Charges on loan losses 30 - - Total operating expenses (B) 400,452,008 523,012,635 Profit/(Loss) before provision & Tax (C) = (A - B) 3,976,687,184 3,181,694,550 Provision for loans and advances/investment 31 Provision for loans and advances 1,082,640,981 461,560,319 Other provision (short term investment) 300,000,000 310,000,000 Management Total provision (D) 1,382,640,981 771,560,319 Risk Net profit/(loss) before Tax (E) = (C - D) 2,594,046,203 2,410,134,231 Tax expenses (F) 32 1,497,312,214 875,326,584 Net profit/(loss) after tax (G) = (E - F) 1,096,733,989 1,534,807,647 Appropriation Statutory reserve 12.1 - - General reserve - - Sustainability Retained surplus 1,096,733,989 1,534,807,647 Report Earnings Per Share (EPS) 33 14.86 20.80 The annexed notes 1 to 42 and annexure A, B, C, D, E, F, G and H form an integral part of these financial statements. Financial Performance Company Secretary Executive Director & CEO Director Director Chairman Analysis As per our report of same date Auditor’s Report and M Mehedi Hasan, Partner Audited Financial Enrolment number 1000 Statements Dated, Dhaka 7 June 2022 Rahman Rahman Huq, Chartered Accountants KPMG in Bangladesh Firm Registration Number [N/A] DVC: 2206141000AS882245 Go to Contents Annual Report 2021 235 Infrastructure Development Company Limited CASH FLOW STATEMENT for the year ended 31 December 2021 2020 Particulars Notes Taka Taka A. Cash flows from operating activities Interest received 4,956,675,015 4,148,430,400 Interest paid (851,964,661) (793,026,104) Investment Income received 71,999,994 61,000,000 Fees and commission received 152,537,520 162,126,582 Recovery of loan previously written off 5,303,647 10,286,352 Paid to employees and directors (300,560,058) (383,498,707) Paid to suppliers (63,565,256) (113,987,403) Income Tax Paid (966,309,439) (657,423,527) Receipts from other operating activities 132,633,988 80,058,165 Cash generated from operating activities before changes in 3,136,750,749 2,513,965,758 operating assets and liabilities (Increase)/decrease in operating assets and liabilities Advances, deposits and prepayments (37,644,267) 112,153,503 Accounts receivables 497,891,003 (391,801,634) Loans and advances 3,765,784,625 (11,310,215,263) Interest suspense account (120,111,733) 192,753,183 Payables and accrued expenses (284,900,702) 239,684,511 Unearned Revenue- Monitoring Fees 1,684,807 2,171,486 Provisions other than loans (23,986,328) 29,237,989 Lease liability (7,181,546) - Employees' gratuity fund - - 3,791,535,859 (11,126,016,224) Net cash flows from operating activities 6,928,286,608 (8,612,050,466) B. Cash flows from investing activities Acquisition of fixed assets (excluding development partner funded assets) (802,230) (4,905,323) Investment in Preference Share - (200,000,000) Acquisition of Right of Use Asset (1,566,306) - Settlement of Investment 283,333,333 - Disposal of Fixed Assets - - Net cash flows from investing activities 280,964,797 (204,905,323) C. Cash flows from financing activities Loan Drawdown from Government of Bangladesh 3,543,572,056 10,199,670,595 Loan Repayment to Government of Bangladesh (4,005,912,632) (3,772,331,690) Dividend paid (230,000,000) (650,000,000) Net cash flows from financing activities (692,340,576) 5,777,338,905 D. Net increase in cash and cash equivalents (A+B+C) 6,516,910,828 (3,039,616,884) E. Effects of exchange rate changes on cash and cash equivalents 50,471,383 (53,621,127) F. Cash and cash equivalents at the beginning of the year 16,712,356,341 19,805,594,353 G. Cash and cash equivalents at the end of the year (D+E+F) 23,279,738,552 16,712,356,341 Cash and cash equivalents at end of the year Cash in hand (including foreign currencies) 3.1 13,942 15,796 Money at call and short notice 5 - - Balance with Bangladesh Bank and its agent banks 3.2 144,102,297 2,462,902,192 Balance with other banks and financial institutions 4 23,135,622,313 14,249,438,353 23,279,738,552 16,712,356,341 Net operating cash flow per share 35 93.88 (116.69) The annexed notes 1 to 42 and annexure A, B, C, D, E, F, G and H form an integral part of these financial statements. Company Secretary Executive Director & CEO Director Director Chairman As per our report of same date Dated, Dhaka 07 June 2022 236 Go to Contents Infrastructure Development Company Limited STATEMENT OF CHANGES IN EQUITY Information for the year ended 31 December 2021 Company Total Paid up Statutory Retained shareholders Particulars Capital Reserve earnings equity Taka Taka Taka Taka Stewardship Balance as at 01 January 2021 7,150,000,000 - 2,078,874,575 9,228,874,575 Adjustment - - (849,007) (849,007) Balance 7,150,000,000 - 2,078,025,568 9,228,025,568 Increase/Decrease of revaluation of properties - - - - Increase/Decrease of revaluation of investment - - - - Currency transaction differences - - - - Net gains and losses not recognized in the income - - - - IDCOL About statement Net profit for the year - - 1,096,733,989 1,096,733,989 Bonus shares 230,000,000 - (230,000,000) - Cash dividend - - (230,000,000) (230,000,000) Statutory Reserve - - - - Balance as at 31 December 2021 7,380,000,000 - 2,714,759,557 10,094,759,557 Governance Corporate Balance as at 01 January 2020 6,500,000,000 - 1,852,757,946 8,352,757,946 Adjustment - - (8,691,018) (8,691,018) Balance 6,500,000,000 - 1,844,066,928 8,344,066,928 Increase/Decrease of revaluation of properties - - - - Increase/Decrease of revaluation of investment - - - - Currency transaction differences - - - - Net gains and losses not recognized in the income - - - - Management statement Risk Net profit for the year - - 1,534,807,647 1,534,807,647 Bonus shares 650,000,000 - (650,000,000) - Cash dividend - - (650,000,000) (650,000,000) Statutory Reserve - - - - Balance as at 31 December 2020 7,150,000,000 - 2,078,874,575 9,228,874,575 Sustainability The annexed notes 1 to 42 and annexure A, B, C, D, E, F, G and H form an integral part of these financial statements. Report Company Secretary Executive Director & CEO Director Director Chairman Financial Performance As per our report of same date Analysis Dated, Dhaka 07 June 2022 Auditor’s Report and Audited Financial Statements Go to Contents Annual Report 2021 237 Infrastructure Development Company Limited 238 LIQUIDITY STATEMENT (ASSET AND LIABILITY MATURITY ANALYSIS) as at 31 December 2021 More than 5 Up to 01 month 1 - 3 months 3 - 12 months 1 - 5 years Total Particulars years Taka Taka Taka Taka Taka Taka Assets Cash in hand (including balance with Bangladesh Bank) 144,116,239 - - - - 144,116,239 Balance with other banks and financial institutions 12,170,327,896 9,323,600,000 - 1,641,694,416 - 23,135,622,312 Money at call and short notice - - - - - - Investments - - 83,333,333 333,333,333 0 416,666,667 Loans and advances 123,336,370 1,985,801,529 7,352,351,074 27,676,771,296 38,003,687,567 75,141,947,836 Fixed assets including land, building, furniture and fixture 22,553 90,618 41,228,763 31,226,402 40,328,203 112,896,539 Other assets 69,972,912 72,454,145 963,298,884 71,359,571 650,000 1,177,735,511 Non-banking assets - - - - - - Total assets 12,507,775,970 11,381,946,292 8,440,212,054 29,754,385,018 38,044,665,770 100,128,985,105 Liabilities Borrowings from Government of Bangladesh - 1,270,813,763 7,869,411,260 31,445,515,559 41,326,131,408 81,911,871,991 Deposits - - - - - - Other Accounts - - - - - - Provision and other liabilities 38,067,873 337,402,772 2,067,106,016 2,344,379,760 3,335,397,136 8,122,353,557 Total liabilities 38,067,873 1,608,216,535 9,936,517,276 33,789,895,319 44,661,528,544 90,034,225,548 Net Liquidity Gap 12,469,708,097 9,773,729,757 (1,496,305,222) (4,035,510,301) (6,616,862,775) 10,094,759,557 Go to Contents Infrastructure Development Company Limited NOTES TO THE FINANCIAL STATEMENTS Information for the year ended 31 December 2021 Company 1. Background 1.1 Legal status and nature of the company The Infrastructure Development Company Limited (IDCOL), a non-banking financial institution, was incorporated in Bangladesh on May 14, 1997 as a government owned public limited company under the Companies Act 1994. The Company was licensed by Bangladesh Bank as a non-bank financial institution (NBFI) on January 5, 1998. The Stewardship registered office of the Company is located at UTC Building, Level-16, 8 Panthapath, Kawran Bazar, Dhaka-1215. 1.2 Principal activities Since inception, IDCOL has been playing a major role in bridging the financing gap for developing medium and large-scale infrastructure and renewable energy projects in Bangladesh. The company now stands as the market leader in private sector energy and infrastructure financing in Bangladesh. The primary objective of the company is to promote significant participation of the private sector in investment and operation, ownership and maintenance of new infrastructure facilities. Infrastructure Projects IDCOL About IDCOL provides long-term financing for private sector infrastructure projects to directly support the country’s growing need for infrastructural development. IDCOL works with various development partners and multilateral banks for co-financing large scale infrastructure projects. Being a government owned development financier, IDCOL facilitates financing support to the projects concerning GoB’s priority sectors. Over the years, IDCOL has played an instrumental role in transforming the Infrastructure landscape in the country especially in the private sector power generation. IDCOL’s infrastructure investment horizon caters to a wide range of sectors such as infrastructure Governance Corporate backward linkage industries, economic zones, social infrastructure, hotel and tourism, ports, gas and gas related infrastructure, telecommunications, information and communication technology, water supply, toll roads and bridges, shipyards and shipbuilding, mass transportation systems, urban environmental services etc. In line with its commitment of catalysing private sector investment in infrastructure, IDCOL’s financing has mobilized significant co-financing (both equity and loan) from local and foreign sponsors, banks, Non-Banking Financial Institutions (NBFIs), Development Financial Institutions (DFIs) in infrastructure projects. Capitalizing on its exposure of working with international lenders in long term USD financing, IDCOL has successfully arranged Management funds for multiple local projects from the international market. At the same time, the opportunity to work Risk with multiple foreign DFIs and commercial banks has not only enhanced IDCOL’s capacity as a lender but also established IDCOL as a trusted co-financier among foreign lenders. In addition to its core business of extending financing, IDCOL has diversified its service offerings by venturing into arrangement and advisory services. Arranging syndication loan facilities from the local and international market for financing large projects aligns with IDCOL’s mission of promoting private sector infrastructure financing. The company has been providing loan arrangement services since its early years of operation and has managed to Sustainability Report set a strong foothold as an arranger- especially in raising funds for power projects. In 2019, IDCOL has achieved the feat of being the highest fund arranger for private sector infrastructure projects in Bangladesh by arranging approx. USD 190 million long term loan from various local and international sources. Renewable Energy Projects Under renewable energy program, IDCOL is implementing projects in four major areas- solar home systems Financial Performance (SHS), domestic biogas plants, improved cook stoves (ICS), and small-scaled renewable energy based power plants. Analysis IDCOL started its SHS Program in 2003 with an initial target to finance 50,000 SHSs with financial assistance from the World Bank and Global Environment Facility (GEF). Subsequently, a number of development partners participated in the program by providing refinancing and grant support. IDCOL provides soft loans and grants as well as necessary technical assistance under the program. IDCOL's SHS Program has been acclaimed as the largest off-grid renewable energy program in the world having installation of more than 4.13 million SHSs in the remote areas of the country. It has brought significant changes in lives in remote rural areas of Bangladesh Auditor’s Report and Audited Financial through providing access to basic electricity. Statements IDCOL has been implementing Biogas Program in Bangladesh since 2006. Initially, the program started as National Domestic Biogas and Manure Programme (NDBMP) with support from SNV (Stichting Nederlandse Vrijwilligers) Netherlands Development Organization and KFW Development Bank, Germany. In 2012, the World Bank also joined to support the program under its Household Energy Initiatives. Under the program, IDCOL has a target to install 75,000 domestic size biogas plants in Bangladesh by 2024. Go to Contents Annual Report 2021 239 IDCOL launched the ‘Improved Cook Stove (ICS) Program’ in May 2013 and the program has a target to install 5 million ICS across the country by 2023. The objectives of the program are to create mass awareness of ICS, to reduce Indoor Air Pollution (IAP) and use of cooking fuel and to establish a strong capacity base to achieve 100% clean cooking coverage by 2030 as per Bangladesh Country Action Plan. Under the program, IDCOL provides institutional development grant and technical assistance to its partner organizations (POs). Till December 2021, a total of 2.87 million ICS have been installed under the Program. Besides, IDCOL has been financing various renewable energy interventions including solar PV based irrigation pumps, solar PV based power projects, biomass gasification based power projects, biogas based power plants, solar powered solution for telecom BTS etc. Moreover, IDCOL is financing large scale Rooftop Solar for commercial industries and Utility Scale Grid Tied projects. IDCOL has a target to finance rooftop solar of 300MWp by 2025 and 2600 solar irrigation pumps by 2025. In addition, IDCOL is exploring opportunities of financing waste to energy and wind projects in near future. Corporate Advisory Services IDCOL provides a wide range of fee-based advisory services with project advisory, capacity building, financial advisory, government advisory, climate consulting and transaction advisory as its focus areas. IDCOL has been awarded four advisory assignments in 2021 by UK Department of Business, Energy and Industrial Strategy (BEIS), Skills for Employment Investment Program (SEIP) under Finance Division, Rural Energy Agency of Tanzania and Loughborough University of UK. IDCOL earlier provided advisory services to Climate Vulnerable Forum-Vulnerable 20 Group (CVF-V20), UNDP, Power Cell, Bangladesh Power Development Board, IRENA and Acron Infrastructure Services Ltd. In addition, IDCOL has provided training and capacity building services to 1,600 professionals in Bangladesh and hosted 160 international delegates as part of experience sharing program on Renewable Energy. 1.3 Resources IDCOL has access to resources provided by the World Bank (WB), Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), German Development Bank (KFW), Department for International Development (DFID), Islamic Development Bank (IDB), German Development Cooperation (GIZ), United States Agency for International Development (USAID), SNV-Netherlands Development Organization, French Development Agency (AFD) and the Government of Bangladesh (GoB) to place in projects across a range of infrastructure and renewable energy projects. 2. Significant Accounting Policies and Basis of Preparation 2.1 Basis of accounting Same disclosed accounting policies and methods of computation have been followed in preparation of the Financial Statements as were applied in the preparation of the financial statements of IDCOL as at and for the year ended 31 December 2020. In addition, some applicable policies have been disclosed during the year, which were being followed in earlier years as well. The financial statements of the Company have been prepared under historical cost convention in accordance with generally accepted accounting principles as laid down in the International Financial Reporting Standards (IFRS) applicable to the Company. The reported financial statements, i.e. Balance Sheet, Profit and Loss Account, Statement of Changes in Equity and Cash Flow Statement were prepared by capturing the transactions of Infrastructure Development Company Limited. The financial statements of project accounts are being maintained and prepared separately showing movement of funds, i.e. loans and grants received from various development partners, lenders, etc., realization of principal and interest from borrowers, loan and grants disbursed to borrowers, repayment of loans to development partners, lenders, etc. These project accounts are maintained separately by IDCOL and Receipts and Payments Statement of each such project is prepared separately, and audited and reported separately by an independent auditor of the Company. These amounts are not reflected in the company's financial statements, except for those disclosed in note # 40 to the Company's financial statements. The accumulated movement of funds from the inception as well as the current and the previous year's movements of fund of these projects are shown in note # 40. 2.2 Statement of compliance The financial statements of IDCOL are prepared in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Financial Institutions Act 1993, the rules and regulations issued by Bangladesh Bank and the Companies Act 1994. In case any requirement of the Financial Institutions Act 1993, and provisions and circulars issued by Bangladesh Bank differ with those of IFRSs, the requirements of the Financial Institutions Act 1993, and provisions and circulars issued by Bangladesh Bank shall prevail. 240 Go to Contents 2.3 Impact of COVID-19 The year 2021 came with newer virus variants which set countries on different paths to recovery depending on their rates of vaccination initiatives. Governments from all nations strengthened the vaccination initiatives which Information Company resulted in worldwide balance of payment (BoP) deficits to be the highest since World War II. However, after all the tragic events, as the year went on, some positive improvements i.e. improved macroeconomic growth, recovered traded goods, stabilized food commodity prices etc. had been seen.With a robust vaccination initiative taken by Government across the world, global economics are recovering, even though slower than expected, due to the outbreak of the new omicron variant.Economic recoveries are diverging across countries and sectors, reflecting variation in pandemic-induced disruptions and extent of policy support. While advanced economies are rebounding, many of world’s poorest countries are being left behind Stewardship On this backdrop, the projection for global GDP growth rate, according to IMF, is 5.9% for 2021 and 4.4% for 2022 is estimated. In the same way, World Bank also anticipates Global growth to decelerate noticeably in 2022 from 5.5% to 4.1%. According to the provisional estimate of BBS, the GDP growth is 5.47 percent in FY 2020-21 which is the lowest since FY 2008-09 mainly because of the newer variants of COVID-19. However, It needs to be mentioned that, in order to mitigate the harsh conditions caused by the pandemic and for ensuring quicker economic recovery, the Government has so far announced 28 stimulus packages of BDT 1.35 trillion which was 4.9% of FY 2020’s IDCOL About GDP. On the other hand, central bank also implemented several policy measures to ensure continuous banking and mobile financial services even during lockdowns in 2021. The rapid increase of mobile and digital financial services helped in the disbursement of the increased remittance inflow, on the back of Government’s measures to ensure fund flow through formal channels. Like 2020, the year 2021 has been particularly challenging for all of us. Still, amid the raging coronavirus pandemic which upended lives across the world, we somehow managed to conduct our business to the best of our ability. Governance IDCOL has been proved remarkably resilient and sustainable in terms of managing its earnings performance, Corporate achieving a comfortable balance sheet in 2021. 2.4 Other comprehensive income IFRS: As per IAS 1 elements of Other Comprehensive Income (OCI) can be presented in a separate statement i.e. Other Comprehensive Income or can be included in a single Statement of Comprehensive Income. Bangladesh Bank: Bangladesh Bank has issued templates of financial statements vide DFIM Circular # 11 dated December 23, 2009 which would strictly be followed by NBFIs. The templates of financial statements issued by Management Bangladesh Bank do not permit to include Statements of Other Comprehensive Income (OCI) nor the elements Risk of Other Comprehensive Income in the statements of Comprehensive Income. 2.5 Non banking assets IFRS: IFRSs/IASs provide no requirement to disclose non-financial institutional assets separately under non- banking assets head on the face of the balance sheet. Bangladesh Bank: DFIM Circular-11 dated December 23, 2009 provides the requirement to disclose non-banking assets separately on the face of the balance sheet. Sustainability Report 2.6 Current/ Non-current distinction IFRS: As per Para 60 of IAS-1 Presentation of Financial statement, an entity shall present current and non-current assets and current and non-current liabilities as separate classification in its statement of financial position. Bangladesh Bank: Bangladesh Bank has issued templates of financial statements vide DFIM Circular # 11 dated December 23, 2009 which would be followed by NBFIs. In Bangladesh Bank provided templates, there is no Financial Performance current and non current segregation of assets and liabilities. 2.7 Fees, Commission and Brokerage Analysis IDCOL is a specialized NBFI focusing on renewable energy, infrastructure finance and energy efficiency projects and working persistently to achieve the development objective of the Government. Unlike other conventional banks and FIs, IDCOL's investment strategy is focused on operating in niche market. IDCOL provides loans both in local currency (BDT) and US dollar. IDCOL’s pricing for Loans is different for different types of products, which are not always in congruence with the market rate. For some products, IDCOL’s interest rate is lower than Auditor’s Report and Audited Financial market interest rate. Very often these lendings are sourced from several multilateral and bi-lateral organizations Statements under which IDCOL has to pay commitment fees as per the agreement. Considering the special nature of fund sources that require commitment charges on the borrowed fund, as well as its special and concessionary lending operations, IDCOL is collecting fees from some loans which are not permissible under DFIM circular no. 1, dated 03 April 2018.s. However, Upon submission of explanation, Bangladesh Bank granted exemption from said circular vide letter number DFIM(P) 1052/27/2020-1683, dated: 23 September 2020 with effect from 2021. Go to Contents Annual Report 2021 241 2.8 Cash flow statement IFRS: Statement of Cash Flows can be prepared using either direct method or indirect method. The presentation is selected to present these cash flows in a manner that is most appropriate for the business or industry. The method selected is applied consistently. Bangladesh Bank: As per DFIM circular no. 11 of 23 December 2009, cash flow is the mixture of direct and indirect methods. Money at call on short notice presented on the face of the balance sheet, and treasury bills, prize bonds are shown in investments. 2.9 Provision for loans and advances IFRS: As per IFRS 9 "Financial Instruments", an entity shall recognise an impairment allowance on loans and advances based on expected credit losses. At each reporting date, an entity shall measure the impairment allowance for loans and advances at an amount equal to the lifetime expected credit losses if the credit risk on these loans and advances has increased significantly since initial recognition whether assessed on an individual or collective basis considering all reasonable information, including that which is forward-looking. For those loans and advances for which the credit risk has not increased significantly since initial recognition, at each reporting date, an entity shall measure the impairment allowance at an amount equal to 12 month expected credit losses. Bangladesh Bank: As per DFIM Master Circular no. 04 dated 26 July 2021, a general provision at 0.25% to 5% under different categories of unclassified loan (good/standard loans) has to be maintained irrespective of objective evidence of impairment on lease, loans and advances. Loan classification status during the year ended 31 December 2021 has been determined as per DFIM Letter: 1052/27/2022-21 dated 2 January 2022, DFIM Circular Letter No 33 dated 19 December 2021 and DFIM Master Circular no. 04 dated 26 July 2021. Also provision for sub-standard investments, doubtful investments and bad losses has to be provided at 20%, 50% and 100% respectively for investments depending on the duration of overdue. As per DFIM circular letter no 33 dated 19 December 2021, 2% additional provision has been reserved against accounts availing deferral facility. 2.10 Cash and cash equivalent IFRS: Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and only include those investments which are for a short tenure like 3 months or less period. In the light of above, balance with Bangladesh Bank and fixed term deposits shall be treated as investment asset rather than cash equivalent as it is illiquid asset and not available for use in day to day operations. Bangladesh Bank: Some cash and cash equivalent items which include ‘money at call and short notice’, are not shown as cash and cash equivalents. 2.11 Recognition of interest in suspense IFRS: Loans and advances to customers are generally classified at amortised cost as per IFRS 9 "Financial Instruments" and interest income is recognised by using the effective interest rate method to the gross carrying amount over the term of the loan. Once a loan subsequently become credit-impaired, the entity shall apply the effective interest rate to the amortised cost of these loans and advances. Bangladesh Bank: As per DFIM Master Circular no. 04 dated 26 July 2021, once an investment on leases, loans and advances is termed as "Special Mention Account (SMA)", interest income from such investments are not allowed to be recognized as income, rather the respective amount needs to be credited as a liability account like: interest suspense account. 2.12 Financial instruments: presentation and disclosure IFRS: IFRS 7 require specific presentation and disclosure relating to all financial instruments. Bangladesh Bank: As per Bangladesh Bank guidelines, financial instruments are categorized, recognized and measured differently from those prescribed in IFRS 7. As such some disclosure and presentation requirements of IFRS 7 have not been made in the accounts. 2.13 Presentation of intangible asset IFRS: An intangible asset must be identified and recognized, and the disclosure must be given as per IAS 38. Bangladesh Bank: There is no regulation for intangible assets in DFIM circular no. 11 of 23 December 2009. 242 Go to Contents 2.14 Income Tax Current tax: Provision for income tax has been made at best estimate keeping in view the provisions of Income Tax Ordinance 1984 and amendments made thereto from time to time. Current tax liability of the company is Information Company computed applying the following tax rates: •• Regular business tax rate: 40% •• Dividend income: 20% Deferred tax: A deferred tax asset has been recognized in accordance with IFRS for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. It is measured at the tax rates that are expected to be applied to Stewardship the temporary differences when they reverse based on the laws that have been enacted or substantively enacted by the date of reporting of the financial statements. However, no deferred tax asset has been recognized for any deductible temporary difference against lease, loans and advances as per DFIM circular No. 7, dated 31 July 2011 of Bangladesh Bank. 2.15 Off-balance sheet items IFRS: There is no concept of off-balance sheet items in any IFRS; hence there is no requirement for disclosure of off-balance sheet items on the face of the balance sheet. IDCOL About Bangladesh Bank: As per DFIM circular no. 11 of 23 December 2009, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet. 2.16 Valuation of Investments in quoted and unquoted shares IFRS: As per requirements of IFRS 9 "Financial Instruments" classification and measurement of investment in shares and securities will depend on how these are managed (the entity's business model) and their contractual cash flow characteristics. Based on these factors it would generally fall either under "at fair value through profit Governance and loss account" or under "at fair value through other comprehensive income" where any change in the fair Corporate value (as measured in accordance with IFRS 13) at the period-end is taken to profit and loss account or other comprehensive income respectively. Bangladesh Bank: As per FID circular No. 08 dated 03 August 2002, investments in quoted shares and unquoted shares are revalued at the year or period end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss arising from diminution in value of investment; however in case of any unrealized gain, no such gain can be recognized and investments are recognized at cost. Management 2.17 Use of estimate and judgments Risk The preparation of these financial statements in conformity with International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and Bangladesh Bank guidelines requires management to make judgment, estimates and assumptions that affect the application of accounting policies such as provision for loans and advances. Estimates and underlying assumptions are reviewed on an ongoing basis. 2.18 Functional and Presentation Currency These financial statements are using the currency of the primary economic environment in which the company Sustainability Report operates (the functional currency) and presentation currency is Bangladesh Taka which is also the functional currency of the Company. 2.19 Revenue Recognition Revenue is only recognized when it meets the following five steps model framework as follows: i) identify the contract(s) with a customers; Financial Performance ii) identify the performance obligations in the contract; iii) determine the transaction price; Analysis iv) allocate the transaction price to the performance obligations in the contract; v) recognize revenue when (or as) the entity satisfies a performance obligation. Interest income from loans and other sources is recognized following accrual basis of accounting. 2.20 Property, plant and equipment Property, plant and equipment are stated at cost less depreciation. Depreciation is charged on monthly straight Auditor’s Report and line method. Depreciation on additions to fixed assets is charged in full for the month and no depreciation is Audited Financial charged for the month in which an asset is disposed. Depreciation rates should be aligned with Laws of Land Statements along with IAS/IFRS. The following rates of depreciation will be applied: Go to Contents Annual Report 2021 243 Category of assets Rate of Depreciation Office space 10% Furniture, fixture and decoration 10% Computer and computer equipment 25% Office equipment 10% Vehicle 20% Software Bangladeshi made software 50% Software Imported 10% 2.21 Accounting for grant Accounting for grant has been made in accordance with International Accounting Standards (IAS) - 20 "Accounting for Government Grants and Disclosure of Government Assistance". Grant has been recognized as income to the extent of depreciation on grant funded assets. 2.22 Foreign Currency transactions (Exchange fluctuations and gains or losses) Transactions in foreign currencies are recorded in the books at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities in foreign currencies at the date of statement of financial position are translated into taka at the exchange rate prevailing at that date. Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting period are recognized in profit and loss account as per IAS 21: the effects of changes in foreign exchange rates. 2.23 Write-off A loan write off – as it applies to individual borrowers - simply meaning taking off the amount from the Balance Sheet against which provision has already been made for a reduction in the value of an asset or earnings by the amount of an expense or loss. When businesses file their income tax return, they are able to write off expenses incurred to run the business and subtract them from their revenue to determine their taxable income. Recovery of debts written off provided for its credited revenue. Income are recognized where amounts are either recovered and/or adjusted against securities/properties or advances. 2.24 Earnings per Share (EPS) As per IAS - 33, the Company presents its basic earnings per share (EPS) for its ordinary shares. EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. The calculation has been provided in Note 33. 2.25 Related party disclosure As per International Accounting Standards (IAS 24) , parties to be related if one of the parties has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions. All transactions were carried out in the ordinary course of business on an arm's length basis. Related party transactions have been provided in Note 38. 2.26 Employee benefits Defined contribution plan(provident fund) The Company operates a contributory provident fund scheme where employees contribute 10% of their basic salary with equal contribution by the Company. The provident fund is considered as defined contribution plan being managed by a Board of Trustees. As per Financial Reporting Council notification # 179/FRC/FRN/notification/2020/2 dated 07 July 2020, an amount of BDT 104,634 was forfeited from contributory provident fund during the period 1 July 2020 to 31 December 2020 and was repatriated to IDCOL during FY 2021. Defined benefit plan(gratuity) The Company operates a funded gratuity scheme, provision in respect of which is made annually covering all permanent employees. The employees gratuity fund is being considered as defined benefit plan. During FY 2021, an amount of BDT 11,558,301 was transferred to the trustee fund. Details are given in note #11.2 2.27 Internal Audit Internal Audit function plays a crucial role in ongoing assessment and maintenance of internal control, risk management and governance in the organization. Internal audit team conducts audit in all partner organization and IDCOL regional offices. Internal audit use standard approach to determine their respective work plan and actions. 2.28 Fraud and Forgeries To prevent fraud and forgeries internal audit team acts independently as the first contact point/information unit. As a counteractive course of action, preventive and corrective measures are recommended to the operation unit to take necessary action. All fraud related issues are recorded in the fraud register in a systematic manner for future reference. 244 Go to Contents 2.29 Disclosure on Compliance of International Financial Reporting Standard (IFRS) Name of the standards Ref No. Compliance status Information First-time Adoption of Bangladesh Financial Reporting Standards IFRS-1 Not applicable Company Share Based Payment IFRS-2 Not applicable Business Combinations IFRS-3 Not applicable Non-current Assets Held for Sale and Discontinued Operations IFRS-5 Not applicable Exploration for and Evaluation of Mineral Resources IFRS-6 Not applicable Name of the standards Ref No. Compliance status Financial Instruments: Disclosures IFRS-7 Applied with some departures (note 2) Stewardship Operating Segments IFRS-8 Not applicable Financial instruments IFRS-9 Applied with some departures (note 2) Consolidated Financial Statements IFRS-10 Not applicable Joint Arrangements IFRS-11 Not applicable Disclosure of Interests in Other Entities IFRS-12 Not applicable Applied with some departures (note Fair Value Measurement IFRS-13 2) Regulatory Deferral Accounts IFRS-14 Not applicable IDCOL About Revenue form Contracts with Customers IFRS-15 Applied Leases IFRS-16 Applied Insurance Contracts IFRS-17 Not applicable Presentation of Financial Statements IAS-1 Applied with some departures (note 2) Inventories IAS-2 Not applicable Statement of Cash Flows IAS-7 Applied with some departures (note 2) Accounting Policies, Changes in Accounting Estimates and Errors IAS-8 Applied Governance Corporate Events After the Reporting Period IAS-10 Applied Construction Contracts IAS-11 Not applicable Income Taxes IAS-12 Applied Property, Plant and Equipment IAS-16 Applied Employee Benefits IAS-19 Applied Accounting for Government Grants and Disclosure of IAS-20 Applied Government Assistance Management The Effects of Changes in Foreign Exchange Rates IAS-21 Applied Risk Borrowing Cost IAS-23 Not applied* Related Party Disclosures IAS-24 Applied Accounting and Reporting by Retirement Benefit Plans IAS-26 Not applicable Separate Financial Statements IAS-27 Not applicable Investments in Associates IAS-28 Not applicable Financial Reporting in Hyperinflationary Economies IAS-29 Not applicable Sustainability Financial Instruments: Presentation IAS-32 Applied with some departures (note 2) Report Earnings per Share IAS-33 Applied Interim Financial Reporting IAS-34 Applied Impairments of Assets IAS-36 Applied Provisions, Contingent Liabilities and Contingent Assets IAS-37 Applied Intangible Assets IAS-38 Applied Financial Performance Financial Instruments: Recognition and Measurement IAS-39 Applied with some departures (note 2) Analysis Investment Property IAS-40 Not applicable Agriculture IAS-41 Not applicable *Not applied as there were no relevant transaction. The Company has consistently applied the accounting policies as set out in Note 3 to all periods presented in these financial statements. The various amendments to standards, including any consequential amendments Auditor’s Report and to other standards, with the date of initial application of 1 January 2021 have been considered. However, these Audited Financial amendments have no material impact on the financial statements of the Company. Statements 2.30 Basis of Measurement The financial statements have been prepared in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). The accounting policies, unless otherwise stated, have been consistently applied by the Company and are consistent with those of the previous year. Go to Contents Annual Report 2021 245 2.31 Events after the reporting period Events after the reporting period: As per IAS 10 "Events after the reporting period", all material events occurring after the balance sheet date have been considered and where necessary, adjusted for or disclosed in note 37. 2.32 Going concern The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. 2.33 Reporting period These financial statements have been prepared for the period from 1 January 2021 to 31 December 2021. 2.34 Complete set of financial statements IAS 1 "Presentation of Financial Statements" As per IAS 1: "Presentation of Financial Statements'' complete set of financial statements are: i) Statement of financial position, ii) Statement of profit or loss and other comprehensive income, iii) Statement of changes in equity, iv) Statement of cash flows, v) Notes, comprising significant accounting policies and other explanatory information, vi) Comparative information in respect of the preceding period, and vii) Statement of financial position at the beginning of preceding period for retrospective restatement Treatment adopted as per Bangladesh Bank As per DFIM Circular No. 11, dated 23 December 2009, complete set of financial statements are i) Balance sheet, ii) Profit and loss account, iii) Cash flows statement, iv) Statement of changes in equity, v) Statement of liquidity, and vi) Notes, comprising significant accounting policies and other explanatory information. 2.35 Number of employees During the year under audit, there were 410 (2020: 406) employees employed for the full period and 13 (2020: 20) employees for less than full period at a remuneration of Taka 3,000 and above per month. 2.36 Workers' Profit Participation and Welfare Fund (WPPF) Establishment of Workers’ Profit Participation and Welfare Fund (WPPF) is a matter of Banking and Financial Institutions Sector as a whole. Ministry of Finance through its letters no. 53.00.0000.311.22.002.17-130 dated February 14, 2017 and no. 53.00.0000.311.22.002.17-140 dated February 25, 2018 expressed its opinion that Chapter 15 on “Participation in Company Profits by Workers” in the Bangladesh Labor Act 2006 and amendments made therein on July 22, 2013 should not be applicable for Banks and Financial Institutions and requested to the Ministry of Labor and Employment to take necessary steps in this regard as well as not to apply the said chapter of Labor Act 2006 for Banks and Financial Institutions. Therefore, like other Banks and Financial Institutions, IDCOL did not recognize the WPPF. 2.37 Exemptions and waivers Financial Institutions Division (currently known as Department of Financial Institutions and Market) of Bangladesh Bank vide its letter no FID(L)1053/69/4 dated 05 January 1998 had granted IDCOL exemption from several sections of the Financial Institutions Act-1993 considering its special operational nature as a specialized financial institution. However, IDCOL complies with circulars and directives issued by Bangladesh Bank from time to time in order to ensure uniformity of supervision and governance in the financial services industry. 2.38 Risk Management In IDCOL, a well-structured and proactive risk management system is working within the Company to address and manage the risks relating to credit, market, liquidity and operations along with the guidelines for managing core risks of financial institutions issued by the Bangladesh Bank (Central Bank), vide FID circular No. 10 dated September 18, 2005. 246 Go to Contents Credit Risk: Credit risk is being managed through a framework set by policies and procedures developed by the management Information and approved by the IDCOL board. The approval process contributes in mitigating credit risk. Every proposal is Company reviewed by Credit Risk Management Unit, Credit Risk Management Committee, Credit Committee and Board of Directors as a part of risk governance in IDCOL. Moreover, IDCOL has a Credit Risk Manual implemented in accordance with guideline provided by Bangladesh Bank. The responsibility is clearly segregated between origination of business and approval of the transaction in order to maintain the independence and integrity of the credit decision-making process. The project appraisal team after completing their detailed due diligence of the project submits the completed project appraisal report to Credit Risk Management (CRM) department. After the risk assessment of CRM, the project is submitted to CRM Stewardship committee headed by CEO and comprising of functional unit heads. Once approved by the CRM Committee, it goes to Credit Committee for their review and approval and final approval obtained from the IDCOL Board. Market Risk Market risk arises from the fluctuation of returns caused by the macroeconomic factors that affect the overall performance of the financial market and organization as well. The Asset Liability Management Committee reviews the market trend of interest rates and matches the interest risks of the assets so that it can meet its obligations without making any losses. It also ensures that IDCOL has appropriate capital to cover potential losses from IDCOL About exposures to changes in interest rates. IDCOL management makes sure that lending and borrowing currency will always be same so that Company does not have to bear any foreign currency risk. Liquidity Risk IDCOL has established strategies, policies and practices to manage liquidity risk in accordance with the risk tolerance and to ensure sufficient liquidity. The Asset Liability Management Committee (ALCO) of IDCOL actively monitors and controls liquidity risk exposures. Governance Corporate Operational Risk Managing operational risks requires timely and accurate information as well as a strong control culture. To do so, IDCOL has established an internal control & compliance unit to address operational risks and to frame and implement policies to encounter such risks. IDCOL also provides training for capacity building of the employees, ensures active participation of the senior management in identifying and mitigating key operational risks, maintains proactive communication between our revenue-producing units and our independent control and support functions and has built a network of systems throughout the firm to facilitate the collection of data used Management in analyzing and assessing our operational risk exposure. Risk Money Laundering Risk A separate Central Compliance Unit (CCU) of IDCOL has been established which is responsible for managing money laundering risks following guidance notes on Prevention of Money Laundering and Terrorist Financing issued by Bangladesh Bank. Information Technology and Communication Risk IDCOL has a full-fledged department which ensures adequate IT and MIS infrastructure and its security. It Sustainability Report streamlines the management information systems with the strategic direction of the Company while mitigating the risks associated with incorrect deployment and use of Information-Technology. Financial Performance Analysis Auditor’s Report and Audited Financial Statements Go to Contents Annual Report 2021 247 2021 2020 Taka Taka 3.0 Cash Cash in hand 3.1 13,942 15,796 Balance with Bangladesh Bank and its agent bank 3.2 144,102,297 2,462,902,192 144,116,239 2,462,917,988 3.1 Cash in Hand Local Currency 13,942 15,796 Foreign Currencies - - 13,942 15,796 3.2 Balance with Bangladesh Bank and its agent bank Bangladesh Bank balance in local currency 144,102,297 1,943,629,192 Bangladesh Bank balance in foreign currency - 513,506,500 Add: Forex gain/ (Loss) - 5,766,500 144,102,297 2,462,902,192 3.2.1 Balance with Bangladesh Bank and its agent bank 2021 2020 2021 2020 Exchange Rate per Amount in EURO EURO Bangladesh Bank balance in foreign - 5,000,000 97.3658 103.8546 - 519,273,000 currency - 519,273,000 3.3 Cash Reserve Ratio (CRR) Required reserve @ 2.5% of average balance of term deposit - - Actual reserve - - Surplus - - 3.4 Statutory Liquidity Ratio (SLR) Required reserve @ 5% of average liabilities excluding - - funds from banks/FIs Actual Reserve held - - Surplus - - Total Surplus - - As per Bangladesh Bank notice FID(G) 1051/circa 2/10, dated 22 October 1997, IDCOL is exempted from complying with section 9 (Statutory Reserve) and 19 (maintaining liquid assets) of the Financial Institutions Act, 1993. As such, maintenance of a Statutory Reserve, Cash Reserve Ratio (CRR) or Statutory Liquidity Ratio (SLR) is not required for IDCOL. 3.5 Capital Adequacy Ratio (CAR) Under the section 6 of Financial Institutions Act, 1993, Bangladesh Bank shall prescribe the minimum capital of every financial institution. And as per the Prudential Guidelines on Capital Adequacy and Market Discipline for Financial Institutions (DFIM Circular No. 14/2011) that has come into force from 1 January 2012; Financial Institutions are required to maintain a CAR of minimum 10%. To be noted that IDCOL being a state-owned development financial organization has a goal to ensure economic prosperity through sustainable and environment friendly investments in the infrastructure and renewable energy sectors of Bangladesh. To achieve the development objective of the Government, IDCOL is exempted from several sections of FI Act 1993; i.e. minimum capital requirement for Financial Institutions (Section 6, as per Bangladesh Bank notice FID(G) 1051/circular 2/10, dated 22 October 1997). Nevertheless IDCOL currently maintains the minimum capital prescribed under section 6 sub-section (1) and DFIM Circular No. 14/2011. 248 Go to Contents 2021 2020 Taka Taka Information Company Core Capital (Tier-1)/Shareholders' Equity Paid-up capital 7,380,000,000 7,150,000,000 Share premium - - Statutory reserve - - General reserve - - Dividend equilization reserve - - Retained earnings 2,714,759,557 2,078,874,575 Stewardship Non-controlling interest - - A) Sub total 10,094,759,557 9,228,874,575 Supplementary capital (Tier -II) General Provision (Unclassified loans up to specified limit + 676,631,065 805,187,111 SMA + off Balance Sheet exposure) Assets Revaluation Reserves up to 50% - - Revaluation Reserve for Securities up to 45% - - All others preference shares - - IDCOL About Others (if any other item approved by Bangladesh Bank) - - B) Sub total 676,631,065 805,187,111 C) Total eligible capital (A+B) 10,771,390,622 10,034,061,686 D) Total risk weighted assets 59,835,080,088 64,414,968,875 E) Required capital based on risk weighted assets (10% of D) 5,983,508,009 6,441,496,888 Governance Corporate F) Surplus (C-E) 4,787,882,613 3,592,564,798 Capital Adequacy Ratio (%) (C / D) 18.00% 15.58% 4.0 Balance with other banks and financial institutions Inside Bangladesh Local currency Current and short-term deposits in local currency 4.1 1,731,294,518 3,333,914,711 Management Fixed deposits in local currency 4.2 13,420,694,416 4,248,214,419 Risk 15,151,988,933 7,582,129,130 Foreign currency Current and short-term deposits in foreign currency 4.3 1,720,233,379 2,936,109,223 Fixed deposits in foreign currency 4.4 6,263,400,000 3,731,200,000 7,983,633,379 6,667,309,223 Sustainability Outside Bangladesh - - Report 23,135,622,313 14,249,438,353 4.1 Current and short-term deposits in local currency Janata Bank Ltd. 4.1.a 1,655,013,761 3,252,423,417 The City Bank Ltd. 4.1.b 2,674,335 5,143,989 Financial Performance Prime Bank Ltd. 4.1.c 6,854,043 2,541,042 National Credit and Commerce Bank Ltd. 4.1.d 3,171,639 3,086,511 Analysis National Bank Ltd. 4.1.e 382,514 143,659 Islami Bank Bd. Ltd. 4.1.f 173,854 56,553 Agrani Bank Ltd. 4.1.g 16,870,150 46,329,752 Eastern Bank Ltd. 4.1.h 818,756 4,229,392 Standard Chartered Bank 4.1.i 24,999,850 19,960,396 Auditor’s Report and Dhaka Bank Ltd. 4.1.j 20,335,617 - Audited Financial Statements 1,731,294,518 3,333,914,711 Go to Contents Annual Report 2021 249 2021 2020 Taka Taka 4.1.a Janata Bank Limited Accounts under development partner funded projects IDA -5158-BD : REREDP-II 73,706,346 184,410,781 IDA -5514-BD : Additional Financing REREDP-II 20,617,748 180,150,761 IDB -151-BD 7,653,207 7,666,974 JICA BD P-90 859,507,151 1,105,777,560 KfW-PUREP 2,065,578 279,221,443 AFD Loan no. CBD 1026-01-W 1,327,713 - Company accounts STD Account 690,136,018 1,495,195,898 1,655,013,761 3,252,423,417 4.1.b The City Bank Limited Accounts under development partner funded projects KfW - 2006.65.612 -NDBMP 136,313 136,369 Company accounts Imprest account 2,538,022 5,007,620 2,674,335 5,143,989 4.1.c Prime Bank Limited Company accounts Salary account 495 495 Accounts for Regional Offices Barishal 394,376 105,240 Bogura 516,293 114,435 Chattogram 375,264 148,642 Dhaka 1,160,852 334,190 Faridpur 362,651 189,274 Rangpur 567,130 522,520 Thakurgaon 710,591 137,265 Rajshahi 421,220 233,947 Kushtia 656,711 379,158 Jashore 527,286 188,533 Jamalpur 391,635 3,993 Khulna 386,529 180,864 Mymensingh 383,009 2,486 6,854,043 2,541,042 4.1.d National Credit and Commerce Bank Limited Revolving fund account under projects PPIDF: ADB 2453-BAN (SF) 2,795,229 2,798,804 Accounts for Regional Offices Brahmanbaria (Cumilla) 187,949 97,057 Noakhali 188,461 190,650 3,171,639 3,086,511 4.1.e National Bank Limited Accounts for Regional Office Sylhet 382,514 143,659 382,514 143,659 4.1.f Islami Bank Bangladesh Limited Accounts for Regional Office Borguna 173,854 56,553 173,854 56,553 250 Go to Contents 2021 2020 Taka Taka Information Company 4.1.g Agrani Bank Limited Accounts under development partner funded projects P-075 : JICA - - IDA-6202 16,870,150 46,329,752 16,870,150 46,329,752 4.1.h Eastern Bank Limited Revolving fund account under projects Stewardship P-075 : JICA 818,756 4,229,392 818,756 4,229,392 4.1.i Standard Chartered Bank Company Account Salary Account 24,999,850 19,960,396 24,999,850 19,960,396 4.1.j Dhaka Bank Limited IDCOL About Revolving fund account under projects P-090 : JICA 9,744,146 - Accounts under development partner funded projects KfW-REP 10,591,471 - 20,335,617 - 4.2 Fixed deposits in local currency Governance Corporate Fixed deposit receipt with: Agrani Bank Ltd. 1,090,000,000 200,000,000 Al Arafah Islami Bank Ltd. 550,000,000 - Bangladesh Development Bank Ltd. 605,000,000 - BASIC Bank - 80,000,000 BD Finance 214,000,000 314,506,419 Dhaka Bank Ltd. 540,000,000 200,000,000 Management EXIM Bank Ltd. 1,580,000,000 290,000,000 Risk FAS Finance & Investment Ltd. 290,000,000 290,000,000 First Finance Ltd. 300,000,000 300,000,000 GSP Finance Company (Bangladesh) Ltd. 42,986,416 50,000,000 IFIC Bank Ltd. 1,220,000,000 400,000,000 International Leasing and Financial Services Limited 290,000,000 290,000,000 Janata Bank Ltd. 1,200,000,000 150,000,000 Sustainability Report Mercantile Bank Ltd. 500,000,000 320,000,000 Mutual Trust Bank Ltd. 100,000,000 - NCC Bank Ltd. 1,580,000,000 195,000,000 Premier Leasing & Finance Ltd. 350,000,000 350,000,000 Prime Finance & Investment Ltd. 286,500,000 286,500,000 Rupali Bank Ltd. 840,000,000 - Financial Performance Social Islami Bank Ltd. 650,000,000 100,000,000 Analysis Standard Bank Ltd. 120,000,000 350,000,000 Union Capital Ltd. 82,208,000 82,208,000 United Commercial Bank Ltd. 990,000,000 - 13,420,694,416 4,248,214,419 4.3 Current and short-term deposits in foreign currency Auditor’s Report and Audited Financial Janata Bank Ltd. 122,166,192 1,382,009,539 Statements Commercial Bank of Ceylon (PPIDF-1 revolv. USD) 1,598,067,187 1,554,099,684 1,720,233,379 2,936,109,223 Go to Contents Annual Report 2021 251 2021 2020 Taka Taka 4.3.1 Current and short-term deposits in foreign currency 2021 2020 2021 2020 Exchange Rate Amount in USD per USD Janata Bank Ltd. 1,423,848 16,297,282 85.80 84.80 122,166,192 1,382,009,539 Commercial Bank of Ceylon (PPIDF-1 18,625,492 18,326,647 85.80 84.80 1,598,067,187 1,554,099,684 revolv. USD) 1,720,233,379 2,936,109,223 4.4 Fixed deposits in foreign currency Fixed deposit receipt with: Janata Bank Ltd. 6,263,400,000 3,731,200,000 6,263,400,000 3,731,200,000 4.4.1 Fixed deposits in foreign currency 2021 2020 2021 2020 Exchange Rate Amount in USD per USD Janata Bank Ltd. 73,000,000 44,000,000 85.80 84.80 6,263,400,000 3,731,200,000 6,263,400,000 3,731,200,000 4.5 Maturity grouping of Balance On demand 3,451,527,897 6,270,023,934 Up to one month 2,211,600,000 195,000,000 More than one month but less than three months* 15,830,800,000 6,065,706,419 More than three months but less than one year* - 120,000,000 More than one year but less than five years* 1,641,694,416 1,598,708,000 More than five years - - 23,135,622,313 14,249,438,353 * Less than three months, less than one year and less than five years imply up to three months, up to one year and up to five years respectively. 5.0 Money at call and short notice - - - - 6.0 Investments Investment in summit LNG Terminal Co. (Pvt.) Ltd preferred shares 41,666,667 outstanding shares with a face value of BDT10 per share 416,666,667 700,000,000 416,666,667 700,000,000 6.1 Maturity grouping of Investments On demand - - Upto one month - - More than one month but less than three months - - More than three months but less than one year 83,333,333 133,333,333 More than one year but less than five years 333,333,333 566,666,667 More than five years - - 416,666,667 700,000,000 7.0 Loans and advances Inside Bangladesh Long-term finance 7.1 74,527,402,697 78,375,181,944 Short term financing 7.2 1,553,395 17,713,449 Interest receivable on loans and advances 7.3 612,991,744 734,243,663 75,141,947,836 79,127,139,056 Outside Bangladesh - - 75,141,947,836 79,127,139,056 252 Go to Contents 2021 2020 Taka Taka Information Company 7.1 Long-term finance: Opening balance at January 01 78,375,181,944 68,121,946,365 Add: Disbursement made during the year 5,800,057,342 21,944,524,646 Add: Interest Capitalization during the year 461,869,757 679,809,695 84,637,109,043 90,746,280,706 Less: Realization during the year (10,366,820,991) (11,330,232,266) Less: Written-off during the year (98,154,676) (1,053,788,864) Stewardship Less: Disbursement Reversal (22,617,000) - Add: Forex gain/ (Loss) 377,886,321 12,922,368 Closing balance at December 31 74,527,402,697 78,375,181,944 7.1.1 Sector wise disclosure of long term finance Infrastructure loan 58,413,720,012 61,778,438,358 Renewable energy project 7.1.1a 16,074,231,022 16,551,486,984 Employee car loan 6,324,718 10,390,517 IDCOL About Employee home Loan 33,126,945 34,866,087 74,527,402,697 78,375,181,946 7.1.1a Renewable energy project Solar home system 12,507,285,522 12,921,434,413 Biogas program 82,144,344 132,405,809 Other renewable energy project 3,484,801,156 3,497,646,762 Governance Corporate 16,074,231,022 16,551,486,984 7.2 Short term financing Opening balance at January 01 17,713,449 14,522,629 Add: Disbursement made during the year 38,119,200 42,976,150 55,832,649 57,498,779 Less: Realization during the year (54,279,254) (39,785,330) Management Closing balance at December 31 1,553,395 17,713,449 Risk 7.2.1 Short term financing Biogas Program 1,553,395 17,713,449 1,553,395 17,713,449 7.3 Interest on loan and advance Interest receivable on infrastructure loan 538,578,307 678,762,304 Sustainability Interest receivable on renewable energy loan 7.3.1 74,413,436 55,481,359 Report 612,991,744 734,243,663 7.3.1 Interest receivable on renewable energy loan Solar Home System project - 65 Biogas project 761,472 1,753,406 Financial Performance Biogas advance facility 33,801 223,618 Other renewable energy project 73,618,164 53,504,270 Analysis 74,413,436 55,481,359 7.4 Large Loan Disclosure Nutan Bidyut Bangladesh Limited (NBBL) 5,695,767,515 6,008,288,551 Grameen Shakti 4,507,710,098 4,710,272,972 Kushiara Power Company Limited 3,817,024,777 4,036,971,398 Auditor’s Report and Audited Financial Confidence Power Bogura Limited (CPBL) 3,112,490,859 - Statements Confidence Power Rangpur Limited (CPRL) 3,060,902,647 3,399,154,404 Sena Kalyan Sangstha (SKS) 2,938,092,787 2,967,574,594 Doreen Hotels and Resorts Ltd. 2,839,989,880 2,681,964,890 Meghna Cement Mills Limited 2,693,304,362 2,786,319,184 Go to Contents Annual Report 2021 253 2021 2020 Taka Taka Rural Services Foundation 2,659,009,067 2,681,711,507 BSRM Steels Limited (BSRMSL) 2,626,312,501 3,001,500,000 City Navigations Limited (CNL) 2,438,636,372 3,057,729,268 Feni Lanka Power Limited (FLPL) 2,306,622,290 2,461,002,958 Regent Energy and Power Ltd. 2,262,840,781 2,663,910,097 Zodiac Power Chittagong Limited (ZPCL) 2,093,426,036 1,613,786,086 DBL Industrial Park Ltd. (DIPL)* 1,757,437,500 - Ace Alliance Power Limited (AAPL) 1,697,575,959 1,817,188,129 Summit Barisal Power Ltd. 1,650,824,101 1,861,037,157 Seven Circle (Bangladesh) Limited 1,604,977,408 1,707,225,001 Midland East Power Limited (MEPL) 1,534,639,327 1,699,555,694 City Seed Crushing Industries Limited (CSCIL) 1,355,737,500 1,353,712,500 Meghna Industrial Economic Zone Limited (MIEZL)** - 1,590,211,855 DBL Ceramics Limited (DCL)** - 1,573,236,529 52,653,321,769 53,672,352,775 *During the previous year, above-mentioned loanee did not belong to the Large Loan. However, the balance was BDT 877,187,500. **Some of the loan accounts that appeared on the list of top 20 large loans in the previous year were ommitted during the current year as those are no longer large loans based on the outstanding balance as at 31 December 2021. However, outstanding balances of such accounts at the end of FY 2021 are BDT 502,921,244 and BDT 1,340,164,449 in the cases of Meghna Industrial Economic Zone Limited (MIEZL), DBL Ceramics Limited (DCL) respectively. 7.5 Particulars of Loans, Advances and leases a)    Loan considered good in respect of which the FI is fully secured 5,581,112,941 6,936,698,634 b)      Loan considered good in respect of which the FI is partially 69,560,834,895 72,190,440,422 secured c) Loan considered good for which the FI holds no other security - - than the debtor's personal security. d)    Loan considered good for which the FI holds no other security - - than the debtor’s personal security. e)    Loan considered good and secured by the personal security of - - one of more parties in addition to the personal security of the debtors. f)    Loan adversely classified for which no provision is created. - - 75,141,947,836 79,127,139,056 g)    Loan due by directors or officers of the FI or any of them either 39,451,663 45,256,604 separately or jointly with any other persons. h)    Loan due by companies and firms in which the directors of the - - FI have interest as directors, partners or managing agent or in case of private companies as members. i)    Maximum total amount of advances including temporary 7,223,578 - advances made at any time during the year to directors and managers or officers of the FI or any of them either separately or jointly with any other persons. j)    Maximum total amount of advances including temporary - - advances made at any time during the year to the companies or firms in which the directors of the FI have interest as directors partners or managing agents or in case of private companies as members. k)    Due from other Bank/FI companies. - - l) Classified loans advances and leases. - - i) Classified loans, advances and leases on which interest has 4,313,393,366 1,207,644,635 not been charged 254 Go to Contents 2021 2020 Taka Taka Information Company ii) Provision kept against bad loans, advances and leases 638,698,896 449,677,845 iii) Interest credited to Interest Suspense Account 906,286,711 508,435,871 5,858,378,973 2,165,758,351 m) Cumulative amount of written off loans, advances and leases Opening Balance 2,631,853,836 1,588,351,324 Amount written off during the year 98,154,676 1,053,788,864 Amount received from written off loans and leases during the year (5,303,647) (10,286,352) Stewardship Balance of written off loans, advances and leases 2,724,704,865 2,631,853,836 7.6 Maturity grouping of loans and advances On demand - - Upto one month 123,336,370 412,844,204 More than one month but less than three months* 1,985,801,529 2,754,868,299 More than three months but less than one year* 7,352,351,074 10,176,696,651 More than one year but less than five years* 27,676,771,296 44,487,472,945 IDCOL About More than five years 38,003,687,567 21,295,256,958 75,141,947,836 79,127,139,056 * Less than three months, less than one year and less than five years imply up to three months, up to one year and up to five years respectively. 7.7 Disclosure for significant concentration a) Advances to allied concerns of Directors - - Governance Corporate b) Advances to Chief Executive and other executives 39,451,663 45,256,604 c) Advances to customer groups: - - Bio-electricity 340,250,169 230,304,529 Biogas program 84,491,854 152,096,486 Economic Zone 2,260,358,742 2,467,399,355 Environmental Services 698,051,232 694,195,151 Industrial Energy Efficiency 12,161,585,583 8,116,618,943 Management Infrastructure Backward Linkage Industry 7,978,520,653 13,306,976,174 Risk IT & Telecommunication 101,406,028 952,747,038 Port 25,534,147 2,344,308,633 Power & Energy 32,773,700,459 31,841,919,407 SHS program 12,507,285,924 12,921,434,980 Social/ Tourism Infrastructure 3,082,538,967 2,920,606,073 Solar BTS 45,393,129 56,269,870 Sustainability Solar grid-tied 597,620,415 620,241,112 Report Solar Irrigation 1,658,230,817 1,601,977,218 Solar Mini-grid 384,496,775 436,184,281 Solar rooftop 403,031,279 418,603,199 75,141,947,836 79,127,139,056 7.8 Geographical Location - wise Loans and Advances Financial Performance Inside Bangladesh Analysis Dhaka Region 25,947,546,277 28,173,022,174 Chattogram Region 17,363,356,486 20,960,512,075 Khulna Region 4,757,465,226 4,881,475,452 Rajshahi Region 4,277,494,652 1,231,901,577 Barisal Region 9,921,504,984 10,285,549,451 Auditor’s Report and Rangpur Region 5,699,155,326 6,135,120,667 Audited Financial Sylhet Region 5,986,311,298 6,224,573,300 Statements Mymensingh Region 1,189,113,587 1,234,984,358 75,141,947,836 79,127,139,056 Outside Bangladesh - - 75,141,947,836 79,127,139,056 Go to Contents Annual Report 2021 255 2021 2020 Taka Taka 7.9 Classification of loans and advances Unclassified: Standard 64,925,146,653 76,884,484,842 Special Mention Account 5,903,407,817 1,035,009,578 70,828,554,469 77,919,494,420 Classified: Sub-Standard 2,869,100,359 603,778,545 Doubtful 596,797,360 3,307,882 Bad or loss 847,495,648 600,558,208 4,313,393,366 1,207,644,635 75,141,947,836 79,127,139,056 7.9.1 Particulars of required provision for loans and advances Base for Status Rate (%) provision General provision Standard loans/ advances 58,109,224,751 1% 581,092,248 762,642,283 Standard loans/ advances (DFIM 6,509,750,229 1% 65,097,502 - circular no. 33 applied) Special provision (as per DFIM 2% 130,195,005 - circular letter no. 33)* Interest receivable on standard loan 306,172,082 1% 3,061,721 6,202,578 Special mention account (SMA) 5,815,421,979 5% 290,771,099 48,960,966 70,740,569,041 1,070,217,574 817,805,827 Specific provision Sub-standard 2,161,956,963 20% 432,391,393 107,989,609 Doubtful 440,556,429 50% 220,278,215 1,626,491 Bad/loss 638,698,896 100% 638,698,896 449,677,845 3,241,212,288 1,291,368,503 559,293,945 Total provision required at 31 2,361,586,077 1,377,099,772 December 2021 Voluntary General Provision 2,234,454,813 2,234,454,813 Total provision kept 31 4,596,040,890 3,611,554,585 * As per DFIM circular letter no 33 dated 19 December 2021, 2% additional provision has been reserved against accounts availing deferral facility. Please see note 31. Movement of provision of loans and advances Opening balance at January 01 3,611,554,585 4,203,783,130 Provision made during the year: Regulatory requierment 1,082,640,981 (188,439,681) Voluntary provision - 650,000,000 1,082,640,981 461,560,319 Adjustment during the year: Written-off loan (98,154,676) (1,053,788,864) Closing balance at December 31 4,596,040,890 3,611,554,585 7.10 Net Loans and advances Closing outstanding balance 75,141,947,836 79,127,139,056 Less: Interest suspense 11.3 (356,005,143) (476,116,876) Provision for loans and advances 31 (4,596,040,890) (3,611,554,585) Net loans and advances 70,189,901,802 75,039,467,594 256 Go to Contents 2021 2020 Taka Taka Information Company 7.11 Disclosure of disbursement of loan from development partner funded projects during the year A. REREDP-II funded by IDA (Credit # 5158) Annex - A a) Refinancing to Partner Organizations (POs) - - b) Loan to other renewable projects 178,946,696 197,843,520 Sub Total 178,946,696 197,843,520 REREDP-II funded by IDA (Credit # 5514) Annex-A Stewardship a) Refinancing to Partner Organizations (POs) - - b) Loan to other renewable projects 99,784,363 - Sub Total 99,784,363 - REREDP-II funded by IDA (Credit # 6202) Annex - A a) Refinancing to Partner Organizations (POs) b) Loan to other renewable projects 44,609,747 147,735,386 Sub Total 44,609,747 147,735,386 B. SREP funded by IDA (Credit # 6363) Annex - B IDCOL About a) Loan for Rooftop PV projects 71,292,913 - Sub Total 71,292,913 - SREP funded by IDA (Credit # TF0A7640) Annex - B a) Loan for RFFF establishment 22,513,552 - Sub Total 22,513,552 - Governance C. PPIDF funded by ADB (Loan No. 3554-BAN) Annex-C Corporate Loan to large infrastructure projects (LIP) 1,875,000,000 8,156,762,965 Sub Total 1,875,000,000 8,156,762,965 PPIDF funded by ADB (Loan No. 3555-BAN) Annex-C Refinancing to POs under Renewable Energy Project (REP) 111,136,099 687,500,000 Sub Total 111,136,099 687,500,000 Management D. Energy Efficiency funded by JICA ( Loan# BD-P90) Annex-D Risk Refinancing to Participating Organizations (POs) Loan to energy efficiency projects 244,158,067 696,100,000 Sub Total 244,158,067 696,100,000 E. REP Project funded by KfW Annex-E Sustainability Loan to C&I grid-connected PV plants and off-grid RE projects 218,002,831 - Report Sub Total 218,002,831 - F. SUNREF Project funded by AFD Annex-F Loan for energy efficiency, renewable energy and 1,179,800,000 - environmental performance projects Financial Performance Sub Total 1,179,800,000 - Grand Total 4,045,244,268 9,885,941,871 Analysis 7.12 As per DFIM Circular no-08 dated 17 August 2021 and FRC letter (Ref. no-178/FRC/APR/2021/28(17)) dated 21 December 2021, IDCOL is required to obtain and preserve audited financial statements for loans and advances sanctioned/renewed to public interest entity. IDCOL obtained and preserved audited financial statements in its loan files for 100% loans and advances sanctioned/renewed to public interest entity from 17 August 2021 to 31 December 2021. Auditor’s Report and Audited Financial 8 Assets including land, building, furniture and fixtures Statements Fixed assets including land, building, furniture and fixtures Annex-H 97,608,758 101,526,178 Right-Of-Use Asset Annex-H 15,287,781 14,126,434 112,896,539 115,652,613 Go to Contents Annual Report 2021 257 2021 2020 Taka Taka 8.1 Fixed assets including land, building, furniture and fixtures Cost Opening balance at January 01 236,108,511 227,930,950 Add: Purchased during the year 11,937,936 8,177,561 Less: Disposal during the year - - Closing balance at December 31 248,046,447 236,108,511 Depreciation Opening balance at January 01 134,582,333 114,406,390 Add: Charged during the year 15,855,357 20,175,943 Less: Adjustment during the year - - Closing balance at December 31 150,437,690 134,582,333 Written Down Value at December 31 97,608,758 101,526,178 Details of fixed assets are given in Annexure -H 8.2 Right-Of-Use Asset Recognition Opening balance at January 01 28,956,361 28,956,361 Add: Recognized during the year 10,980,797 - Less: Disposal during the year - - Closing balance at December 31 39,937,158 28,956,361 Depreciation Opening balance at January 01 14,829,927 6,535,584 Add: Charged during the year 9,819,450 8,294,343 Less: Adjustment during the year - - Closing balance at December 31 24,649,377 14,829,927 Written Down Value at December 31 15,287,781 14,126,434 9 Other Assets Advances, deposits and prepayments 9.1 75,594,125 37,949,858 Advance income tax 9.2 887,132,875 822,957,642 Advance VAT 9.3 9,120,339 9,120,339 Accounts receivables 9.4 199,723,097 654,350,866 Interest Receivables on Investments 3,240,745 13,238,889 Deferred Tax Asset 9.5 2,924,330 8,484,386 1,177,735,512 1,546,101,980 All the assets recorded in "other assets" category are non income generating assets. 9.1 Advances, deposits and prepayments Advance for SHS project 2,777,740 6,510,247 Advance NDBMP project expense 3,400,017 3,545,059 Advance under KfW REP 38,056,728 - Advance for other RE projects 208,385 303,881 Advance for training - 2,006,549 Advance for travelling 4,443,950 3,370,380 Advance subsidy- NDBMP 1,843,754 1,843,753 Advance for Building 10,852,811 10,486,146 Advance for Land 6,419,222 - Book for project finance course - 685,365 Corporate advisory advance 1,530,000 645,800 Directors remuneration 210,000 75,000 Rental advance 4,785,898 6,033,198 258 Go to Contents 2021 2020 Taka Taka Information Company Salary advance 62,497 166,673 Advance against training /travelling expenses 215,678 765,098 Advance for ICS Program 137,446 697,710 Others 650,000 814,999 75,594,125 37,949,858 9.2 Advance income tax Stewardship Opening balance at January 01 822,957,642 1,172,890,287 Add: Advance tax (Including TDS ) paid during the year 959,155,143 631,537,258 Less: Adjustment with Provision for Tax (894,979,910) (981,469,903) Closing balance at December 31 887,132,875 822,957,642 9.3 Balance at January 01 9,120,339 9,120,339 Add: Advance VAT paid during the year - - Less: Adjustment with Provision for VAT - - Balance at December 31 9,120,339 9,120,339 IDCOL About 9.4 Accounts receivables Administration fees under renewable energy projects 465,545 465,545 Fees and other receivable from infra. Project - 7,496 Receivables from KFW-REP -Biogas subsidy 17,695,500 10,040,000 Fees and other receivable from advisory services 14,394 78,244 Interest receivable on fixed deposit (FDR) 129,475,841 85,363,601 Governance Corporate Other receivables 12,229,366 11,308,357 Receivable under RE projects 9.4.1 39,842,451 547,061,401 IDCOL SPF - 11,223 Training fees receivable - 15,000 199,723,097 654,350,866 9.4.1 Receivable under RE projects Management Risk Receivables under IDA 5158 HE - 3,907,129 Receivables under KfW PUREP - 110,901,237 Receivables under GPOBA II Subsidy - 2,088,137 Receivables under IDA 5514 AF 26,558,826 13,577,946 Receivables under USAID TF 15034 - 55,512,234 Receivables under IDA 6202 TA for HE 7,059,368 47,040,779 Sustainability Receivables under IDA 6202 TA for AE 6,224,257 37,415,606 Report Receivables under KFW REP - 275,040,961 Receivables under SREP - 1,577,372 39,842,451 547,061,401 9.5 Deferred tax Annex-G Financial Performance Opening balance at January 01 8,484,386 9,242,457 Provision/(reversal) during the year (5,560,056) (758,071) Analysis Settlement during the year - - Closing balance at December 31 2,924,330 8,484,386 10 Borrowings from other banks, financial institutions and agents Abbreviations Auditor’s Report and ADB : Asian Development Bank Audited Financial Statements AFD : French Development Agency BB : Bangladesh Bank BKEI : Brick Kiln Efficiency Improvement IDA : International Development Association (The World Bank) IDB : Islamic Development Bank Go to Contents Annual Report 2021 259 2021 2020 Taka Taka IPFF II : Investment Promotion and Financing Facility II KfW : German Development Bank NDBMP : National Domestic Biogas and Manure Programme PPIDF : Public-Private Infrastructure Development Facility PSIDP : Private Sector Infrastructure Development Project REP : Renewable Energy Program REREDP : Rural Electrification and Renewable Energy Development Project SCF : Strategic Climate Fund SREP : Scaling Up Renewable Energy Project Inside Bangladesh Unsecured long-term loans from the Government of Bangladesh IDA financing under PSIDP- (Credit# 2995) 10.1 8,053,323,587 8,172,723,587 IDA financing under REREDP 10.2 22,928,913,032 24,552,726,758 ADB financing under PPIDF (Loan # 2453, 2454, 3045, 3046, 10.3 38,039,817,986 37,118,423,646 3554 & 3555) IDB financing under REP ( Credit # 151) 10.4 631,356,324 715,368,974 KfW financing under NDBMP (Credit # 2006.65.612) 10.5 259,879,471 259,879,471 JICA financing 10.6 9,623,503,094 10,133,337,071 BB Financing under BKEI project 10.7 394,263,755 422,105,272 AFD Financing under CBD 1026-1-W 10.8 1,179,800,000 519,273,000 BB Financing under IPFF-II Project 10.9 493,113,888 480,374,794 WB financing under SCF 22,513,552 - IDA financing under SREP 71,292,913 - KfW financing under REP 214,094,389 - 81,911,871,991 82,374,212,572 Outside Bangladesh - - 81,911,871,991 82,374,212,572 10.1 IDA financing under PSIDP ( Credit # 2995) Opening balance at January 01 8,172,723,587 8,172,723,587 Add: Drawdown made during the year - - 8,172,723,587 8,172,723,587 Less: Repayment made during the year (119,400,000) - Closing balance at December 31 8,053,323,587 8,172,723,587 10.2 IDA financing under REREDP IDA credit # 4643 10.2a 3,066,667,397 3,449,282,701 IDA credit # 3679 10.2b 2,641,132,700 2,641,132,700 IDA credit # 5013 10.2c 6,180,326,293 6,798,358,921 IDA credit # 5158 10.2d 6,765,074,048 7,200,643,764 IDA credit # 5514 10.2e 4,083,367,461 4,315,573,286 IDA credit # 6202 10.2f 192,345,133 147,735,386 22,928,913,032 24,552,726,758 10.2a IDA credit # 4643 Opening balance at January 01 3,449,282,701 3,831,898,005 Add: Drawdown made during the year - - 3,449,282,701 3,831,898,005 Less: Repayment made during the year (382,615,304) (382,615,304) Closing balance at December 31 3,066,667,397 3,449,282,701 260 Go to Contents 2021 2020 Taka Taka Information Company 10.2b IDA credit # 3679 Opening balance at January 01 2,641,132,700 2,641,132,700 Add: Drawdown made during the year - - 2,641,132,700 2,641,132,700 Less: Repayment made during the year - - Closing balance at December 31 2,641,132,700 2,641,132,700 Stewardship 10.2c IDA credit # 5013 Opening balance at January 01 6,798,358,921 7,416,391,549 Add: Drawdown made during the year - - 6,798,358,921 7,416,391,549 Less: Repayment made during the year (618,032,628) (618,032,628) Closing balance at December 31 6,180,326,293 6,798,358,921 10.2d IDA credit # 5158 IDCOL About Opening balance at January 01 7,200,643,764 7,603,719,652 Add: Drawdown made during the year 178,946,696 197,843,520 7,379,590,460 7,801,563,172 Less: Repayment made during the year (614,516,412) (600,919,408) Closing balance at December 31 6,765,074,048 7,200,643,764 10.2e GoB Loan REREDP-II (AF) - IDA 5514 Governance Opening balance at January 01 4,315,573,286 4,648,393,952 Corporate Add: Drawdown made during the year 99,784,363 - 4,415,357,649 4,648,393,952 Less: Repayment made during the year (adjustment) (331,990,188) (332,820,666) Closing balance at December 31 4,083,367,461 4,315,573,286 10.2f GoB Loan REREDP-II (AF II) - IDA 6202 Opening balance at January 01 147,735,386 - Management Add: Drawdown made during the year 44,609,747 147,735,386 Risk 192,345,133 147,735,386 Less: Repayment made during the year (adjustment) - - Closing balance at December 31 192,345,133 147,735,386 10.3 ADB financing under PPIDF ADB credit # 2453 -REP 10.3a 4,112,598,292 4,503,045,725 Sustainability ADB credit # 2453 -SMIP 10.3b 247,647,227 271,158,695 Report ADB credit # 2454 -LIP 10.3c 4,638,965,760 5,009,763,520 ADB credit # 3045 -OCR 10.3d 7,202,050,000 7,625,700,000 ADB credit # 3046 -SF 10.3e 609,420,607 645,255,705 ADB credit # 3554 -OCR 10.3f 20,355,500,000 18,301,000,000 ADB credit # 3555 -COL 10.3g 873,636,099 762,500,000 Financial Performance 38,039,817,986 37,118,423,646 10.3a ADB credit # 2453 -REP Analysis Opening balance at January 01 4,503,045,725 4,856,799,125 Add: Drawdown made during the year - - 4,503,045,725 4,856,799,125 Less: Repayment made during the year (390,447,433) (353,753,400) Closing balance at December 31 4,112,598,292 4,503,045,725 Auditor’s Report and Audited Financial 10.3b ADB credit # 2453 -SMIP Statements Opening balance at January 01 271,158,695 292,460,569 Add: Drawdown made during the year - - 271,158,695 292,460,569 Less: Repayment made during the year (23,511,468) (21,301,874) Closing balance at December 31 247,647,227 271,158,695 Go to Contents Annual Report 2021 261 2021 2020 Taka Taka 10.3c ADB credit # 2454 -LIP Opening balance at January 01 5,009,763,520 5,401,354,980 Add: Drawdown made during the year - - 5,009,763,520 5,401,354,980 Less: Repayment made during the year (424,864,960) (391,591,460) Add: Fair value adjustment (exchange loss) 54,067,200 Closing balance at December 31 4,638,965,760 5,009,763,520 10.3d ADB credit # 3045 -OCR Opening balance at January 01 7,625,700,000 8,056,000,000 Add: Drawdown made during the year - - 7,625,700,000 8,056,000,000 Less: Repayment made during the year (423,650,000) (430,300,000) Add: Fair value adjustment - - Closing balance at December 31 7,202,050,000 7,625,700,000 10.3e ADB credit # 3046 -SF Opening balance at January 01 645,255,705 681,090,803 Add: Drawdown made during the year - - 645,255,705 681,090,803 Less: Repayment made during the year (35,835,098) (35,835,098) Closing balance at December 31 609,420,607 645,255,705 10.3f ADB credit # 3554 OCR Opening balance at January 01 18,301,000,000 10,155,551,730 Add: Drawdown made during the year 1,875,000,000 8,156,762,965 20,176,000,000 18,312,314,696 Less: Repayment made during the year - (11,314,696) Add: Fair value adjustment (exchange loss) 179,500,000 - Closing balance at December 31 20,355,500,000 18,301,000,000 10.3g ADB credit # 3555 COL Opening balance at January 01 762,500,000 75,000,000 Add: Drawdown made during the year 111,136,099 687,500,000 873,636,099 762,500,000 Less: Repayment made during the year - - Closing balance at December 31 873,636,099 762,500,000 10.4 IDB financing under REP ( Credit # 151) Opening balance at January 01 715,368,974 799,381,624 Add: Drawdown made during the year - - 715,368,974 799,381,624 Less: Repayment made during the year (84,012,650) (84,012,650) Less: Fair value adjustment - - Closing balance at December 31 631,356,324 715,368,974 10.5 KfW financing under NDBMP (Credit # 2006.65.612) Opening balance at January 01 259,879,471 259,879,471 Add: Drawdown made during the year - - 259,879,471 259,879,471 Less: Repayment made during the year - - Closing balance at December 31 259,879,471 259,879,471 10.6 JICA financing under REDP (Credit # P 75 & P 90) JICA credit # P 75 10.6a 5,895,073,654 6,404,907,631 JICA credit # P 90 10.6b 3,728,429,439 3,728,429,439 9,623,503,094 10,133,337,071 262 Go to Contents 2021 2020 Taka Taka Information Company 10.6a JICA financing under REDP (Credit # P 75) Opening balance at January 01 6,404,907,631 6,914,741,609 Add: Drawdown made during the year - - 6,404,907,631 6,914,741,609 Less: Repayment made during the year (509,833,977) (509,833,978) Add: Fair value adjustment - - Closing balance at December 31 5,895,073,654 6,404,907,631 Stewardship 10.6b JICA financing under REDP (Credit # P 90) Opening balance at January 01 3,728,429,439 3,718,249,038 Add: Drawdown made during the year - 10,180,929 3,728,429,439 3,728,429,967 Less: Repayment made during the year - (528) Add: Fair value adjustment - - Closing balance at December 31 3,728,429,439 3,728,429,439 IDCOL About 10.7 BB Financing under BKEI project Opening balance at January 01 422,105,272 422,105,272 Add: Drawdown made during the year - - 422,105,272 422,105,272 Less: Repayment made during the year (27,841,517) - Less: Fair value adjustment - - Governance Corporate Closing balance at December 31 394,263,755 422,105,272 10.8 AFD Financing under CBD 1026-1-W Opening balance at January 01 519,273,000 - Add: Drawdown made during the year 679,819,000 519,273,000 1,199,092,000 519,273,000 Less: Repayment made during the year (19,292,000) - Management Closing balance at December 31 1,179,800,000 519,273,000 Risk 10.9 BB Financing under IPFF-II Project Opening balance at January 01 480,374,794 - Add: Drawdown made during the year 12,808,091 480,374,794 493,182,885 480,374,794 Less: Repayment made during the year (68,997) - Sustainability Closing balance at December 31 493,113,888 480,374,794 Report 10.10 Maturity-wise grouping On demand - - Upto one month - - More than one month but less than three months* 1,270,813,782 1,220,946,247 More than three months but less than six months* 2,022,791,583 1,960,602,762 Financial Performance More than six months but less than one year* 5,846,619,678 3,995,649,512 Analysis More than one year but less than five years* 31,445,515,559 29,698,370,468 More than five years but less than ten years* 30,434,029,732 33,925,985,460 More than ten years 10,892,101,657 11,572,658,123 81,911,871,990 82,374,212,572 * Less than three months, less than six months, less than one year, less than five years and less than ten years imply Auditor’s Report and up to three months, up to six months, up to one year, up to five years and up to ten years respectively. Audited Financial Statements 11 Other Liabilities Payable and accrued expenses 11.1 761,822,925 985,164,437 Provision for income tax 32 1,434,584,285 844,966,332 Employees' gratuity fund 11.2 - - Go to Contents Annual Report 2021 263 2021 2020 Taka Taka Interest suspense account 11.3 356,005,143 476,116,876 Provision for loans and advances 31.2 4,596,040,890 3,611,554,585 Provision for short term investment 31.4 900,000,000 600,000,000 Grant fund received from development partners 11.4 39,991,285 37,034,893 Lease Liability 11.5 12,454,630 10,221,685 Unearned Revenue 4,865,486 3,180,679 Provisions other than loans 16,588,915 29,923,354 8,122,353,558 6,598,162,842 11.1 Payable and accrued expenses Interest payable to GoB 11.1a 359,717,772 298,158,582 REREDP PO's deposit (Loan # 3679) 183,488,065 181,286,240 Initial deposit under REREDP (Loan # IDA - 5158) 73,495,400 182,133,710 Security deposit from POs under NDBMP project 6,686,863 9,055,562 Other payables 53,630,073 61,435,268 SHS maintenance expenses -Disaster 560,020 560,020 Initial deposit under REREDP (Loan # IDA 5514) 19,331,526 177,343,739 Initial deposit under REREDP (Loan # IDA 6202) 16,503,966 45,416,913 Penalty for ICS 2,472,000 2,472,000 Payable under corporate advisory service - 25,048 Payable to IDCOL Staffs 12,795 148,207 Accrued expenses 1,264,350 1,349,998 Retention HE IDA 6202 ICS 42,512,050 25,532,149 VAT and Tax Payable 72,045 - Retention from POs under KFW REP program 2,076,000 247,000 761,822,925 985,164,437 11.1a Interest payable to GoB Interest payable to GoB-PPIDF (Credit # 2453 & 2454) 11.1a.1 19,689,806 23,222,289 Interest payable to GoB - REREDP 11.1a.2 10,887,166 8,433,752 Interest payable to GoB - IDB (Credit # 151) 11,319 12,825 Interest payable to GoB - JICA (Credit # P 75 & P 90) 119,690,971 83,165,133 Interest payable to GoB - OCR & SF ( Credit # 3045 & 3046) 50,299,152 55,070,123 Interest payable to GoB - OCR & SF ( Credit # 3554 & 3555) 147,357,958 102,663,215 Interest payable to GoB - BB BKEI Project 9,311,112 24,906,570 Interest payable to GoB - AFD CBD 1026 1,671,383 684,675 Interest payable to GoB- KfW REP 784,738 - Interest payable to GoB- IPFF II 14,165 - 359,717,772 298,158,582 11.1a.1 Interest payable to GoB - PPIDF Payable against Credit # 2453 -IEEF 3,714,707 4,067,381 Payable against Credit # 2454 -LIP 15,975,100 19,154,908 19,689,806 23,222,289 11.1a.2 Interest payable to GoB - REREDP Payable against Credit # 4643 138,766 156,078 Payable against Credit #5013 150,199 165,219 Payable against Credit # 5158 8,537,220 6,141,374 Payable against Credit # 5514 181,339 232,713 Payable against Credit # 6202 1,879,641 1,738,368 10,887,166 8,433,752 264 Go to Contents 2021 2020 Taka Taka Information Company 11.2 Employees' gratuity fund Opening balance at January 01 - - Add: Provision made during the year 11,558,301 52,160,168 11,558,301 52,160,168 Less: Settlement made during the year 11,558,301 52,160,168 Transfer to BoT - - Stewardship 11,558,301 52,160,168 Closing balance at December 31 - - 11.3 Interest suspense account Opening balance at January 01 476,116,876 283,363,693 Add: Amount transferred to "Interest Suspense" A/c during the year 906,286,711 508,435,871 1,382,403,587 791,799,564 Less: Transferred to Income during the year (1,026,398,444) (190,648,744) IDCOL About Amount written off during the year - (125,033,944) 356,005,143 476,116,876 11.3.1 Interest suspense account Interest on loans and advances 306,820,271 413,916,170 Interest on short-term investment* 49,184,872 62,200,706 356,005,143 476,116,876 Governance Corporate *IDCOL made short term investment to different banks and non bank financial institutions (NBFIs) based on satisfactory credit ratings as per the short term investment policy. However, some of the NBFIs are struggling to pay back at matuirty dates due to their ongoing liquidity crisis. Therefore, considering the ongoing liquidity crisis and adverse impact of COVID-19 on financial market, interest accrued on FDRs maintained with some of the NBFIs has been transferred to interest supsense account as per IAS 37. 11.4 Grant Fund received from development partners Management Opening balance at January 01 (Written Down Value) 37,034,893 45,166,411 Risk Add: Assets received during the year 11,135,706 3,272,238 48,170,599 48,438,649 Less: Amortization/disposal made during the year (8,179,314) (11,403,755) Closing balance at December 31 (Written Down Value) 39,991,285 37,034,893 Development partner Wise disclosures of cumulative grant assets Grant assets received from: Sustainability Report The World Bank 112,203,200 101,067,494 SNV - Netherlands Development Organization 3,644,259 3,644,259 KFW-NDBMP 1,043,007 1,043,007 Total value at cost (a) 116,890,467 105,754,761 Accumulated amortization: Financial Performance The World Bank 72,303,983 64,168,814 SNV - Netherlands Development Organization 3,605,359 3,585,603 Analysis KFW-NDBMP 989,838 965,451 Total amortization (b) 76,899,180 68,719,868 Written down value (a - b) 39,991,287 37,034,893 11.5 Lease Liability Auditor’s Report and Opening Balance as at Jan 01 10,221,685 15,830,705 Audited Financial Add: Addition during the year 9,414,491 - Statements Less: Adjustment during the year (7,181,546) (5,609,020) Closing Balance as at Dec 31 12,454,630 10,221,685 Go to Contents Annual Report 2021 265 2021 2020 Taka Taka 12 Paid-up Capital Authorized capital: 100,000,000 Ordinary shares @ BDT 100 each 10,000,000,000 10,000,000,000 Issued, subscribed and paid-up capital 73,800,000 shares @ BDT 100 each 7,380,000,000 7,150,000,000 Detail of shareholding position of the company No. of No. of Paid up Paid up shares as at shares as at capital as at capital as at Name of shareholders December 31, December December 31, December 31, 2021 31, 2020 2021 2020 Economic Relations Division (ERD), Ministry of Finance, Government of the People's Republic 73,799,000 71,499,000 7,379,900,000 7,149,900,000 of Bangladesh Ms. Fatima Yasmin 450 450 45,000 45,000 Dr. Ahmad Kaikaus 50 50 5,000 5,000 Mr. Abu Hena Md. Rahmatul Muneem 50 50 5,000 5,000 Mr. Abdur Rouf Talukder 50 50 5,000 5,000 Mr. M. Tofazzel Hossain Miah 50 50 5,000 5,000 Dr. Md. Jafar Uddin - 50 - 5,000 Mr. Tapon Kanti Ghosh 50 - 5,000 - Mr. Md. Habibur Rahman 50 50 5,000 5,000 Mr. Md. Sahabuddin Patwary - 50 - 5,000 Mr. Abdul Baki 100 - 10,000 - Ms. Nihad Kabir 50 50 5,000 5,000 Mr. Abdul Haque 50 50 5,000 5,000 Mr. A. K. M. Nurul Fazal Bulbul 50 50 5,000 5,000 Mr. Mahmood Malik - 50 - 5,000 Total 73,800,000 71,500,000 7,380,000,000 7,150,000,000 12.1 Statutory Reserve As per Bangladesh Bank notice FID(G) 1051/circular 2/10, dated 22 October 1997, IDCOL is exempted from complying with section 9 (Statutory Reserve) of the Financial Institutions Act, 1993. As such, maintenance of a Statutory Reserve is not required for IDCOL. 13 Retained earnings Opening Balance as at Jan 01 2,078,874,575 1,852,757,946 Add: Prior year adjustments 13.1 (849,007) (8,691,018) Add: Net profit for the year 1,096,733,989 1,534,807,647 Less: Payment of dividend Bonus shares (230,000,000) (650,000,000) Cash dividend (230,000,000) (650,000,000) Less: Statutory Reserve - - 2,714,759,557 2,078,874,575 13.1 Prior year adjustments Interest Receivable from First Finance Ltd. 13.1.1 - 8,666,667 Interest Receivable from Prime Finance Ltd. 13.1.1 - 249,167 Reversal of Interest from Govt. Loan 13.1.2 - 69,100 Recovery of interest previously recognized as interest 13.1.3 - (286,000) suspense Reversal of salary & allowance 13.1.4 - (7,916) Waive of LPC income from SKS LPG 13.1.5 849,007 - 849,007 8,691,018 13.1.1 Being the recoverability was in question, as per the decision of the BoD, the Company was supposed to derecognize the interest income amounting to BDT 8,666,667 & BDT 249,167 in the case of First Finance Ltd. & Prime Finance Ltd., respectively. The Company corrected during the year as the amount is not material. The interest receivable amount has also been adjusted accordingly. 266 Go to Contents 2021 2020 Taka Taka Information Company 13.1.2 Previously the company undercharged interest from govt. loan amounting to BDT 69,100 (after netting off with overcharge). The Company made the correction during the year as the amount is not material. Interest from govt. loan amount has also been adjusted accordingly. 13.1.3 Previously the company recognized interest suspense by reducing interest income amounting to BDT 286,000 in the case of FAS Finance Limited and subsequently in 2019 the company collected the same amount from FAS Finance Limited. The company made the correction during the year as the amount is not material. Interest suspense amount has also been adjusted accordingly. Stewardship 13.1.4 In 2019 the company issued a cheque for salary & allowance which was subsequently cancelled amounting to BDT 7,916. The Company made the correction during the year as the amount is not material. Salary & Allowance amount has also been adjusted accordingly. 13.1.5 In 2020, an amount of BDT 849,007 was shown as LPC income received from SKS LPG. However, during FY 2021, the Board waived the LPC income resulting in adjustment of the said LPC income from retained earnings. 14 Income Statement Income Interest and similar income 15 4,879,535,336 4,201,577,931 IDCOL About Investment income 17 62,001,850 70,350,000 Fees and commission 18 152,537,520 162,126,582 Other Operating income 19 196,588,337 48,127,144 5,290,663,042 4,482,181,657 Expenses Interest on deposits and borrowings 16 913,523,851 777,474,472 Governance Administrative expenses 20-27 236,441,035 289,666,412 Corporate Other Operating expenses 29 138,336,166 204,875,937 Depreciation on Assets 28 25,674,807 28,470,286 1,313,975,859 1,300,487,107 3,976,687,183 3,181,694,550 15 Interest Income Interest on loans and advances 15.1 4,302,483,970 3,866,294,348 Management Interest on balance with other banks & financial institutes 15.2 577,051,366 335,283,583 Risk 4,879,535,336 4,201,577,931 15.1 Interest Income on loans and advances Interest on Infrastructure loan 15.1.1 4,099,564,942 3,668,402,132 Interest on Renewable Energy Project loan 15.1.2 200,449,462 195,428,327 Interest on employee car loan & home loan 2,469,566 2,463,889 4,302,483,970 3,866,294,348 Sustainability Report 15.1.1 Interest Income on Infrastructure loan Interest income-Infra-LIP 2,415,721,220 2,203,141,576 Interest income-Infra-SMIP (IEEF) 1,208,870,415 1,234,397,541 Interest income-Infra-PPP 474,973,307 230,863,015 4,099,564,942 3,668,402,132 Financial Performance 15.1.2 Interest Income on Renewable Energy Project loan Analysis Interest on SHS project - 7,961,210 Interest on Biogas project 5,163,833 7,427,790 Interest on Biogas advance facility 1,164,635 1,163,244 Interest on ICS project - 22,624 Interest on Other renewable energy project 194,120,994 178,853,459 200,449,462 195,428,327 Auditor’s Report and Audited Financial 15.2 Interest on balance with other bank & FIs Statements Interest on short term bank deposit 40,652,211 19,709,663 Interest on fixed deposit 15.2.1 536,150,613 302,667,239 Interest on call money lending 248,542 12,906,681 577,051,366 335,283,583 Go to Contents Annual Report 2021 267 2021 2020 Taka Taka 15.2.1 Due to the downward trend of the business and liquidity crisis of some NBFIs over the years, there is significant uncertainty about the inflow of economic benefits from interest on FDR. Hence, interest income from some FDR with NBFIs were left aside in computation of interest income on fixed deposit in such cases where it is probable that such income may not flow to the company. 16 Interest on deposits, borrowings etc. Borrowing cost under REREDP 16.1 43,574,022 40,316,940 Borrowing cost under PPIDF 16.2 739,869,310 629,367,687 Borrowing cost under JICA 16.3 70,229,321 73,022,302 Borrowing cost under IPFF II 15,345,399 12,678,793 Borrowing cost under IDB 265,641 298,810 Borrowing cost under BB 20,637,667 21,105,264 Borrowing cost under AFD 17,682,391 684,675 Borrowing cost under KfW 5,920,100 - 913,523,851 777,474,472 16.1 Borrowing cost under REREDP Interest against Credit # 4643 1,161,019 1,299,339 Interest against Credit #5013 1,238,846 1,359,486 Interest against Credit # 5158 29,373,546 28,017,375 Interest against Credit # 5514 4,673,790 5,271,082 Interest against Credit # 6202 6,144,513 4,369,658 Interest against Credit # 6363 746,554 - Interest against Credit # TF0A7640 235,754 - 43,574,022 40,316,940 16.2 Borrowing cost under PPIDF Borrowing cost under PPIDF (Credit # 2453 & 2454) 16.2.1 71,357,743 116,101,994 Borrowing cost under PPIDF II (Credit # 3045 & 3046) 16.2.2 176,630,693 227,643,735 Borrowing cost under PPIDF III (Credit # 3554 & 3555) 16.2.3 491,880,874 285,621,958 739,869,310 629,367,687 16.2.1 Borrowing cost under PPIDF (Credit # 2453 & 2454) Interest against Credit # 2453 -SMIP (IEEF) 13,100,640 14,281,645 Interest against Credit # 2453 -REP - - Interest against Credit # 2454 -LIP 58,257,103 101,820,349 71,357,743 116,101,994 16.2.2 Borrowing cost under PPIDF II (Credit # 3045 & 3046) Interest against Credit # 3045 - OCR (BDT & USD) 175,339,422 226,275,018 Interest against Credit # 3046 -SF 1,291,271 1,368,717 176,630,693 227,643,735 16.2.3 Borrowing cost under PPIDF III (Credit # 3554 & 3555) Interest against Credit # 3554 - OCR 343,194,451 99,888,892 Interest against Credit # 3554 - OCR USD 123,910,025 181,438,691 Interest against Credit # 3555 - SF 24,776,398 4,294,375 491,880,874 285,621,958 16.3 Borrowing cost under JICA (Credit # P 75 & P 90) Interest against Credit # P 75 32,945,021 35,738,005 Interest against Credit # P 90 37,284,300 37,284,297 70,229,321 73,022,302 17 Investment income Investment income-Pref. Share Inv 62,001,850 70,350,000 62,001,850 70,350,000 268 Go to Contents 2021 2020 Taka Taka Information Company 18 Commission, fees, exchange and brokerage Fees income from renewable energy project 18.1 1,983,460 395,011 Fees income from infra project 18.2 140,330,731 161,571,571 Income from advisory services 10,223,329 160,000 152,537,520 162,126,582 18.1 Fees income from renewable energy project Fees for GCF Project 1,863,460 - Stewardship Enlistment of RE equipment 120,000 395,011 1,983,460 395,011 18.2 Fees income from infra project Participation & arrangement fees 20,131,085 24,590,320 Loan application, processing & documentation fees 1,964,361 1,667,000 Due diligence fees 2,007,250 9,708,800 Commission income 314,518 2,136,828 IDCOL About Commitment charges 2,100,242 14,538,881 Waiver, cancellation & prepayment fees 49,564,651 13,831,305 Upfront fees 34,000,000 71,586,118 Agency & monitoring Fees 30,248,625 23,512,319 140,330,731 161,571,571 19 Other operating income Governance Corporate Exchange gain 176,741,817 474,879 Deferred Income (Grant Income) 8,179,319 11,403,755 Others 11,667,201 36,248,510 196,588,337 48,127,144 20 Salary and allowances Salary and allowances 188,002,073 182,315,194 Gratuity 11,502,136 52,160,168 Management 199,504,209 234,475,362 Risk 21 Rent, taxes, insurance and electricity, etc. Rent 2,664,142 2,435,021 Insurance premium 5,974,650 4,337,869 Electricity & Utilities 801,686 699,714 Holding & Land tax 238,367 238,367 9,678,845 7,710,971 Sustainability Report 22 Professional & Legal expenses Legal Expenses 1,634,014 558,985 Professional fees 22.1 4,017,577 15,333,046 5,651,591 15,892,031 22.1 Professional fees Financial Performance Consultancy under JICA Projects 4,017,577 15,259,829 Other Professional fees - 73,217 Analysis 4,017,577 15,333,046 23 Postage, stamp, telecommunication, etc. Postage and courier 171,037 129,788 Telephone, Fax and E-mail 3,527,733 2,859,490 3,698,770 2,989,278 Auditor’s Report and Audited Financial 24 Stationery, printing, advertisements, etc. Statements Printing and stationeries 2,161,539 2,871,344 Marketing, promotion & Business dev. Exp. 1,995,719 5,323,919 Advertisement 1,334,913 2,042,602 5,492,170 10,237,865 Go to Contents Annual Report 2021 269 2021 2020 Taka Taka 25 Chief Executive's salary and benefits Salary 4,565,100 6,519,000 Allowances 3,593,123 5,461,275 Bonus 123,600 2,060,000 Company's contribution to provident fund 393,260 651,900 8,675,083 14,692,175 26 Directors' fees Honorarium for attending board meetings 2,983,370 2,916,711 Incidental expenses for attending meeting 303,334 298,357 3,286,704 3,215,068 27 Auditors' fees 453,663 453,663 453,663 453,663 28 Depreciation and repair of Company's assets Depreciation of Company's assets 28.1 15,855,357 20,175,943 Depreciation on Right-of-use asset 28.2 9,819,450 8,294,343 25,674,807 28,470,286 28.1 Depreciation of Company's assets Office space - - Furniture & fixture 4,123,332 4,812,858 Interior decoration 3,561,986 3,649,968 Computer & computer equipment 1,816,424 4,829,240 Other office equipment 3,996,479 2,924,951 Software - 525,481 Vehicle 2,357,136 3,433,445 15,855,357 20,175,943 28.2 Depreciation on Right-of-use asset Rented Office Space 9,819,450 8,294,343 9,819,450 8,294,343 29 Other operating expenses AGM and Other Meeting expenses 1,038,268 1,090,066 Bank and other charge 4,488,948 4,433,429 Books and periodicals 1,087,659 156,462 Car Maintenance -reimbursement 11,702,000 9,994,501 Conveyance and travelling expense 1,197,163 3,725,565 Corporate advisory service expense 113,142 - Credit rating expenses 268,750 268,750 CSR activities expenses 4,650,000 3,497,157 Entertainment 2,162,412 1,968,991 Fees to regulatory authorities 593,343 31,579 IT & Automation expense 409,372 606,111 Leave Fare Assistance 9,462,061 8,479,347 Lease Interest Expense 168,106 213,604 Litigation Cost & Court fees 183,602 1,197,633 Maintenance and utility of UTC building 2,109,568 2,014,852 Monitoring Expenses 1,248,184 1,351,853 Office supplies and maintenance 2,339,535 2,625,855 Operations and logistics 1,527,625 1,248,840 Operating loss on recovery of IDCOL SPF forfeiture account - 98,921 Other office expenses 263,088 420,588 270 Go to Contents 2021 2020 Taka Taka Information Company Pmt to Intern & Adhoc Employees 30,000 40,000 Provision other than loans 29.1 10,651,888 5,251,661 Recruitment cost 656,608 1,862,105 Repair and maintenance 4,132,679 4,155,949 Retreat and review meeting expenses 5,027,368 10,352,370 Seminar, workshop & roadshows 557,004 - Stamps and duties 18,715 24,299 Stewardship SPF, Gratuity Fund and other audit fee 417,600 184,000 Training and exposure visit 186,234 350,150 Tuition fee reimbursement - 34,000 Vehicle fuel & Maintenance expense 4,003,269 3,125,249 Expenses under TR/KABITA 29.2 67,641,976 136,072,050 138,336,166 204,875,937 29.1 Provision other than loans IDCOL About Provision for expenses - - Provision for other asset 10,411,597 5,251,661 Provision for off balance sheet items* 240,291 - 10,651,888 5,251,661 *As per Bangladesh Bank DFIM circular no-4 dated 26 July 2021, 1% on off balance sheet item has been kept as provision during FY 2021 Governance 29.2 Operating Expenses under TR/KABITA Corporate Salary & Allowances 44,872,646 86,076,517 Physical verification expenses 19,271,121 18,992,496 Advertisement and promotion - 2,919,740 Monitoring expenses 98,900 5,854,382 Technical audit - 3,200,000 Meeting & Entertainment expenses 755,032 978,899 Management Travelling & conveyance 213,921 7,878,340 Risk Operation & logistics 2,430,356 10,171,676 67,641,976 136,072,050 30 Charges on loan losses - - - - 31 Provision for loans and advances and short term investment Sustainability Provision for loans and advances 31.2 4,596,040,890 3,611,554,585 Report Provision for short-term investment 31.4 900,000,000 600,000,000 5,496,040,890 4,211,554,585 Opening balance at January 01 4,211,554,585 4,493,783,130 Provision made for the year 1,382,699,029 1,086,046,191 Financial Performance Provision released during the year (58,049) (314,485,872) Provision charged during the year 31.1 1,382,640,980 771,560,319 Analysis Less. Written off/waived (98,154,676) (1,053,788,864) Closing Balance at December 31 5,496,040,890 4,211,554,585 31.1 Break-up of provision made during the year General provision 122,216,743 124,363,048 Special provision (as per DFIM circular no.33) 130,195,005 - Auditor’s Report and Audited Financial Specific provision 830,229,233 (312,802,729) Statements Voluntary provision on loans and advances - 650,000,000 Voluntary provision on short term investment 300,000,000 310,000,000 1,382,640,981 771,560,319 Go to Contents Annual Report 2021 271 2021 2020 Taka Taka 31.2 Provision for loans and advances Opening balance at January 01 3,611,554,585 4,203,783,130 Provision made for the year 1,082,699,029 776,046,191 Provision released during the year (58,049) (314,485,872) Provision charged during the year 1,082,640,980 461,560,319 Less. Written off/waived (98,154,676) (1,053,788,864) Closing Balance at December 31 31.3 4,596,040,890 3,611,554,585 31.3 Break-up of provision for loans and advances General provision 940,022,570 817,805,827 Special provision (as per DFIM circular no.33) 130,195,005 - Specific provision 1,291,368,503 559,293,945 Voluntary provision* 2,234,454,813 2,234,454,813 4,596,040,890 3,611,554,585 * Voluntary provision, in addition to statutory requirement, has been maintained to build a reserve for absorbing future shocks due to adverse classification of loans and advances. 31.4 Provision for short term investment Opening balance at January 01 600,000,000 290,000,000 Provision made for the year 300,000,000 310,000,000 Provision released during the year - - Provision charged during the year 300,000,000 310,000,000 Less. Written off/waived - - Closing Balance at December 31 900,000,000 600,000,000 As per the recommendation of Bangladesh Bank, since 2019, IDCOL has been maintaining provision for short-term investment kept in various financial institutions considering their liquidity crisis to mitigate default risk. 32 Provision for income tax Opening balance at January 01 844,966,332 977,753,991 Add: Provision made during the year 1,434,584,285 844,966,332 Add: Provision made for FY 2020 (AY 2021-22) 50,013,578 - 2,329,564,195 1,822,720,323 Less: Settlement of previous year's tax liabilities 894,979,910 977,753,991 Closing balance at December 31 1,434,584,285 844,966,332 Tax expenses Deferred tax (income)/ expense 9.5 5,560,056 758,071 Current tax expense 1,434,584,285 844,966,332 Prior year tax 57,167,873 29,602,181 1,497,312,214 875,326,584 Reconciliation of effective tax rate 2021 2020 Taka % Taka % Tax on profit before taxes 1,037,618,481 40.00% 964,053,693 40.00% Adjsutment tax effect for: Provision for non-deductible expenses 940,651,908 36.26% 523,033,186 21.70% Adjustment/provision released during the year (514,370,737) -19.83% (154,413,075) -6.41% Tax on investment income 12,400,370 0.48% 14,070,000 0.58% Adjustment for loan write off during the year (41,715,737) -1.61% (500,999,693) -20.79% Other adjustments (net) - 0.00% (777,778) -0.03% Effective tax rate 1,434,584,285 55.30% 844,966,332 35.06% 272 Go to Contents 2021 2020 Taka Taka Information Company 33 Earnings Per Share (EPS) Profit attributable to ordinary shareholders Net profit for the year 1,096,733,989 1,534,807,647 Ordinary shares at January 01 55,000,000 55,000,000 Bonus shares issued during 2018 5,000,000 5,000,000 Bonus shares issued during 2019 5,000,000 5,000,000 Stewardship Bonus shares issued during 2020 6,500,000 6,500,000 Bonus shares issued during 2021 2,300,000 2,300,000 Total number of shares at December 31-Restated 73,800,000 73,800,000 Weighted average number of ordinary shares 73,800,000 73,800,000 Earnings per share 14.86 20.80 Earnings Per Share (EPS) has been computed by dividing the basic earnings by the number of ordinary shares outstanding as of 31 December 2021 as per International Accounting Standard (IAS)-33. According to IAS-33, EPS for IDCOL About the period ended 31 December 2020 was restated for the issues of bonus shares (for 2020) in 2021. 34 Net Asset Value (NAV) Per Share Net Asset (Total asset - Total liabilities)- (A) 10,094,759,557 9,228,874,575 Weighted average number of ordinary shares (B) 73,800,000 73,800,000 NAV per share (A/B) 136.79 125.05 Since the Company has issued 2,300,000 bonus shares of BDT 100 each during the year 2021, weighted average Governance number of shares outstanding for the NAV computation has been retrospectively adjusted for the effect of the bonus Corporate issue. As such the NAV calculation for 2021 and 2020 has been based on the new number of shares of 73,800,000. Before adjusting the bonus share NAV of 2020 was BDT129.08 per share. 35 Net Operating Cash Flows Per Share (NOCFPS) Net cash flows from operating activities (A) 6,928,286,608 (8,612,050,466) Total number of ordinary shares outstanding (B) 73,800,000 73,800,000 Net operating cash flows per share (NOCFPS) (A/B) 93.88 (116.69) Management Since the Company has issued 2,300,000 bonus shares of BDT 100 each during the year 2021, weighted average Risk number of shares outstanding for the NOCFPS computation has been retrospectively adjusted for the effect of the bonus issue. As such the NOCFPS calculation for 2021 and 2020 has been based on the new number of shares of 73,800,000. Before adjusting the bonus share NOCFPS of 2020 was BDT -155.61 per share. 36 Debt Service Coverage Ratio (DSCR) Profit/(Loss) before provision & Tax 3,976,687,184 3,181,694,550 Sustainability Depreciation and repair of Company’s assets 28 25,674,807 28,470,286 Report Interest on deposits, borrowings etc 16 913,523,851 777,474,472 Realization during the year 7.1 10,366,820,991 11,330,232,266 Cash Available for Debt Service (CADS) (A) 15,282,706,833 15,317,871,574 Interest Payment 16 913,523,851 777,474,472 Financial Performance Principal Payment (Repayment made during the year) 4,005,912,632 3,772,331,690 Debt Service (B) 4,919,436,483 4,549,806,162 Analysis Debt Service Coverage Ratio (DSCR) (A/B) 3.11 3.37 37 Events after the balance sheet date Proposed dividend: The Board of Directors in its 292nd meeting held on 6 June 2022 has recommended cash dividend @ 6.78% i.e., BDT 6.78 per ordinary share amounting BDT 500,000,000 and stock dividend @ 6.78% i.e. 0.0678 bonus share for every ordinary shares held amounting BDT 500,000,000 for the year ended 31 Auditor’s Report and Audited Financial December 2021 for placement before the shareholders for approval on 25th AGM of the Company. Statements Go to Contents Annual Report 2021 273 2021 2020 Taka Taka 38 Related Party Transactions Parties are considered to be related if one party has the ability to control the other party or exercises significant influence over the other party in making financial and operational decision and include associated companies with or without common directors and key management positions. The Company has entered into transaction with other related entities in normal course of business that fall within the definition of related party as per International Accounting Standard 24: " Related Party Disclosures." Transactions with related parties are executed on the same terms, including interest rate and collateral, as those prevailing at the time for comparable transactions with other customers of similar credentials and do not involve more than a normal risk. Details of transactions with related parties and balances with them as at 31 December 2021 were as follows: Name of the related party Nature of Relationship Balance at Addition Adjustment Balance at transaction Jan 01 during the during this Dec 31 year year Senior Management Officials Loan Top Offcials 19,181,275 - 3,121,094 16,060,181 Loans to Senior Management includes car loan and home loan extended under IDCOL Employee Car Loan Facility and IDCOL Home Loan Facility, respectively. As at 31 December 2021, loans amounting to BDT 16,060,181 are outstanding with the Deputy CEO & CFO and the Head of Renewable Energy Investment. 39 Other Contingent Liability Contingent liability has been presented in accordance with IAS-37 to reflect the probable liability that may arise due to claim of Value Added Taxes (VAT) by the National Board of Revenue (NBR). IDCOL appealed before the Appellate Tribunal of the board and the honorable tribunal has set aside and annulled all the claims demanded by the VAT authority vide order no. "bw_ bs-wmBwfwU/‡KBm (f¨vU)-199/18 ZvwiLt 02/07/2020". In this order the honorable tribunal has also instructed the commissioner, customs, excise & VAT Commissionerate, Dhaka (South) to reassess the VAT by giving opportunities to all the relevant parties. Accordingly a committee has been formed by the commissioner, customs, excise & VAT Commissionerate, Dhaka (South) office vide letter no. bw_ bs-4/g~mK/8 (28) KidvuwK/wePvi/18/934 (07), ZvwiL 7/12/2020 including various relevant officers in order to reassess the VAT claim and settle the issue. 40 Accumulated movement of funds under projects Fund inflow Long term loans: Loan from IDA under PSIDP 6,210,400,000 6,210,400,000 Loan from IDA under REREDP 3,715,076,936 3,715,076,936 Loan from KfW under solar program 5,230,801 5,230,801 Loan from KfW under NDBMP 259,879,471 259,879,471 10,190,587,208 10,190,587,208 Grants received for project implementation: Grant from World Bank (GEF, IDA, GPOBA) under REREDP 3,866,931,321 3,866,931,321 Grant from KfW under solar program 1,178,943,726 1,178,943,726 Grant from KfW under RE program* 611,234,900 14,317,275 Grant from GIZ under solar program 1,075,300,229 1,075,300,229 Grant provided under JICA-REDP 172,980,423 172,980,423 Grant provided under JICA-EE& EC 220,065,163 197,345,726 Grant provided under ADB-PPIDF 256,712,855 256,712,855 Grant provided WB under USAID 512,818,301 512,818,301 Grant provided WB under BCCRF 787,321,789 787,321,789 Grant provided by DFID 1,893,556,814 1,893,556,814 Grant provided by SREPGen 171,120,011 136,337,055 Grant received under IDA 5158 (HE) 572,609,957 572,609,957 Grant received under IDA 5158 (AE) 382,416,445 382,416,445 Grant received under IDA 5514 (AF) 461,110,891 402,883,041 Grant received under IDA 6202 (HE) 1,311,309,198 722,181,726 Grant received from AFD 19,327,300 - Grant received under GCF Trust Fund # 0B4774 115,000,000 - Grant received under SREP TF0A7640 10,000,000 - Grant from KfW under NDBMP 520,094,670 520,094,670 14,138,853,992 12,692,751,353 274 Go to Contents 2021 2020 Taka Taka Information Company Principal repayment and interest received from projects: Principal repaid by the projects financed under PSIDP 6,694,860,108 6,694,860,108 Principal repaid by the projects financed under REREDP 3,612,632,050 3,610,430,224 Interest paid by the projects financed under PSIDP 6,888,299,083 6,888,299,083 Interest paid by the projects financed under REREDP 1,327,910,160 1,327,910,160 18,523,701,401 18,521,499,575 Interest from bank accounts 64,647,480 62,464,091 Stewardship Exchange gain from bank accounts 25,537,120 - 42,943,327,200 41,467,302,226 Fund outflow Loans and advances: Projects financed under PSIDP 6,210,400,000 6,210,400,000 Loan to POs under REREDP 3,715,065,945 3,715,065,945 Loan to POs under KfW funded solar program 5,230,801 5,230,801 Loan to POs under KfW funded NDBMP 227,578,344 227,578,344 10,158,275,090 10,158,275,090 IDCOL About Grants utilized for project implementation: World Bank (GEF, GPOBA & IDA) grants provided to POs under REREDP 2,855,959,380 2,855,959,380 World Bank (GEF, GPOBA & IDA) grants used for project under REREDP 739,098,620 739,098,620 KfW grants provided to POs under solar program 954,587,290 954,587,290 KfW grants used for project under solar program 210,758,222 210,758,222 KfW grants used for project under REP 611,234,900 14,317,275 GIZ grants provided to POs under solar program 902,664,924 902,664,924 Governance Corporate GIZ grants used for project under solar program 147,676,979 147,676,979 ADB grants provided to POs under PPIDF 201,917,025 201,917,025 ADB grants used for project under PPIDF 54,845,950 54,845,950 JICA grants used for project under REDP 171,083,341 171,083,341 JICA grants used for project under EE& EC 220,186,335 197,466,898 USAID grants provided to POs under REREDP 425,256,649 425,256,649 USAID grants used for project under REREDP 87,561,652 87,561,652 Management BCCRF grants provided to sponsors under REREDP 708,195,019 708,195,019 Risk BCCRF grants used for project under REREDP 79,126,771 79,126,771 DFID grants provided to POs under RE 1,787,626,245 1,787,626,245 DFID grants used for project under RE 109,260,118 109,260,118 Grants provided to POs under AFD 622,144,256 622,144,256 Grants provided to POs under IDA 5158 (HE) 271,318,594 271,318,594 Grants used for project under IDA 5158 (HE) 382,416,445 382,416,445 Sustainability Grants used for project under IDA 5158 (AE) 366,255,360 366,255,360 Report Grants used for project under IDA 5514 (AF) 252,670,721 194,442,871 Grants Provided to POs under IDA 6202 (HE) 663,823,538 415,614,011 Grants used for project under IDA 6202 (HE) 392,414,211 76,434,782 Grants used for project under TF0A7640 3,380,839 - Grant used under GCF Trust Fund # 0B4774 - - Financial Performance Grants provided to POs under SREPGen 171,120,011 108,540,278 KfW grants provided to POs under NDBMP 356,556,300 356,556,300 Analysis KfW grants used for project under NDBMP 146,484,845 146,484,845 13,895,624,539 12,587,610,099 On lending by IDCOL from reflows: Projects financed from reflows under PSIDP 8,819,566,118 8,819,566,118 Projects financed from reflows under REREDP 2,641,132,700 2,641,132,700 Auditor’s Report and 11,460,698,818 11,460,698,818 Audited Financial Statements Debt service of IDA loans 4,909,357,862 4,622,785,100 Refund, tax and charges 70,819,592 68,973,432 Balance at bank 40.4 2,448,551,299 2,568,959,686 42,943,327,200 41,467,302,225 Go to Contents Annual Report 2021 275 2021 2020 Taka Taka 40.1 Movement during the year Fund inflow Long term loans: Loan from IDA under PSIDP - - Loan from IDA under REREDP - - Loan from KfW under solar program - - Loan from KfW under NDBMP - - - - Grants received for project implementation: Grant from World Bank (GEF, IDA, GPOBA) under REREDP - - Grant from KfW under solar program - - Grant from KfW under RE program* 596,917,625 12,520,249 Grant from GIZ under solar program - - Grant provided under JICA-REDP - 43,650,923 Grant provided under EE & EC 22,719,437 - Grant provided under ADB-PPIDF - - Grant provided WB under USAID - - Grant provided WB under BCCRF - - Grant provided by DFID - - Grant provided by SREPGen 34,782,956 28,232,648 Grant received under IDA 5158 (HE) - - Grant received under IDA 5158 (AE) - - Grant received under IDA 5514 (AF) 58,227,850 75,987,114 Grant received under IDA 6202 589,127,472 368,817,961 Grant received from AFD 19,327,300 - Grant received under GCF Trust Fund # 0B4774 115,000,000 - Grant received under SREP TF0A7640 10,000,000 - Grant from KfW under NDBMP - - 1,446,102,640 529,208,895 Principal repayment and interest received from projects: Principal repaid by the projects financed under PSIDP - - Principal repaid by the projects financed under REREDP 2,201,826 81,683,238 Interest paid by the projects financed under PSIDP - - Interest paid by the projects financed under REREDP - 642,802 2,201,826 82,326,040 Interest from bank accounts 2,183,389 7,707,637 Exchange gain from bank accounts 25,537,120 - 1,476,024,975 619,242,572 Fund outflow Loans and advances: Projects financed under PSIDP - - Loan to POs under REREDP - - Loan to POs under KfW funded solar program - - Loan to POs under KfW funded NDBMP - - - - Grants utilized for project implementation: World Bank (GEF, GPOBA & IDA) grants provided to POs under REREDP - - World Bank (GEF, GPOBA & IDA) grants used for project under REREDP - - KfW grants provided to POs under solar program - - KfW grants used for project under solar program - - KfW grants used for project under REP 596,917,625 12,520,249 GIZ grants provided to POs under solar program - - 276 Go to Contents 2021 2020 Taka Taka Information Company GIZ grants used for project under solar program - - ADB grants provided to POs under PPIDF - - ADB grants used for project under PPIDF - - JICA grants used for project under REDP - 43,650,923 JICA grants used for project under EE& EC 22,719,437 - USAID grants provided to POs under REREDP - - USAID grants used for project under REREDP - - Stewardship BCCRF grants provided to sponsors under REREDP - - BCCRF grants used for project under REREDP - - DFID grants provided to POs under RE - - DFID grants used for project under RE - Grants provided to Pos under AFD - - Grants provided to POs under IDA 5158 (HE) - - Grants used for project under IDA 5158 (HE) - - Grants used for project under IDA 5158 (AE) - - IDCOL About Grants used for project under IDA 5514 (AF) 58,227,850 12,996,324 Grants Provided to POs under IDA 6202 (HE) 248,209,527 353,209,656 Grants used for project under IDA 6202 (HE) 315,979,429 - Grants used for project under TF0A7640 3,380,839 - Grant used under GCF Trust Fund # 0B4774 - - Grants provided to POs under SREPGen 62,579,733 - Governance Corporate KfW grants provided to POs under NDBMP - - KfW grants used for project under NDBMP - - KfW grants used for project under NDBMP - - 1,308,014,440 422,377,153 On lending by IDCOL from reflows: Projects financed from reflows under PSIDP - - Management Projects financed from reflows under REREDP - - Risk - - Debt service of IDA loans 286,572,762 798,388,706 Refund, tax and charges 1,846,160 7,516,143 Balance at bank (120,408,387) (609,039,429) 1,476,024,975 619,242,572 40.2 The World Bank (IDA) have provided loan under the Agency & Administration Agreement signed between the Sustainability GoB and IDCOL. This loan is being used for providing loans/refinance to eligible borrowers and/or Participating Report Organizations (POs) under various infrastructure and renewable energy projects. The Development Credit Agreement (DCA) and the Agency and Administration Agreement (AAA) under the PSIDP provide that proceeds (interest & principal) in BDT against the loan extended are to be deposited in the Taka denominated Repayment Account and proceeds received in USD are to be deposited in the Dollar denominated Repayment Account. According to the DCA and AAA under the REREDP, proceed in BDT (97% of interest and 100% of principal) are to be deposited in the Taka denominated Repayment Account. The DCA and the AAA under these projects Financial Performance provide that after meeting the GoB’s debt service obligations, the balance in the repayment accounts shall be used by IDCOL to meet its operating expenses and future lending operations, subject to approval of the Analysis Government. The AAA also states that funds credited to the repayment accounts shall not form part of the Government’s normal budgetary resources. The Finance Division of the Ministry of Finance also issued an operational guideline in this regard. 40.3 The development partners provide two types of grants, for purchase of SHS: the buy-down grant to lower initial investment cost of SHS (Grant A), and the institutional development grant for institutional development Auditor’s Report and of POs (Grant B). Both the components of grants decline as market expands and becomes commercially viable. Audited Financial In addition to grants for POs, development partners also provide grants for project implementation cost which Statements includes; monitoring, supervision, marketing, physical verification of SHS, technical audit, capacity building of POs, consultants’ fees, etc. As per the project agreement executed between the Development Partners and IDCOL, IDCOL is responsible to channel the sub-grants from the designated accounts maintained under each project. Go to Contents Annual Report 2021 277 2021 2020 Taka Taka 40.4 Disclosure for balance at bank accounts maintained under projects (Separately accounted for each project and also audited separately by an independent auditor.Not reflected in the financial statements of the Company except for the disclosures made in this note # 40). Bd. Bank Repayment account in USD under IDA Credit# 2995-BD 2,191,084,988 2,165,547,866 Bd. Bank Repayment account in BDT under IDA Credit# 2995-BD 20,523 20,523 Bd. Bank Repayment A/c in BDT under IDA Credit# 3679-BD 54,613,319 338,984,255 Commercial Bank of Ceylon account # 2809007305 under SREPGEN 861,139 28,041,977 Janata Bank CONTASA account # 36002256 under IDA 5158 (HE) - - Agrani Bank CONTASA A/C # 0200012858680 under IDA 6202 (HE) 60,928,268 36,365,064 Janata Bank CONTASA A/C # 0100226810247 under GCF Trust Fund #0B4774 115,007,467 - Janata Bank A/C #0100219078514 under AFD 19,336,964 - Agrani Bank CONTASA account # 373 under JICA-REDP - - Agrani Bank CONTASA Account #0200015912769 under SREP #TF0A7640 6,698,632 - Trust Bank SND A/C # 0030-0320000426 under PICO PV program - - 2,448,551,299 2,568,959,686 41 Exchange Rate In consolidated movement of funds, amounts are cumulative and foreign currencies (USD and EURO) are converted into equivalent Bangladesh Taka applying exchange rates of BDT 85.80/USD and BDT 97.3658/ EURO prevailing at December 31, 2021 and 84.80/USD and BDT 103.8546/EURO prevailing at December 31, 2020. 42 General a) Figures in these notes and the accompanying financial statements have been rounded off to the nearest Taka. b) Previous year's figures have been rearranged, where necessary, to conform to current year's presentation. c) Cash flow statement rearranged, due to reclassification of loans and advances to operating activities from investing activities. Company Secretary Executive Director & CEO Director Director Chairman As per our report of same date Dated, Dhaka 07 June 2022 278 Go to Contents