2005 2006

Property And Asets

Cash:
In hand
Local Currency 304,119,645 240,961,238
Forreign Currency 1,907,977 7,484,578
total 306,027,622 248,445,816
Balance with BB and its agent bank
Local Currency 988,510,813 1,354,993,343
Forreign Currency 20,995,977 144,016,719
total 1,009,506,790 1,499,010,062
Local Currency at sonali Bank Ltd. 30,776,153 41,105,226
total 1,040,282,943 1,540,115,288

Balance with other banks and financial institutions:

In Bangladesh, Current Accounts with commercial Banks 37,060,808 26,728,163
Short term deposit Accounts with commercial banks 50,000,000 980,000,000
Fixed Deposits with others 445,000,000 280,000,000
total 532,060,808 1,286,728,163
Out Side Bangladesh:
Current Account(non-interest bearing) with Foreign Bank 19,382,813 52,939,816
Current Account(interest bearing) with Foreign Bank 52,536,052 82,342,683
total 71,918,865 135,282,499
Monety at call and short notice 120,000,000 560,000,000
total 191,918,865 695,282,499

Investment:
investment in government securities:
T-bills 2,331,437,098 1,088,952,753
BB bills - -
T-bonds 492,985,613 2,221,538,214
Mergin - -
Prize Bonds 7,860,900 -
15 Years debentures 32,681,848 301,433,063
Other investment 145,482,283 141,444,513
total 3,010,447,742 3,753,368,543

Loan and advances:

Loans,Cash, credits,overdrafts etc in BD 19,124,070,288 23,038,761,590
Bill purchased and discounted 1,409,058,841 1,639,594,703
total 20,533,129,129 24,678,356,293
Total Current Assets 24,573,584,166 30,662,181,314
Fixed assets c\including premises, furniture & fixtures:
land 190,983,950 213,652,230
structures(on land) 2,287,522 2,287,522
Furniture and fixtures 104,136,776 120,063,672
Machinery and equipments 102,989,109 119,987,602
vehicles 32,525,821 42,574,850
total cost 432,923,178 498,565,876
Less: Accumulated Depreciations 124,186,045 144,858,819
Net book value at the end of the year 308,737,133 353,707,057
Oters Assets 192,125,324 260,294,133
Non-banking Assets -

Total Assets 25,994,729,566 32,256,297,792

LIABILITIES & CAPITAL

LIABILITIES
Borrowing from other Banks, Financial Institutions & aggents 1,256,179,954 155,555,365
Deposits & other accounts:
Ccurreny deposits & other accounts 3,070,684,540 3,603,928,441
Bills payable 333,013,172 371,294,841
Savings Bank Deposits 2,109,130,157 2,569,312,503
Fixed Deposits 12,923,329,890 17,534,252,160
Term deposits 2,898,144,627 3,924,315,390
Bearer Certificates of Deposits 143,914,000 144,239,000
Other liabilities 1,722,391,116 2,177,300,913
Total Liabilities 24,456,787,456 30,480,198,613

Shareholder's Equity
Share Capital:
Issued,Subscribed & fully paid-up capital 975,039,810 1,201,788,566
Statutory Reserve 625,412,398 877,685,076
Other Reserve 46,577,688 47,508,557
Profit & loss account-Retained Earning 10,312,214 7,826,980
TOTAL SHAREHOLDER'S EQUITY 1,657,342,110 2,134,809,179
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 26,114,129,566 32,615,007,792
 2005 2006

Interest Income:
Interest on Loans & Advances 2,024,020,673 2,934,223,518
Interest on balances with banks & financial institutions 48,465,630 77,906,007
Total 2,072,486,303 3,012,129,525
less: 1,463,857,337 2,047,143,589
Net Interest income 608,628,966 964,985,936
Income from investment 240,735,656 265,168,893
Income from commission 226,478,385 248,353,446
Income from exchange 259,917,222 225,182,073
Income from Brokerage 8,757,822 15,495,893
Other operating Income 123,626,186 135,660,233
Total Operating Imcome 1,468,144,237 1,854,846,474
Salaries & allowances 258,782,718 367,663,793
Rent 24,053,655 31,267,579
Rates & Taxes 1,151,282 1,227,231
Insurance 10,833,019 14,099,329
Electricity 9,412,501 10,620,824
Legal Expenses 4,048,205 4,025,901
Postage,Stamp & telecommunication 17,530,028 20,727,648
Stationary,printing &advertisement 16,944,071 19,261,704
Managing Director's Salary & allowances 2,260,000 2,730,000
Director's Fees 827,500 1,185,500
Audit Fees 180,000 120,000
Depreciation & Repair of Bank's assets 50,059,352 63,733,131
Other Expenses 53,669,380 61,808,842
Total Operating Expense 449,751,711 598,471,482
Profit before provisions 1,018,392,526 1,256,374,992
Provision for loan & advances:
Specific Provision 257,994,954 130,784,000
General Provision 63,239,680 79,957,086
Provision for off-balance sheet exposures - -
Provision of Gratuity - -
Provision for Investment Fluctuation in Shares 12,912,262 -
Provision for other Assets (3,404,821) 321,771
Total provisions 330,742,075 211,062,857
Profit after provision for Loans & Advances & other provisions 687,650,451 1,045,312,135
Contribution to NCC Bank Foundation - -
Profit Before tax 687,650,451 1,045,312,135
Provision for tax 335,518,278 577,293,262
Profit after tax for the year 352,132,173 468,018,873
Add: Balance of pprofit brought forward from last years 14,257,143 10,312,214
Total Profit available for distribution 366,389,316 478,331,087
Appropriations
Statutory reserve 20% of net profit before tax 137,520,090 211,302,614
General Reserve 218,507,012 270,402,427
356,027,102 481,705,041
Retained earnings carried forward 10,312,214 7,826,980
Weighted average number of outstanding shares 13,230,318,201 19,075,843,750
Earnings per share(EPS) 36.11 39.88

2005 2006
A) Cash flows from operating activities
Interest received in cash 2,295,921,649 3,282,837,515
Interest paid by cash 1,343,300,714 1,866,925,400
Dividend received 4,828,623 4,986,665
Fees & Commission received in cash 239,242,997 261,348,330
Receives of loans previously written off 16,333,837 7,086,252
Cash paid to employees (258,215,838) (370,348,353)
Cash paid to suppliers (22,470,931) (23,797,279)
Income taxes paid (227,210,157) (618,908,571)
Received from other operating activities 379,624,923 358,795,292
Paid for other opeerating activities (149,497,041) (178,428,189)
Operating profit before changes in operating assets & liabilities 3,621,858,776 4,590,497,062
Increase/(Decrease) in Operating Assets & Liabilities
Purchase-sale of trading securities 1,370,503,313 (486,068,256)
Loans & advances to other banks - -
Loans & advances to customers (5,321,976,904) (4,145,227,164)
Other assets 220,185,368 552,044,891
Deposits from other Bannks/Borrowings 895,000,000 (585,000,000)
Deposits from customers 4,513,982,406 7,254,125,949
Other liabilities account of customers (744,223,236) (632,896,075)
Trading liabilities - -
Other liabilities (95,243,266) 103,963,636
Net cash received from operating activities 4,460,086,457 6,651,440,043

B)Cash flows from investing activities

Proceeds from sale of securities 6,365,421 10,409,910
Purchase of property,plant & equipment (35,622,762) (71,780,835)
Sales proceeds of Fixed assets 4,296,885 2,408,349
Net cash used in investing activities (24,960,456) (58,962,576)

C) Cash flows from financing activities

Received from issue of loan capital & debt securities (1,269,943,877) (1,100,624,589)
Payment for redemmption of loan capital & debt security - -
Receipts from issue of right share 184,890,450 117,495,250
Dividend paid - (109,253,500)
Net cash received from financing activities (1,085,053,427) (1,092,382,839)
D) Net(decrease)/increase in cash(A+B+C) 3,350,072,574 5,500,094,628
Effects oof exchange rate changes on cash & cash-equivalents
E) Opening cash & cash-equivalents 1,414,679,992 2,078,151,138
F) Closing cash & cash-equivalents(D+E) 4,764,752,566 7,578,245,766
 National Credit and commerce Bank Ltd.
Balance sheet
As at June 30 for following years

2007 2008 2009

435,851,910 4,424,012,301 531,073,050

31,399,227 8,806,867 8,551,150
467,251,137 4,432,819,168 539,624,200

1,694,669,371 2,233,477,788 2,772,982,393

63,995,252 73,113,221 58,734,025
1,758,664,623 2,306,591,009 2,831,716,418
66,865,396 98,682,941 111,157,049
1,825,530,019 2,405,273,950 2,942,873,467

72,034,648 24,850,479 30,167,168

80,268,101 188,585,265 24,153,167
196,100,000 149,105,074 948,805,074
348,402,749 362,540,818 1,003,125,409

92,052,805 71,173,409 149,361,782

15,059,233 50,398,764 82,687,195
107,112,038 121,572,173 232,048,977
- - -
107,112,038 121,572,173 232,048,977

3,760,897,933 2,333,155,169 2,258,365,307

- - 49,958,850
2,320,031,910 3,598,079,880 6,013,802,964
- 241,720,240 3,500,000
- 10,341,500 11,153,300
23,585,403 13,431,055 6,568,042
 162,099,963 330,090,817 357,416,215
6,266,615,209 6,526,818,661 8,700,764,678

30,616,557,011 44,394,497,310 45,875,411,248

2,071,196,154 1,938,191,154 1,918,357,019
32,687,753,165 46,332,688,464 47,793,768,267
39,877,134,298 57,776,439,284 58,269,331,531

359,656,957 528,791,599 528,791,599

2,287,522 2,287,522 2,287,522
135,700,783 154,983,603 193,177,778
148,519,769 239,358,707 307,250,651
45,538,850 54,332,834 58,817,739
691,703,881 979,754,265 1,090,325,289
169,708,280 204,448,771 233,181,837
521,995,601 775,305,494 857,143,452
298,194,075 578,504,998 2,077,921,243
- - -

42,522,853,993 61,535,523,726 64,147,269,693

1,917,516,640 2,606,034,046 1,911,600,449

4,365,185,051 4,864,150,294 4,709,863,820

669,649,754 692,280,856 416,627,979
3,248,236,813 3,920,781,742 4,919,317,959
21,608,793,301 30,880,912,000 33,267,700,069
4,963,395,284 6,508,949,270 85,370,950,631
46,514,000 37,589,000 37,589,000
2,744,966,287 3,799,528,274 4,751,597,411
39,564,257,130 53,310,225,482 135,385,247,318

1,757,615,777 1,757,615,000 2,284,900,200

998,726,567 1,356,518,531 1,674,147,620
194,119,695 408,543,243 908,906,283
8,134,824 532,620,870 727,923,872
2,958,596,863 4,055,297,644 5,595,877,975
42,522,853,993 57,365,523,126 140,981,125,293
 National Credit and commerce Bank Ltd.
Income Statement
As at June 30 for following years

2007 2008 2009

3,734,409,102 3,325,743,166 4,282,934,437

1,273,973,382 18,156,051 40,956,142
5,008,382,484 3,343,899,217 4,323,890,579
2,738,449,472 2,567,137,607 3,415,986,839
2,269,933,012 776,761,610 907,903,740
519,684,376 380,572,804 588,259,885
331,182,016 321,530,853 259,019,805
2,985,575,859 224,417,239 169,538,184
78,113,932 135,000,000 203,572,000
179,680,977 143,851,124 533,692,586
6,364,170,172 1,982,133,630 2,661,986,200
449,461,009 371,152,885 468,009,192
38,397,200 29,691,225 35,156,159
2,116,300 1,140,535 1,406,401
17,434,433 14,362,261 19,687,367
12,913,525 8,610,901 10,715,639
3,931,197 2,005,140 1,967,861
30,166,863 20,922,945 27,110,037
21,834,886 22,301,469 23,816,650
3,340,000 3,448,360 3,071,750
1,456,000 936,000 1,128,000
120,000 - 80,000
840,045,290 60,985,379 94,348,347
85,116,287 67,338,082 98,466,319
1,506,332,990 602,895,182 784,963,722
4,857,837,182 1,379,238,448 1,877,022,478

207,934,561 312,004,200 129,528,035

106,686,414 43,828,800 80,519,000
51,688,967 20,732,000 6,524,724
30,000,000 30,000,000 34,000,000
23,607,932 20,000,000 9,805,275
(1,000,000) 1,000,000 28,500,000
418,917,874 427,565,000 288,877,034
4,438,919,308 951,673,448 1,588,145,444
5,000,000 - -
4,438,919,308 951,673,448 1,588,145,444
679,148,762 314,405,000 547,928,753
3,759,770,546 637,268,448 1,040,216,691
7,826,980 8,135,001 5,336,270
3,767,597,526 645,403,449 1,045,552,961

271,265,061 190,334,690 317,629,089

405,603,641 - -
676,868,702 190,334,690 317,629,089
8,134,824 455,068,759 727,923,872
20,000,000 18,000,302,193 47,604,026,314
50.09 28 46

National Credit and commerce Bank Ltd.

Cash Flow Statement
As at June 30 for following years

2007 2008 2009

4,305,963,128 2,659,415,500 4,041,248,125

2,543,166,579 2,025,220,960 2,925,581,282
7,718,468 6,427,916 2,341,495
406,275,948 324,917,853 267,856,805
9,100,802 6,965,729 2,003,750
(452,801,009) (374,601,245) (471,080,942)
 (49,642,465) (52,346,778) (74,345,011)
(551,801,047) (349,490,812) (565,173,723)
476,175,990 368,268,363 670,730,770
(218,877,897) (139,546,421) (204,892,824)
6,475,278,497 4,475,231,065 6,594,269,727

(1,779,014,512) (371,658,574) (2,139,496,942)

- - -
(8,009,396,872) (6,987,388,874) (1,461,079,803)
527,332,549 (11,100,613) 129,967,823
(130,000,000) (1,030,000,000) (1,510,000,000)
6,884,431,868 5,879,467,609 6,493,530,696
(662,568,540) (385,094,042) (174,970,720)
- - -
45,202,958 438,929,644 293,520,075
3,351,265,948 2,008,386,215 8,225,740,856

42,700,963 (208,386,723) (2,995,927)

(53,371,034) (69,114,586) (110,571,024)
2,906,704 - -
(7,763,367) (277,501,309) (113,566,951)

1,761,961,275 (732,991,529) (694,433,597)

- - -
- - -
(120,178,857) - -
1,641,782,418 (732,991,529) (694,433,597)
4,985,284,999 997,893,377 7,417,740,308

3,844,394,966 3,743,346,807 3,139,542,535

8,829,679,965 4,741,240,184 10,557,282,843
 2005
Liquidity Ratios

Current Ratio (Current Assets/Current Liabilities) 0.611931

Quick Ratio (Current Assets-Inventory)/(Current Liabilities)

Net Working Capital to Sales Ratio (Current Assets-Current Liabilities/(Sales)

Profitability Ratios

Gross Profit Margin (Gross Income/Sales) 0.293671

Operationg Profit Margin (Operating Income/Sales) 0.708398

Net Profit Margin (Net Income/Sales) 0.171787

Activity Ratios

Inventory Turnover (Cost of Goods Sold/Inventory)

Accounts Receivable Turnover (Sales on Credit/Accounts Receivable)

Total Asset Turnover (Sales/Total Assets) 0.079727

Fixed Asset Turnover (Sales/Fixed Assets) 6.712786

Financial Leverage Ratios

Total Debt to Assets Ratio (Total Debt/Total Assets) 0.940836

Long Term Debt to Assets Ratio (Long Term Debt/Total Assets) 0.809898

Total Debt to Equity Ratio (Total Debt/Total Shareholders Equity) 14.75663

Coverage Financial Leverage Ratios

Times Interest Coverage Ratio (Earnings Before Interest and Tax/Interest) 0.758127

Fixed Charge Coverage Ratios ( EBIT+Lease Payment)/(Interest+Lease Payment) 0.758127

Share Holders Ratios

Earnings Per Share (Net Income to Share Holders/Number Of Share Outstanding) 36

Dividend Per Share (Dividend Paid to Shareholders / Number of Share Outstanding) -

Dividend Payout Ratio (Dividends/Earnings) -

Retention Ratio (Earnings- Dividends/Earnings) 1

 Ratio Analysis of National Credit and commerce Bank Ltd.
2006 2007 2008 2009

0.658111 0.648535 0.673184 -0.236012

0.320367 0.453227 0.232292 0.209974

0.615792 1.270704 0.592761 0.615646

0.159922 0.135147 0.05692 0.073459

0.093381 0.117781 0.054341 0.067406

8.515888 9.594683 4.313009 5.044536

0.944938 0.930423 0.866333 2.110538

0.821699 0.81202 0.776036 2.03062

14.27772 13.37264 13.14582 24.19375

0.672965 1.910153 0.681031 0.64159

0.672965 1.910153 0.681031 0.64159

 40 50 28 46

0.01 6.01 - -

0.228406 0.031898 - -

0.771594 0.968102 1 1
 Valuation Assumptions
Valuation Date 8-Dec
Discount Rate 0.0%
Terminal Value
Terminal Switch 2
EBITDA Exit Multiple 6.0 x
Terminal Growth Rate 0.0%
Tax Rate 200.0%

(Tk in thousands) 2005 2006

Total Revenue 608,628,966 964,985,936

Growth Rate 0.59

COGS 48,465,630 77,906,007

Gross Margin 560163336 887079929

% of Sales 92.04% 91.93%

Operating Expenses 449,751,711 598,471,482

% of Sales 73.90% 62.02%
Royalty, training and consultancy 0 0
% of Sales 0 0
General and Administrative 0 0
Total Operating Expenses 449751711 598471482

EBIT 1009915047 1485551411

% of Sales 165.93% 153.95%

Depreciation/Amortization 50,059,352 63,733,131

EBITDA
% of Sales

Income Taxes 335,518,278 577,293,262

Unlevered Net Income 674,396,769 908258149

Add: Depreciation/Amortization 50,059,352 63,733,131

Less: Changes in Working Capital
Less: Capital Expenditures

Net Cash Flow Before Debt

Present Value of Adjusted Cash Flows
Enterprise Value 6,881,210,761

Plus: Cash Err:509

Less: Interest Debt 6016

Equity Value: Err:509

No of shares outstanding 0
Equity value per share Err:509
Market value per share on 31th August 2885
Variance in compare to actual value Err:509
Cash Flow Timing (1=12 months from valuation)
 Rrojected

2007 2008 2009E 2010E 2011E 2012E

2,269,933,012 776,761,610 907,903,740 993422353 1086996261 1189384221

1.35 -0.66 9% 9% 9% 9%

1,273,973,382 18,156,051 40,956,142 185,018,945 202,446,523 221,515,666

995959630 758605559 866,947,598 808,403,408 884,549,738 967,868,556

43.88% 97.66% 95% 81% 81% 81%

1,506,332,990 602,895,182 784,963,722 695,125,663 760,601,968 832,245,715

66.36% 77.62% 86.46%
0 0 - - - -
0 0
0 0 - - - -
1506332990 602895182 784,963,722 695,125,663 760,601,968 832,245,715

2502292620 1361500741 81,983,876 113,277,744 123,947,769 135,622,841

110.24% 175.28% 9% 11% 11% 11%

840,045,290 60,985,379 94,348,347 1,263,652,760 1,382,680,611 1,512,920,109

176,332,223 1,376,930,504 1,506,628,380 1,648,542,950

19% 139% 139% 139%

679,148,762 314,405,000 547,928,753 31,151,380 34,085,637 37,296,281

1823143858 1047095741 (465,944,877) 82,126,365 89,862,133 98,326,560

840,045,290 60985379 1,154,871,404 1,263,652,760 1,382,680,611 1,512,920,109

101385193 45,370 51,722 58,963 67,218
- - - -

688,881,157 1,345,727,403 1,472,483,780 1,611,179,451

688,881,157 1,345,727,403 1,472,483,780 1,611,179,451
 2013E Terminal Normalized Other assumptions

1301416460 $1,301,416,460 0.09 Weighted sales growth

9%

242,380,997 242,380,997 0.19 Average COGS/Sales

1,059,035,463 1,059,035,463
81% 0.81 Average Gross margin

910,637,835 910,637,835
0.70 Average as % of sales
-
0.00 Average as % of sales
-
910,637,835 910,637,835

148,397,628 148,397,628
11%

1,655,427,319 1,655,427,319

1,803,824,947 1,803,824,947
139%

40,809,348 -

107,588,281 148,397,628

1,655,427,319 1,655,427,319
76,628 76,628
- -

1,762,938,971 - 1,803,748,319
 ac
1,762,938,971 -
Terminal growth rate
2005 2006 2007 2008 2009 Mean
Net Profit 0 0 0 0 0
Stockholders equity 0 0 0 0 0
ROE #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Dividend 31053819 1181824 43591800 39113669 17066641
Percentage of Dividend on net profit #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
(1 - payout ratio) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Sustainable growth/Terminal growth rate #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Terminal growth rate
2005 2006 2007 2008
Net Profit 45448000 49916000 1.69E+08 1.9E+08
Stockholders equity 2.2E+08 250751000 3.64E+08 5.63E+08
ROE 0.21 0.20 0.47 0.34
Dividend 16500000 18750000 18750000 33750000
Percentage of Dividend on net profit 0.36 0.38 0.11 0.18
(1 - payout ratio) 0.64 0.62 0.89 0.82
Sustainable growth/Terminal growth rate 0.13 0.12 0.41 0.28
 2009 Mean
2.11E+08
7.35E+08
0.29
39375000
0.19
0.81
0.23 23.61%
(TK. '000) 2005
Accounts: 2005
Current Assets
Current Liabilities
Net working capital
Net changes in working capital

Sales Growth Rate

 Changes in Net Working Capital

206 2007 2008 2009E 2010E 2011E 2012E 2013E

1.603E+09 0 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
1.501E+09 0 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
### 0 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
### #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.00
Competitor in the Industry -0.01
Market Change 0.01
Customer Need 0.02
Raw Material Market 0.02
Output Market 0.05
Government Regulation 0.01
Changes in other Situations 0.01
Influence of other factors 0.005
YearlySales Growth #DIV/0!
Predicted sales growth #DIV/0!

Assume that all other factors are not affected by the external and internal influences

Average Gross profit margen #DIV/0!

Average Cost of goods sold #DIV/0!
Average Operating Expenses 0.00%
Distribution and selling expenses 0.00%

Depriciation Calcul

Year 2008 2009E

Dep. For the gross PP&E 0 #DIV/0!

Tax Rate 27.50%

Depriciation Calculation

2010E 2011E 2012E 2013E

#DIV/0! #DIV/0! #DIV/0! #DIV/0!