ICB Islami Bank
Encyclopedia
The ICB Islami Bank has been incorporated on April, 1987 as a public limited company
under the Companies Act, 1913 to undertake and carry out all kinds of banking, financial and business activities, transactions and operations in strict compliance with the principles of Islamic Law (Sharia
h) relating to business activities in particular avoiding usury
in credit and sales transactions and any practice which amounts to usury. Certificate for commencement of business has been issued to the bank on April 30, 1987. The Bank has been authorized by the Bangladesh Bank
to carry on the banking business in Bangladesh
with effect from May 4, 1987. However, actual banking operations commenced on May 20, 1987.
Nature of Business :
All kinds of commercial bank
ing services are provided by the bank to the customers observing the provisions of the Bank Company Act 1991, Bangladesh Bank's directives and the principles of Islamic Shariah.
Significant Accounting Polices Basis of Accounting :
The accompanying financial statement
s, comprising Balance Sheet
, Profit and Loss
Account and Notes thereto have been prepared according to Banking Companies Act, 1991 and Bangladesh Bank circulars applicable to accounts, on a going concern basis, under historical cost
convention and are based on generally accepted accounting principles.
Consolidation :
A separate set of records for consolidating the Statement of Affairs and Income and Expenditure Statements of the branches are maintained at the Head Office of the bank in Dhaka
from which these financial statements are drawn up. Branch managers of respective bank branches have certified the statement of affairs for the year ended December 31, 2001.
Balance with other banks and exchange gains or losses :
Balances with foreign banks at year-end are translated at the average of telegraphic transfer
of buying and selling rates. Excess/shortage of translated figures over book figures at year-end is transferred to Profit and Loss Account.
Investments :
Investment are stated at amount as reduced by balance of Profit suspense account
and provision for bad and doubtful debt
s; Profit is not charged on bad and doubtful investment
s from the date of filing money suits against the borrowers; Income which were charged on Investment classified by Bangladesh Bank Inspection Team and by the Bank management as sub-standard, doubtful and bad were kept in profit suspense account as per Bangladesh Bank BCD Circulars and such income is not accounted for as profit
until realized from borrowers.
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
under the Companies Act, 1913 to undertake and carry out all kinds of banking, financial and business activities, transactions and operations in strict compliance with the principles of Islamic Law (Sharia
Sharia
Sharia law, is the moral code and religious law of Islam. Sharia is derived from two primary sources of Islamic law: the precepts set forth in the Quran, and the example set by the Islamic prophet Muhammad in the Sunnah. Fiqh jurisprudence interprets and extends the application of sharia to...
h) relating to business activities in particular avoiding usury
Usury
Usury Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate . In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law...
in credit and sales transactions and any practice which amounts to usury. Certificate for commencement of business has been issued to the bank on April 30, 1987. The Bank has been authorized by the Bangladesh Bank
Bangladesh Bank
Bangladesh Bank is the Central bank of Bangladesh and is a member of the Asian Clearing Union.-History:After the liberation war, and the eventual independence of Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country,...
to carry on the banking business in Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
with effect from May 4, 1987. However, actual banking operations commenced on May 20, 1987.
Nature of Business :
All kinds of commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
ing services are provided by the bank to the customers observing the provisions of the Bank Company Act 1991, Bangladesh Bank's directives and the principles of Islamic Shariah.
Significant Accounting Polices Basis of Accounting :
The accompanying financial statement
Financial statement
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...
s, comprising Balance Sheet
Balance sheet
In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership or a company. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A...
, Profit and Loss
Profit and Loss
Profit and Loss may refer to:* Profit & Loss, monthly business magazine founded in July 1999 especializing in Foreign exchange market and derivative markets...
Account and Notes thereto have been prepared according to Banking Companies Act, 1991 and Bangladesh Bank circulars applicable to accounts, on a going concern basis, under historical cost
Historical cost
In accounting, historical costs is the original monetary value of an economic item. Historical cost is based on the stable measuring unit assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of...
convention and are based on generally accepted accounting principles.
Consolidation :
A separate set of records for consolidating the Statement of Affairs and Income and Expenditure Statements of the branches are maintained at the Head Office of the bank in Dhaka
Dhaka
Dhaka is the capital of Bangladesh and the principal city of Dhaka Division. Dhaka is a megacity and one of the major cities of South Asia. Located on the banks of the Buriganga River, Dhaka, along with its metropolitan area, had a population of over 15 million in 2010, making it the largest city...
from which these financial statements are drawn up. Branch managers of respective bank branches have certified the statement of affairs for the year ended December 31, 2001.
Balance with other banks and exchange gains or losses :
Balances with foreign banks at year-end are translated at the average of telegraphic transfer
Telegraphic transfer
Telegraphic Transfer or Telex Transfer , often abbreviated to TT, is an electronic means of transferring funds overseas. A transfer charge is collected while sending money...
of buying and selling rates. Excess/shortage of translated figures over book figures at year-end is transferred to Profit and Loss Account.
Investments :
Investment are stated at amount as reduced by balance of Profit suspense account
Suspense account
A suspense account is an account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification....
and provision for bad and doubtful debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
s; Profit is not charged on bad and doubtful investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
s from the date of filing money suits against the borrowers; Income which were charged on Investment classified by Bangladesh Bank Inspection Team and by the Bank management as sub-standard, doubtful and bad were kept in profit suspense account as per Bangladesh Bank BCD Circulars and such income is not accounted for as profit
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
until realized from borrowers.
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