Mumit ICB

Chapter-1
Introductory Part
1.1. Introduction
1.2. Objectives of the Study
1.3. Methodology of the Study
1.4. Importance of the Study
1.5. Limitations
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Chapter 1
1.1 Introduction:
Internship means receiving practical training through attending particular work

physically. Practically training means a way through which a person or a trainee can
gather experience about the related subjects and be able to apply his theoretical
experience in the field of real life action. Practical training is necessary to achieve
complete knowledge about some thing. Internship program is actually a form of
practical training.
As a student of BBA, internship is an academic requirement. For doing internship
every student is required to work in a selected institution to enhance ones practical
knowledge and experiences.
For my internship I was sent to the Investment Corporation of Bangladesh (ICB),
under the supervision of Mrs. Tahmina , Lecturer, Department of Finance, and
Bangladesh University Of Business And Technology. My Supervisor asked me to
prepare a report on one or two specific departments of ICB.That’s why I have chosen
the topic “Contribution of ICB Unit Fund and Mutual fund”. I have done the
internship at ICB from 01.04.2008 to 29.05.2008.
In this report, I focused the brief overview of ICB, brief portfolio of ICB Mutual
fund, brief portfolio of ICB Unit fund, performance evaluation of Mutual fund and
Unit fund, showing contribution of Unit fund and Mutual funds. At last, I also focused
findings, recommendation and conclusion.
1.2 Objective of the Study:
The Objectives of the report are:
a. To fulfill the requirement of BBA program as necessitated by Finance

Department, Faculty of Business Studies, BUBT.
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b. To analyze the performance of ICB, it’s Image and its role in the capital
market of Bangladesh.
c. To relate our theoretical learning with the practical situation.
d. To learn the practical aspect of the Investment Corporation of Bangladesh.
e. To get aware about the working environment in advance that will help in
adjusting a student with the future working life.
f. To review the over all performance of ICB Unit fund & Mutual fund.
g. To gather knowledge of how ICB floats and manages the Mutual Fund and
Unit Fund.
h. To focus on the overall performance of the ICB Mutual Fund and Unit
Fund.
i. To know the product of ICB at the securities market in Bangladesh.
1.3. Methodology of the Study:
Methodology can be termed as underlying principles and rules of organization that

work at the background of the study. It clarifies the problem involving the research in
an ordered and systematic way. For this study data and other information can be
collected by the following ways:
1.4. Importance of the Study:
There are a number of situations in which the evaluation of portfolio performance

becomes necessary and important, such as
a) Self – Evaluation: To evaluate how well one has done as individual

investor with a view to refining one’s skills and improving one’s performance
over period of time.
b) Evaluation of Managers: To evaluate portfolio managers by an

investment company or asset management company in order to compare
performance of these managers among several such managers each running a
separate fund or sub-fund within an organization or the performance of portfolio
manager over a number of years.
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c) Evaluation of Mutual Fund: To evaluate the various mutual funds
operating in the country in order to take decision by the investor which , if any , of
these should be chosen for investment or to evaluate the efficacy by the
individuals or organization who engage external agencies for portfolio advisory
services and
d) Evaluation Groups: To evaluate the academics or researchers the

performance of a whole group of investors and compare it with another group of
investors who use different techniques or who have different skills or access to
different information.
Thus, one important reason for doing performance evaluation is to help in

correcting errors of portfolio management and improving the performance over a
period of time.
But data constraint is a common problem in evaluating performance of any

portfolio. On the other hand, by law mutual funds must publicity disclose their
operating results. The accepted advantages of the Mutual Funds –diversification
and professional management –are appealing to many who have no time to devote
to selecting and managing a portfolio. But there is a difficulty in choosing a
consistency successful fund among as number of mutual funds with differing
sizes, availability, market prices, objectives etc. This study of evaluating mutual
fund performance would help identify the best performing mutual fund for the
investors, as well as show how the fund managers have dine their professional
services
1.4.1 Sources and Methods of Collecting Primary data:
i) Personal Interview: This is the most effective way to collect primary

data. Through this process the Trainee can confront a number of officials
of ICB and share holders. I interviewed them by asking financial operation
of ICB.
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ii) Briefing Session: In case of corporate organization, this method is very
useful. During internship period we visited different departments of ICB
and took part briefing session .The head of departments gave briefs the
trainees which were very much useful for us and we gathered some
valuable information from their briefing.
iii) By Observation: This process is very useful for gathering primary data.
This process is very costly, time consuming. Through this process limited
but accurate data can be collected.
1.4.2 Sources and Methods of Collecting Secondary data:
The secondary data had been collected with several relevant articles of the ICB.
These are given below:
• ICB Annual Report (2006-07).

• Annual Report of Mutual Fund (2006-07).
• Annual Report of Unit Fund (2006-07).
• Others materials of the Investment Corporation.
• Other sources.
1.5 Limitations of this Study:
In preparing this report I faced some limitations. During this Internship I worked all
the departments of ICB one after another for twelve weeks. ICB is a large
autonomous corporation, but three months study time is too short in an organization
like ICB and this was the main limitation of my Internship Program.
Other constraints that I faced during the course of my internship are as follows:
• Official secrecy of ICB was also a problem to me.

• Relevant papers and documents were not available sufficiently.
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• At the time of face to face discussion with officials, there were no
sufficient chairs and tables.
Chapter -2
ICB
(Investment Corporation of Bangladesh)
At a Glance
Chapter Contents
2.1. Historical Background of ICB

2.2. Objectives of the ICB
2.3. Business Policy of the ICB
2.4. Sources of Capital of ICB
2.5. Share Capital Ownership Pattern
2.6. Functions of ICB
2.7. Share Price
2.8.Transfer of Share
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Chapter-2
ICB at a Glance
2.1 Historical Background of ICB
The Investment Corporation of Bangladesh was established on 1st October 1976,

under “The Investment Corporation of Bangladesh Ordinance, 1976 “(NO. XL of
1976). The establishment of ICB was major step in a series of measures undertaken
by the Government to accelerate the pace of industrialization and to develop a well
organized and vibrant Capital market particularly securities market in Bangladesh.
ICB caters to the need of institutional support to meet the equity gap of the industrial
enterprises. In view of the notional policy of accelerating the rate of savings and
investment to foster enactment of the Investment Corporation of Bangladesh
(Amendment) Act, 2000 (No. XXXIV of 2000), reforms in operational strategies and
business policies have been taken place by establishing and operating subsidiary
companies under ICB.
2.2 Objectives of the ICB
The main objectives of ICB are as follows:
a. To encourage and broaden the base of investments.

b. To develop the capital market.
c. To mobilize savings.
d. To promote and establish subsidiary companies for business development.
e. To provide for matters ancillary thereto.
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2.3 Business Policy of the ICB
The Corporation has adopted a realistic business policy framework within which its
operation is conducted. The corporation in its operating acts on commercial
considerations with regard to the interest of industry and commerce, investment
climate, capital market depositors, investors and to the public interest generally.
The operational policies of the Corporation are as follows:
a. To provide financial assistance to projects subjects to their economic and

commercial viability.
b. To arrange equity and loans singly or through consortium of financial
institutions including banks.
c. Equity Support to projects and there by spreads the risks of understanding.
d. To develop and encourage entrepreneurs.
e. To diversify investments.
f. To inspire small and medium savers for investment in securities.
g. To create employment opportunities.
h. To encourage more investment in Agro-based and Information and
Communication Technology (ICT) sectors.
2.4: Sources of Capital of ICB:
Every organization has some sources of capital. It may be from own sources or
may be other sources. In case of Investment Corporation of Bangladesh it is a
public limited company issuing shares to the public, loans and debentures are the
main sources of ICB. The present capital structures are given to following;
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Capital Structure
(In corer)
Particulars ICB Consolidated (ICB & Subsidiaries
As on 30 June Increase/ As on 30 June Increase/De
Decrease crease
2006 2007 (Percentage) 2006 2007 (Percentage)
Paid-up 50.00 50.00 - 50 50 -
capital
Reserves 100.61 122.61 21.87 104.31 130.06 24.69
Retained 9.82 13.82 40.73 22.95 36.43 58.74
profit
Long-term 4.90 4.55 -7.14 4.90 4.55 -7.14
govt. loan
Debentures 51.80 41.80 -19.31 51.80 41.80 -19.31

Others 18.93 16.29 13.95 20.13 17.18 14.65
Total 236.06 249.07 5.51 254.09 280.02 10.21
Figure : Capital Structure of 2006 and 2007
ICB Consolidated (ICB & its subsidiaries)
Paid-up capital Paid-up capital

7% 6%
20% Reserves 18% Reserves
17% 15%
Retained profit Retained profit
2%
2%
6% Long-term govt. Long-term govt.
loan 13% loan
Debentures Debentures
46%
48%
Others Others
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2.5 Share Capital Ownership Pattern
Shareholder position as on 30 June 2007
SL Shareholders No. of No. of Percentage of

No shareholders Shares shareholdings
1. Government of Bangladesh 1 1350000 27.00
Nationalized Commercial 4 1137220 22.74
Bank
2. Development Financial 2 1281550 25.53
Institutions
5. Insurance Corporations 2 617781 12.35
6. Denationalized Private 2 454263 9.09
Commercial Banks
7. Private Commercial Banks 3 28286 0.57
8. Foreign Commercial Banks 2 450 0.01
9. First BSRS Mutual Fund 1 7500 0.15
10. Other Institutions 12 29454 0.59
11. General Public 1121 93496 1.87
Total 1063 5000000 100.00
Source: ICB Annual Report 2006-2007.
Share holding graphical pattern as on June 2007
Share holding pattern as on 30 June 2007

Foreign Commercial Private Commercial
Banks Banks
Other Institutions First BSRS Mutual
0% 1%
1% Fund
0%
General Public
Denationalized Private 2%
Commercial Banks
9%
Government of
Bangladesh
Insurance Corporations 26%
12%
Nationalized
Commercial Bank
Development Financial 23%
Institutions
26%
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2.6 Functions of ICB
The functions of ICB are given below:
• Direct purchase of shares and debentures including placement and equity

participation
• Participating in and financing of joint-venture companies
• Providing lease finance singly and through syndication
• Managing existing investment accounts
• Managing Mutual funds and Unit funds.
• Managing Portfolios of existing shares
• Conducting computer training programmers
• Providing advance against ICB Unit and Mutual Fund certificates
• To act as Trustee and Custodian
• Providing Bank Guarantee
• Providing Consumer Credit
• Operating on the stock exchanges.
• Providing investment counseling to issuers and investors.
• Participating in and financing of joint venture projects.
• Dealing in other matters related to capital market operation.
• Introducing new business products suiting market demand
• To supervise and control the activities of the subsidiary companies.
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2.7 Share Price
Share price of ICB varied from lowest Tk. 140.0 to highest Tk, 485 in the stock
exchanges during the year. as on 30 June 2007, the market price of share was Tk. 403
and Tk. 352 in the DSE and CSE respectively. The price movements of ICB’s share
on DSE are shown graphically in below:
Fig 4.3: Price Movement of ICB’s Share on DSE (2006-2007)
2.8 Transfer of Shares
The volume of shares transferred increased substantially during the year. 626564
shares were transferred during 2006-07 as against 38598 shares transferred in 2005-06
showing an increase of 1523.31 percent.
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Chapter-3
Organizational Structure of ICB
3.1. Division and department of ICB

3.2. Management of ICB.
3.3. Organogram of Corporation
3.4. Board of Directors of ICB
3.5. Administration and Human Resource.
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Chapter-3
Organizational Structure of ICB
3.1. Division & Department of ICB
The entire organization of ICB is functionally divided into two broad groups namely
Wing and Administration Wing.
• The functions of Operation wing is involved in the activities related to
Project Financing Research, Computer, Launching of Unit Fund and Mutual
Fund. Maintenance of investors Accounts, Shares, Transaction etc.
• The functions of administration Wing is involved with the activities relating
to Administration, Accounts. Implementation and monitoring of projects,
recovery, public issue and Legal matters.
The functions of the two wings is looking after by two General Manager who are
responsible to the Managing Director. All branches are supervised by General
Manager (GM) Administration Division.
Each Wing is functionally sub-divided into divisions which are headed by Deputy
General Manager besides the above two major wings there are two divisions which
are direct under supervision of Managing Director i.e. Audit and Methods Division
,Secretary’s Division .The description of the Division and Department are given
below.
3.1.1: Direct Supervision under Managing Director:
1) Secretary’s Division
a) Secretary’s Department
b) Public Relation Department
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2) Audit and Methods Division
Head Office Control Department
3.1.2: Wings under Supervision of General Manager (operation):
1) Loan Appraisal Division:
a) Loan Appraisal Department
b) EBR Department
2) Fund Division:
a) Unit Sales Department
b) Unit Registration and Procurement Department
c) Mutual Fund Department
3) Merchandising Division:
a) Investors Department
b) Shares Department
c) Transaction Department
4) Computer Division:
a) System Analysis Department
b) Programming Department
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c) Data Management Department
3.1.3 Wings under Supervision of General Manager (Administration):
1) Administration Division:
a) Personal Department.
b) Establishment Department.
2) Accounts and Finance Division:
A) General Accounts Department.
B) Project Loan Accounts Department.
3) Legal Affairs Division
a) Law Department
b) Public Issue Department
4) Implementation and Recovery Division
a) Implementation Department
b) Recovery and Follow up Department
5) Branches: There are seven branches of ICB .These are Located in various
places of Bangladesh such as:
a) Chittagong Branch
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b) Rajshahi Branch
c) Khulna Branch
d) Barisal Branch
e) Sylhet Branch
f) Bogra Branch
g) Local office Dhaka
3.2: Management of ICB
The Head office of the corporation as per the requirement of the ordinance of ICB
is located at Dhaka. The general direction and superintendence of the corporation
created in a board of directors, which consists of persons including the chairman
and managing director of ICB
The board of directors consists of the following directors:
a) The Chairman to be appointed by the government.

b) The directors to be appointed by the government from among persons
serving under the government.
c) One director to be nominated by the Bangladesh Bank
d) The managing directors, Bangladesh Shilpa Bank, Ex-office.
e) The managing directors, Bangladesh Shilpa Rin Sangstha, Ex-office.
f) Four other directors to be elected by the shareholders other than the
government, BB, BSB and BSRS.
g) The managing director of ICB to be appointed by the government.
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3.3: Organogram of Corporation:
3.4 Board of Directors of ICB
The board is comprised of 11 directors. Exchange managing director, all directors are
non-executive and independent and represent government, bank, Insurance
Corporation, financial institutions and general public. The board of directors of ICB
as on 30th June 2007 is as follows:
1. Chairman,
Mr. Feroz Ahmed
Secretary, Ministry of Commerce
Government of the People’s Republic of Bangladesh.
2. Managing Director,
Mr. Md. Ziaul Haque Khondker.
Directors:
a) Brigadier General Md. Ahsan Habib
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Director,
Bangladesh National Cadet Corps.
b) Md. Amanullah
Managing Director
Bangladesh Shilpa Bank.
c) S.M. Aminur Rahman
Managing Director
Sonali Bank.
d) Md. Mukter Hussain
Managing Director,
Janata Bank.
e) Hussain Jamil
Commissioner
Chittagong Division, Chittagong
f) Habibullah Bahar
Economic Adviser
Bangladesh Bank.
g) F R M Hafiz ul Islam
Managing Director,
Bangladesh shilpa Rin Sangstha .
h) Syed Abu Naser Bukhtear Ahmed
Managing Director & CEO
Agrani Bank
i) Elias Ahmed
Managing Director
Sadharan Bima Corporation
Secretary,
Kazi Sanaul Hoq.
Deputy General Manager
3.5 Administrative, Human Resource
Investment Corporation of Bangladesh (ICB) providing different categories of

financial and banking services. Nature of different division/departments vary, such
that Economic and Business Research (EBR) Department requires teamwork, Loan
Appraisal division requires professional work, Funds division needs chain work.
Managing Director is entrusted with authority to transact the regular business of
the organization; he may delegate some authority to the officials of the
corporations. However most of the policy decision are taken by the different
committee with the approval of managing director and where required of the
Board. It is the discretionary authority of the Board to constitute the executive
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committee and to nominate its Chairman to assist the Board in the discharging of
the function stated under the ordinance.
The Board may appoint such other committee as it thinks fit to assist it in the
efficient discharge of its functions. So far, board has appointed two such
committees-Economic and Business Research committee and loan appraisal
committee headed by General Manager.
3.6 ICB Milestones
Date/Establishment
Milestones
Commencement
Date of Establishment/
1st October 1976
Commencement ICB
lnvestors'Scheme 13th June 1977
First ICB Mutual Fund 25th April 1980
ICB Unit Fund 10th April 1981
Second ICB Mutual Fund 17 June 1984
Third ICB Mutual Fund 19 May 1985
Fourth ICB Mutual Fund 6 June 1986
Fifth ICB Mutual Fund 8 June l987
Sixth ICB Mutual Fund 16 May 1988
Nomination as the country's Nodal DFI
7 May 1992
in SADF
Seventh ICB Mutual Fund 30Junel995
Eighth ICB Mutual Fund 23 July 1996
Purchase of own Land & Building 11 December 1997
Participation in Equity of SARF 16 January 1998
Advance Against ICB Unit Certificates
12 October 1998
Scheme
Lease Financing Scheme 22 April 1999
"The Investment Corporation of 5 and 6 July 2000
Bangladesh (Amendment)
20
Act, 2000" passed in the Jatiya
Sangsad (Parliament) and Honourable
President's assent thereof
Formation and Registration of 3
5 December 2000
Subsidiary Companies of ICB
ComputerTraining Program 25 March 2001
Commencement of business operations
of the subsidiary companies
ICB Capital Management Ltd 01 July 2002
ICB Asset Management Company Ltd. 01 July 2002
ICB Securities Trading Company Ltd. 13 August 2002
Registration as a Trustee with SEC 20 August 2002
Registration as a Custodian with SEC 20 August 2002
Bank Guarantee Scheme 21 June 2003
Advance Against ICB Mutual Fund
21 June 2003
Certificate Scheme
Consumers Credit Scheme 15 February 2004
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Chapter- 4
( Overall Evaluation of ICB Unit Fund )
4.1. Introduction
4.2. Details Description of ICB Unit Fund
4.3. Statements of Gross sale Repurchase and Net Sales
Of Units.
4.4. Sources of Income of the Fund.
4.5. Year –wise Dividend payment performance.
4.6. Occupation –wise Classification of
Unit-Holders.
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Chapter-4
Overall Evaluation of ICB Unit Fund
4.1 Introduction:
Sponsored by the Government of Bangladesh, ICB Unit Fund was established on

April 10, 1981. Its main objective is to mobilize savings through sale of its units to
small investors and invest these funds in marketable securities. The scheme provides a
potential source of equity and debt to industrial and commercial concerns and thus
contribute to the industrial development of the country.
Unit fund is an open ended Mutual Fund. It provides an opportunity to the unit
holders to invest their funds in a well managed and diversified portfolio with a high
degree of security of capital and reasonable yearly returns.
ICB units are securities within the meaning of Trust Act. 1882.
4.2. Details Description of the ICB Unit Fund
What is Unit Fund?
It is an open -end mutual fund scheme launched in April 1981, through which the
small and medium savers get opportunities to invest their savings in a balanced and
relatively low risk portfolio.ICB has so far declared attractive dividends on units
every year
Issue, Transfer and Surrender of Unit Certificates
(I) Units are available in 1, 5, 10, 50, 100, 500, 1000, & 5000 denominations. The
names with addresses of the holders are recorded and dividends are dispatched to
them accorded and dividends are dispatched to them accordingly.
(II) Units may be transferred through prescribed transfer form duly filled in and
signed by the transferor and transferee. No stamp duty is required for such transfers.
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(III) Units may be encased by way of surrendering the certificates along with the
prescribed surrender forms duly filled in and signed by the registered holders and no
prior notice is required. The certificates are required to be surrendered at the
prevailing Repurchase Price.
Registration Number
Units are issued as registered certificates. An existing Unit holder is required to

mention the previous registration number on the specified column of the application
form when he/she intends to buy Units again.
Price Fixation
Charges in sale and repurchase prices of units are notified through the newspapers and
price of a Unit is fixed periodically by ICB as its fund manager. Among others,
valuation of the assets of the Fund are taken into consideration while fixing price of a
unit.
Advance against Unit Certificates Scheme
Advance against ICB Unit Certificates Scheme was introduced in 1998, especially
designed for the ICB unit holders to meet their emergency fund requirements. One
can borrow maximum of Tk. 85 per unit by depositing his/her unit certificates under
lien arrangement from any of the ICB offices where from such unit certificates were
purchased. The rate of interest on the loan is reasonable and competitive.
Public Participation
The Fund is divided into units which are generally known as "ICB Unit". Each Unit
bears a certain value in the assets of the Fund. The Unit holders are the owners of the
fund and only they are benefited from it. Unit certificates can be purchased in single
or joint name (s). At present maximum of 10,000 Units can be purchased in a single
or joint name(S) at a time. Units are not sold to institutions.
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Professional Counseling
Professional Counseling is rendered to the prospective & existing investors who are
eager to purchase ICB Units through ICB offices and authorized Bank branches.
Advantages of Investment in Unit Fund:
Investment in Unit Funs offers the following advantages:
h) Investment in Unit certificates is secured.

i) It enjoys liquidity.
j) It is transferable.
k) Bank Loan is available against pledge of units.
l) It offers attractive regular return.
m) Investment allowance for Income Tax is available.
n) Dividend is Income Tax exempted..
Investment by Bangladeshi Citizens Abroad
The Bangladeshi citizens living abroad may invest in certificates on fulfillment of the
following terms and conditions:
(I) The value of Units purchased is to be remitted through bank channel,
(II) The money invested in Units and benefits thereon are not allowed to be
repatriated,
(III) The investors must mention their local and bank addresses in Bangladesh for
convenience of registration of Units.
Investment by Foreigners Residing in Bangladesh
The foreign nationals residing in Bangladesh may also invest in Unit Certificates,
provided they produce certificates to the effect that money being invested are their
own savings and is not borrowed as loan or overdraft from any bank. These
certificates are to be collected from a Gazetted Officer or a Banker not below the rank
or Deputy General Manager.
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Fund Management
The responsibility of managing the fund rests on ICB for which management fee @
Tk. 1.25 per Unit (net outstanding) is charged. The Corporation also discharges the
responsibility of loading and unloading of securities in and from the portfolio in the
interest of the Unit holders. It is also the custodian of all assets of the fund.
Dividend
The total income earned on investment/ deployment of funds, net of expenditures

incurred, in a financial year is distributed among the unit holders as dividend.
Dividend is normally declared at the end of July each year by the Board of Directors
of ICB. Dividend Warrants are dispatched soon after declaration of dividend. Since
launching of the scheme in 1981 till FY 1997-98 the rates of yearly dividend declared/
paid are as under:
Financial Year Rate of dividend Financial Year Rate of dividend per

per unit (Tk.) unit (Tk.)
1980-81 15.00 1991-92 16.70
1981-82 16.00 1992-93 17.00
1982-83 16.25 1993-94 17.40
1983-84 17.00 1994-95 17.50
1984-85 20.00 1995-96 17.00
1985-86 21.00 1996-97 17.50
1986-87 24.0 1997-98 14.00
1987-88 24.00 1998-99 12.00
1988-89 25.00 1999-2000 12.00
1989-90 25.00 2000-2001 12.00

2001-2002 12.30
1990-91 18.00
2002-2003 12.30
2003-2004 11.50
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2004-2005 12.00
2005-2006 12.50
2006-2007 13.00
Tax Benefits
(I) Investment in Units enjoys the benefit of Investment Allowance under Sec. 44 of
Income Tax ordinance 1984.
(II) Units are treated as approved securities in accordance with the Section 2993 of
the Companies Act., 1994 and Insurance Act, 1938. These are also treated as
Securities as per Sec. 20 of the Trust Act, 1882.
Cumulative Investment Plan (CIP)
Under this scheme a holder instead of receiving dividend may reinvest such dividend
income accrued for purchasing Unit at a concessional rate. In such case, Units are
issued at Tk. 1.00 less than the opening price of the financial year.
Duplicate Dividend Warrants
Incase dividend warrants are not received in time, it should be communicated to ICB
head office immediately. Duplicate warrants are issued subject to completion of
required formalities and execution of an Indemnity Bond on non-judicial stamp as
applicable.
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Transaction Hours
Transactions are held during banking hours every day excepting Thursday and
holidays. Transactions do not take place during the month of July each year due to
book-closure.
Where Units are Available
Units are sold/purchased at ICB Head Office and at its Branches at Dhaka,
Chittagong, Rajshahi, Khulna, Sylhet, Barisal and Bogra. Fifty seven branches of
Sonali Bank, Agrani Bank, Janata Bank, Rupali Bank Ltd., Uttara Bank Ltd., Pubali
Bank Ltd., IFIC Bank Ltd., Bangladesh Krishi Bank, Prime Bank Ltd., Dhaka Bank
Ltd., Bangladesh Shipla Rin Shangstha, United Commercial Bank Ltd., The City
Bank Ltd., and Estern Bank Ltd. locate at important cities all over the country, are
also engaged in selling and repurchasing of unit certificates.
4.3: Statements of Gross sale Repurchase and Net Sale of Units:
Issue and Repurchase of Units
During FY 2006-07, 1786559 Units of Tk.18.22 crore were issued under the
Cumulative Investment Plan(CIP) while 2415837 Units of Tk. 25.61 crore were
repurchased .The following table shows the comparative position of gross issue (CIP)
repurchase and net issue of Units during 2005-06 and 2006-07:
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Position of Units issue (CIP), repurchase and net Issue
partic 2006-07 2005-06 Cumulative up to 30

ulars June 2007
Unit Amount Unit Amount Unit Amount
(crore) (crore) (crore)
Gross Issue 17,86559 18.22 1688190 17.89 87218740 976.39
Repurchase 2415837 25.61 1790340 19.34 47595256 522.14
Net Issue (629278) (7.39) (102150) (1.45) 39623484 454.25
Graphical Presentation of Gross Issue, Repurchase & Net Issue of Units
30
25
20
15
10
5
0
-5
-10
2005- 2006-
2006 2007
Year
Gross issue of CIP Repurchase Net issue
4.4: Sources of the Income of the Fund:
Dividend and Interest Income
In FY 2006-07 the Fund earned dividend amounting to Tk. 21.91 crore from 133
companies and interest on Debenture amounting to Tk. 2.14 crore from 5 companies
resulting in total dividend and interest income of Tk.24.05 crore of which 74.55% i.e
Tk. 17.93 crore was received in cash , The total dividend and interest income during
2005-06 was Tk. 22.12 crore.
Capital gains on Sale of Investment
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During FY 2006-20057 the Fund Capital gains of Tk. 61.14 crore by selling
securities of 92 companies as compared to Tk. 53.15 crore of capital gain made in
FY 2005 -2006 through sale of securities of 60 companies.
Interest on Bank deposits:
In 2006-07 the Fund earned Tk. 155.2 crore as interest on bank deposits which was
Tk. 88.68 crore in 2005-2006.
Premium Income on Gross Sale of Units:
In 2006-07 the Fund earned Tk. 0.27 crore as premium on gross issued Units as
against Tk. 0.25 crore in 2005-2006.
Income and Expenditure:
During the year under review , the Fund earned a total income of Tk. 87.08 crore by
way of dividend , interest on debenture securities , capital gains , interest on bank
deposits , premium on sale of units and others , After deducting the total expenses of
Tk. 30.47 crore on account of management fee, interest on current account with ICB ,
commission and brokerage , printing and stationary , postage , Bank charges
,provision against investment and others the fund had a net income of Tk . 56.61 crore
, the Fund had a net distributed income of Tk. 31.22 crore , the Fund had a net
distributed income of Tk.87.83 crore in aggregate and Tk. 22.17 per Unit . As on 30
June, 2007 the Fund had 39623484 outstanding units against 40252762 Units at the
same date of the preceding year.
4. 5: Year –wise dividend Payment Performance
Dividend Declared: The Board of Director of ICB in its meeting held on 30 July,
2007 declared dividend at the rate of 13.00 per unit, involving tk. 51.51crore for
2006-2007. The unit holders whose names appeared in he register on 30 June, 2007
30
were entitled to this dividend. The rest amount of Tk. 36.32 crore would be carried
forward as undistributed income.
Year-wise Dividend and Dividend Yield
Financial Year Dividend per Unit Dividend yield on opening

(Taka) price (percentage)
1989-1990 25.00 23.14
1990-1991 18.00 15.65
1991-1992 16.70 14.65
1992-1993 17.00 15.18
1993-1994 17.40 15.54
1994-1995 17.50 15.35
1995-1996 17.00 14.53
1996-1997 17.50 14.58
1997-1998 14.00 11.66
1998-1999 12.00 11.01
1999-2000 12.00 11.01
2000-2001 12.00 11.11
2001-2002 12.30 11.39
2002-2003 12.30 11.60
2003-2004 11.50 10.65
2004-2005 12.00 9.84
2005-2006 12.50 11.05
2006-2007 13.00 11.25
Year-Wise Dividend and Dividend Yield of ICB Unit Fund
25
20
15
10
5
0
1991-92
1989-90
1990-91
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Dividend per Unit (Taka) Dividend yield on opening price (percentage)
Portfolio:
31
As on 30 June 2007 the net Investment of the Fund at cost price stood at Tk. 631.73
crore in 289 securities , the market value of which was Tk. 707.52 crore .
Details of the portfolio are given in Annex-5
Summary of investments as on 30 June 2007
SL.no. Parties No.of Total Cost Total market

securities Crore Tk. value (crore)
(A) Share 1. Listed companies 265 612.52 684.74
2.Non listed 17 5.64 6.95
companies (under
guaranteed return)
1. Investment in 1 .005 .006
SARF ( in foreign
currency )
(B) 1. Listed companies 2 0.98 2.17
Debenture 2. Non listed 4 12.59 13.66
companies
Total 289 631.73 707.52
Investment
4.6 Occupation-wise classification of Unit holders
Classification of Unit holders:
The number of Unit holders as on 30 June, 2007 was 25022 whose occupation –wise
classification is as follows:
SL.no Occupation / Institution No. of Unit Percentage

holders
1 Govt.& Non- Govt. Employees 15080 60.27
2 Business man and agriculturists 2350 9.39
3 Engineers and Doctors, Lawyers etc. 2015 8.05
4 Retired person (all categories) 1806 7.22
5 Defense personal 1730 6.91
6 House wives 802 3.21
7 Others 643 2.57
8 Bangladeshis Residing Abroad 290 1.16
9 Workers and Students 270 1.08
32
10 Institutional Provident Fund 36 0.14
Total 25022 100
It may be observed from the above the table that out of the total Unit holders as on 30
June 2007. Public and Private sector employees accounted for maximum of 60.27
percent who are mainly of small and medium size income group. It indicates that the
Unit Fund has been succeeded in attracting small and medium size savers.
Chapter-5
33
( Overall Evaluation of the ICB Mutual Fund )
5.1: What is Mutual Fund?
5.2: Types of Mutual Fund
5.3: Objectives of Mutual Fund
5.4: Advantages of Mutual Fund
5.5: Launching of Mutual Fund
5.6: Details Description of Mutual Fund
5.7: Objectives of the Study
5.8: Importance of the Study
5.9: Dividend Declaration of Mutual Fund
5.10: Performance Evaluation of the Mutual Fund
Chapter-5
Overall Evaluation of the ICB Mutual Fund
ICB Mutual Fund
34
Introduction:
It is a recognized principle that diversification of investment reduces risk. An

individual may not have the time, expertise and resources to undertake such
diversification. Here arises the advantage of a Mutual Fund. Mutual Funds pool the
savings of a great number of investors and make investments in a wide array of
securities. In Bangladesh ICB has pioneered Mutual Funds for the sake of investors
and of the capital market. Country’s first Mutual Fund the “First ICB Mutual Fund
“was floated on 25th April 1980. Since then ICB has, over the years, floated 8 Mutual
Funds with the total capital of Tk. 17.50 crore . ICB Mutual Funds continued to
command the confidence and attraction of investors as lucrative and rewarding
investment in terms of steady dividend performance.
5.1: What is Mutual Fund?
Mutual Funds are also known as close ended Mutual Funds. The issued capital of a
Mutual Fund is limited, that is, a Mutual Fund offers a limited number of certificates
for sale to the public. The amount of capital and the number of certificates of each
Mutual Fund remains unchanged. ICB Mutual Funds are independent of one another.
A Mutual Fund being listed is traded on the Stock Exchanges. Price of Mutual Fund
certificates after IPO is determined on the Stock Exchanges through interaction of
supply and demand. The market price of a Mutual Fund certificates is available in
Stock exchange quotations and in newspapers.
5.2: Types of Mutual Fund:
Any Mutual Fund could be of either of the following two kinds
1) Open-end Mutual Fund
35
2) Close-end Mutual Fund
Open-end Mutual Fund:

Open-end investment company is a fund that continues to sale and repurchases their
shares after their initial public offering. They stand ready to sell additional number of
shares and thus keep going larger. The open-end fund company can by or sale their
own shares.
Close-end Mutual Fund:
A close-end investment company operates like any other public firm. Their stock are
traded on regular secondary market and the market price of its shares is determined by
the supply and demand. It has a definite target amount for the founds and can not sell
more shares after its initial offering. Its growths in terms of number of shares are
issued like any other company’s new issues listed and quoted it stock exchange.
5.3Objective of Mutual Fund:
The objective of any fund would fit into one of three broad categories.
i) Income: The emphasis is on producing a steady flow of dividend payment.
ii) Capital gain: The manager concentrates on increasing the value of principal
through appreciation of the stocks held.
iii) Income and capital gain: Some combination of the first two approaches.
5.4: Advantages of Mutual Fund:
36
• Mutual Fund substantially minimizes the investment risk of small
investors through diversification in which funds are spread out into various
sectors, companies, securities as well as entirely different market.
• Mutual Fund mobilizes the savings of small investor and channels them
into lucrative investment opportunities. As a result, Mutual Fund adds
liquidity to the market.
• Mutual Fund provides the small investors access to the whole market that
at an individual level, would be difficult if not impossible to achieve.
• Because funds are professionally managed, investors are relieved from the
emotional strain associated with the day to day management of the fund.
• The investors save a great deal in transaction costs given that s/he has
access to a large number of securities by purchasing a single share of a
Mutual Fund.
• The investors can pick and chase a Mutual Fund to match his/her particular
needs.
• Mutual Fund is the only vehicle which operates simultaneously both at the
demand as well as the supply side of the market. On the supply side, the
Mutual Fund being itself security at the SEC introduces a good and
reliable instrument in the capital market for the small but astute investor.
• Mutual Fund is one of the most strictly regulated investment vehicles. The
laws governing Mutual Fund require exhaustive disclosure to the SEC as
well as the general public. The laws also entail continuous regulations of
fund operations by the Trustee.
5.5: Launching of ICB Mutual Fund:

Launch Mutual Fund in different period with different paid up capital.
37
Mutual Fund Date of Paid up capital
Floatation (Tk. In lack)
First ICB Mutual Fund 25 April,1980 50.00

Second ICB Mutual 17 June,1984 50.00
Fund
Third ICB Mutual Fund 19 May,1985 100.00
Fourth ICB Mutual Fund 6 June, 1985 100.00
Fifth ICB Mutual Fund 8 June, 1987 150.00
Sixth ICB Mutual Fund 16 May,1988 500.00
Seven ICB Mutual Fund 30 June,1995 300.00
Eighth ICB Mutual 23 July,1996 500.00
Fund
Source: ICB Annual Report 2006-2007
5.6: Details Description of the ICB Mutual Fund
Consolidated Portfolio Statement:
As on 30 June 2007, cost price and market price of eight Mutual Funds were Tk.
1171.93 lac and Tk 1544.30 lac respectively. A consolidated statement of the
portfolio of the Funds is given in the following table:
Consolidated position of portfolios of ICB Mutual Funds as on June 2007
Sl.no Particular 1st 2nd 3rd 4th 5th 6th 7th 8th
s Mutual Mutua Mutua Mutua Mutual Mutua Mutual Mutu
Fund l Fund l Fund l Fund Fund l Fund Fund al
Fund
1 Cost of 324.26 327.06 418.11 483.26 752.58 896.91 1130.41 1171.
portfolio 93
(lac)
2 Market 1524.69 383.40 545.04 778.64 1246.17 1160.9 1493.72 1544.
value of 4 30
the
38
portfolio
(lac)
3 Market 3433.25 900.50 654.75 628.00 453.50 279.50 283.50 272.2
price per 5
certificate
(taka)
4 No. of 988 989 2740 1955 3685 8995 2797 7537
certificate
holders
So, total cost of portfolio is taka 5505.12 lac, market value of the portfolio 8676.90
lac and the numbers of certificate holders are 29686.
Price Movement and Transactions
During the year under review, certificates of eight Mutual Funds were actively traded
on the floor of the Dhaka Stock Exchange Ltd and Chittagong Stock Exchange Ltd.
The highest and lowest price of the eight Mutual Funds certificates on Dhaka Stock
Exchange Ltd and position of total transaction during 2003-04 are shown in the
following table:
How to Buy existing Mutual Funds
An investor can purchase any of the existing eight ICB Mutual Funds certificates
through the Stock Exchanges at the prevailing Market Price. However, if an investor
buys Mutual Fund certificates through the Stock Exchanges he/she must be careful to
submit the certificates along with duly filled-in transfer deed at ICB Head Office to
ensure that the certificates are registered in his/her name.
Advance against Mutual Fund certificates Scheme
Advance against ICB Mutual Fund certificates Scheme was introduced in 2003,
designed for the ICB Mutual Fund Certificate holders to meet their emergency fund
39
requirement. One can borrow maximum of 50% value of last one year's weighted
average market price of certificates at time of borrowing by depositing his/her
certificates under lien arrangement from any of the ]CB offices. The rate of interest on
the loan is reasonable and also competitive.
Management Fee, Charge etc.
At present management fee @ 1% on the paid up capital of the Fund is charged

annually. No amount is charged on account of custodial and trust services. Part of
operating expenses are charged to the respective Mutual Funds on pro rata basis
Assets of ICB Mutual Funds
ICB Mutual Funds Certificates holders shall have unfettered ownership in the assets
of the Fund to which they are related. In case of winding up of the Corporation the
assets belonging to any ICB Mutual Fund shall not be treated as the assets of the
Corporation.
Tax Concessions
(a) Investment in Certificates provides the same tax exemptions as an investment

qualifying under Section 44 of the Income Tax Ordinance, 1984.
(b) Capital gains received on investment in the Fund Certificates shall not be included
in the total income of a Certificate holder within the limits specified in the Income
Tax Ordinance, 1984.
(c) Dividends received on investment in the Fund will be treated as dividend income
under Income Tax Act, and will be exempted from tax with the limits specified in the
Act.
(d) The Fund incomes are to be exempted from all taxes as granted by the
Government as per SRO No 80-L/80 dated April, 1980.
5.7: Management of the Funds
40
There is a decision making board in order to manage different Mutual Funds. As per
board’ s decision securities are bought under different Mutual Funds. At the same
way securities are sold . In case of new Mutual Fund subscribes for public issue. ICB
authority is made portfolio earlier by its own finance and given it name . After that it
is published on any newspaper as prospectus . By studying this prospectus public
response whether they will buy the Mutual Fund or not.
5.8: Declaration of Dividend
The net income received on investments of Funds on account of dividend, bonus,

interest, capital gain etc. are distributed amongst the Certificate holders as per
decision of the Board of Directors of ICB. Board declares such income in the form of
dividend at the end of July each year. Dividends declared by ICB in the past on the
Mutual Funds were very attractive. The year-wise per certificate dividend
performance of the Funds is given below.
Rate of the Dividend per Certificate (Taka)
FY Funds 1 st 2 nd 3 rd 4 th 5 th 6 th 7 th 8 th
1980-81 20
1981-82 20
1982-83 20
1983-84 25
1984-85 35 21
1985-86 38 23 21
1986-87 41 25.5 22.5 21.5
1987-88 48 28 25.5 23
1988-89 49 29 26 23.5 20.5 15.5
1989-90 49 29 26 23.5 20.5 13.25
1990-91 35 22 19 17 10 6
1991-92 31 22 19 18 11 6
1992-93 31.5 21 18 17 12 -
1993-94 45 27 22 40 25 16
1994-95 50 40 27 41 28 18
1995-96 60 42 28 41 30 20 18
1996-97 70 45 38 45 35 24 21 18
41
1997-98 70 30 35 32 22 18 14 12
1998-99 100 32 38 35 20 15 13 12
1999-2000 125 35 40 36 21 16 13.5 12.5
2000-2001 170 40 45 38 23 17 14 13
2001-2002 175 42 50 40 24 17.50 14.50 13.50
2002-2003 180 45 50 40 24 17.50 14.50 13.50
2003-2004 200.00 50.00 50.00 45.00 24.00 17.50 15.00 14.00
2004-2005 210.. 55.00 52.00 48.00 27.00 18.50 16.00 15.00
2005-2006 210.00 55.00 52.00 48.00 27.00 18.50 16.00 15.00
2006-2007 190.00 62.00 56.00 52.00 33.00 23.00 22.50 18.00
5.9: Performance Evaluation of ICB Mutual Funds
Mutual Funds substantially lower the investment risk of small investors, through
diversification, in which funds are spread out in to various sectors . Because of funds
are professionally managed, investors are relived from he emotional strain associated
with the management of the fund. For the betterment of small and medium investors
up to September,2005 ICB floated eight close ended Mutual Fund , with total paid up
capital of Tk 17.50 crore and going to float the ninth very soon.
These funds are very popular with the small and medium investors because of having
scope of capital gain as well as attractive return in terms of dividend.
It is not an easy task for the portfolio manager to manage the mutual funds, because
it’s performance is directly related with the security market and many macro
economic variable. But due to the efficient management of ICB officials, they (MF)
become attractive investment decision.
Now we will analyze the past performance of the eight mutual funds and try to
evaluate them.
Different Types of ICB Mutual Funds
42
Different types of ICB mutual funds are available for consumers. These funds lunched
in different period of time and different rate of interests are given on the mutual funds.
These are shortly described below:
First ICB Mutual Fund
The 1st ICB Mutual Fund was floated at 25th April, 1980. It is the most attractive
mutual fund among the others.
Dividend Income:
The Fund had earned dividend of Tk. 37,22,439.00 from 34 securities during 2006-
2007 of which a sum of Tk. 21,28,407.00(57.18 percent) was received in cash within
30 June 2007 .
Capital Gains on Sale of Investments:
During 2006-07 the Fund earned Tk. 9,482,424.50 as capital gains by securities of 21
companies.
Income, Expenses and Distributable Income
During the year under review , the Fund earned a gross income of Tk. 1,41,73,493.00
by way of dividend income of Tk. 37,22,439.00,interest income of Tk. 1,86,629.00 on
bank deposits , interest of Tk. 7,79,646.00 on current account with ICB , capital gains
of k. 94,82,425.00 and other income of Tk. 2,354.00. After deducting the total
expense of Tk. 21,32,711.00 incurred as staff expenses, management fee, printing and
stationary ,postage and telegrams , provision against investment and others , the net
income of the fund stood at Tk. 1,20,40,782. Taking into account the previous years
undistributed income of Tk. 2,25,21,510.00 the Fund had net distributable income of
43
Tk.3,45,62,292.00 as on June 2007 resulting in distributable income per certificate of
Tk. 691.24.
Dividend:
The Fund declared dividend at the rate of Tk.240.00 per certificate for the year 2006-
07 as compared to Tk. 210.00 declared in the previous year. After making provision
of Tk. 1,20,00,000.00 for payment of dividend the Fund had an undistributed income
of Tk. 2,25,62,292.00 .The Year –wise dividend performance of the Fund is shown in
the following table;
Year –wise dividend Performance
Financial Year Dividend Per Certificate

1995-96 60.00
1996-1997 70.00
1997-1998 70.00
1998-1999 100.00
1999-2000 125.00
2000-2001 170.00
2001-2002 175.00
2002-2003 180.00
2003-2004 200.00
2004-2005 210
2005-2006 210
2006-2007 190
Portfolio:
As on 30 June 2007 the Fund had securities of 60 companies in its portfolio with a
total cost of Tk. 324.26 lac.The market value of the portfolio as on 30 June 2007 was
1524.69.
44
The ex-dividend net asset value per certificate of Tk. 100.00 each of First Mutual
Fund stood at Tk . 2977.00 as on 30 June 2007.
The market price per certificate of Tk. 100.00 each of the fund was Tk.2700.00 and
Tk. 3433.25 respectively in 2006-2007.
The number of certificate holders of the fund was 988 as on 30 June 2007.
45
• Second ICB Mutual Fund
Dividend Income and Interest Income:
The Fund had earned dividend and interest income of Tk. 14,05173.00 from 31
securities during 2006-2007 of which a sum of Tk. 11,02,979.00(78.49 percent) was
received in cash within 30 June 2007 .
During 2006-2007, the Fund earned Tk. 40, 81,887.00 as capital gains by securities of
8 companies as shown in the following table.
Statement of Capital Gains during 2006-2007
Sl. no Name of the company No.of Securities sold Capital gain(taka)

1 Mutual Trust Bank Ltd 5000 4,45,000.00
2 Standard Bank Ltd 3400 2,44,800.00
3 One Bank Ltd 500 57500.00
4 Padma Oil Company Ltd 12500 29,75,475.00
5 Wata Chemicals Ltd 1520 46,339.00
6 Delta Millers Ltd 15340 2,98,823.00
7 Bangladesh Online Ltd 500 5550.00
8 Agni Systems Ltd 2000 8400.00
Total 40,81,887.00
46
During the year under review , the Fund earned a gross income of Tk. 55,64,740.00
by way of dividend income of Tk. 14,05,173.00,interest income of Tk. 73,852.00 on
bank deposits , interest of Tk. 31,576.00 on current account with ICB , capital gains of
Tk. 40,81,887.00 and other income of Tk. 3828.00. After deducting the total expense
of Tk. 16,26,236.00 incurred as staff expenses , management fee , printing and
stationary ,postage and telegrams , provision against investment and others , the net
income of the fund stood at Tk. 39,38,504.00. Taking into account the previous years
undistributed income of Tk. 56,25,496.00.00 the Fund had net distributable income of
Tk.95,64,000.00.00 as on June 2007 resulting in distributable income per certificate of
Tk. 191.28 for 2006-2007.
Dividend:
The Fund declared dividend at the rate of Tk.50.00 per certificate of Tk. 100.00 each
for the year 2006-2007as compared to Tk. 45.00 declared in the previous year. After
making provision of Tk. 25,00,000.00 for payment of dividend the Fund had an
undistributed income of Tk. 70,64,000.00 .The Year –wise dividend performance of
the Fund is shown in the following table;

1995-96 42.00
1996-1997 45.00
1997-1998 30.00
1998-1999 32.00
1999-2000 35.00
2000-2001 40.00
2001-2002 42.00
2002-2003 45.00
2003-2004 50.00
2004-2005 55.00
47
2005-2006 55.00
2006-2007 62.00
Portfolio:
total cost of Tk. 282.35 lac. During 2006-2007 the Fund made additional investment
of tk. 69.36 lac in securities of 14 companies .The market value of the portfolio as on
30 June 2007 was Tk. 337.55 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of First Mutual
Fund stood at Tk 364.82 as on 30 June 2004.
The market price per certificate of Tk. 100.00 each of the fund was Tk.430.00 and Tk.
599.25 as on 2 July 2006 and 30 June 2007 respectively.
• Third ICB Mutual Fund
The Fund had earned dividend and interest income of Tk. 14, 70,937.00 from 39
received in cash within 30 June 2007 .
During 2006-2007, the Fund earned Tk. 37,85,917.00 as capital gains by securities of
48
Sl. No Name of the company No.of Securities Capital
sold gain(taka)
1 Rupali Bank Ltd 3300 60,920.00
3 One Bank Ltd 500 58,000.00
4 First Lease International Ltd 400 12450.00
5 Mercantile Bank Ltd 1000 1,02,750.00
6 ICB Amcl First Mutual Fund 4800 1,96,437.50
7 Janata Insurance Company Ltd 940 78,570.00
8 Phoenix Insurance Company 2860 5,00,033.20
Ltd
9 Eastland Insurance Company 500 65,000.00
Ltd
10 Central Insurance Company 1000 76500.00
Ltd
11 Estern Cables Ltd 1000 2,11,500.00
12 B.A.T.B.C. Ltd 1600 55,904.00
13 BOC Bangladesh Ltd 14450 1,25,604.00
14 Beximco Pharmaceuticals Ltd 6000 95,820.00

15 Orion Infusion Ltd 19960 3,36,525.60
16 Altex Industries Ltd 6850 75,692.70
17 Metro Spinning Ltd 20000 50,000.00
18 Aramit Ltd 10000 3,94200.00
19 Bangladesh Online Ltd 1000 12,650.00
20 Agni Systems Ltd 3000 13700.00
21 Monno Ceramic Industries Ltd 2000 3,64,660.00
Total 37,85,917.00
49
During the year under review , the Fund earned a gross income of Tk.
53,22,780.00 by way of dividend and interest income from investment in securities of
Tk. 14,70,937.00,interest income of Tk. 65090.00 on bank deposits , capital gains of
Tk. 37,85,917.00 and other income of Tk. 836.00. After deducting the total expense of
Tk. 12,02,195.00 incurred as staff expenses , management fee , printing and stationary
,postage and telegrams , provision against investment and others , the net income of
the fund stood at Tk. 41,20,585.00. Taking into account the previous years
undistributed income of Tk. 1,09,52,993.00 the Fund had net distributable income of
Tk.1,50,73,578.00 as on June 2007 resulting in distributable income per certificate of
Tk. 150.74 for 2003-2005.
Dividend:
for the year 2006-2007 as compared to Tk. 45.00 declared in the previous year. After
making provision of Tk. 50,00,000.00 for payment of dividend the Fund had an
undistributed income of Tk. 1,00,73,578.00 .The Year –wise dividend performance of
the Fund is shown in the following table;

1995-96 28.00
1996-1997 38.00
1997-1998 35.00
1998-1999 38.00
1999-2000 40.00
2000-2001 45.00
2001-2002 50.00
2002-2003 50.00
2003-2004 50.00
2004-2005 52.00
50
2005-2006 52.00
2006-2007 56.00
Portfolio:
of tk204.32 lac in securities of 28 companies .The market value of the portfolio as on
30 June 2004 was Tk. 421.26 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of Third ICB
Mutual Fund stood at Tk 243.87. as on 30 June 2007.
The market price per certificate of Tk. 100.00 each of the Third ICB Mutual fund was
Tk.465.00 and Tk. 698.50 as on 3 July 2006 and 30 June 2007 respectively.
.
• Fourth ICB Mutual Fund
securities during 2006-2007 of which a sum of Tk. 13, 68,492.00(86.80 percent) was
received in cash within 30 June 2007.

sold gain(taka)
2 One Bank Ltd 500 58,500.00
3 First Lease International ltd 400 12,425.00
4 BATBC Ltd 25000 24,12,860.00
5 Padma Oil Company Ltd 5100 9,58,698.00
6 Eastern Lubricant Blenders Ltd 350 8,113.00
51
7 Glaxco Smithkliny Bangladesh Ltd 31850 29,12,827.00
8 Bangladesh Online Ltd 1000 11,150.00
9 Monno Ceramic Industries Ltd 3400 5,94,669.50
Total 71,44,243.00
by way of dividend and interest income from investment in securities of Tk.
15,76,586.00,interest income of Tk. 74,054.00 on bank deposits , capital gains of Tk.
71,44,243.00 and other income of Tk. 1,694.00. After deducting the total expense of
undistributed income of Tk. 65,38,919.00.00 the Fund had net distributable income of
Tk1,35,37,580.00.00 as on June 2004 resulting in distributable income per certificate
of Tk. 135.38 for 2006-07.
Dividend:
for the year 2006-2007 as compared to Tk. 40.00 declared in the previous year. After
making provision of Tk. 45, 00,000.00 for payment of dividend the Fund had an
undistributed income of Tk. 90, 37,580.00.
52
The Year –wise dividend performance of the Fund is shown in the following
table:

1995-96 41.00
1996-1997 45.00
1997-1998 32.00
1998-1999 35.00
1999-2000 36.00
2000-2001 38.00
2001-2002 40.00
2002-2003 40.00
2003-2004 45.00
2004-2005 48.00
2005-2006 48.00
2006-2007 52.00
Portfolio:
30 June 2005 was Tk. 446.84 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of Fourth ICB
Mutual Fund stood at Tk 278.60 as on 30 June 2007.
500.00 as on 9July 2003 and 30 June 2007 respectively.
53
The number of certificate holders of the fund was 2335 as on 30 June 2007
• Fifth ICB Mutual Fund

securities during 2006-2007 of which a sum of Tk. 11, 55,576.00(63.91 percent) was
Capital Gains on Sale of Investments;

During 2006-2007, the Fund earned Tk. 37, 64131.00 as capital gains by securities of
Sl. No Name of the company No.of Securities sold Capital gain(taka)

3 One Bank Ltd 2300 1,93,800.00
4 First Lease International ltd 3000 20,175.00
5 Mercantile Bank Ltd 1000 1,03,375.00
6 ICB Amcl First Mutual Fund 1500 71,000.00
7 BATBC Ltd 22350 10,71,831.50
8 BOC Bangladesh Ltd 1650 16,745.00
9 Padma oil company Ltd 5600 11,37,676.00
10 Beximco Pharmaceuticals Ltd 5000 43,650.00
11 Wata chemicals Ltd 860 29,540.00
12 Padma Textile Mills Ltd 10000 87,500.00
13 Bata Shoe company BD Ltd 500 64,785.00
14 Monno Ceramic Industries 1060 1,73,366.00
Ltd
Total 37,64,131.00
54
18,08,054.00,interest income of Tk. 83,066.00 on bank deposits , capital gains of Tk.
37,64,131.00 . After deducting the total expenses of Tk. 25,04,152.00 incurred as staff
expenses , management fee , printing and stationary ,postage and telegrams ,
provision against investment and others , the net income of the fund stood at Tk.
31,51,099.00. Taking into account the previous years undistributed income of Tk.
17,15,944.00 the Fund had net distributable income of Tk 48,67,043.00.00 as on June
2004 resulting in distributable income per certificate of Tk. 32.45 for 2006-2007.
Dividend :
for the year 2006-2007 Which was also Tk. 24.00 per certificate paid the previous
year. After making provision of Tk. 36, 00,000.00 for payment of dividend the Fund
had an undistributed income of Tk. 12, 67,043.00.
table:

1995-96 30.00
1996-1997 35.00
1997-1998 22.00
1998-1999 20.00
1999-2000 21.00
2000-2001 23.00
2001-2002 24.00
2002-2003 24.00
2003-2004 24.00
2004-2005 27.00
2005-2006 27.00
2006-2007 33.00
55
Portfolio:
As on 30 June 2006the Fund had securities of 87 companies in its portfolio with a

total cost of Tk. 506.59 lac. During 2006-207 the Fund made additional investment of
tk. 193.99 lac in securities of 27 companies .The market value of the portfolio as on
30 June 2007 was Tk. 573.46 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of Fifth ICB Mutual
Fund stood at Tk 162.49 as on 30 June2005
• Sixth ICB Mutual Fund
56
sold gain(taka)
1 Mutual Trust Bank Ltd 10000 620050.00
2 One Bank Ltd 500 56500.00
3 ICB Amcl First Mutual Fund 16300 368275.00
4 Kornophuly Insurance co. Lrd 1000 87500.00
5 BATBC Ltd 2,14,700 4716993.00
6 Agricultural Marketing co. Ltd. 350 120140.00
7 BOC Bangladesh Ltd 24550 714117.50
8 Beximco Pharmaceuticals Ltd 6000 56470.00
9 Glaxco Smithkline BD Ltd 5000 25750.00
10 ACI Ltd 5000 133010.00
11 Cohinoor Chemicals Company 1500 212595.00
Ltd
12 IBN sina Pharmaceuticals Ltd 500 166300.00
13 Wata chemicals Ltd 260 9011.50
14 Delta Millers Ltd 1020 14849.00
15 Eastern Housing Ltd 2200 58862.00
16 Agni systems Ltd 2000 10400.00
17 Bata Shoe company BD Ltd 2000 107500.00
Total 74,78,323.00
36,10,443.00,interest income of Tk. 1,27,667.00 on bank deposits , capital gains of
Tk. 74,78,323.00 and other income of Tk 22.00. After deducting the total expenses of
undistributed income of Tk. 31,91,873.00 the Fund had net distributable income of Tk
1,11,27,461.00.00 as on June 2007 resulting in distributable income per certificate of
Tk. 22.25 for 2006-2007.
57
Dividend :
year. After making provision of Tk. 87,50,000.00 for payment of dividend the Fund
had an undistributed income of Tk. 23,77,461.00
The Year –wise dividend performance of the Fund is shown in the following table;

1995-96 20.00
1996-1997 24.00
1997-1998 18.00
1998-1999 15.00
1999-2000 16.00
2000-2001 17.00
2001-2002 17.50
2002-2003 17.50
2003-2004 17.50
2004-2005 18.50
2005-2006 18.50
2006-2007 23.00
Portfolio:
total cost of Tk858.70 lac. During 2006-2007 the Fund made additional investment of
tk. 506.29 lac in securities of 32 companies .The market value of the portfolio as on
30 June 2007 was Tk872.41 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of Sixth ICB
58
• Seventh ICB Mutual Fund
The Fund had earned dividend and interest income of Tk. 41,48,814.00 from 68
During 2006-2007, the Fund earned Tk. 68,69,872.00 as capital gains by securities of
Sl. No Name of the company No.of Securities Capital gain

sold (taka)
3 One Bank Ltd 3100 1,91,364.00
4 First Lease International Ltd 200 13,450.00
5 Bank Asia Ltd 950 1,28,250.00
6 Mercantile Bank Ltd. 3400 3,53,028.00
7 ICB Amcl First Mutual Fund 13700 2,56,137.00
8 Janata Insurance Company 20 920.00
Ltd
9 Prime Insurance Company Ltd 1500 39,105.00
10 BATBC Ltd 193950 34,76,877.50
11 BOC Bangladesh Ltd 46800 7,77,433.50
12 Beximco Pharmaceuticals Ltd 12000 1,35,050.00
13 Orion Infusion Ltd 8660 88,571.40
14 Square Pharmaceuticals Ltd 552 70700.10
15 Dandy Dyeing Ltd 600 4,650.00
16 Aramit Ltd 7500 69000.00
17 Agni systems Ltd 4000 14600.00
19 Standard Ceramic Industries 200 9322.00
Ltd
Total 68,69,872.00
59
41,48,814.00,interest income of Tk. 1,42,718.00 on bank deposits , capital gains of
Tk. 68,69,872.00. After deducting the total expenses of Tk61,43,903.00 incurred as
staff expenses , management fee , printing and stationary ,postage and telegrams ,
provision against investment and others , the net income of the fund stood at Tk.
50,17,501.00. Taking into account the previous years undistributed income of
Tk20,16,119.00 the Fund had net distributable income of Tk 70,33,620.00.00 as on
June 2004 resulting in distributable income per certificate of Tk. 23.45 for 2006-07.
Dividend:
had an undistributed income of Tk. 25,33,620.00
table;

1995-96 18.00
1996-1997 21.00
1997-1998 14.00
1998-1999 13.00
1999-2000 13.50
2000-2001 14.00
2001-2002 14.50
2002-2003 14.50
2003-2004 15.00
60
2005-2005 16.00
2005-2006 16.00
2006-2007 22.50
Portfolio:
total cost of Tk 1000.74 lac. During 2006-2007 the Fund made additional investment
30 June 2007 was Tk 1014.70lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of Seventh ICB
• Eighth ICB Mutual Fund

The Fund had earned dividend and interest income of Tk. 52,58,000.00 from 64
securities during 2006-2007 of which a sum of Tk. 42,44,897.00 (80.73 percent) was
During 2006-2007, the Fund earned Tk 2,16,53,796.00 as capital gains by securities

of 29 companies as shown in the following table.
Sl. No Name of the company No.of Securities Capital gain(taka)
61
sold
1 Apex Tannery Ltd. 660 47,664.00
2 Arab Bangladesh Bank Ltd. 3180 2,515,922.00
3 Bangladesh Industrial Finance 1400 154,200.00
Co.Ltd
4 Bangladesh Welding Electrodes 26500 536,750.00
5 Beximco Farmaceuticals Ltd. 36250 906,300.00
6 BRAC Bank Ltd. 10900 4,503,112.00
7 Confidence Cement Ltd. 600 38,332.00
8 Dhaka Electric Supply Co. Ltd 3600 565,805.00
9 Eastern Cables Ltd 100 23,054.00
10 Eastern Housing Ltd. 2400 72,200.00
11 Eastland Insurance Co. Ltd 100 4,316.00
12 EXIM Bank Of Bangladesh Ltd 1700 459,100.00
13 Fu Wang Ceramics Ltd. 200 2,898.00
14 Golden Son Ltd. 12000 94,600.00
15 Heidelberg Cement Bangladesh 1300 506,539.00
Ltd.
16 IPDC 4800 991,312.00
17 ICB AMCL First Mutual Fund 800 153,600.00
18 ICB AMCL First NRB Mutual 950 256,312.50
Fund
19 Lankabangla Finance Ltd. 29500 456,050.00
20 Miracle Industries Ltd. 9000 90,910.00
21 Power Grid Co. Bangladesh Ltd. 20100 3,007,775.00
22 Pubali Bank Ltd. 25550 1,692,890.00
23 Shahjalal Islamic Bank Ltd. 9450 1,378,200.00
24 Shine Pukur Holdings Ltd. 1000 2,680.00
25 Sinobangla Industries Ltd 2000 600.00
26 Southest Bank Ltd. 1150 236,504.00
27 Square Phermaceuticals Ltd. 1695 2,229,736.15
28 United Leasing Co. Ltd. 480 131,756.80
29 The Primer Bank Ltd. 2350 594,675.00
Total 21,653,795.90
During the year under review , the Fund earned a gross income of
Tk2,70,22,457.00dividend and interest income from investment in securities of Tk.
52,58,000.00 ,interest income of Tk. 1,10,639.00 on bank deposits , capital gains of
Tk. 2,16,53,796.00. After deducting the total expenses of Tk 1,59,59,504.00 incurred
62
as staff expenses , management fee , printing and stationary ,postage and telegrams ,
provision against investment and others , the net income of the fund stood at
Tk1,10,62,953.00. Taking into account the previous years undistributed income of Tk
93,84,715.00 the Fund had net distributable income of Tk 2,04,47,668.00 as on June
2007 resulting in distributable income per certificate of Tk. 40.90.
Dividend:
had an undistributed income of Tk. 1,14,47,668.00
table;
1996-1997 18.00
1997-1998 12.00
1998-1999 12.00
1999-2000 12.50
2000-2001 13.00
2001-2002 13.50
2002-2003 13.50
2003-2004 14.00
2004-2005 15.00
2005-2006 15.00
2006-2007 18.00
63
Portfolio:
total cost of Tk 1,171.93 lac. The market value of the portfolio as on 30 June 2007
was Tk 1,544.30 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of Seventh ICB
272.25 during 2006-2007.
64
Chapter-6
(Contribution of
ICB Unit fund & Mutual fund)
6. Contribution of ICB unit fund & Mutual fund:
ICB Unit fund and Mutual fund played very valuable and extended roles to accelerate
the pace of industrialization and to foster and widen a vibrant and sustainable capital
market in the country. In the year under review, by engaging in brisk transaction of
securities for ICB`s investment portfolio, unit fund and mutual funds portfolios and
on behalf of investment account holders ICB contributed significantly in preserving
depth, stability, reliability and liquidity of the stock market. During 2006-2007, the
total trading of ICB and its subsidiary companies in both the stock exchanges was tk.
1305.99 crore which was 91.63 percent higher than that of tk. 681.51 crore in the
previous year.
As on 30 June 2007 the net units issued stood at 39623484 nos. of tk. 454.25 crore.
An amount of tk. 64.65 crore was invested by the fund in 114 securities during 206-
2007 and securities worth tk. 84.98 crore were divested, and as a result the net
investment of the fumd stood at tk. 631.73 crore in 289 securities, market value of
hich was tk. 707.52 Crore as on 30 June 2007.
Position of Units issue (CIP), repurchase and net Issue
65
partic 2006-07 2005-06 Cumulative up to 30
ulars June 2007
Unit Amount Unit Amount Unit Amount
(crore) (crore) (crore)
Gross Issue 17,86559 18.22 1688190 17.89 87218740 976.39
Repurchase 2415837 25.61 1790340 19.34 47595256 522.14
Net Issue (629278) (7.39) (102150) (1.45) 39623484 454.25
During the year under review, ICB Asset Management Company Ltd. A subsiriary of
ICB floated a specific type of Mutual fund namely, ICB AMCL First NRB Mutual
Fund for the first time in Bangladesh, Which added a new dimention in the countries
stock market. It is a closed end Mutual fund. The size of the fund is tk.10.00 cror. The
fund has been designed primarily for the nonresident Bangladeshi with a view to
offering them a unique opportunity to invest in the Bangladesh stock market. And the
total paidup capital of Mutual fund is 17.50 crore which is a much enough
contribution to the stock and capital market.
Sl. Particulars 1st 2nd 3rd 4th 5th 6th 7th 8th To
M.F
no M.F M.F M.F M.F M.F M.F M.F tal
1 No. of 60 69 83 90 102 135 129 126 794
companies
2 No.of 60 71 84 91 103 136 132 128 805
securities
3 Total 5,50
investment 324. 327.06 418. 483.86 752.58 896.91 1130 1171 5.12
at cost 26 11 .41 .93 (lac)
(lac)
4 Market 1524 383.40 545. 778.64 1246.1 1160.9 1493 1544 8,67
value .69 04 7 4 .72 .30 6.6
66
Chapter-7
( Problems & Findings )
7.1. Problems Related to ICB

Unit Fund & Mutual Fund
7.2. Recommendations
7.3. Conclusion
67
Chapter-7
Problems & Findings
7.1 Problems:
7.1.1 Problems Related to ICB Unit Fund
Bangladesh is a least developed country. Its economy depends on agriculture more

than 60%. Now it can be understood that its industrialization is in infant stage. So, for
the better growth of industrialization, capital market is so important of our country.
Because of this, ICB has been established in 1976 under the ordinance no. XL of 1976
with a view to develop capital market, to mobilize savings and to broaden the base
investment and ultimately help growing industrialization in the country. Because of
this reason, ICB has floated Unit fund (close ended) in our country and dominating
the industry.
Unit funds are managed and run by a professional management team , the success and
growth of the unit funds depend future profitability and investors confidence also
depend on the management performance .
During the internship at ICB, I have found some problems, which can affect the fund
future and the confidence of the investors. There are some problems related to fund.
They are as follows:
1. Reserve is an important part of any business. For the funds, reserve is kept of the
future uncertainty ,funds liquidation and use for buying securities without borrowing
costly capital . Reserve is kept from income as un-distributable income . But the
question is , how much a fund may keep reserve from income. I think ICB’s reserve
policy for the close end funds is not correct . Because it keeps huge amount of reserve
from funds.
68
2. The dividend policy of Unit Fund is not fair. Because, if we see dividend rate and
earnings of the funds, it will become clear to us.
3. Using of costly borrowing capital for the investment on securities is another factor
causing problem for high expenditure of maintenance of fund, which affects the
income of funds.
4. Management of ICB is sometimes inefficient in taking bold decision and has failed
to stabilize the capital market.
7.1.2: Problem Related to the ICB Mutual Fund:
Mutual funds are managed and run by a professional management team , the success
and growth of the mutual funds depend future profitability and investors confidence
also depend on the management performance .
During the internship at ICB, I have found some problems, which can affect the fund
future and the confidence of the investors. There are some problems related to fund.
They are as follows:
From depositor’s Point of view:
• The services provided by the related personnel are not prompt. It is taking more
than required time for giving the service.
• Same laggard procedure is also taking place at the time of execution of order.
• Withdrawal of any funds of securities is also very lengthy and complicated process
and inefficiently managed.
From Portfolio investment point of view:
ICB has not yet done any systematic analysis for measuring how they are doing. ICB
has not identified any key variables to size up all its diversified performance.
69
From Capital market point of view:
• Dividend is one of the sources of income for the mutual fund. Most of the
companies do not declare dividend up to satisfactory level.
• The rate of supply of fundamentally strong securities is very low.
• Political unsteady position also hearts the investor’s sentiment in the market and
thereby leads to flat the stock market.
• Using costly borrowing capital for the investment on securities is another factor
causing problem for high expenditure of maintenance of funds, which affects the
income of funds.
7. 2: Recommendations
7.2.1 Recommendations ICB Unit Funds are suggested are on the basis of the
problems. These are:
1. Reserve should be kept at a minimum level but not more than 25% of a fund’s
income.
2. Dividend policy should be fair so that the investors may be satisfied .Dividend
policy should be earnings basis, not year basis.
3. Investing by costly borrowing funds should be reduced.
4. Orders are to be executed quickly.
5. Unnecessary documentation and levels in the process of withdraw or securities
should be eliminated.
7.2.2 Recommendations ICB Mutual Funds are suggested are on the basis of the
problems. These are:
1. The interest of making portfolio of proposed funds and the existing ICB unit
mutual fund profitable and attractive, it is imperative to design balance portfolio of
70
securities. As the supply of securities is not adequate, I think, the portfolio is
envisaged to be designed and developed from the following sources
• Shares of multinational companies
• Shares of public enterprises
• Primary issue of securities by companies
• Secondary market operation.
Share of public enterprises means government has been pursuing policy of divesting
49% shares of government enterprises of public subscription. In this regard govt.
should reserve 30% of all new issues in all cases for ICB.
2. Reserve should be kept at a minimum level; it may vary fund to fund, but
not more than 25% of a fund’s income.
3. Investing in costly borrowing funds should be reduced. Management may
look for sources of less costly funds and reduce expenses and increase
income.
4. ICB should fix redemption date of each fund. I may redeem 1st, 2nd, and
3rd mutual fund. Because these funds are established for more than 15
years.
5. ICB may take initiative and decision to float more funds for the
stabilization of capital market and for gaining of investor’s confidence to
invest in the capital market.
6. ICB should reduce interest rate.
7. Orders are to be executed quickly.
8. Training program should be arranged for developing of management
efficiency.
71
7.3 Conclusion:
ICB is a unique name in our country as an investment Bank. It has skill and
experienced labor force and professional and dedicated management team that enable
to pursue the ICB’s goals and objectives. ICB is helping to the industrial growth in
our country by mobilizing the small savings from investors to the capital market. ICB
should be concerned about its investors, because the investors are the risks takers.
ICB has great influence in the capital market. ICB should play its important role for
gaining of the investor’s confidence on the capital market and further industrial
growth in our country and the development and stabilization of the capital market in
country.
There remains a huge gap between institutional investors and general investors.
Institutional investors are far ahead from the general investors in respect of technical
know-how, knowledge and risk taking propensity. ICB as an institutional investor
manages its portfolio by doing three major activities: asset allocation, weighting shift
across major asset classes and securities selection within asset classes. In financial
terms it means ensuring maximum return with minimum level of risk. At present the
gap between the institutional investors and general investors, ICB should concentrate
well in portfolio management to uplift the interest of the general investors.
72
Bibliography:
1. Investment Corporation of Bangladesh (ICB) 2006-2007. Annual Report. Dhaka

ICB.
2. Investment Corporation of Bangladesh (ICB) 2005-2006. Annual Report. Dhaka
ICB.
3. Investment Corporation of Bangladesh (ICB) 2006-2007. Annual Report of Unit
Fund, Dhaka ICB.
4. Investment Corporation of Bangladesh (ICB) 2005-2006. Annual Report of
Mutual Fund, Dhaka ICB.
5. Ahmed, MF. H.R. Khan and M.S Islam 1993, Industrial Financing Through
Capital market in Bangladesh-A Study on the Demand Side (Dhaka: The Asian
Foundation and The Bureau of Economic research, University of Dhaka, June,
P-47.
6. ICB web site. www.icb.gov.bd.com
73

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Chapter-1

Internship means receiving practical training through attending particular work

1.2 Objective of the Study:

The Objectives of the report are:

a. To fulfill the requirement of BBA program as necessitated by Finance

1.3. Methodology of the Study:

Methodology can be termed as underlying principles and rules of organization that

1.4. Importance of the Study:

There are a number of situations in which the evaluation of portfolio performance

a) Self – Evaluation: To evaluate how well one has done as individual

b) Evaluation of Managers: To evaluate portfolio managers by an

d) Evaluation Groups: To evaluate the academics or researchers the

Thus, one important reason for doing performance evaluation is to help in

But data constraint is a common problem in evaluating performance of any

1.4.1 Sources and Methods of Collecting Primary data:

i) Personal Interview: This is the most effective way to collect primary

1.4.2 Sources and Methods of Collecting Secondary data:

• ICB Annual Report (2006-07).

1.5 Limitations of this Study:

• Official secrecy of ICB was also a problem to me.

2.1. Historical Background of ICB

2.1 Historical Background of ICB

The Investment Corporation of Bangladesh was established on 1st October 1976,

2.2 Objectives of the ICB

The main objectives of ICB are as follows:

a. To encourage and broaden the base of investments.

The operational policies of the Corporation are as follows:

a. To provide financial assistance to projects subjects to their economic and

2.4: Sources of Capital of ICB:

Debentures 51.80 41.80 -19.31 51.80 41.80 -19.31

Total 236.06 249.07 5.51 254.09 280.02 10.21

Figure : Capital Structure of 2006 and 2007

ICB Consolidated (ICB & its subsidiaries)

Paid-up capital Paid-up capital

Shareholder position as on 30 June 2007

SL Shareholders No. of No. of Percentage of

Source: ICB Annual Report 2006-2007.

Share holding graphical pattern as on June 2007

Share holding pattern as on 30 June 2007

The functions of ICB are given below:

• Direct purchase of shares and debentures including placement and equity

Fig 4.3: Price Movement of ICB’s Share on DSE (2006-2007)

2.8 Transfer of Shares

Organizational Structure of ICB

3.1. Division and department of ICB

Organizational Structure of ICB

3.1. Division & Department of ICB

3.1.1: Direct Supervision under Managing Director:

Head Office Control Department

3.1.2: Wings under Supervision of General Manager (operation):

1) Loan Appraisal Division:

a) Loan Appraisal Department

a) Unit Sales Department

b) Unit Registration and Procurement Department

c) Mutual Fund Department

a) System Analysis Department

3.1.3 Wings under Supervision of General Manager (Administration):

2) Accounts and Finance Division:

A) General Accounts Department.

B) Project Loan Accounts Department.

3) Legal Affairs Division

b) Public Issue Department

4) Implementation and Recovery Division