Ifyouhaveanyqueryaboutthisdocument,youmayconsultissuer,issuemanagerandunderwriter

PROSPECTUS of

GSPFINANCECOMPANY(BANGLADESH)LIMITED

For
PublicIssueof20,000,000ordinaryshareofTk.10.00eachatanissuepriceofTk.25.00pershareincluding apremiumofTk.15.00persharetotalingTk.500,000,000.00

Openingdateforsubscription Closingdateforsubscription NonResidentBangladeshi(NRB),subscriptionopenson NonResidentBangladeshi(NRB),subscriptioncloseson CreditRatingStatus

Entity Rating Date of Rating Validity of Rating

: : : :

January08,2012 January12,2012 January08,2012 January21,2012

Short Term ST4

Long Term BBB3 06March2011 30June2012

RATING ASSIGNED BY: CREDIT RATING AGENCY OF BANGLADESH LTD.(CRAB)

UNDERWRITERS

IDLCInvestmentLimited EunoosTradeCenter(Level21) 5253DilkushaC/A,Dhaka. ICBCapitalManagementLimited 8,DITAvenue,BDBLBhaban(Level16), Dhaka.

MTBCapitalLimited 68Dilkusha(6thFloor)C/A,Dhaka. CityBankCapitalResourcesLimited st JibonBimaTower,1 Floor 10,DilkushaC/A,Dhaka.

LankaBanglaFinanceLtd. SafuraTower(Level11),20KemalAtaturk Avenue,Banani,Dhaka1213. SonaliInvestmentLimited SaraTower,11thFloor,11/A,Toynbee CircularRoad,MotijheelC/A,Dhaka.

IssuedateoftheProspectus:November29,2011 TheissueshallbeplacedinNcategory

MANAGERTOTHEISSUE ICBCAPITALMANAGEMENTLIMITED (ASUBSIDIARYOFICB) BDBLBhaban(Level16),8,DITAvenue,Dhaka1000. Phone:71603267,Fax:88029555707,Email:ceocmcl@accesstel.net Website:www.icbcml.com.bd

ISSUER
GSPFINANCECOMPANY(BANGLADESH)LIMITED 1,Paribagh,MymensinghRoad,Ramna,Dhaka1000. PABX:(8802)9674306,FAX:(8802)9674194 Website:www.gspfinanceco.com

CONSENTOFTHESECURITIESANDEXCHANGECOMMISSIONHASBEENOBTAINEDTOTHEISSUE/OFFEROFTHESESECURITIESUNDERTHE SECURITIESANDEXCHANGEORDINANCE,1969,ANDTHESECURITIESANDEXCHANGECOMMISSION(PUBLICISSUE)RULES,2006.ITMUSTBE DISTINCTLY UNDERSTOOD THAT IN GIVING THIS CONSENT THE COMMISSION DOES NOT TAKE ANY RESPONSIBILITY FOR THE FINANCIAL SOUNDNESSOFTHEISSUERCOMPANY,ANYOFITSPROJECTSORTHEISSUEPRICEOFITSSECURITIESORFORTHECORRECTNESSOFANYOF THE STATEMENTS MADE OR OPINION EXPRESSED WITH REGARD TO THEM. SUCH RESPONSIBILITY LIES WITH THE ISSUER, ITS DIRECTORS, CHIEFEXECUTIVEOFFICER/CHIEFFINANCIALOFFICER,ISSUEMANAGER,UNDERWRITERAND/ORAUDITOR.

AVAILABILITYOFPROSPECTUS

TheProspectusofGSPFinanceCompany(Bangladesh)Limitedmaybeavailableatthefollowingaddresses:
Name&Address IssuerCompany GSPFinanceCompany(Bangladesh)Limited 1,Paribagh,MymensinghRoad,Ramna,Dhaka1000. IssueManager ICBCapitalManagementLtd. 8,DITAvenue,BDBLBhaban(Level16),Dhaka1000. Underwriters ICBCapitalManagementLtd. 8,DITAvenue(14thFloor),Dhaka1000. LankaBanglaFinanceLtd. Safura Tower (Level 11), 20 Kemal Ataturk Avenue, Banani,Dhaka1213. IDLCInvestmentLimited Eunoos Trade Center (Level 21), 5253 Dilkusha C/A, Dhaka. CityBankCapitalResourcesLimited JibonBimaTower,1stFloor 10,DilkushaC/A,Dhaka. MTBCapitalLimited 68Dilkusha(6thFloor)C/A,Dhaka. ContactPerson A.H.EkbalHossain ManagingDirector & Md.MizanurRahman GM(Finance)&CompanySecretary TelephoneNo. 9674306 9674306

NasirUddinAhmed ChiefExecutiveOfficer

+8802716032627

NasirUddinAhmed ChiefExecutiveOfficer QuamrulIslam CFO Md.Moniruzzaman HeadofMerchantBanking KhondokerEheteshamHaider SeniorExecutiveOfficer KhairulBasharAbuTaherMohammed ChiefExecutiveOfficer AshadulIslam BoardSecretary Dr.Md.WaliarRahman ChiefExecutiveOfficer DSELibrary CSELibrary

+8802716032627 988370110 9571170

88028813483,8814375, 8813156Ext1304 01930233583 71701389 01818416284 71701399 9568777 , 9556940, 7170001 Ext t 101126 +880295646017 +880296669448 +880317146323 +88031720871 +8802951391115

SonaliInvestmentLimited 11/A,ToyenbeeCircularRoad,SaraTower(11thfloor), MotijheelC/A,Dhaka1000. StockExchanges DhakaStockExchangeLimited(DSE) 9/F,MotijheelC/A,Dhaka1000. ChittagongStockExchangeLimited(CSE) CSEBuilding,1080,Sk.MujibRoad,Agrabad, Chittagong. DhakaLiaisonOffice:EunoosTradeCenter(Level15), 5253DilkushaC/A,Dhaka1000.

Prospectus would also be available on the web site of SEC (www.secbd.org), DSE (www. dsebd.org), CSE (www.cse.com.bd), GSP Finance Company (Bangladesh) Limited (www.gspfinanceco.com) and Issue Manager (www.icbcml.com.bd) and Public Reference Room of the Securities and Exchange Commission (SEC) for reading andstudying.

NameandaddressoftheAuditor: M/SKaziZahirKhan&Co. CharteredAccountants 67/4,Kakrail(G&3rdFloor),Dhaka1000.

NameandAddressoftheLawyer: Chowdurys&Hyders Barristers,AdvocatesandConsultants Room#4/L,MeherbaPlaza(4thfloor) 33TopkhanaRoad,Dhaka.

TableofContents

Particulars Disclosureinrespectofissuanceofsecuritiesindematerializedform ConditionsunderSection2CCoftheSecuritiesandExchangeOrdinance,1969 Generalinformation Declaration about the responsibility of the director(s), including the Managing Director of the company GSP FinanceCompany(Bangladesh)Limitedinrespectoftheprospectus Consentofthedirector(s)toserveasdirector(s) DeclarationaboutfillingofprospectuswiththeRegistrarofJointStockCompaniesandFirms Duediligencecertificateofthemanagerstotheissue Duediligencecertificateoftheunderwriter(s) Riskfactorsandmanagementsperceptionabouttherisks FinancialStructureOfTheCompany UseofIPOproceeds CorporateStatusandBackground Natureofbusiness Principalproducts RelativecontributionofProductscontributingmorethan10%ofthetotalrevenue Associates,subsidiary/relatedholdingcompanyandtheircoreareasofbusiness Distributionofproducts/services Competitiveconditionofbusiness Sourcesandavailabilityofrawmaterialsandprincipalsuppliers Sourcesofandrequirementforpower,gas,wateroranyotherutilities Nameofthecustomerswhopurchase10%ormoreofthecompanysproduct/services Descriptionofcontractwithprincipalsuppliers/customers Descriptionofanymaterialpatents,trademarks,licensesorroyaltyagreements Numberofemployees Descriptionofproperty Internalandexternalsourcesofcash Materialcommitmentforcapitalexpenditure Materialchangesfromperiodtoperiod Seasonalaspectofthecompanysbusiness Knowntrends,eventsoruncertainties Changeintheassetsofthecompanyusedtopayoffanyliabilities Loantakenfromorgiventoholding/parentcompanyorsubsidiarycompany Futurecontractualliabilities EstimatedFuturecapitalexpenditure VAT,incometax,customsdutyorothertaxliability Operatingleaseagreementduringlastfiveyears Financialandleasecommitment Personnelrelatedscheme BreakdownofestimatedexpensesforIPO Revaluationofcompanysassetsandsummarythereof Transactionbetweenholdingcompanyandissuer DeclarationforaNonBankingFinancialInstitution Auditors certificate regarding allotment of shares to promoters or sponsor shareholders for consideration other thanincash Materialinformationwhichislikelytohaveanimpact Informationaboutthedirectorsandofficers Directorsinvolvementinotherorganization

Page 1 15 6 7 8 8 9 10 1113 14 14 15 15 1516 16 17 17 17 17 17 17 17 17 17 18 19 19 19 19 20 20 20 20 20 2021 21 2122 22 23 2425 26 26 27 28 2829 2931

Particulars Familyrelationshipamongdirectorsandtopofficials Shortbiodataofthedirectors CreditInformationBureau(CIB)report Descriptionoftopexecutivesanddepartmentalheads Involvementofdirectorsandofficersincertainlegalproceedings Certainrelationshipsandrelatedtransactions Executivecompensation Optionsgrantedtodirectors,officersandemployees Transactionwiththedirectorsandsubscriberstothememorandum Tangibleassetspershare Ownershipofthecompanyssecurities 5%ormoreoftheShareholdingstructureoftheCompany SecuritiesoftheCompanyownedbyeachDirector Determinationofofferingprice Marketforthesecuritiesbeingoffered DeclarationaboutlistingofshareswithStockExchanges Tradingandsettlement DescriptionofSecuritiesoutstandingorbeingoffered DebtSecurities Lockinprovision Refundofsubscriptionmoney SubscriptionbyandrefundtononresidentBangladeshis(NRB) Availabilityofsecurities Applicationforsubscription Underwritingofshares Commissionfortheunderwriters RightofUnderwritersonCompanysBoard Allotment Materialcontracts ManagerstotheIssue CommissiontotheBankerstotheIssue Corporatedirectory Bankerstotheissue Auditorsreporttotheshareholders AuditedAccountsfortheyearended31December2010 AdditionaldisclosuresintheFinancialStatementsofGSPFinanceCompany(Bangladesh)Limitedfortheyearended December31,2010 AuditorsReportinpursuanceofSection135(1)underpara24(1)ofPartIIoftheThirdScheduleoftheCompanies Act1994 RatioAnalysis CreditRatingReport ApplicationFormforsharesbyinvestorsotherthannonresidentBangladeshi(s) ApplicationFormforsharesbyNonResidentBangladeshi(s)

Page 31 3234 35 35 3536 36 3637 37 37 38 39 40 4041 4243 44 44 44 4446 46 4647 47 48 48 4950 51 52 52 52 52 52 52 53 54 5556 5789 90111 112114 115 116130 131132 133134

 DefinitionandElaborationoftheabbreviatedwordsandtechnicaltermsusedintheprospectus Allotment LetterofAllotmentofShares BAS BangladeshAccountingStandard BB BangladeshBank BO BeneficiaryOwner BSA BangladeshStandardonAuditing CSE ChittagongStockExchange Certificate ShareCertificate CDBL CentralDepositoryBangladeshLimited CIB CreditInformationBureau Commission SecuritiesandExchangeCommission DSE DhakaStockExchange FCAccount ForeignCurrencyAccount IAS InternationalAccountingStandard ICML ICBCapitalManagementLimited Issue PublicIssueofSharesofGSPFinanceCompany(Bangladesh)Limited IPO InitialPublicOffering MP MarketPrice MICR MagneticInkCharacterRecognition NBFI NonBankingFinancialInstitution NBR NationalBoardofRevenue NRB NonResidentBangladeshi NAV NetAssetValue PriceoftheShareofGSPFinanceCompany(Bangladesh)Limitedbeingoffered OfferingPrice RJSC RegistrarofJointStockCompaniesandFirms RegisteredOffice HeadOfficeoftheCompany SEC SecuritiesandExchangeCommission SC ShareCertificate STDAccount ShortTermDepositAccount Securities ShareofGSPFinanceCompany(Bangladesh)Limited SecuritiesMarket TheShareMarketofBangladesh StockHolders ShareHolders Subscription ApplicationMoney Sponsors TheSponsorShareholdersofGSPFinanceCompany(Bangladesh)Limited TheCompany/Issuer GSPFinanceCompany(Bangladesh)Limited

DISCLOSERINRESPECTOFISSUANCEOFSECURITYINDEMATFORM AsperprovisionsoftheDepositoryAct,1999andregulationsmadethereunder,shareofthecompanywillbeissuedin dematerializedform,onlyand,forthispurpose,GSPFinanceCompany(Bangladesh)Limitedhassignedanagreementwith theCentralDepositoryBangladeshLimited(CDBL).Therefore,alltransfers/transmissions,splittingorconversionswilltake placeintheCDBLsystemandanyfurtherissuanceofshares(includingrights/bonus)willalsobeissuedindematerialized formonly. CONDITIONSUNDER2CCOFTHESECURITIESANDEXCHANGEORDINANCE,1969 PARTA 1. ThecompanyshallgoforInitialPublicOffer(IPO)for20,000,000OrdinarySharesofTk.10.00eachatanissuepriceof Tk.25.00pershareincludingapremiumofTk.15.00eachworthTk.500,000,000.00(Tk.FiftyCrore)followingthe SecuritiesandExchangeCommission(PublicIssue)Rules,2006,theDepositoryAct,1999andregulationsmadethere under. 2. Theabridgedversionoftheprospectus,asapprovedbytheCommission,shallbepublishedbytheissuerin4(Four) national daily newspapers (two in Bangla and two in English), within 3 (Three) working days of issuance of the consent letter. The issuer shall post the full prospectus, vetted by the Securities andExchange Commission, in the issuers website and shall also put on the websites of the Commission, stock exchanges, and the issue manager, within3(Three)workingdaysfromthedateofissuanceofthisletterandshallremainpostedtilltheclosureofthe subscriptionlist.TheissuershallsubmittoSEC,thestockexchangesandtheissuemanagersadiskettecontainingthe textofthevettedprospectusinMSWordformat. 3. Sufficientcopiesofprospectusshallbemadeavailablebytheissuersothatanypersonrequestingacopymayreceive one. A notice shall be placed on the front of the application form distributed in connection with the offering, informingthatinterestedpersonsareentitledtoaprospectus,iftheysodesire,andthatcopiesofprospectusmaybe obtainedfromtheissuerandtheissuemanagers.Thesubscriptionapplicationshallindicateinboldtypethatnosale ofsecuritiesshallbemade,norshallanymoneybetakenfromanyperson,inconnectionwithsuchsaleuntiltwenty fivedaysaftertheprospectushasbeenpublished. 4. Thecompanyshallsubmit40(Forty)copiesoftheprintedprospectustotheSecuritiesandExchangeCommissionfor officialrecordwithin5(Five)workingdaysfromthedateofpublicationoftheabridgedversionoftheprospectusin thenewspaper. 5. The issuer company and the issue managers shall ensure transmission of the prospectus, abridged version of the prospectusandrelevantapplicationformsforNRBsthroughemail,simultaneouslywithpublicationoftheabridged version of the prospectus, to the Bangladesh Embassies and Missions abroad and shall also ensure sending of the printedcopiesofabridgedversionoftheprospectusandapplicationformstothesaidEmbassiesandMissionswithin 5(Five)workingdaysofthepublicationdatebyExpressMailService(EMS)ofthepostaldepartment.Acompliance report shall be submitted in this respect to the SEC jointly by the issuer and the issue managers within 2 (Two) workingdaysfromthedateofsaiddispatchoftheprospectusandtheforms. 6. 7. Thepaperclippingofthepublishedabridgedversionoftheprospectus,asmentionedatconditionno.2above,shall besubmittedtotheCommissionwithin24hoursofthepublicationthereof. Thecompanyshallmaintainseparatebankaccount(s)forcollectingproceedsoftheInitialPublicOfferingandshall alsoopenForeignCurrency(FC)account(s)todeposittheapplicationmoneyoftheNonResidentBangladeshis(NRBs) forIPOpurpose,andshallincorporatefullparticularsofsaidFCaccount(s)intheprospectus.Thecompanyshallopen theabovementionedaccountsforIPOpurpose;andclosetheseaccountsafterrefundofoversubscriptionmoney.

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NonResident Bangladeshi (NRB) means Bangladeshi citizens staying abroad including all those who have dual citizenship(providedtheyhaveavalidBangladeshipassport)orthose,whoseforeignpassportbearastampfromthe concernedBangladeshEmbassytotheeffectthatnovisaisrequiredfortravelingtoBangladesh. 8. TheissuercompanyshallapplytoallthestockexchangesinBangladeshforlistingwithin7(Seven)workingdaysfrom the date of issuance of this letter and shall simultaneously submit the vetted prospectus with all exhibits, as submittedtoSEC,tothestockexchanges. 9. Thefollowingdeclarationshallbemadebythecompanyintheprospectus,namely: DeclarationaboutListingofShareswiththestockexchange(s): None of the stock exchange(s), if for any reason, grants listing within 75 (Seventy Five) days from the closure of subscription,anyallotmentintermsofthisprospectusshallbevoidandthecompanyshallrefundthesubscription moneywithin15(Fifteen)daysfromhedateofrefusalforlistingbythestockexchanges,orfromthedateofexpiryof thesaid75(SeventyFive)days,asthecasemaybe. Incaseofnonrefundofthesubscriptionmoneywithintheaforesaid15(Fifteen)days,theDirectorsofthecompany, inadditiontotheissuercompany,shallbecollectivelyandseverallyliableforrefundofthesubscriptionmoney,with interestattherateof2%(TwoPercent)permonthabovethebankrate,tothesubscribersconcerned. The issue managers, in addition to the issuer company, shall ensure due compliance of the above mentioned conditions and shall submit compliance report thereon to the Commission within 7 (Seven) days of expiry of the aforesaidfifteendaystimeperiodallowedforrefundofthesubscriptionmoney. 10. The subscription list shall be opened and the sale of securities commenced after 25 (Twenty Five) days of the publicationoftheabridgedversionoftheprospectusandshallremainopenfor5(Five)consecutivebankingdays. 11. AnonresidentBangladeshishallapplyeitherdirectlybyenclosingaforeigndemanddraftdrawnonabankpayable atDhaka,orthroughanomineebypayingoutofforeigncurrencydepositaccountmaintainedinBangladeshorin Taka,supportedbyforeigncurrencyencashmentcertificateissuedbytheconcernedbank,forthevalueofsecurities appliedforthroughcrossedbankchequemarkingAccountPayeeonly.TheNRBapplicantsshallsendapplications to the issuer company within the closing date of the subscription so as to each the same to the company by the closing date plus 9 (Nine) days. Applications received by the company after the above time period will not be consideredforallotmentpurpose. 12. Thecompanyshallapplythespotbuyingrate(TTclean)inUSDollar,UKPoundSterlingandEuroofSonaliBankLtd, whichshallbementionedintheProspectus,asprevailedonthedateofopeningofthesubscriptionforthepurpose ofapplicationoftheNRBsandothernonBangladeshipersons,whereverapplicable. 13. TheCompanyandtheissuemanagershallensurepromptcollection/clearanceoftheforeignremittancesofNRBsand othernonBangladeshi(s),ifapplicable,forallotmentofshares. 14. Uponcompletionoftheperiodofsubscriptionforsecurities,theissuerandtheissuemanagershalljointlyprovide theCommissionandthestockexchangeswiththepreliminarystatusofthesubscriptionwithin5(Five)workingdays, inrespectofthefollowingmatters,namely: a. b. c. Totalnumberofsecuritiesforwhichsubscriptionhasbeenreceived; Amountreceivedfromthesubscription;and Amountofcommissionpaidtothebankerstotheissue.

15. TheissuerandtheissuemanagershalljointlyprovidetheCommissionandthestockexchangeswiththelistofvalid and invalid applicants (i.e. final status of subscription) in electronic form in 2 (Two) CDs and final status of subscription to the Commission within 3 (Three) weeks after the closure of the subscription along with bank

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statement (original), branchwise subscription statement. The list of valid and invalid applicants shall be finalized afterexaminationwiththeCDBLinrespectofBOaccountsandparticularsthereof. 16. TheIPOshallstandcancelledandtheapplicationmoneyshallberefundedimmediately(butnotlaterthan5(Five) weeksfromthedateofthesubscriptionclosure),ifanyofthefollowingeventsoccur: (a) Uponclosingofthesubscriptionlistitisfoundthatthetotalnumberofvalidapplications(incaseof undersubscriptionincludingthenumberoftheunderwriter)islessthantheminimumrequirementasspecified inthelistingregulationsofthestockexchange(s)concerned;or (b) Atleast50%oftheIPOisnotsubscribed. 17. 10% of total public offering shall be reserved for nonresident Bangladeshi (NRB) and 10% for mutual funds and collectiveinvestmentschemesregisteredwiththeCommission,andtheremaining80%shallbeopenforsubscription by the general public. In case of undersubscription under any of the 10% categories mentioned above, the unsubscribed portion shall be added to the general public category and, if after such addition, there is over subscriptioninthegeneralpubliccategory,theissuerandthemanagerstotheissue shalljointlyconductanopen lotteryofalltheapplicantsaddedtogether.

18. All the applicants shall first be treated asapplied for one minimum market lot of500 shares worth Taka 12,500/ (TwelveThousandFiveHundredonly).If,onthisbasis,thereisoversubscription,thenlotteryshallbeheldamongst the applicants allocating one identification number for each application, irrespective of the application money. In case of oversubscription under any of the categories mentioned hereinabove, the issuer and the issue managers shalljointlyconductanopenlotteryofalltheapplicationsreceivedundereachcategoryseparatelyinpresenceof representativesfromtheissuer,thestockexchangesandtheapplicants,iftherebeany. 19. An applicant cannot submit more than two applications, one in his/her own name and the other jointly with anotherperson.Incaseanapplicantmakesmorethantwoapplications,allapplicationswillbetreatedasinvalid and will not be considered for allotment purpose. In addition, 15% (fifteen) of the application money will be forfeitedbytheCommissionandthebalanceamountwillberefundedtotheapplicant. 20. TheapplicantshallprovidewiththesamebankaccountnumberintheapplicationformasitisintheBOaccountof theapplication. 21. Theapplicantswhohaveappliedformorethantwoapplicationsusingsamebankaccount,theirapplicationwill notbeconsideredforlotteryandtheCommissionmayforfeitwholeorpartoftheirapplicationtoo. 22. Lottery(ifapplicable)shallbeheldwithin4(Four)weeksfromclosureofthesubscriptiondate. 23. Thecompanyshallissueshareallotmentletterstoallsuccessfulapplicantswithin5(Five)weeksfromthedateofthe subscription closing. Within the same time, refund to the unsuccessful applicants shall be made in the currency in which the value of securities was paid for by the applicants without any interest, through direct deposit to the applicants bank account as far as possible/ Account Payee Cheque/ refund warrants with bank account number, banks name and branch as indicated in the securities application forms payable at Dhaka/ Chittagong/ Khulna/ Rajshahi/Barisal/Sylhet/Bogra,asthecasemaybesubjecttoconditionno.20above. Refundmoneyoftheunsuccessfulapplicantsshallbecrediteddirectlytotheirrespectivebankaccounts,whohave chosen the option in the IPO application forms, as maintained with the bankers to the issue or any other banks mentionedintheapplication. A compliancereport in thisregard shall be submitted to the Commission within 7 (Seven) weeksfrom the date of closureofsubscription.

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24. ThecompanyshallfurnishtheListofAlloteestotheCommissionandthestockexchange(s)simultaneouslyinwhich theshareswillbelisted,within24(TwentyFour)hoursofallotment. 25. Intheeventofundersubscriptionofthepublicoffering,theunsubscribedportionofsecuritiesshallbetakenupby theunderwriter(s)(subjecttoPara16above).Theissuermustnotifytheunderwriterstotakeuptheunderwritten shareswithin10(Ten)daysoftheclosingofsubscriptiononfullpaymentofthesharemoneywithin15(Fifteen)days of the issuers notice. The underwriter shall not share any underwriting fee with the issue managers, other underwriters,issuerorthesponsorgroup. 26. Allissuedshares(including28%bonussharesfortheyear2010)oftheissueratthetimeofaccordingthisconsent shall be subject to a lockin period of 3 (Three) years from the date of issuance of prospectus or commercial operation,whichevercomeslater. Providedthatthepersons(otherthanDirectorsandthosewhohold5%ormoresharesinthecompany),whohave subscribed to the shares of the company within immediately preceding two years of according consent shall be subject to a lockin period of 1 (One) year from the date of issuance of prospectus or commercial operation, whichevercomeslater. 27. InrespectofsharesofSponsors/Directors/Promoters(ifinpaperformat)shallbehandedovertosecuritycustodian bankregisteredwithSECandshallremaintillcompletionoflockinandthenameandbranchofthebankshallbe furnished to the Commission jointly by the issuer and issue managers, along with aconfirmation thereof from the custodian bank, within one week of listing of the shares with the stock exchange(s). Or they (shares of Sponsors/ Directors/ Promoters) can be demated and will remain in lockin under CDBL system and issuer will submit a dematerializationconfirmationreportgeneratedbyCDBLandattestedbyManagingDirectorofthecompanyalong withlockinconfirmationwithSECwithinoneweekoflistingoftheshareswiththestockexchange(s).Inrespectof shares other than Sponsors/Directors/Promoters the issuer will ensure their lockin of those shares and submit a statementtothiseffecttoSEC. 28. Thecompanyshallapplytothestockexchangesforlistingwithin7(Seven)workingdaysofissuanceofthisletterand shallsimultaneouslysubmittotheCommissionattestedcopiesoftheapplicationfiledwiththestockexchanges. 29. The company shall deposit 3% tax to the Government Treasury on the share premium of the IPO and submit authenticatedcopyofTreasuryChalantotheCommission,amongothers,toobtainconsentforholdingoflottery in line with the NBRs Order No. Rvivev/AvqKi 4/Awa/11(4)/2003(Ask)-1)/225dated06.07.2010. 30. The company shall not declare any benefit/dividend based on the financial statements for the year ended on December31,2011beforelistingofitscapitalwithstockexchange(s). PARTB 1. TheissuerandtheIssueManagershallensurethattheabridgedversionoftheprospectusandthefullprospectusis publishedcorrectlyandinstrictconformitywiththeconditionsofthisletterwithoutanyerror/omission,asvettedby theSecuritiesandExchangeCommission. 2.Theissuemanagershallcarefullyexamineandcomparethepublishedabridgedversionoftheprospectusonthedate ofpublicationwiththecopyvettedbySEC.Ifanydiscrepancy/inconsistencyisfound,boththeissuerandtheissue manager shall jointly publish a corrigendum immediately in the same newspapers concerned, simultaneously endorsing copies thereof to SEC and the stock exchange(s) concerned, correcting the discrepancy/inconsistency as requiredunderDueDiligenceCertificatesprovidedwithSEC. evRU/2010/97 dated 30.06.2010 and Rvivev/Ki-

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3.Boththeissuercompanyandtheissuemanagershall,immediatelyafterpublicationoftheprospectusanditsabridged version,jointlyinformtheCommissioninwritingthatthepublishedprospectusanditsabridgedversionareverbatim copiesofthesameasvettedbytheCommission. 4. The fund collected through Public Offering shall not be utilized prior to listing with stock exchanges and that utilizationofthesaidfundshallbeeffectedthroughbankingchannel,i.e.throughaccountpayeecheque,payorder orbankdraftsetc. 5. The company shall furnish report to the Commission and to the stock exchanges on utilization of Public Offering proceedswithin15(Fifteen)daysoftheclosingofeachmonthuntilsuchfundisfullyutilized,asmentionedinthe schedule contained in the prospectus, and in the event of any irregularity or inconsistency, the Commission may employ or engage any person, at issuers cost, to examine whether the issuer has utilized the proceeds for the purposedisclosedintheprospectus. 6. Alltransactions,excludingpettycashexpenses,shallbeeffectedthroughthecompanysbankaccount(s). 7. ProceedsofthePublicOfferingshallnotbeusedforanypurposeotherthanthosespecifiedintheprospectus.Any deviationinthisrespectmusthavepriorapprovaloftheshareholdersintheshareholdersMeetingunderintimation toSECandstockexchanges. 8. DirectorsontheCompanysBoardwillbeinaccordancewithapplicablelaws,rulesandregulations. 9. The financial statements should be prepared in accordance with Bangladesh Accounting Standards (BAS) and BangladeshFinancialReportingStandards(BFRS)asrequiredbytheSecuritiesandExchangeRules,1987. PARTC 1. All the above conditions imposed under section 2CC of the Securities and Exchange Ordinance, 1969 shall be incorporatedintheprospectusimmediatelyafterthepageofthetableofcontents,withareferenceinthetableof contents,priortoitspublication. 2. TheCommissionmayimposefurtherconditions/restrictionsetc.fromtimetotimeasandwhenconsiderednecessary whichshallalsobebindingupontheissuercompany. PARTD 1. As per provision of the Depository Act, 1999 & regulations made there under, shares will only be issued in dematerializedcondition.Alltransfer/transmission/splittingwilltakeplaceintheCentralDepositoryBangladeshLtd. (CDBL)systemandanyfurtherissuanceofshares(Includingrights/bonus)willbemadeindematerializedformonly. An applicant (including NRB) shall not be able to apply for allotment of shares without Beneficial Owners (BO) account. 2. ThecompanyandtheissuemanagershallensureduecomplianceofalltheaboveconditionsandtheSecuritiesand ExchangeCommission(PublicIssue)Rules,2006.

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 GeneralInformation
ICB Capital Management Limited, the Issue Manager, has prepared this Prospectus based on the information provided by GSP Finance Company (Bangladesh) Limited (the Company/the Issuer) and also upon several discussions with the Managing Director and concerned executives of the issuer company. The Directors, including Managing Director of GSP Finance Company (Bangladesh) Limited andICBCapitalManagementLimitedcollectivelyandindividually,havingmadeallreasonableinquires, confirmsthattothebestoftheirknowledgeandbelief,theinformationcontainedhereinistrueand correctinallmaterialaspectsandthattherearenoothermaterialfacts,theomissionofwhichwould makeanystatementhereinmisleading. Nopersonisauthorizedtogiveanyinformationortomakeanyrepresentationnotcontainedinthis prospectus,andifgivenormade,anysuchinformationorrepresentationmustnotberelieduponas havingbeenauthorizedbytheIssuerorIssueManager. The Issue, as contemplated in this document, is made in Bangladesh and is subject to the exclusive jurisdiction of the courts of Bangladesh. Forwarding this prospectus to any person resident outside BangladeshinnowayimpliesthattheIssueismadeinaccordancewiththelawsofthatcountryoris subjecttothejurisdictionofthelawsofthatcountry. A copy of this Prospectus may be obtained from the Head Office of GSP Finance Company (Bangladesh) Limited, ICB Capital Management Limited, the Underwriters and the Stock Exchanges wherethesecuritieswillbetraded.

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DECLARATIONS&DUEDELIGENCECERTIFICATES Declarationabouttheresponsibilityofthedirectors,includingtheCEOoftheissuercompanyGSPFinance Company(Bangladesh)LimitedinrespectoftheProspectus . ThisProspectushasbeenprepared,seenandapprovedbyus,andwe,individuallyandcollectively,acceptfull responsibilityfortheauthenticityandaccuracyofthestatementsmade,informationgivenintheProspectus, Documents,FinancialStatements,Exhibits,Annexes,PaperssubmittedtotheCommissioninsupportthereof, and confirm, after making all reasonable inquiries that all conditions concerning this Public Issue and Prospectushavebeenmetandthattherearenootherinformationordocumentstheomissionofwhichmake any information or statements therein misleading for which the Commission may take any civil, criminal or administrativeactionagainstanyorallofusasitmaydeemfit. WealsoconfirmthatfullandfairdisclosurehasbeenmadeinthisProspectustoenabletheinvestorstomake awellinformeddecisionforinvestment.
Sd/ (Mr.FerozU.Haider) Chairman&Director

Sd/ (Col.(Retd.)M.NurulIslam) Director Sd/ (Brig.Gen.GyasuddinA.Chowdhury BB.Psc(Retd.)) AlternateDirectortoactforandon behalfof Mr.MoinU.Haider,Director Sd/ (Mr.SaberHossainChowdhury) Representing: KarnaphuliIndustriesLimited

Sd/ (Mr.SirajU.Haider) Director Sd/ (Mr.MoinU.Haider) Director

Sd/ (Ms.SilwatA.Haider) NomineeDirectorof S.F.HaiderFoundationLtd. Sd/ (Mr.ManzururRahman(Ruskin)) NomineeDirectorof AmberHillGlobalResourcesLimited. Sd/ (Mrs.TabassumKaiser) Director Sd/ (Mr.EhsanulHoqueMirza) AlternateDirectortoactforandon behalfofMs.SilwatA.Haider, NomineeDirectorofS.F.Haider FoundationLtd.

Sd/ (Mr.AzizAlKaiser) Director

Sd/ (Mr.MohamedAbdulJalil) NomineeDirectorof TaiPingAsianInvestmentLimited Sd/ (Mr.A.H.EkbalHossain) ManagingDirector(Exofficio)

Sd/ (Mr.WolfPeterBerthold) Director

Page 7

ConsentofDirector(S)ToServeasDirector(S)

WeherebyagreethatwehavebeenservingasDirector(s)ofGSPFinanceCompany(Bangladesh)Limitedand continuetoactasaDirectoroftheCompany. Sd/ Sd/ Sd/ (Mr.FerozU.Haider) (Col.(Retd.)M.NurulIslam) (Mr.SirajU.Haider) Chairman&Director Director Director Sd/ (Ms.SilwatA.Haider) NomineeDirectorof S.F.HaiderFoundationLtd. Sd/ (Mr.ManzururRahman (Ruskin)) NomineeDirectorof AmberHillGlobalResources Limited. Sd/ (Mrs.TabassumKaiser) Director Sd/ (Mr.EhsanulHoqueMirza) AlternateDirectortoactforand onbehalfofMs.SilwatA.Haider, NomineeDirectorofS.F.Haider FoundationLtd. Sd/ (Mr.MohamedAbdulJalil) NomineeDirectorof TaiPingAsianInvestmentLimited Sd/ (Mr.A.H.EkbalHossain) ManagingDirector(Exofficio) Sd/ (Mr.WolfPeterBerthold) Director Sd/ Sd/ (Mr.MoinU.Haider) (Brig.Gen.GyasuddinA. ChowdhuryBB.Psc.(Retd.)) Director AlternateDirectortoactforand onbehalfofMr.MoinU.Haider, Director Sd/ (Mr.SaberHossainChowdhury) Representing: KarnaphuliIndustriesLimited Sd/ (Mr.AzizAlKaiser) Director

DeclarationaboutfilingofProspectuswithTheRegistrarofJointStockCompaniesandFirms A dated and signed copy of this Prospectus has been filed for registration with the Registrar of Joint Stock Companies and Firms, Bangladesh, as required under Section 138(1) of the Companies Act, 1994 before the dateofpublicationofthisprospectusinthenewspaper.

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DueDiligenceCertificateofManagertotheIssue Sub:PublicOfferof20,000,000ordinaryshareofTk.10.00eachatanissuepriceofTk.25.00pershare includingapremiumofTk.15.00persharetotalingTk.500,000,000.00ofGSPFinanceCompany (Bangladesh)Limited. We,theundernotedManagertotheIssuetotheabovementionedforthcomingissue,stateasfollows: 1. We, while finalizing the draft prospectus pertaining to the said issue, have examined various documentsandothermaterialsasrelevantforadequatedisclosurestotheinvestors;and 2. On the basis of such examination and the discussion with the issuer company, its directors and officers, and other agencies, independent verification of the statements concerning objects of the Issueandthecontentsofthedocumentsandothermaterialsfurnishedbytheissuercompany. WECONFIRMTHAT: a. ThedraftprospectusforwardedtotheCommissionisinconformitywiththedocuments,materialsand papersrelevanttotheissue; b. Allthelegalrequirementsconnectedwiththesaidissuehavebeendulycompliedwith;and c. The disclosures made in the draft prospectus are true, fair and adequate to enable the investors to makeawellinformeddecisionforinvestmentintheproposedissue.

ForManagertotheIssue Sd/ (NasirUddinAhmed) ChiefExecutiveOfficer ICBCapitalManagementLimited

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 DueDiligenceCertificateoftheUnderwriter(S)

Sub:PublicOfferof20,000,000ordinaryshareofTk.10.00eachatanissuepriceofTk.25.00pershare includingapremiumofTk.15.00persharetotalingTk.500,000,000.00ofGSPFinanceCompany (Bangladesh)Limited. We, the undernoted Underwriter(s) to the abovementioned forthcoming issue, state individually and collectivelyasfollows: 1. We,whileunderwritingtheabovementionedIssueonafirmcommitmentbasis,haveexaminedthedraft prospectus,otherdocumentsandmaterialsasrelevanttoourunderwritingdecision;and 2. Onthebasis ofsuchexaminationandthediscussionwith theissuercompany,itsdirectorsandofficers, and other agencies, independent verification of the statements concerning objects of the issue and the contentsofthedocumentsandothermaterialsfurnishedbytheissuercompany. WECONFIRMTHAT: a. All information as are relevant to our underwriting decision have been received by us and the draft prospectusforwardedtotheCommissionhasbeenapprovedbyus; b. We shall subscribe and take up the unsubscribed securities against the above mentioned public issue within15(fifteen)daysofcallingupthereofbytheissuer;and c. Thisunderwritingcommitmentisunequivocalandirrevocable. ForUnderwriter(s) Sd/ (ChiefExecutiveOfficer/ManagingDirector) IDLCInvestmentLimited MTBCapitalLimited LankaBanglaFinanceLtd. ICBCapitalManagementLimited CityBankCapitalResourcesLimited SonaliInvestmentLimited

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 RISKFACTORS&MANAGEMENTSPERCEPTIONABOUTTHERISKS

InvestorsshouldbeawarethattherearerisksassociatedwithaninvestmentintheCompany.Theinvestors should carefully consider the following risks in addition to the information contained in the Prospectus for evaluatingthesaidoffer,andtakingdecisionwhethertoinvestinsharesofthecompany.

Interestraterisks:

TheCompanysleasesaregenerallystructuredatfixedratesforspecifiedterms.Increaseininterestratesof borrowings could narrow or eliminate the spread, or result in a negative spread, and hence, may have a materialadverseeffectontheCompanysbusiness,financialconditionand/orresultsofoperations.

Managementperception Althoughtheconsequencesofunusualandabruptincreaseinborrowingratecannotbeavoided,theCompany willdefinitelytakealltheappropriatemeasurestominimizethenegativeconsequences,andincreasetherates whereverpossible.

Exchangeraterisks:

Generallyriskfactorarisesfromexchangeratefluctuationswhenanyinstitutionholdsforeigncurrencyfundor raisesloaninforeigncurrenciesordealsinforeignexchangecurrencies. ManagementPerception

Ourcompanyhasnotborrowedfromforeignsourcesnoritdealinforeignexchangeaswearenotauthorized by Bangladesh Bank to deal in foreign exchange and such foreign exchange fluctuations will not have any adverseimpactonthecompany. Industryrisks:

TheCompanyisoperatinginahighlycompetitivemarket.Someofthecompetitorshavemoreresourcesthan thoseoftheCompany,broaderrangeofproducts,complementarylinesofbusinessetc.Itisverydifficultto predictinadvancethemoveofthecompetitorsinthecomingyears. Managementperception GSP Finance Company (Bangladesh) Limited has a sound financial and technical base. We specialize in lease finance,moneymarketoperations,merchantbankingandstrivetoprovideproductsaccordingtocustomers needswithapersonalizedservice.Therearecontinuouseffortsformobilizingfundsatcompetitivepricesfrom Banks/InsuranceCompanies&individuals.

Marketandtechnologyrelatedrisks: Intheglobalmarketof21stcentury,developedtechnologyobsoletestheoldservice/productstrategy.Sothe existingtechnologymaynotbeefficientenoughtocopeupwiththefuturetrendandneeds.

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 ManagementPerception
GSP Finance Company (Bangladesh) Limited management always puts emphasis on development and implementationofappropriatetechnologyandiscommittedtocontinuetoinvestininformationtechnologyto be at par with our peer group in the industry and also to raise the standard to internationally accepted modality. Potentialorexistinggovernmentregulations

Changeinfiscalpolicy: TheCompany'sleasingactivitiesgeneratesignificantdepreciationallowancesthatprovidetheCompanywith substantialtaxbenefitsonanongoingbasis.Inaddition,theCompany'slesseescurrentlyenjoyfavorabletax treatmentduetoentitlementofdepreciation.Anychangeofcurrenttaxlawsmaymakeleasefinancingless attractiveandwouldhaveamaterialimpactontheCompany'sbusiness,financialconditionand/orresultsof operations.

Managementperception We have been putting our best efforts to manage our tax and accounting matters professionally. Unless a material change takes place in the fiscal policy, which would affect the leasing industry as a whole, we are preparedtoaddressissuesthatmayhaveanysignificantimpactontheCompany'sbusiness,financialcondition and/orresultsofoperations. Economicslowdown:

TheoveralldemandfortheCompanysproductsislinkedtomacroparameterslikeGDPgrowth,demandfor project finance, healthy capital markets and the overall growth of Bangladesh economy. A slowdown in economicgrowthwillhaveanadverseimpactonthedemandforcreditandonqualityofborrowers. Managementperception Wealwaysreviewchangesinlocalaswellasglobaleconomicfactors,sothatwecantakenecessarystepsto addressitsimpactonourcompany.DuetodiversifiedproductsandservicestheCompanyexpectstominimize theeffectofaforesaidissues. Changeinregulatorypolicies:

ThecompanyoperatesunderthespecificguidelineslaiddownbytheBangladeshBankaswellastheSecurities andExchangeCommission(SEC).Anysuddenchangeoftheguidelines/policiesformulatedbytheBangladesh Bankand/ortheSECmayaffectthebusinessoftheCompanyadversely. Managementperception Unlesstheregulatoryauthoritiestakeanyadversepolicieswhichmaymateriallyaffecttheleasingindustryasa whole,thebusinessofGSPFinanceCompany(Bangladesh)Limitedwillnotbeaffectedthatmuchsinceweare alwaysparticularincomplyingwithrulesandregulationsoftheauthorities.

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 Potentialchangesinglobalornationalpolicies:

Changes in national policy as well as policy of foreign countries may adversely affect the business of the company. Managementperception Ourstrategyistomaintainadiversifiedportfolioinmajorsectorsofindustriesinlinewiththecountrysgrowth scenarioaswellasindustrialpolicy.Wealwaysmonitorthechangesinthepoliciesofthenationalandadjust our strategy accordingly. Change in national policy shall have effect on all the competitors, not only GSP FinanceCompany(Bangladesh)Limited.

FinancialLease: InvestmentincomeoftheCompanystronglydominatedbyfinanciallease. Managementperception GSPFinanceCompany(Bangladesh)Limitedemphasizesstronglyondiversifyingitsportfoliosectorwiseand indentifyingtheoptimumstrategiesforthetopendofcorporatebusinesshousesandprivateentrepreneurs. TheCompanyhasakeendesiretoexpandtheportfoliobetweensmallandmediumbusinesshousesalso. Historyofnonoperation,ifany IsthereanyhistoryfortheCompanytobecomenonoperativefromitscommercialoperation? GSPFinancehasnohistoryofnonoperationtillnow.TheCompanyhasanindependentbodythatisoperated by its Memorandum & Articles of Association and other applicable laws Implemented by the Government. Besides,theCompanysfinancialstrengthissatisfactory.IthasveryexperiencedDirectorsandManagement team to make the Company more efficient and stronger in the financial sector. So, the chance of becoming nonoperativefortheCompanyisminimum. Operationalrisks:

AlesseeorborrowermaydefaultinperformingitsleaseorloanobligationsandtheCompanymaybeunable toenforceitsremedies.TheCompanysinabilitytocollectreceivablesdue,ortorepossessleaseassetsinthe event of default by a lessee could have a material adverse effect on the Companys business, financial conditionand/orresultsofoperations. Managementperception GSP Finance Company (Bangladesh) Limited follows a very methodical client selection and project appraisal processwhentakinginvestmentdecisions,whichreducestheriskofdefault toagreatextent.Moreover,we haveaseparateleasemonitoringdepartment,whichpursuetheoverdueclientsinaverysystematicway.

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ISSUESIZEANDPURPOSEOFTHEPUBLICOFFERING

FINANCIALSTRUCTUREOFTHECOMPANY

TheFinancialStructureoftheCompanyisasunder: Particulars BeforeIPO: AuthorizedCapital Paidupcapitalason31stDecember2010 *Afterdenominationthefacevalueinto Tk.10.00thenumberofsharesstand(a) **Raisingofpaidupcapital(raisingofcapitalby issuing 28% bonus share which has been approved by SEC vide their letter no. SEC/CFD/CPLC29/2002/793 dated 3rd November,2011)(b) TotalpaidupcapitalbeforeIPO(considering 28%bonussharefortheyear2010)(a+b) AfterIPO: TobeissuedasIPO Paidupcapital(PostIPO)

NoofShares

FaceValue (Taka) 10 100 10 10

AmountinTaka

100,000,000 2,159,850 21,598,500 6,047,580

1,000,000,000 215,985,000 215,985,000 60,475,800

27,646,080 20,000,000 47,646,080

10 10

276,460,800 200,000,000 476,460,800

*Board ofDirectorshaddecidedtodenominate the shareprice from Tk.100.00to Tk. 10.00per shareon12thSeptember 2011whichhasbeenapprovedbytheshareholdersoftheCompanyintheirExtraOrdinaryGeneralMeetingdated4thOctober 2011andnecessaryamendmentsinthecapitalclauseoftheMemorandumandArticlesofAssociationoftheCompanywere madeaccordingly.TheMemorandumandArticlesofAssociationoftheCompanyhasdulybeencertifiedbytheRegistrarof JointStockCompanies&Firmson5thOctober2011. **TheCompanyhaddeclared10%bonussharefortheyear2009andappliedtoSECforapprovalwhichhasdeclinedbySEC videletterno.SEC/CI/CPLC29/200294dated14thFebruary,2011(letterreceivedon20thFebruary,2011).Fortheyear2010 theCompanyfurtherdeclared28%bonussharewhichhasbeenapprovedintheir16thAnnualGeneralMeetingheldon15th February,2011andappliedtoSECon5thApril,2011forapproval.TheSECvidetheirletterno.SEC/CFD/CPLC29/2002/793 dated3rdNovember,2011approvedtheirapplicationforraisingpaidupcapital.Accordingly,theReturnofAllotment(Form XV)forthisadditionalcapitaloftheCompanyhasdulybeencertifiedbytheRegistrarofJointStockCompanies&Firmson14th November2011.

USEOFIPOPROCEEDS ThepublicissueisthecomplianceofstatutoryrequirementoftheCompany.Theproceedswillstrengthenthe capitalbaseandliquidityoftheCompany.Besides,itwillaugmentbusinessexpansionassuchproceedsofthe presentissueof20,000,000ordinaryshareofTk.10.00eachatanissuepriceofTk.25.00pershareincludinga premium of Tk. 15.00 per share totaling Tk. 500,000,000.00 would be utilized in the normal business operations such as investment, industrial development, leasing, lending, refinancing etc and refund of high costborrowingsoftheCompanywithin1(one)yearofreceivingproceedsfromIPO. Sd/ (A.H.EkbalHossain) ManagingDirector

Sd/ Md.MizanurRahman GM(Finance)&Companysecretary

ThereisnoothercontractonwhichtheproceedsofIPOwillbeutilized.

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DESCRIPTIONOFBUSINESS CorporateStatusandBackground: GSP Finance Company (Bangladesh) Limited is a NonBanking Financial Institution (NBFI) incorporated In BangladeshonOctober29,1995,asapubliclimitedcompanyundertheCompaniesAct,1994.TheCompany offers lease finance of all types of plant, machinery, equipment and vehicles both for industrial and commercialuseandalsoallowstermloansforindustrial,housingandotherpurposes.TheCompanyreceived itsCertificateforCommencementofBusinessonJanuary14,1996anditslicenseonMarch4,1996asrequired undersection4(1)oftheFinancialInstitutionAct,1993.TheCompanyalsoobtainedMerchantBankinglicense fromtheSecuritiesandExchangeCommissiononAugust24,1999. Particulars Registration/LicenseNo./Reference Dateof No. obtaining CertificateofIncorporation C29591(879)/95 October29,1995 CertificateforCommencementof 11103 January14,1996 Business FILicense 10/96 March04,1996 MerchantBankingLicense MB1.008/9923 August24,1999 TINCertificate 0702007020/Co7 June19,1997 NatureofBusiness:

TheCompanycarriesoutthefollowingtypesofbusiness: LeaseFinancing TermFinance AcceptanceofTermDeposit Factoring TermLending MoneyMarketOperation MerchantBanking ProductsandServices: LeaseFinance: TheprincipalfocusoftheCompanyisonthebusinessofleasefinancingofcapitalgoodsforindustries,suchas plantandmachinery,constructionequipment,marine/roadtransport,medicalequipment,officeequipment, powergenerator,boilers,electricalequipmentetc.GSPemphasizesstronglyondiversifyingitsportfoliosector wise and identifying the optimum strategies for the top end of corporate business houses and private entrepreneurs.TheCompanyhasakeendesiretoexpandtheportfoliobetweensmallandmediumbusiness housesalso. It aims at assessing clients to understand the dynamism and flexibility of lease finance and identify the characteristicsofthemarketforexploitingunexploredopportunities.

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TermFinance:TermLoantomediumandlargecorporateentitiestomeettheirshort,medium&longterm fundrequirementsfordevelopmentofproductionfacilitiesoneasyandflexibleterms. AcceptanceofTermDeposit:Termdepositmeansdepositoffixednaturefor3months,6months,1year,2 yearsandsoforth.Inbanksitisknownasfixeddeposit.InGSPFinanceCompany(Bangladesh)Limiteditis knownasTDRorTermDepositReceipt.InfactthereisnobasicdifferencebetweenFDRandTDR.

Factoring:Providingyouwithinstantcashthroughthepurchaseofaccountsreceivableordebtsoutstanding whichisafinancingtechniqueknownasFactoring.

Factoring moves your cash flow forward creating immediate cash to improve your financial position and increaseyourpurchasingpower.Thereby,itprovidesyouwiththeeconomicstrengthtoexpandproduction, increasesalesandprofits.

TermLending:TermLendingisakindoflendingoradvanceforafixedperiodoftimelike6months,1year,2 yearsandsoforth.TermLendingincludesbothloanandlease.

MerchantBanking:Underthisunit,theCompanysprincipalfocusistheCapitalMarketsuchasbridgeloans, underwriting,issuemanagement,preIPOPlacement,portfoliomanagementandinvestmentsinshares,bonds anddebentures.

MoneyMarketOperations:TheCompanyisalsoengagedinmoneymarketactivities(placingandacceptingof TermDeposits)primarilyinconnectionwithitslending/fundingoperationsandalsoborrowsfromthecall moneyandlendsitcallmoney.

OtherFinancialMarketOperations:TheCompanyplanstofocusondiversefinancialserviceslikeHire PurchaseandVentureCapitaltofinancemediumsizedcompanieswithcleanrecordsand,good&sound management.Shortandmediumtermlendingtoprivateventuresandthepublicsectorsalsofallwithinthe Companysbusinessstrategy.

RelativecontributionofProducts/Servicescontributingmorethan10%ofthetotalrevenue

Revenueincomeduringthepastyearsisasfollows: (asperAuditedAccountsinTk.) % 31/12/09 % 197,507,826 53.29 41.35 124,754,451 33.67 25.48 21,601,834 05.83 28.82 26,731,560 07.21 04.35 100% 370,595,671 100%

Description IncomefromLeases IncomefromLoan&Advances InvestmentIncome OtheroperatingIncome 31/12/10 152,870,573 94,183,505 106,540,772 16,067,340 369,662,190

TransactionbetweenHolding/subsidiary/associateCompanyandtheIssuerwithinthe5years:

GSPFinanceCompany(Bangladesh)Limitedhasnosubsidiarycompanyatthismoment;henceintracompany transactionisnotapplicable.

Page 16

Associates,subsidiary/relatedholdingCompany&theircoreareasofbusiness

TheCompanydoesnothaveanyassociated/relatedcompanyeitherasasubsidiary,parentorsisterconcernat thismoment.

Distributionofproducts/Services:

The products/services of the Company are distributed or rendered through its head office network of its businessassociatesandcorrespondentsthroughthecountry.

Competitiveconditionsinthebusiness:

TheLeasingSectorcomprisesofalargenumber(29)ofNonBankingFinancialInstitutions(NBFI).Theyseverely competeforleasefinance/termfinanceandareinsearchofsoundinvestment/lendingtargets.Despiteofthis stiffcompetition,theprivatesectorbanksarealsoearningsignificantlyincreasingprofit,usingtheproductsof NBFIs,especiallythosehavingstronglyprofessionallymanagedoperations.Amongthe28financialinstitutions operatinginBangladesh,majorcompetitorsotherthanbanksare:

1. IDLCFinanceLimited 2. UnitedLeasingCompanyLimited 3. UttaraFinance&investmentLimited

4. InternationalLeasing&FinanceLimited 5. PhoenixFinanceandInvestmentsLimited 6. PrimeFinance&InvestmentsLimited

SourcesofRawMaterials:

The Company, being a service provider, operates on the basis of professional expertise relevant to leasing industry.Itsproductisaservice.ThegeneralLeasingindustryhassincedevelopedandexpandedfastinorder to meet the growing need of the economy. The company has procured the services of experienced professionalpersonnelfromexistingindustry.Thecompanyhasalsosetgoalsoftrainingprogramsfortraining freshgraduatesfordevelopmentofitsgrowingneedofhumanresources.

Sourcesofandrequirementforpower,gasandwateroranyotherutilities

Thecompanydoesnotrequiresuchutilitiesexceptforordinaryuseinofficework.

Nameofthecustomerswhopurchase10%ormoreoftheCompanysproducts/services:

Thecompanydoesnothaveanyclientprovidingmorethan10%ofrevenuetillDecember31,2010.

Contractwithprincipalsuppliersorcustomers:

TheCompanyhasenteredintocontractswiththeleasetakers,whichisanormalcourseofbusinessandallthe leasetakersaretheprimarycustomersofthecompany.

Materialpatents,trademarks,licenseorroyaltyagreement:

TheCompanyhasnotenteredintoanysuchAgreements.

Employeespositionason31stDecember2010:(orasperauditreport) ThetotalnumberoffulltimeemployeesoftheCompanyandtheirremunerationaboveTk.48,000perannum were32.TherewerenoemployeesearninglessthanTk48,000peryear.

Page 17

DESCRIPTIONOFPROPERTY LocationofprincipalplantsandotherpropertyoftheCompanyandtheircondition GSP Finance Company (Bangladesh) Limited operates through its Head Office at 1, Paribagh, Mymensingh Road, Ramna, Dhaka1000. The Company itself owns the land and building of the office at a space of 35 decimals.ThepropertyislocatedatMouzaRamna,PoliceStationShahBagh,RamnainthedistrictofDhaka. However,thecompanyownsthefollowingfixedassetsatwrittendownvalueasgivenbelow: CurrentRentReceipt:Currentrentreceiptof.35Acrelandisdulypaid. ValueoftheProperties WrittenDownValueinTakaofPropertyPlant&Equipmentasper AuditedAccounts
Particulars Land&LandDevelopment OfficeBuilding OfficeEquipment Furniture&Fixture TelephoneSystems MotorVehicle ElectricalGoods&Installation Generator&Installation HouseProperty TotalTaka Asat31/12/2010 288,150,000 8,198,001 1,985,868 1,603,048 48,785 1,540,991 6,733 118,776 12,925,552 314,577,754 Asat31/12/2009 288,150,000 9,616,234 2,251,784 1,893,831 72,151 2,777,169 23,800 344,555 15,020,623 320,150,147

1. All the above specified fixed assets are situated at office premises of the company at 1, Paribagh, MymensinghRoad,Ramna,Dhaka1000.Thelandofthecompanymeasuringaround0.35Acresislocatedat 1/C,Paribagh,MymensinghRoad,Ramna,Dhaka. 2.Allexistingassetsaslistedabovehavebeenprocuredinbrandnewconditionfromthelocalvendors. 3.Theaboveassetsareingoodcondition. 4.Thecompanyhasnoassetunderleaseagreement. 5.DescriptionofLand: District : Dhaka P.S. : Ramna Mouza : Ramna S.A.KhatianNo. : 14 S.A.DagNo. : 9/75 AreaofLand : 0.35Acres

Page 18

PLANOFOPERATIONANDDISCUSSIONOFFINANCIALCONDITION Internalandexternalsourcesofcash(asperauditedaccounts) AmountinBDTK. AsperAuditedAccounts

InternalSourcesofCash PaidupCapital StatutoryReserve OtherReserve RetainedEarnings ProposedBonusshareforTheYear2010 RetainedEarningsBalance SubTotal: ExternalSourcesofCash BorrowingFromBank TernDeposit SubTotal: GrandTotal: 31122010 21,59,85,000.00 15,83,04,253.00 25,14,02,124.00 6,04,75,800 21,826,775 70,79,93,952.00 31122009 21,59,85,000.00 14,31,63,647.00 25,14,02,124.00 2,17,40,152.00 63,22,90,923.00 31.12.2008 20,57,00,000.00 13,77,68,935.00 13,27,52,124.00 1,04,46,306.00 48,66,67,365.00

120,61,89,666.00 61,98,90,700.00 182,60,80,366.00 253,40,74,318.00

119,99,27,655.00 67,88,86,996.00 187,88,14,651.00 251,11,05,574.00

123,14,37,942.00 34,43,21,606.00 157,57,59,548.00 20,62,42,6913.00

MaterialCommitmentforCapitalExpenditure: TheCompanyhasnosignificantcommitmentforCapitalExpenditureintheforeseeablefutureotherthanthe ongoingconstructionofprefabricatedfloorontherooftopoftheexistingofficebuilding. MaterialChangesfromperiodtoperiod: AmountinBDTK. AsperAuditedAccounts

Particulars A.OperationalRevenue NetInterestIncomefromLease Finance,Loan,Advance InvestmentIncome OtherOperationalIncome B.TotalOperatingExpenses C.ProfitBeforeProvision(AB) d.TotalProvision e.TotalprofitBeforeIncomeTax(cd) f.ProvisionForIncomeTax g.NetProfitAfterIncomeTax(ef) 31.12.2010 13,74,44,047.00 148,35,935.00 10,65,40,772.00 1,60,67,340.00 2,91,36,173.00 10,83,07,874.00 (2,33,49,567.00) 13,16,57,441.00 5,59,54,412.00 7,57,03,029.00 31.12.2009 15,99,81,215.00 11,16,47,821.00 2,16,01,834.00 2,67,31,560.00 3,51,58,022.00 12,48,23,193.00 7,79,12,658.00 4,69,10,535.00 1,99,36,977.00 2,69,73,558.00 31.12.2008 7,70,96,031.00 505,97,132.00 (52,15,416.00) 317,14,315.00 4,07,39,175.00 3,63,56,856.00 78,88,471.00 2,84,68,385.00 1,28,10,773.00 1,56,57,612.00

Thecompanysleasefinanceandotheroperationalincomeaswellasoperatingexpensesandnetprofithave continuedtochangeorincreaseduetobusinesspromotioneffortsofthemanagement. Seasonalaspectofbusiness:

IngeneralthereisnoseasonalimpactonthebusinessoftheCompany.

Page 19

KnownTrends,EventsorUncertainties:

Political unrest, Hartal, Natural calamities, and entrance of new technology are the known events in our country.

ChangesintheassetsoftheCompanyusedtopayoffanyliabilities:

NoassetoftheCompanyhasbeenusedtopayoffanyliabilities.

Loanstakenorgivenbythecompanyeitherfromortoitsholding/parentorsubsidiarycompany:

The Company has no subsidiary or associate concerns at the moment. Therefore, taking loan from such concernsdoesnotarise.

FutureContractualLiabilities:

Thecompanyhasnoplantoenterintoanycontractualliabilitieswithinnextoneyearotherthanthenormal courseofbusiness. FutureCapitalExpenditure:

The company does not have any plan for capital expenditure in near future except ongoing construction of prefabricatedfloorontherooftopoftheexistingofficebuilding. VAT,IncomeTax,CustomsDutyorotherTaxLiability: VAT CustomsDuty IncomeTax VATisnotapplicablefor There are no dues outstanding GSP Finance Company (Bangladesh) Limited on account of Custom Duty or submitted their income tax return regularly as theCompany. per Income Tax ordinance 1984 and the Othertaxliabilities. companyhadavailedtaxexemptionbenefitsfor five years from 17.04.1996 to 16.04.2001. The companyhasbeenmadesufficientprovisionfor taxation @42.50% on taxable income for the year2010. Thepresentstatusofincometaxisasfollows:
Year 1996 1997 1998 1999 2000 2001 AssessmentYear 19971998 19981999 19992000 20002001 20012002 20022003 AssessmentStatus Assessmentcompleted.Taxpaidinfull. Assessmentcompleted.Taxpaidinfull. Assessmentcompleted.TaximposedTk.57,73,415.Itisdisputableandpendingwiththe HighCourt. Assessmentcompleted.Taxpaidinfull. Assessmentcompleted.Taxpaidinfull. AssessmentcompletedandTaxrefundofTk.31,15,048.

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2002 2003 2004 2005 2006 2007 2008 2009 2010

20032004 20042005 20052006 20062007 20072008 20082009 20092010 20102011 20112012

AssessmentcompletedandTaxrefundofTk.3,16,88,456. Assessmentcompleted.TaxdemandTk.7,93,103 DemandedtaxadjustedwithTaxrefund fortheAssessmentyear20022003 Assessment completed. Tax demand Tk. 26,96,676. Demanded tax adjusted with Tax refundfortheAssessmentyear20032004 Assessment completed. Tax demand Tk. 11,35,984. Demanded tax adjusted with Tax refundfortheAssessmentyear20022003 Assessmentcompleted.TaxdemandTk.2,24,11,800.Itisdisputableandpendingwiththe HighCourt Assessmentcompleted.TaxdemandTk.3,99,51,849.Itisdisputableandpendingwiththe HighCourt Assessmentcompleted.TaxdemandTk.2,37,25,283.Itisdisputableandappealfiledwith theCommissionerofTaxes(Appeal). ItisunderprocessofAssessmentbyDCT,LTU. Taxreturnwillbesubmittedwithin15th July,2011

Sd/ KaziZahirKhan&Co. CharteredAccountants

SourcesfromwhichVAT&Taxesetc.arepaid. Vat&Taxesisbeingpaidfromordinarybusinessresources. Operatingleaseagreementduringlastfiveyears

GSPFinanceCompany(Bangladesh)Limiteddoesnothaveanyoperatingleaseagreements.TheCompanyhas establisheditsHeadOfficeonitsownproperty. FinancialandLeaseCommitment a)FinancialCommitment(LongTerm):

NameoftheBank PrimeBankLtd. BASICBankLtd. ShahjalalIslamiBankLtd. StandardBankLtd. MutualTrustBankLtd OneBankLtd MercantileBankLtd. DutchBanglaBankLtd TheTrustBankLtd. NationalBankLtd. SocialInvestmentBankLtd UttaraBankLtd. LimitofLoan 400,000,000 100,000,000 470,000,000 350,000,000 100,000,000 100,000,000 250,000,000 200,000,000 200,000,000 110,000,000 100,000,000 375,000,000 Total

RateofInterest(%) 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 11.75% 13.00% 13.00% 13.00% 11.75%

OutstandingBalanceason31Dec2010 73,699,604 109,593,347 160,238,089 224,399,828 37,023,455 29,166,663 34,999,334 200,000,000 56,304,491 42,767,205 23,441,964 176,255,293 1,167,889,273

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b)FinancialCommitment(ShortTerm):
NameoftheBank MutualTrustBankLtd UnitedCommercialBankLtd

RateofInterest (%) 13.00% 13.00%

OutstandingBalanceason31Dec2010 25,745,207 4,977,413 30,722,620

LimitofLoan 50,000,000 5,000,000 Total

Personalrelatedscheme:

GSPFinanceCompany(Bangladesh)Limitedconsidersitshumanresourcesasthemostvaluableassetofthe Companyandithasbeencontinuingtotrainandequipaswellasgroomfreshrecruitsforbuildingastrong foundation.Inordertoenhanceandadvancetheprofessionalabilityandknowledgeoftheemployees,regular trainingareorganizedatdifferentprofessionalinstitutions.Besides,GSPCompany(Bangladesh)Limitedhasa welldesignedCompensationPlanforattractinghighlycapableprofessionalstaffwithhighdegreeofintegrity. Employee performance is regularly evaluated and a good number of them have been given promotions as reward for their good contribution to the Company. The Company has recognized schemes on contributory provident fund, gratuity (nonfunded), and bonus, medical and accident insurance, for the betterment of all classofemployees. Providentfund

The Company operates a contributory provident fund for its permanent employees. Provident fund is administeredbyaBoardofTrusteesandisfundedbycontributionspartlyfromtheemployeesandpartlyfrom company at a predetermined rate. The contributions are invested separately from the Company's Assets by theTrustees. Gratuity

The Company operates an unfunded gratuity scheme. Employees are entitled to gratuity benefit after completionofminimumtenyearsuninterruptedserviceinthecompany.Thegratuitypaymentiscalculatedon the basis of Actuarial Report. The proposal for funding facilities of the gratuity fund is already under considerationofNBR. Bonus

Employees are entitled to two months basic pay as yearend bonus and there have no provision for festival bonus.

Otherlongtermbenefits/Insurance

TheCompanyoperatesagrouplifeinsuranceschemeforallofitspermanentemployees.Itmaintainsahealth insuranceforhospitalizationofallofitspermanentemployees,whichincludetheirspouse.

Page 22

BreakdownofIPOExpenses: ThefollowingtableshowstheamountspaidtotheIssueManager,Underwritersandothercostsareestimatedasfollows: Particulars Managertotheissuefees VatonIssueFees RegulatoryExpenses: ListingRelatedExpenses: ServiceChargeforDSE *AnnualFeeforDSE&CSE ListingFeesforStockExchanges (DSE&CSE) SECFees ApplicationFee ConsentFee IPOCommission: UnderwritingCommission CDBLFeesandExpenses: **SecurityDepositofEligibleSecurities DocumentationFee ***AnnualFee IssueFee ConnectionFee IPOCommission: BankerstotheissueCommission 3%TaxonPremium Printing,PublicationandOthers: PublicationofAbridgeVersion ofProspectus PrintingofProspectus PrintingofApplicationForms FeeforConductionofLottery PostIssueExpenses: DataCollection,DataEntry,Data Processingandotherrelatedjob PrintingofAllotmentLettersand RefundWarrant DistributionofAllotmentLetterand RefundWarrant(includingcourier) PublicationofNotice Miscellaneous LumpSump Fixed @0.25%onuptoTaka10croreofpaidupcapital. &0.15%onthebalanceamount(MaxTk.20.00lac)each Fixed @0.15%onthepublicofferingamount 0.50%ontheunderwrittenamount Fixed Asactual Asactual 0.00025onthepublicoffer Asactual 10,000.00 750,000.00 1,250,000.00 400,000.00 2,500.00 100,000.00 125,000.00 6,000.00 5,000.00 150,000.00 1,629,382.00 Rate AmountinTk. 1,200,000.00 54,000.00

@0.1%oncollectedamount 5,000,000.00 (Assuming10timesoversubscribed) 9,000,000.00 Estimated 600,000.00 Estimated 500,000.00 Estimated 200,000.00 400,000.00 Estimated 4,400,000.00 Estimated 200,000.00 Estimated 100,000.00 Total 26,081,882.00 NB:ThecostoftheabovementionedIPOexpensesmayvaryontheIssueSize,Premium,DepositofApplication,Printingandothers.

Page 23

REVALUATIONOFCOMPANYSASSETS&SUMMARYTHEREOF

1stRevaluation

The revaluation of companys assets was made on 14th March, 2007 by a survey company named G. K. AdjustersLtdwhichisaenlistedvaluationsurveyorofreputedbankandinsurancecompaniesinBangladesh. They have appropriate qualifications and experience in the valuation of properties in the relevant locations. The valuation, which conforms to International Valuation Standards, was arrived at by reference to market evidenceoftransactionpricesforsimilarproperties. SuchrevaluationwasinaccordancewithBAS16.The summaryofrevaluationisshownbelow: (Asperauditedaccounts)
Description Land&LandDevelopment OfficeBuilding Total Bookvalueason 01.01.2007 46,215,900 1,771,976 Revaluation surplusason 31.12.2007 123,284,100 9,468,024 132,752,124 Revaluedvalueas on31.12.2007 169,500,000 11,240,000

ReasonsforValuation:Thevaluationhasbeenmadeforreflectionofactualvalueofitsassets.Therevalued amountwasincorporatedintheaccountsason31.12.2007.

The revaluation surplus amount of Tk. 132,752,124.00 has been kept as revaluation reserve/other reserve account.ThebalanceofrevaluationreservewasTk.132,752,124.00ason31.12.2007.

2ndRevaluation

Therevaluationofcompanysassetswasagainmadeon3rdDecember,2009byasurveycompanynamedG.K. AdjustersLtdwhichisanenlistedvaluationsurveyorofreputedbankandinsurancecompaniesinBangladesh. They have appropriate qualifications and experience in the valuation of properties in the relevant locations. The valuation, which conforms to International Valuation Standards, was arrived at by reference to market evidenceoftransactionpricesforsimilarproperties.Thesummaryofrevaluationisshownbelow: (Asperauditedaccounts) Revaluedvalue Revaluation Bookvalueason Description ason31.12.2009 surplusason 01.01.2009 31.12.2009 Land&LandDevelopment 169,500,000 118,650,000 288,150,000 Total 118,650,000 ReasonsforValuation:Thevaluationhasbeenmadeforreflectionofactualvalueofitsassets.Therevalued amountwasincorporatedintheaccountsason31.12.2009. The revaluation surplus amount of Tk. 118,650,000.00 has been kept as revaluation reserve/other reserve account. Boththerevaluationsurplus/effectshasbeendisclosedinthefixedassetsscheduleintheBalanceSheet.Thus totalrevaluationsurplusofTk.251,402,124hasbeenmadeasunder:

Page 24

Description

AssetvalueBefore Revaluation(Tk.) LandandLandDevelopment 46,215,900 OfficeBuilding 1,771,976 Total 47,987,876

RevaluationAmount (Tk) 288,150,000 11,240,000 299,390,000

Revaluationsurplus (Tk) 241,934,100 9,468,024 251,402,124

TheCompanyhasnotmadeanyrevaluationduringtheyear2010.
WorkdonetodatebytheValuer:Theabovesurveycompany(G.K.AdjustersLimited)hasrenderedvaluation servicestodozensofclientsamongwhichthenamesoffollowingcompaniesarementionedbelow:

MessrsStandardCharteredBank MessrsPrimeBankLtd. MessrsUttaraBankLtd. MessrsSonaliBankLtd. MessrsCityBankLtd. MessrsJamunaBankLtd. MessrsStandardBankLtd. MessrsIFICBankLtd. MessrsNationalBankLtd. MessrsEasternBankLtd. MessrsICBIslamiBankLtd. MessrsBasicBankLtd. MessrsBRACBankLtd. MessrsIDLCofBangladeshLtd. MessrsDhakaBankLtd. MessrsNationalCreditandCommerceBankLtd.

MessrsAlArafahIslamiBankLtd. MessrsDutchBanglabankLtd. MessrsAmericanExpressBankLtd. MessrsCommercialBankofCeylonPLC MessrsFaysalIslamiBankofBahrainE.C (ShamilBank) MessrsAgraniBankLtd. MessrsOneBankLtd. MessrsMutualTrustBankLtd. MessrsEximbankLtd. MessrsBankAsiaLtd. MessrsPremierBankLtd. MessrsSocialIslamiBankLtd. MessrsIslamicFinance&InvestmentLtd. Messrs.ShahjalalIslamiBankLtd. MessrsIslamiBankBangladeshLtd. SecuritiesandExchangeCommissionetc. The revaluation of companys assets was made on 14th March, 2007 & 3rd December, 2009 by a surveycompanynamedG.K.AdjustersLtdwhichisaenlistedvaluationsurveyorofreputedbankand insurance companies in Bangladesh. This revaluation of the Companys asset by the surveyor was complied the SECs law of that time. Though dated 29/12/2010 SEC notify another direction for revaluation that revaluation of the issuers assets shall be conducted by an auditor from panel A auditorsoftheBangladeshBank,thisnotificationisbeyondtocomplybythecompanyon14032007 & also on 3122009. However, for any future revaluation of companys asset the company will complySECsnotificationdated29/12/2010. ThecompanyrevalueditsLandandLandDevelopmentandOfficeBuildingbyaregisteredsurveyfirm named G.K. Adjusters Limited after 2 years of 1st revaluation as the value of land increased significantly during the years 2007 to 2009. Such revaluation was in accordance with BAS16 under para30to33.

Page 25

TransactionbetweenHolding/subsidiary/associateCompanyandtheIssuerwithinthe5years: GSPFinanceCompany(Bangladesh)Limitedhasnosubsidiarycompanyatthismoment;henceintracompany transactionisnotapplicable.

DeclarationforaNonBankingFinancialInstitution
WeherebydeclarethatrequirementshavebeenmetasspecifiedintheFinancialInstitutionAct,1993(ActNo. 27of1993)undertheFinancialInstitutionsRegulation1994.

Sd/ (Mr.FerozU.Haider) Chairman&Director Sd/ (Ms.SilwatA.Haider) NomineeDirectorof S.F.HaiderFoundationLtd. Sd/ (Mr.ManzururRahman (Ruskin)) NomineeDirectorof AmberHillGlobalResources Limited. Sd/ (Mrs.TabassumKaiser) Director Sd/ (Mr.EhsanulHoqueMirza) AlternateDirectortoactforand onbehalfofMs.SilwatA.Haider, NomineeDirectorofS.F.Haider FoundationLtd.

Sd/ (Col.(Retd.)M.NurulIslam) Director Sd/ (Brig.Gen.GyasuddinA. ChowdhuryBB.Psc(Retd.)) AlternateDirectortoactforand onbehalfofMr.MoinU.Haider, Director Sd/ (Mr.SaberHossainChowdhury) Representing: KarnaphuliIndustriesLimited Sd/ (Mr.MohamedAbdulJalil) NomineeDirectorof TaiPingAsianInvestmentLimited Sd/ (Mr.A.H.EkbalHossain) ManagingDirector(Exofficio)

Sd/ (Mr.SirajU.Haider) Director Sd/ (Mr.MoinU.Haider) Director

Sd/ (Mr.AzizAlKaiser) Director

Sd/ (Mr.WolfPeterBerthold) Director

Page 26

 AspecialreportregardinganyallotmentofsharestotheDirectorsandSubscriberstotheMemorandumof AssociationandArticlesofAssociationforanyconsiderationotherwisethanforcash Wecertifythatbasedonourexaminationofshareregisteranditsunderlyingdocument,thepaidupcapitalof GSPFinanceCompany(Bangladesh)Limitedason14thNovember2011standsatTk.276,460,800consistingof 27,646,080ordinarysharesofTk.10eachfollows: Allotment Dateofallotment NumberofSharesissued Amountofpaidup capital(Taka) Considerationin Consideration Cash otherthanCash (BonusShare) First TimeofIncorporation 225,050 2,250,500 (October29,1995) Second November29,1995 250,000 4,750,500 Third June15,1996 8,010,010 84,850,600 Fourth October07,1996 6,281,760 147,668,200 Fifth February26,1997 233,180 150,000,000 Sixth March02,2000 1,000,000 160,000,000 Seventh February15,2001 1,000,000 170,000,000 Eighth April23,2006 1,700,000 187,000,000 Nineth April26,2008 1,870,000 205,700,000 Tenth November26,2009 1,028,500 215,985,000 Eleventh November14,2011 6,047,580 276,460,800 Total 17,000,000 10,646,080 Note:(i)TheshareholdersofGSPFinanceCompany(Bangladesh)Limitedhadapproved10%stockdividendfor the year ended 2009 in its 15th Annual General Meeting held on 11th April , 2010 and accordingly they had applied to Securities and Exchange Commission for approval, but the SEC has declined vide their letter no. SEC/CI/CPLC29/200294dated14thFebruary,2011(letterreceivedon20thFebruary,2011). (ii)TheshareholdersofGSPFinanceCompany(Bangladesh)Limitedinits16thAnnualGeneralMeetingheldon 15th February, 2011 has approved 28% stock dividend for the year ended 2010 and accordingly they have applied to the SEC for approval vide their letter dated 5th April, 2011. The SEC vide their letter no. SEC/CFD/CPLC29/2002/793dated3rdNovember,2011approvedtheirapplicationforraisingpaidupcapital.We haveexaminedtheShareRegisterandotherBooksofAccountsoftheCompanyandfoundtheminorderand the Company did not issue any shares otherwise than for cash and other than those mentioned above. The BoardofDirectorsinitsmeetingheldon8thNovember,2010decidedtoraisePaidupCapitalthroughissuing publicissueofsharesofGSPFinanceCompany(Bangladesh)Limited. Sd/ Dated,Dhaka KaziZahirKhan&Co. November15,2011 CharteredAccountants

Page 27

Materialinformationwhichislikelytohaveanimpact Thereisnoothermaterialinformationwhichislikelytohaveanimpactontheofferingorchangetheterms andconditionsunderwhichtheofferhasbeenmadetothepublic. DIRECTORSANDOFFICERS DescriptionoftheDirectors: The Board of Directors of GSP Finance Company (Bangladesh) Limited comprises of Eleven Directors. The name,ageandposition,dateofbecomingDirectorforthefirsttimeandexpiryofcurrenttermofallDirectors oftheCompanyareasfollows:
Sl. NameofDirectors Age Educational Qualification Position Dateof Becoming Directorforthe firsttime 29/10/1995 04/10/1999 15/06/1996 27/03/2005 Expiryofcurrentterm

01. 02. 03. 04.

Mr.FerozU.Haider Col.(Retd.)M.Nurul Islam, Mr.SirajU.Haider Ms.SilwatA.Haider

64 61 59 35

B.Sc.(DU) MilitaryPSC B.Sc. B.Sc.(Economics) Int.Historyfrom LondonSchoolof Economics& PoliticalScience, Universityof Londonand M.A,(ArtHistory& Archaeology)from theSchoolof Orientaland AfricanStudies, Universityof London MastersinDefense Studies

Chairman Director Director Nominee Director ofSFHaider Foundation Ltd.

21stAGM (2016) 17thAGM(2012) 18thAGM(2013) 18hAGM(2013)

05.

Brig.Gen.GyasuddinA. Chowdhury,BB,Psc (Retd)

67

06.

Mr.MoinU.Haider

30

B.A(Business Economics),from Lewis&Clark College,Portland, Oregon,USAand Associateof Occupational StudiesDegreein Automotive Technologyfrom UniversalTechnical

Alternate Directortoact forandon behalfofMr. MoinU. Haider, Director Director

14/07/2010

AsperCompaniesact section101(2)

27/03/2005

18thAGM(2013)

Page 28

07.

ManzururRahman (Ruskin)

60

Institute (UTI),Phoenix Arizona,USA B.Com,LLB

08.

Mr.SaberHossain Chowdhury

49

09.

Mr.AzizAlKaiser

45

10. 11.

Mrs.TabassumKaiser Mr.MohamedAbdul Jalil

37 67

B.A(Political Science)Schoolof Oriental&African Studies,London B.A(Economics) LondonUniversity, LondonandLLB fromWestMinister University. BBAofUSInt. University,Europe campus,the avenue,Bushey, Herefordshire, Watford,London, UK MBA(NSU) BA(Hons),M.A (Economics),LLB

Nominee Directorof AmberHill Global Resources Limited Representing: Karnaphuli Industries Limited

15/09/2010

19thAGM (2014]

27/10/2010

19thAGM (2014]

Director

27/10/2010

19 AGM (2014]

th

12. 13.

Mr.WolfPeterBerthold Mr.EhsanulHoque Mirza

64 58

MBA(Business& Economics) BachelorofScience

Director Nominee Directorof TaiPingAsian Investment Limited Director

27/10/2010 27/10/2010

18thAGM(2013) 17thAGM(2012)

29/10/1995

17thAGM(2012) AsperCompaniesact section101(2)

14

Mr.A.H.EkbalHossian

62

M.com(DU),DAIBB

Alternate 15/02/2011 Directortoact foronbehalf ofMs.SilwatA. Haider, Nominee DirectorofS.F. Haider Foundation Ltd. Managing 1stJune2009 Director(Ex officio)

31stMay2012

DirectorsOwnershipinotherCompanies

Sl.No. 01. 02. 03.

Name Mr.FerozU.Haider Col.(Retd.)M.NurulIslam Mr.SirajU.Haider

Positionin GSPFinance Chairman Director Director

Directorship/Sponsorship/ OwnershipwithotherCompanies SFHaiderFoundationLimited Nil UsmaniaGlassSheetFactoryLimited, Chittagong SFHaiderFoundationLimited

Position Chairman N/A Director

Experience 43years 41years 33years

Page 29

04.

Ms.SilwatA.Haider

05. 06.

Mr.MoinU.Haider Mr.ManzururRahman (Ruskin)

Nominee Directorof SFHaider Foundation Ltd. Director Nominee Directorof AmberHill Global Resources Limited Representing: Karnaphuli Industries Limited

SFHaiderFoundationLimited

Director

10years

SFHaiderFoundationLimited UsmaniaGlassSheetFactoryLimited, Chittagong

Director Director

6years 35years

07.

Mr.SaberHossain Chowdhury

08.

Mr.AzizAlKaiser

Director

RegenseaLinesLimited KarnaphuliIndustriesLimited Container&TerminalServicesLtd KarnaphuliWorksLimited KarnaphuliNationalAssociatesLtd KarnaphuliEngineeringCo.Ltd KarnaphuliFarmsLimited KarnaphuliExport&ImportLtd ReliableAutomobilesLimited KarnaphuliLeasingServicesLtd KarnaphuliLinksLimited KarnaphuliFoundriesLimited HRHoldingsLimited KarnaphuliFarming&FishingLtd KarnaphuliTexportLimited KarnaphuliAutomobilesLimited KarnaphuliHoldingsLimited FinvestServicesLimited TravelsceneLimited HRSecuritiesLimited MercantileBankLimited HolyCresentHospitalLimited RepublicInsuranceCo.Limited MotodriveLimited MultidriveLimited MedidriveLimited HamraiPressHoldingsLimited MediasceneLimited DeshTelevisionLtd TheCityBankLimited PartexStarGroup

Managing Director Director Shareholder Chairman

25years

StarParticleBoardMillsLtd. StarVegetableOilsLtd. PartexPVCIndustriesLtd. PartexFurnitureIndustriesLtd. PartexLaminatesLtd. PartexLimited PartexRealEstateLtd. CorveeMaritimeCo.Ltd. PartexBuildersLtd. FairhopeHousingLtd. DanishCondensedMilkBangladeshLtd. DanishMilkBangladeshLtd. DanishFoodsLtd.

Chairman ViceChairman Managing Director Director

23years

Page 30

09.

Mrs.TabassumKaiser

Director

10.

Mr.MohamedAbdulJalil

11

Mr.WolfPeterBerthold

Nominee Directorof TaiPingAsian Investment Limited Director

DanishDistributionNetworkLtd. DanishDairyFarmLtd. RubelSteelMillsLtd. FerrotechnicLtd. FotoromaLimited RusselSteelMillsLtd. DhakacomLimited JanataInsuranceCo.Ltd. PartexHousingLtd. PartexAgroLimited TheCityBankLimited JanataInsuranceCompanyLtd FairHopeHousingLtd Nil

Managing Director Director

12years

N/A

46years

Nil

N/A

43years

Familyrelationshipamongdirectors

NameofDirectors Mr.FerozU.Haider,

Position Chairman

Relationship BrotherofMr.SirajU.Haider.Director FatherofMr.MoinU.Haider,Director FatherofMs.SilwatA.Haider,Director representingSFHaiderFoundationLimited BrotherofMr.FerozU.Haider,Chairman DaughterofMr.FerozU.Haider,Chairmanand SisterofMr.MoinU.Haider,Director SonofMr.FerozU.Haider,Chairman BrotherofMs.SilwatA.Haider,NomineeDirectorof S.F.HaiderFoundation HusbandofMrs.TabassumKaiser WifeofMr.AzizAlKaiser

Mr.SirajU.Haider, Ms.SilwatA.Haider,

Mr.MoinU.Haider,

Director NomineeDirector ofS.F.Haider FoundationLtd. Director

Mr.AzizAlKaiser Mrs.TabassumKaiser

Director Director

FamilyRelationshipamongtheDirectorsandTopFiveOfficers ThereisnofamilyrelationshipbetweentheDirectorsandtopfiveOfficers.

Page 31

ShortBiodataofDirectorsincludingManagingDirector: Mr.FerozU.Haider,Chairman Mr. Feroz U. Haider is a renowned international banker with experience in very senior positions in financial institutions in South East Asia. He started his banking career in 1967 with United Bank Limited (now Janata Bank) after his graduation and worked till 1975. From 1976 to 1978 he was the General Manager of Gulf FinancecompanyLimited,HongKong.In1979and1980hewastheManager,Operations,ofAmericanExpress BankLimited,Bangladesh.From1981,hewastheManagingDirectorofGSPFinanceCompanyLimited,Hong KongandGSPInternationalLimited,Vanuatu.From1989to1996hewastheChairmanofGSPInternational Limited,VanuatuandPresidentofThaiPrasitInsuranceCompanyLimited,HongKong(nowMittareInsurance Co.Ltd.).Fromthedateofincorporation(October29,1995)ofGSPFinanceCompany(Bangladesh)Limited,he servedasChairmanandManagingDirectoroftheCompanyandatpresentheisservingasChairman. Mr.HaiderholdsaBatchelordegreeofSciencefromDhakaUniversityin1965andaPh.D.ininternational BusinessManagementfromUSA. Col.(Retd.)M.NurulIslam,Director ColonelM.NurulIslamPsc.(Retd.)joinedGSPFinanceCompany(Bangladesh)LimitedinFebruary2000asthe Executive Director. Prior to joining GSP Finance Company (Bangladesh) Limited, he ran his own business in export,importandtrading.HestartedhisArmycareerasacommissionedofficerin1969inthePakistanArmy and retired as a Colonel in 1996. Col. Islam has received extensive training in the armed forces, including attending different military courses in Australia (1978), USA (1988) and China (1989). Col. Islam graduated fromtheStaffCollegein1982. Mr.SirajU.Haider,Director Mr.SirajU.HaiderisaDirectorofGSPFinanceCompany(Bangladesh)Limited.Mr.HaiderholdsaBachelorof SciencedegreefromtheUniversityofDhaka.HeisalsoaDirectorofUsmaniaGlassFactoryLtd.inChittagong. Ms.SilwatA.Haider,NomineeDirector Ms. Silwat A. Haider is a Director of GSP Finance Company (Bangladesh) Limited representing S.F. Haider FoundationLimited.Ms.HaiderservedasaConsultingInternwithRoyalOntarioMuseum,Toronto,Canada, which was followed by a Research Consultant position with AEA Consulting London, UK from 2001 to 2003. Between 2003 to 2005 she served with Arts Council England, London, UK as a Grants Manager for Capital Projects.AtpresentsheisworkingasaProjectManager,MouchelParkmanGroup,London,U.K.Duringher longtenure,shehasworkedinvariousareasofArts,Culture&Economics. Ms. Haider holds a B. Sc. (Econ) International History (Hons) from London School of Economics & Political science,UniversityofLondonandaM.A.inArtHistoryandArcheologyfromtheSchoolofOrientalandAfrican Studies,UniversityofLondon.

Page 32

Brig.Gen.GyasuddinA.ChowdhuryBB,psc(Retd),AlternateDirector Brig.Gen. GyasuddinA.Chowdhuryis anAlternate Directortoactforandonbehalfof Mr.MoinU.Haider, DirectorofGSPFinanceCompany(Bangladesh)Limited.Brig.Gen.GyasuddinA.Chowdhurytookactivepartin BangladeshWarofLiberationin1971andreceivedgallantryawardofBirBikram(EquivalenttoMilitaryCross). HeservedasanAmbassadorofBangladeshinBahrain,fromJune1996toDecember1998,Swedenfrom1993 to 1996. He served as High Commissioner of Bangladesh in Singapore from 1989 to 1993 and also Consul General(Minister)ofBangladeshinSydney,Australiafrom1985to1989. Mr.MoinU.Haider,Director Mr.MoinU.HaiderholdsadegreeinBusinessEconomicsandAutomotiveTechnology.Heisashareholderof thecompanysinceJuly06,2000andwaselectedaDirectorofGSPFinanceCompany(Bangladesh)Limitedin March2005.Mr.HaiderdidInternationalBaccalaureatefromUnitedWorldCollege,HongKongin1998and B.A. in Business Economics from Lewis & Clark College, Portland, Oregon, USA in 2003. He also has an AssociateofOccupationalStudiesDegreeinAutomotiveTechnologyfromUniversalTechnicalInstitute(UTI), Phoenix,Arizona,USAin2004. Mr.ManzururRahman(Ruskin),NomineeDirector Mr. Manzur ur Rahman (Ruskin) is a Director of GSP Finance Company (Bangladesh) Limited representing AmberHillGlobalResourcesLimited.HeisanAdvocateinSupremeCourt,Bangladesh.HeisManagingPartner of M/S Rahim Rahman & Agha, Solicitor & Tax Consultant. Apart from his law profession he is involved in variousbusinesshouses.HeisChiefExecutiveOfficerofAyeshaTradingInternationalandDirectorofUsmania Glass Sheet Factory Limited. Mr. Rahman was former Vice President of The Chamber of Commerce & Industries.HeisalsomemberofDhakaBarAssociation,DhakaTaxesBarAssociation. Mr.SaberHossainChowdhury,NomineeDirector Mr. Saber Hossain Chowdhury a Director of GSP Finance Company (Bangladesh) limited representing KarnaphuliIndustriesLimited.HewaselectedasMemberof7thJatioSangsad(NationalAssembly)andagain he elected as Member of 9th Jatio Sangsad. He served as Deputy Minister of Shipping from December 96 to March98andthereafterasDeputyMinisterofLocalGovernment&RuralDevelopment(LGRD)tillJuly2001. HewasalsoaMemberoftheParliamentaryCommitteefortheMinistryofSportsandCulturalAffairsforthe termof19962001.DuringhistenureastheMemberoftheParliamentandalsoastheDeputyMinister,he was widely acclaimed as having acted with honesty and integrity, thereby holding high image of his constitutionalpositions.HeisalsotheManagingDirectorofKarnaphuliGroupofCompanies.Mr.Chowdhury holds Bachelor degree of Political Science and Economics from London University and LL.B in Westminister University,London. Mr.AzizAlKaiser,Director Mr.AzizAlKaiserisawidelyrenownedIndustrialEntrepreneurinBangladesh.HeisViceChairmanofPartex Group and simultaneously Chairman of The City Bank Limited. Mr. Kaiser holds aBBA from US International University,EuropeCampus.

Page 33

 Mrs.TabassumKaiser,Director Mrs. Tabassum Kaiser is a Director of GSP Finance Company (Bangladesh) Limited. At present she serves as Director in various companies like The City Bank, Janata Insurance Company Limited. She is also Managing DirectorofPartexAgroLimited.Mrs.KaiserisanMBAfromNorthSouthUniversity. Mr.MohamedAbdulJalil,NomineeDirector Mr. Mohamed Abdul Jalil is a Director of GSP Finance Company (Bangladesh) Limited representing Tai Ping Asian Investment Limited. Mr. Jalil was a senior civil servant in the Government Sector. He was a Member (Taxes)ExofficioAdditionalSecretary,NBR.HewasinvolvedinpreparationofNationalBudgetandBudgetary Policy and Taxation Policy. He also represented Government of Bangladesh as Director in the Board of DirectorsofJamunaOilCompanyLimited.Meanwhile,heinvolvedhimselfinvarioussocialactivities.Mr.Jalil got Gold Medal for Education and Social Welfare from Bangladesh Jatiyo Shahyto Sangshad 1993 and got anotherGoldMedalforEducationandSocialWelfare,ShereBanglaJatiyoShishuAcademy1997.Mr.Jalil holdsaBachelorofArtsandM.A(Economics)andLL.B. Mr.WolfPeterBerthold,Director Mr. Berthold is an investment specialist in Asia. He is a Director of GSP Finance Company (Bangladesh) Limited. He is also the Managing Director of Deutsche Asiatische Beteiligungsgesellschaft (DBA) Limited and Agusta Enterprises Holding Company Limited and a Director of Helicon Enterprise Company Limited in Hong Kong.Mr.BertholdwastheRegionalVicePresident,AsiaPacificofDeutcheBank,AG,basedinHongKong.He holdsadegreeinBusinessAdministrationandEconomicsfromtheUniversityofMannheiminGermany.Mr. BertholdisaGermannational. Mr.EhsanulHoqueMirza,AlternateDirector Mr. Ehsanul Hoque Mirza is an Alternate Director to act for and on behalf of Ms. Silwat A. Haider, Director representing S.F. Haider Foundation Limited. He holds Bachelor of Science degree. He is also chairman of ShamsuddinMia&AssociatesLtd. Mr.A.H.EkbalHossain,Managingdirector(Exofficio) Mr.A.H.EkbalHossainjoinedGSPBasManagingDirectorinJune2009.Hehasworkedinseniorpositionsat variousBanksoverthelongspanofhiscareer.MostnotablyheservedasManagingDirectorofBASICBank Ltd,RupaliBankLtdandGMofAgraniBankLtd. He started his career with United Bank as probationary officer in 1968. He obtained his Masters Degree in ManagementfromDhakaUniversityandisanAssociateoftheInstituteofBankers.HeobtainedaPhDfrom PortlandUniversity,Oregon,USAandundertooktraininginmacroandmicroeconomicsfromFiscUniversity, Nashville,USA.

Page 34

 CreditInformationBureau(CIB)report Neither the Company nor any of its Directors or shareholders who hold 5% or more shares in the paid up capitaloftheissuerisloandefaulterintermsoftheCIBreportofBangladeshBank.

ParticularsofTopExecutives&DepartmentalHeadsoftheCompany

Sl. No. 1.

Name Mr.A.H.Ekbal Hossain

Position/Departmental Heads ManagingDirector

Educational Qualification M.com(DU), DAIBB

Dateofjoining inthe company 01.06.2009

Lastfiveyears experience GMAgraniBank, DMDandMD(current charge)RupaliBank, MDBasicBankLimited GMJanataBank,Agrani Bank&BangladeshKrishi Bank. M.DHougeBldg. FinanceCorp.&Trust BankLtd. OrimpexGroup, NitolGroup EquityPartnersLimited (EPL) PrimeFinance& InvestmentLimited Nill NuraniGroup,ARGroup Acnabin,Chartered Accountants NewAgeGroup

Total Experience (Years) 42

2.

Mr.Md.Helal Uddin

ExecutiveDirector

M.A.I.B.B (Part1)

22.07.2001

46

3.

Mr.Md.Mizanur Rahman Mr.Toaha Mohammad Mr.AsifRahman Mr.ZeenatAlam Mr.MahbubAlam Mr.PronoyKuman Biswash Mr.ZakirHossain

4.

5. 6. 7. 8. 9. 10.

*GM(Finance) &Company Secretary ChiefOperatingOfficer (COO)(Merchant Banking] AGMCredit&Marketing AGMCredit&Marketing Sr.Manager(Accounts) Manager,ICD Manager,HRD

M.Com,LLM, ACS,ACCA MBA

25.09.2001

13

01.08.2008

MBA MBA M.Com, (CA.CC) MBA,ACA MBA

11.11.2009 29.07.2003 01.08.2005 28.06.2009 01.04.2009

9 8 9 6 9 4

Mr.AbuBaker Manager MBA BRACEPL 12.08.2010 SiddikRajib *Md.MizanurRahmanhasbeenservinginthepositionofHeadofFinance&CompanySecretaryoftheCompany.

InvolvementofOfficersandDirectorsinCertainLegalProceedings NoDirectorsorOfficerofthecompanywasinvolvedinanyofthefollowingtypesoflegalproceedingsinthe pasttenyears: Anybankruptcypetitionfiledbyoragainstanycompanyofwhichanyofficerordirectoroftheissuer companyfilingtheprospectuswasadirector,officerorpartneratthetimeofthebankruptcy; Anyconvictionofdirector,officerincriminalproceedingsoranycriminalproceedingspendingagainst him; Any order, judgment or decree of any Court of competent jurisdiction against any director, officer permanentlyortemporarilyenjoying,barring,suspendingorotherwiselimitingtheinvolvementofany directororofficerinanytypeofbusiness,securitiesorbankingactivities.

Page 35

AnyorderoftheSecuritiesandExchangeCommissionorotherregulatoryauthorityorforeignfinancial regulatoryauthoritysuspendingorotherwiselimitingtheinvolvementofanydirectororofficerinany typeofbusinessofsecuritiesorbankingactivities.

CertainRelationshipsandRelatedTransactions Thecompanydoesnothaveanytransactionduringthelasttwoyears,oranyproposedtransaction,between theissuerandanyofthefollowingpersons: a. Anydirectororexecutiveofficeroftheissuer. b. Anydirectororofficer. c. Anypersonowning5%ormoreoftheoutstandingsharesoftheissuer. d. Any member of the immediate family (including spouse, parents, brothers, sisters, children, and in laws)ofanyoftheabovepersons. e. Any transaction or arrangement entered into by the issuer or its subsidiary for a person who is currentlyadirectororinanywayconnectedwithadirectorofeithertheissuercompanyoranyofits subsidiaries/holdingcompanyorassociateconcerns,orwhowasadirectororconnectedinanyway withadirectoratanytimeduringthelastthreeyearspriortotheissuanceofprospectus. f. Anyloaneithertakenorgivenfromortoanydirectororanypersonconnectedwiththedirector,any loantakenfromanysuchpersonwhodidnothaveanystakeintheissuer,itsholdingcompanyorits associateconcernspriortosuchloan. g. Anydirectorholdinganyposition,apartfrombeingadirectorintheissuercompany,inanycompany, society,trust,organization,orproprietorshiporpartnershipfirm. InterestsandFacilitiesenjoyedbytheDirector The Directors did not enjoy any interest or facilities, whether pecuniary or nonpecuniary excepting fee for attendinginthemeetingsoftheBoardofDirectors. ExecutiveCompensation Remunerationpaidtotopfivesalariedofficers ThetopfivesalariedofficersinthelastaccountingyearoftheCOMPANYareasfollows: (AmountinTaka) SL. Name Designation Jan.toDec2010 (Present) 1. Mr.AH.EkbalHossain ManagingDirector 2,400,000 2. Md.HelalUddin ExecutiveDirector 1,380,000 3. Md.MizanurRahman *GM(Finance)& 1,068,000 CompanySecretary 4. Mr.ToahaMohammad COO(MerchantBanking] 1,760,000 5. Mr.AsifRahman AGMCredit&Marketing 1,066,800 *Md.MizanurRahmanhasbeenservinginthepositionofHeadofFinance&CompanySecretaryoftheCompany.

Page 36

AggregateamountofremunerationpaidtoDirectors&Employees.(AsperAuditedA/C) (AmountinTaka) Remuneration&Salary Sl. Particulars No. (thedesignatedAccounts) 1 2 Directors Officers&Staff 290,000 10,500,174

RemunerationpaidtoanyDirectorwhowasnotanofficerduringthelastfiscalyear TheCompanydidnotpayanyamounttoanypersonwhowasnotanOfficer/DirectoroftheCompany duringthelastaccounting/financialyear.

FuturecompensationtoDirectorsorOfficers ThereisnocontractwithanyDirector/Officerforfuturecompensation. Payincreaseintention TheCompanydoesnothaveanyplantosubstantiallyincreaseremunerationtoOfficers/Directors exceptusualincreaseinsalaries&allowances.

OptionsGrantedtoDirectors,OfficersandEmployees
The Company has not offered any option for issue of shares to any of the officers, directors and employees or to any outsiders.

TransactionwiththeDirectorsandSubscriberstotheMemorandum:

(a) The Directors and Subscribers to the memorandum have not received any benefits directly or indirectly other than dividend and Directors fees during the last five years. The issuer also has not received any assets,servicesorotherconsiderationfromitsDirectorsandSubscriberstothememorandumexceptfund againstallotmentofshares. (b)NoassetswereacquiredoraretobeacquiredfromtheDirectorsandSubscriberstothememorandum.

Page 37

TANGIBLEASSETSPERSHARE (AsperAuditedA/Casat31.12.2010) Particulars Assets: Cash Balancewithbank&otherfinancialInstitution MoneyatCall&shortnotice Investment Leasesloan&advances FixedAssetsincludingpremises,furniture,fixtures OtherAssets

Ason31/12/10 BDTaka 14,106,320 61,646,706 120,000,000 125,450,952 1,629,115,736 314,577,754 654,343,825

TotalAssets(a)

2,919,241,293

Liability 1,206,189,666 Borrowingsfrombank,otherfinancialInstitution 619,890,700 Deposits&otheraccounts 385,166,975 OtherLiabilities 2,211,247,341 TotalLiabilities(b) 707,993,952 NETASSETVALUEC=(ab) 2,159,850 TotalNumberofSharesatfacevalueofTk.100.00pershare(D) 327.79 NetAssetValuepershareatfacevalueTk.100.00pershare(C/D) TotalNumberofShares(E)onapprovalof28%ofbonussharesfortheyear2010 27,646,080 anddenominatedthefacevalueintoTk.10.00&thenthenumberofsharesstand 25.61 RestatedNetAssetValuepershareC/E ThepaidupcapitalofGSPfinanceCompany(Bangladesh)Limitedasat31December2010standsat Tk.215,985,000dividedinto2,159,850ordinarysharesofTk.100each.TheCompanydeclared28% bonussharefortheyear2010whichhasbeenapprovedintheir16thAnnualGeneralMeetingheldon15th February,2011accordinglyappliedtoSECon5thApril,2011forapproval.TheSECvidetheirletterno. SEC/CFD/CPLC29/2002/793dated3rdNovember,2011approvedtheirapplicationforraisingpaidup capital.

BoardofDirectorshaddecidedtodenominatethesharepricefromTk.100.00toTk.10.00pershareon 12th September 2011 which has been approved by the shareholders of the Company in their Extra OrdinaryGeneralMeetingdated4thOctober2011andnecessaryamendmentsinthecapitalclauseofthe MemorandumandArticlesofAssociationoftheCompanyweremadeaccordingly.TheMemorandumand ArticlesofAssociationoftheCompanyhasdulybeencertifiedbytheRegistrarofJointStockCompanies& Firmson5thOctober2011. Sd/ Dated,Dhaka KaziZahirKhan&Co. November21,2011 CharteredAccountants

Page 38

OWNERSHIPOFTHECOMPANYSSECURITIES

PresentshareholdingpatternoftheCompanyisgivenbelow:

SL#

Name&AddressoftheShareholders MR.FEROZU.HAIDER 01 ConcordMayfairApt.#404,Road#83,Plot#5,NEG,Gulshan, Dhaka. COLONELM.NURULISLAM,PSC(RETD.) 02 HouseNo.107,MasjidRoad,DOHS, Banani,DhakaCantt.,Dhaka. MR.MOINU.HAIDER 03 ConcordMayfair,Apt.#404,Road#83 Plot#5,NEG,Gulshan,Dhaka. 04 SFHAIDERFOUNDATIONLIMITED 1,Paribagh,MymensinghRoad,Ramna,Dhaka1000. AIRVICEMARSHALL(RETD)ALTAFHOSSAINCHOUDHURY House#6,Road#67Gulshan2,Dhaka1212. MS.ISHMAMRAIDAHRAHMAN HouseNo.11,RoadNo.7,BlockH,Banani,Dhaka.

Position Chairman

Director

Director

Director

05

Shareholder

06

Shareholder

MS.SILWATA.HAIDER 07 ConcordMayfair,Apt.#404,Road#83 Plot#5,NEG,Gulshan,Dhaka. MRS.SHAHINHAIDER 08 ConcordMayfair,Apt.#404,Road#83,Plot#5,NEG,Gulshan, Dhaka. AMBERHLLGLOBALRESOURCESLTD. 09 AkaraBldg.,24DeCastroStreet,WickhamsCayI,RoadTown, Tortola,BritishVirginIslands. 10 MR.SIRAJU.HAIDER FlatNo.3B,HouseNo.12,RoadNo.118,Gulshan02,Dhaka.

Shareholder

Shareholder

Director

Director

TAIPINGASIANINVESTMENTLIMITED 11 C/oTridentTrustCompany(BVI)Limited,TridentChambers,P.O. Box145,RoadTown,Tortola,BritishVirginIslands. MR.AZIZALKAISER 12 PARTEXGROUP,SenaKalyanBhaban(16thfloor),195,Motijheel C/A,Dhaka,Bangladesh. 13 KARNAPHULIINDUSTRIESLIMITED HRBhaban,26/1Kakrail,Dhaka1000,Bangladesh.

Director

Director

Director

MRS.TABASSUMKAISER 14 BLOOMINGDALE,24,DutabashRoad,BaridharaR/A,Gulshan, Dhaka,Bangladesh. 15 MR.WOLFPETERBERTHOLD FlatB2,G/FShousinHillRoad#4,HongKong. INTERFOXHOLDINGSLIMITED Sadelgatan6SE21377Malmo,Sweden. TOTALSHARES:

Director

Director

16

Shareholder

Shares 4,227,917 81,408 650,496 378,918 172,403 296,320 325,248 325,248 3,644,416 782,822 4,962,535 2,764,608 4,322,048 2,764,608 1,708,608 238,477 27,646,080

Holding(%) 15.29% 0.29% 2.35%

1.37%

0.62%

1.07%

1.18%

1.18% 13.18% 2.83% 17.95% 10.00% 15.63% 10.00% 6.18%

0.86% 100.00%

Page 39

5%ormoreoftheShareholdingstructureoftheCompany:
Sl. NameofSponsors Mr.FerozU.Haider ConcordMayfairApt.#404,Road#83,Plot#5,NEG, Gulshan,Dhaka. AmberHllGlobalResourcesLtd. AkaraBldg.,24DeCastroStreet,WickhamsCayI,Road Town,Tortola,BritishVirginIslands. TaiPingAsianInvestmentLimited C/oTridentTrustCompany(BVI)Limited,Trident Chambers,P.O.Box145,RoadTown,Tortola,BritishVirgin Islands. Mr.AzizAlKaiser PARTEXGROUP,SenaKalyanBhaban(16thfloor),195, MotijheelC/A,Dhaka,Bangladesh. KarnaphuliIndustriesLimited HRBhaban,26/1Kakrail,Dhaka1000. Mrs.TabassumKaiser BLOOMINGDALE,24,DutabashRoad,BaridharaR/A, Gulshan,Dhaka,Bangladesh. Mr.WolfPeterBerthold FlatB2,G/FShousonHillRoad#4,HongKong. Statuswiththe Company NoofShares Subscribed 4,227,917 Percentageof ownership 15.29% 13.18% 17.95% 10.00% 15.63% 10.00%

1.

Chairman

2.

Director

3,644,416

3.

Director

4,962,535

4.

Director

2,764,608 4,322,048 2,764,608 1,708,608

5.

Director

6.

Director

7.

Director

6.18%

SecuritiesoftheCompanyownedbyeachDirector:
SL# Name&AddressoftheShareholders MR.FEROZU.HAIDER ConcordMayfairApt.#404,Road#83,Plot#5,NEG,Gulshan, 01 Dhaka. Col.M.NURULISLAM,Psc(Retd.) HouseNo.107,MasjidRoad,DOHS, 02 Banani,DhakaCantt.,Dhaka. MR.MOINU.HAIDER ConcordMayfair,Apt.#404,Road#83 03 Plot#5,NEG,Gulshan,Dhaka. SFHAIDERFOUNDATIONLIMITED 04 1,Paribagh,MymensinghRoad,Ramna,Dhaka1000 Position Chairman Shares 4,227,917 81,408 650,496 378,918

Holding(%) 15.29% 0.29% 2.35%

Director

Director

Director

1.37%

Page 40

AMBERHLLGLOBALRESOURCESLTD. AkaraBldg.,24DeCastroStreet,WickhamsCayI,RoadTown, 05 Tortola,BritishVirginIslands MR.SIRAJU.HAIDER 06 FlatNo.3B,HouseNo.12,RoadNo.118,Gulshan02,Dhaka. TAIPINGASIANINVESTMENTLIMITED C/oTridentTrustCompany(BVI)Limited,TridentChambers,P.O. 07 Box145,RoadTown,Tortola,BritishVirginIslands. MR.AZIZALKAISER PARTEXGROUP,SenaKalyanBhaban(16thfloor),195,Motijheel 08 C/A,Dhaka,Bangladesh. KARNAPHULIINDUSTRIESLIMITED 09 HRBhaban,26/1Kakrail,Dhaka1000,Bangladesh. MRS.TABASSUMKAISER BLOOMINGDALE,24,DutabashRoad,BaridharaR/A,Gulshan, 10 Dhaka,Bangladesh. 11 MR.WOLFPETERBERTHOLD FlatB2,G/FShousinHillRoad#4,HongKong.

Director

3,644,416 782,822 4,962,535 2,764,608 4,322,048 2,764,608 1,708,608

Director

Director

13.18% 2.83% 17.95% 10.00% 15.63% 10.00% 6.18%

Director

Director

Director

Director

*Noofficerheldanysharesofthecompany

Page 41

DETERMINATIONOFOFFERINGPRICE

GSPFinanceCompany(Bangladesh)Ltd.
Particulars Method1(a):NetAssetValue(NAV)pershare Method 1(b): Net Asset Value (NAV) per share without considering AssetRevaluation Method2:HistoricalEarningsbasedvaluepershare Amount(inTk.) 25.61 16.52

27.27

In consideration of the above, the management of GSP Finance Company (Bangladesh) Limited believesthattheissuepriceofTk.25.00isjustified. CalculationsofMethodologies
Method1PricebasedonNetAssetValue(NAV)basedpricepershare:

Particulars Paidupcapital Statutoryreserve Otherreserve RetainedEarnings Proposedbonussharefor2010 Retainedearningsbalance TotalShareholders'Equity Numberofshares NetAssetsValuepershareatBDT100pershare,asper AuditedFinancialStatement *Considering28%stockdividendand**denominatethe facevalueintoTk.10.00thentheNumberofsharesstand RestatedNetAssetsValuepershare NetAssetsValuepershareatBDT10.00pershare (withoutconsideringAssetRevaluation) Page 42

Amount

60,475,800.00 21,826,775.00 707,993,952.00 2,159,850

NetAmount 215,985,000.00 158,304,253.00 251,402,124.00 82,302,575.00

327.79

27,646,080 25.61

16.52

 *TheBoardofDirectorshaddeclared10%bonussharefortheyear2009andappliedtoSECforapprovalwhich has declined by SEC vide letter no. SEC/CI/CPLC29/200294 dated 14th February, 2011 (letter received on 20th February,2011).Fortheyear2010theBoardofdirectorsfurtherdeclared28%bonusshareintheir16thAnnual GeneralMeetingheldon15thFebruary,2011accordinglyappliedtoSECon5thApril,2011forapproval.TheSEC videtheirletterno.SEC/CFD/CPLC29/2002/793dated3rdNovember,2011approvedtheirapplicationforraising paidupcapital.

**BoardofDirectorshaddecidedtodenominatethesharepricefromTk.100.00toTk.10.00pershareon12th September2011whichhasbeenapprovedbytheshareholdersoftheCompanyintheirExtraOrdinaryGeneral Meeting dated 4th October 2011 and necessary amendments in the capital clause of the Memorandum and ArticlesofAssociationoftheCompanyweremadeaccordingly.TheMemorandumandArticlesofAssociationof theCompanyhasdulybeencertifiedbytheRegistrarofJointStockCompanies&Firmson5thOctober2011.

Method2:HistoricalEarningsbasedvalue
Financial Year 31-Dec-10 31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 Net Profit after Tax 75,703,029 26,973,558 15,657,612 37,737,292 28,171,928 Weight 0.41 0.15 0.09 0.20 0.15 Weighted Average Profit 31,038,241.89 4,046,033.70 1,409,185.08 7,547,458.40 4,225,789.20

Total 184,243,419 1.00 No. of shares as on 31 Dec 2010 No. of shares considering 28% bonus share and denominate the face value into
Tk.10.00

48,266,708.27 2,159,850 27,646,080

WeightedaverageEPSconsidering28%bonus shareanddenominationchange

1.75

DSEoverallP/Eason30Sep2011 EarningBasedValueconsidering28% bonusshareanddenominationchange

15.58 27.27

Basedontheabovecalculation,theweightedaveragenetprofitaftertaxstandsatTk.48,266,708.27 andweightedaverageEPSconsidering28%bonusshareanddenominatethefacevalueintoTk.10.00 isTk.1.75.IfweconsiderthesharepriceoftheCompanyonthebasisofpriceearningsmultipleof 15.58(OverallmarketP/E=15.58;Source;DSEMonthlyReviewason30092011),theearningbased valueofsharesoftheCompanystandsatTk.27.27. Page 43

MARKETFORTHESECURITIESBEINGOFFERED

Theissuershallapplyto DhakaStockExchangeLimited(DSE) 9/F,MotijheelC/A,Dhaka1000. And ChittagongStockExchangeLimited(CSE) CSEBuilding,1080SheikhMujib Road,Chittagong.

Within 7 (seven) working days from the date of consent accorded by the Commission to issue prospectus. DeclarationaboutlistingofshareswiththeStockExchange(s) None of the Stock Exchange(s), if for any reason, grant listing within 75 days from the closure of subscription,anyallotmentintermsofthisprospectusshallbevoidandthecompanyshallrefundthe subscriptionmoneywithinfifteendaysfromthedateofrefusalforlistingbythestockexchange,orfrom thedateofexpiryofthesaid75(seventyfive)days,asthecasemaybe. In case of nonrefund of the subscription money within the aforesaid fifteen days, the company directors,in additionto theissuercompany,shall becollectivelyandseverallyliableforrefundofthe subscriptionmoney,withinterestattherateof2%(twopercent)permonthabovethebankrate,tothe subscribersconcerned. The issue manager, in addition to the issuer company, shall ensure due compliance of the above mentionedconditionsandshallsubmitcompliancereportthereontotheCommissionwithinsevendays ofexpiryoftheaforesaidfifteendaystimeperiodallowedforrefundofthesubscriptionmoney. Tradingandsettlement

Trading and Settlement Regulation of the stock exchanges shall apply in respect of trading and settlementofthesharesofthecompany. TheissueshallbeplacedinNCategorywithDSE&CSE. DESCRIPTIONOFSECURITIESOUTSTANDINGORBEINGOFFERED a) Dividend,VotingandPreemptionRight The share capital of the Company is divided into ordinary shares carrying equal rights to vote and receive dividend in terms of the relevant provisions of the Companies Act, 1994 and the Articles of Association of the Company. Shareholders shall have the usual voting right in person or by proxy in connection with, among others, selection of Directors & Auditors and other usual agenda of General Meeting Ordinary or Extra Ordinary. On a show of hand every shareholder present and every duly

Page 44

authorizedrepresentativeofashareholderpresentataGeneralMeetingshallhaveonevoteandona poll every shareholder present in person or by proxy shall have one vote for every share held by him/her. In case of any additional issue of shares for raising further capital the existing shareholders shall be entitledtoRightIssueofsharesintermsoftheguidelinesissuedbytheSECfromtimetotime. b) ConversionandLiquidationRight IfthecompanyatanytimeissuesconvertiblepreferencesharesorDebenturewiththeconsentofSEC, such holders of Securities shall be entitled to convert such securities into ordinary shares if it is so determinedbythecompany. SubjecttotheprovisionsoftheCompaniesAct,1994,ArticlesofAssociationoftheCompanyandother relevantRulesinforce,theShares,ifany,oftheCompanyarefreelytransferable,theCompanyshallnot chargeanyfeeforregisteringtransferofshares.Notransfershallbemadetofirms,minorsorpersons ofunsoundmentalhealth. c)DividendPolicy a)Theprofitofthecompany,subjecttoanyspecialrightrelatingtheretocreatedorauthorizedtobe createdbytheMemorandumofAssociationsubjecttotheprovisionoftheArticlesofAssociation,shall be divisible among the members in proportion to the capital paid up on the Shares held by them respectively. b)NolargerdividendshallbedeclaredthanisrecommendedbytheDirectors,buttheCompanyinits GeneralMeetingmaydeclareasmallerdividend.ThedeclarationofDirectorsastotheamountofnet ProfitoftheCompanyshallbeconclusive. c)NodividendshallbepayableexceptoutofprofitsoftheCompanyoranyotherundistributedprofits. DividendshallnotcarryinterestasagainsttheCompany. d)TheDirectorsmay,fromtimetotime,paythememberssuchinterimdividendasintheirjudgment thefinancialpositionoftheCompanymayjustify. e)AtransferofSharesshallnotpasstherighttoanydividenddeclaredthereonbeforetheregistration oftransfer. f) Thereisnolimitationonthepaymentofdividend. d]OtherRightsofShareholders Theshareholdersshallhavetherighttoreceiveallperiodicalreportsandstatements,auditedaswellas unaudited, published by the company from time to time. The Directors shall present the financial statements as required under the Law and International Accounting standards as well as Internal FinancialReportingStandards(IFRS)asadoptedinBangladesh.FinancialStatementswillbepreparedin accordancewithInternationalAccountingStandardsaswellasInternalFinancialReportingStandards

Page 45

(IFRS)asadoptedinBangladesh,consistentlyappliedthroughoutthesubsequentperiodsandpresent withtheobjectiveofprovidingmaximumdisclosureasperlawandInternationalAccountingStandards aswellasInternalFinancialReportingStandards(IFRS)asadoptedinBangladeshtotheshareholders regardingtheFinancialandoperationalpositionoftheCompany. Incaseofanydeclarationofstockdividendbyissueofbonusshares,allshareholdersshallbeentitled toitinproportiontotheirshareholdingsonthedateofbookclosureforthepurpose.Theshareholders holding not less than 10% of the issued/fully paid up capital of the company shall have the right to requisition ExtraOrdinary General Meeting of the Company as provided under Section 84 of the CompaniesAct,1994. DEBTSECURITIES

TheCompanyhasnotissuedorisplanningtoissueanydebtsecuritywithinsixmonths LOCKINONSPONSORSSHARES Allissuedsharesoftheissueratthetimeofaccordingconsenttopublicofferingshallbesubjecttoa lock in period of three years from the date of issuance of prospectus or commercial operation, whichevercomeslater: Providedthatthepersons,otherthandirectorsandthosewhohold5%ormore,whohavesubscribedto the shares of the Company within immediately preceding two years of according consent, shall be subject to a lock in period of one year from the date of issuance of prospectus or commercial operation,whichevercomeslater.
Total numberof Share 4,227,917 81,408 650,496 378,918 172,403 296,320 Dateof Lockinperiod Acquisition fromthedate ofProspectus issuance 29.10.1995 3 years 18.04.1999 06.07.2000 15.06.1996 29.10.1995 3 years 3 years 3 years 3 years

SL# Name 01 02 03 04 05 MR.FEROZU.HAIDER ColonelM.NURULISLAM,Psc(Retd.) MR.MOINU.HAIDER S.F.HAIDERFOUNDATIONLIMITED AirViceMarshallALTAFH.CHOUDHURY (Retd).NDU. MS.ISHMAMRAIDAHRAHMAN

Position Chairman Director Director Director Shareholder

%ofshare held 15.29% 0.29% 2.35% 1.37% 0.62%

06

Shareholder

1.07%

08.11.2010

1year

Page 46

07

MS.SILWATA.HAIDER MRS.SHAHINHAIDER AMBERHILLGLOBALRESOURCESLTD MR.SIRAJU.HAIDER TAIPINGASIANINVESTMENTLIMITED MR.AZIZALKAISER KARNAPHULIINDUSTRIESLIMITED MRS.TABASSUMKAISER MR.WOLFPETERBERTHOLD

Shareholder 325,248 Shareholder 325,248 3,644,416 782,822

1.18%

06.07.2000

3 years

08

1.18%

06.07.2000

3 years

09 10 11 12 13 14 15 16

Director Director Director Director Director Director Director Shareholder

13.18% 2.83%

19.03.2008 15.06.1996 27.10.2010 27.10.2010 27.10.2010 27.10.2010 29.10.1995 06.06.2002

3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years

4,962,535 17.95% 2,764,608 4,322,048 2,764,608 1,708,608 238,477 27,646,080 10.00% 15.63% 10.00% 6.18% 0.86% 100.00%

INTERFOXHOLDINGSLIMITED TOTALSHARES:

REFUNDOFSUBSCRIPTIONMONEY

As per SEC Notification Dated February 9, 2010, the issuer shall refund application money to the unsuccessfulapplicantofthepublicofferbyanyofthefollowingmannerbasedontheoptiongivenby theapplicantintheapplicationform;

(a)Throughbankingchannelforonwarddepositoftherefundmoneyintotheapplicantsbankaccount asprovidedintherespectiveapplicationformforsubscription;or (b) Through issuance of refund warrant in the name and address of the applicant as provided in the respectiveapplicationformforsubscription:

Providedthat,incaseofdepositintotheapplicantsbankaccount,theapplicantwillbeartheapplicable service charge, if any, of the applicants banker, and the issuer shall simultaneously issue a letter of intimationtotheapplicantcontaining,amongothers,thedateandamountremittedwithdetailsofthe bankthroughandtowhichbanksuchremittancehasbeeneffected.

Page 47

 SUBSRCIPTIONBYANDREFUNDTONONRESIDENTBANGLADESHI(NRB)

1.ANonResidentBangladeshishallapplyeitherdirectlybyenclosingaforeigndemanddraftdrawnon a bank payable at Dhaka, or through a nominee by paying out of foreign currency deposit account maintained in Bangladesh or in Taka, supported by foreign currency encashment certificate issued by the concerned bank, for the value of securities applied for through crossed bank cheque marking AccountPayeeonly.

2. The value of securities applied for by such person may be paid in Taka or US dollar or UK pound sterlingorEUROattherateofexchangementionedinthesecuritiesapplicationform.

3.Refundagainstoversubscriptionshallbemadeinthecurrencyinwhichthevalueofsecuritieswas paid for by the applicant through Account Payee bank cheque payable at Dhaka with bank account number,BanksnameandBranchasindicatedinthesecuritiesapplicationform.Iftheapplicantsbank accountsasmentionedintheirIPOApplicationFormsaremaintainedwiththeBankerstotheIssueand otherbanks asmentionedbelow,refundamount ofthoseapplicantswillbedirectly credited into the respectivebankaccountsasmentionedintheirIPOApplicationForms.

AVAILABILITYOFSECURITIES

1. Shares Sl. Particulars No. 10%ofIPOi.e.2,000,000OrdinarySharesshallbereservedforNonResident A B C

Bangladeshis 10%ofIPOi.e.2,000,000OrdinarySharesshallbereservedforMutualfunds AndCollectiveinvestmentschemesregisteredwiththeCommission Theremaining80%ofIPOi.e.16,000,000 OrdinarySharesshallbeopenedfor subscriptionbytheGeneralPublic

Numberof Shares 2,000,000 2,000,000 16,000,000 20,000,000

AmountinTk. 50,000,000.00 50,000,000.00 400,000,000.00 500,000,000.00

Total

2. Allsharesasstatedinclause1.A,1.Band1.Cshallbeofferedforsubscriptionandsubsequent allotmentbytheissuer,subjecttoanyrestriction,whichmaybeimposed,fromtimetotime,by theSecuritiesandExchangeCommission. 3. Incaseofoversubscriptionunderanyofthecategoriesmentionedin1.A,1.Band1.CtheIssue Manager shall conduct an open lottery of all the applications received under each category separately in accordance with the letter of consent issued by the Securities and Exchange Commission. 4. In case of undersubscription under any of the 10% categories mentioned in 1.A and 1.B, the unsubscribedportionshallbeaddedtothegeneralpubliccategoryand,ifaftersuchaddition, thereisoversubscriptioninthegeneralpubliccategory,theissuerandtheissuemanagershall jointlyconductandopenlotteryofalltheapplicantsaddedtogether. 5. Incaseofundersubscriptionofthepublicoffering,theunsubscribedportionofsecuritiesshall betakenupbytheunderwriter(s).

Page 48

6. Thelotteryasstatedinclause(3)and(4)shallbeconductedinpresenceofrepresentativesfrom theissuer,thestockexchanges,andtheapplicants,iftherebeany. APPLICATIONFORSUBSCRIPTION

1. Application for shares may be made for a minimum lot of 500 units of shares to the value of Tk. 12,500 (Taka twelve thousand five hundred only) and should be made on the companys Printed ApplicationForms.ApplicationFormsandProspectusmaybeobtainedfromtheRegisteredOfficeofthe Company,membersofDhakaStockExchangeLimited,ChittagongStockExchangeLimited,orfromthe Bankers to the issue. In case, adequate Forms are not available, applicants may use photocopied/ cyclostyled/handwritten/typedcopiesoftheForms.Applicationsmustnotbeforlessthan50unitsof share.Anyapplicationnotmeetingthiscriterionwillnotbeconsideredforallotmentpurpose.

2. Joint application form for more than two (2) persons will not be accepted. In the case of joint application,eachpartymustsigntheapplicationform.

3.Applicationmustbeinfullnameofindividuals,orlimitedcompanies,ortrustsorsocieties,andnotin thenameofminorsorpersonsofunsoundmind.Applicationsfromofinsurance,financialandmarket intermediary companies must be accompanied by Memorandum and Articles of Association of that company.

4. An applicant cannot submit more than two applications, one in his/her own name and the other jointlywithanotherperson.Incaseanapplicantmakesmorethantwoapplications,allapplicationswill betreatedasinvalidandwillnotbeconsideredforallotmentpurpose.Inaddition,15%(fifteen)ofthe applicationmoneywillbeforfeitedbytheCommissionandthebalanceamountwillberefundedtothe applicant. 5. The applicants who have applied for more than two applications using same bank account, their applicationwillnotbeconsideredforlotteryandtheCommissionmayforfeitwholeorpartoftheir applicationtoo. 6.AnIPOapplicantshallensurehis/herBOaccountremainsoperationaltilltheprocessofIPO(including securitiesallotmentorrefundofIPOapplication)iscompleted.IfanyBOaccountmentionedintheIPO applicationisfoundclosed,theallottedsecuritymaybeforfeitedbySEC. 7. Bangladeshi Nationals (including nonresident Bangladeshi Nationals working abroad) and foreign nationalsshallbeentitledtoapplyfortheshare.

8.PaymentforsubscriptionbyinvestorsotherthanNonResidentBangladeshimaybemadetothesaid branches/offices of the banks mentioned in the application forms in Cash/Cheque/Pay Order/Bank Draft. The Cheque/ Pay Order/ Bank Draft shall be made payable to the bank to which it is sent, be marked GSP Finance Company (Bangladesh) Limited shall bear the crossing A/C Payee Only and mustbedrawnonabankinthesametownofthebanktowhichapplicationformisdeposited.

Page 49

9. All completed application forms together with remittances for the full amount, payable on application,shallbelodgedbyinvestorsotherthanNonResidentBangladeshiswithanyofthebranches oftheBankerstotheIssue.

10.ANonResidentBangladeshi(NRB)shallapplyagainstthePublicOffereitherdirectlybyenclosinga foreigndemanddraft,drawnonabankpayableatDhaka,orthroughanominee(includingaBankora Company)bypayingoutofforeigncurrencydepositaccountmaintainedinBangladesh,forthevalueof securitiesappliedfor.

ThevalueofsecuritiesappliedformaybepaidinTaka,USDollars,GreatBritainPoundsorEuroDollars at the spot buying (TT Clean) rate of exchange prevailing the date of opening of subscription. Refund againstoversubscriptionofsharesshallbemadeinthecurrency,inwhichthevalueofshares,applied for,waspaidbytheapplicant.SharesapplicationformagainstthequotaforNRBshallbesentbythe applicantdirectlyalongwithabankdraftorchequetothecompanyatitsregisteredoffice.Copiesof application form and prospectus shall be available with the Bangladesh Embassy/High Commission in USA, UK, Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain, Malaysia, and South Korea and on the websiteoftheSEC,IssuerCompany,IssueManager,DSEandCSE.

11.TheIPOsubscriptionmoneycollectedfrominvestors(otherthannonresidentBangladeshis)bythe Bankers to the Issue will be remitted to the GSP Finance Company (Bangladesh) Limited (IPO) SND AccountNo.00120320000991ofMutualTrustBankLimited,DilkushaBranchforthispurpose.

12. The subscription money collected from NonResident Bangladeshis in US Dollars or Great Britain PoundsorEuroDollarsshallbedepositedtothreeFCaccountsopenedbytheCompanyforIPOpurpose asfollows:

Sl. NameoftheFCAccounts 1. GSPFinanceCompany

(Bangladesh)Limited

Currency USDollar Euro GBP

2. 3.

GSPFinanceCompany (Bangladesh)Limited GSPFinanceCompany (Bangladesh)Limited

AccountNo. Bank&Branch 0012 MutualTrustBankLimited 0260001005 0012 MutualTrustBankLimited 0260001014 0012 MutualTrustBankLimited 0260001023

13. In the case of oversubscription of securities to the NRB applicants, refund shall be made by GSP FinanceoutoftheFCAccountforIPONRBSubscription.GSPFinanceCompany(Bangladesh)Limited has already opened the aforesaid FC Accounts and shall close these accounts after refund of oversubscription,ifany.

APPLICATIONS NOT IN CONFORMITY WITH THE ABOVE REQUIREMENTS AND THE INSTRUCTIONS PRINTEDONTHEAPPLICANTFORMARELIABLETOBEREJECTED.

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UNDERWRITERITINGOFSHARES

TheInitialPublicOffering(IPO)isfor20,000,000ordinarysharesTk.25eachincludingapremiumofTk. 15.00 per share totaling to Tk. 500,000,000.00 of GSP Finance Company (Bangladesh) Limited. As per guidelineoftheSecuritiesandExchangeCommission,50%oftheIPOamounti.e.10,000,000ordinary shares of Tk. 25.00 each amounting to Tk. 250,000,000.00 has been underwritten by the following underwriters:

Sl. No. 01. 02. 03. 04. 05. 06

NameandAddressoftheunderwriters IDLCInvestmentLtd. ICBCapitalManagementLtd. LankaBanglaFinanceLtd. MTBCapitalLimited CityBankCapitalResourcesLimited SonaliInvestmentLtd. Total

NumberofShares Underwritten 1,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 10,000,000

AmountinTk. 25,000,000.00 125,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 250,000,000.00

PrincipalTermsandConditionsofUnderwritingAgreements

1.IfandtotheextendthatthesharesofferedtothepublicbyaProspectusauthorizedhereundershall nothavebeensubscribedandpaidforincashinfullbytheclosingdate,theCompanyshallwithin10 (Ten)daysoftheclosureofsubscriptioncallupontheunderwriterinwritingwithacopyofsaidwriting totheSecuritiesandExchangeCommission,tosubscribeforthesharesunsubscribedbytheclosingdate and to pay for in cash in full for such unsubscribed shares within 15(Fifteen) days of the date of said notice and the said amount shall have to be credited into shares subscription account within the said period.

2.IfpaymentismadebyCheque/BankDraftbytheunderwriteritwillbedeemedthattheunderwriter hasnotfulfilledhisobligationtowardshisunderwritingcommitmentundertheAgreement,untilsuch timeastheCheque/BankDrafthasbeenencashedandtheCompanysaccounthasbeencredited.

3.Inanycasewithin7(Seven)daysaftertheexpiryoftheaforesaid15(Fifteen)days,theCompanyshall sendproofofsubscriptionandDepositofMoneybytheunderwritertotheCommission.

4.Inthecaseoffailurebytheunderwritertopayforthesharesunderthetermsmentionedabove,the saidUnderwriterwillnotbeeligibletounderwriteanyissue,untilsuchtimeashefulfilshisunderwriting commitmentundertheAgreementandalsootherpenaltiesasmaybedeterminedbytheCommission maybeimposedonhim.

5. In case of failure by any underwriter to pay for the shares within the stipulated time, the Company/IssuerwillbeundernoobligationtopayanyunderwritingcommissionundertheAgreement.

6.IncaseoffailurebytheCompanytocallupontheunderwriterfortheaforementionedpurposewithin thestipulatedtime,theCompanyanditsDirectorsshallindividuallyandcollectivelybeheldresponsible fortheconsequenceand/orpenaltiesasdeterminedbytheSecuritiesandExchangeCommissionunder thelawmaybeimposedonthem.

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CommissionfortheUnderwriters

Thecompanyshallpaytotheunderwriteranunderwritingcommissionattherateof0.50%oftheIPO amountoftheissuevalueofsharesunderwrittenbythemoutofthePublicIssue.

RightofUnderwritersonCompanysBoard

UnderwritershavenotacquiredanyrighttohavetheirrepresentativesintheBoardofDirectorsofthe Company.

Allotment

The company reserves the right of accepting any application, either in whole, or in part, successful applicants will be notified by the dispatch on an allotment letter by registered post/courier. Letter of allotmentandrefundwarrantswillbeissuedwithin5(five)weeksfromtheclosingofthesubscription list. After allotment the company will have to transfer the shares to the allotees Beneficiary Owners (BO)account,whichhasbeenmentionedintheapplicationform. The company shall issue share allotment letter to all successful applicants, within 5(five) weeks, from the date of the subscription closing date. At the same time, the unsuccessful application shall be refundedwiththeapplicationmoneywithin5(five)weeksfromtheclosingofthesubscriptiondate,by AccountPayeeCheque,withoutinterestpayableatDhaka/Chittagong/Khulna/Rajshahi/Barisal/Sylhetas thecasemaybe. Whereallotmentismade,inwholeorinpartinrespectofjointapplication,theallotmentletterwillbe dispatched to the person whose name appears first in the application form notwithstanding that the shareshavebeenallottedtothejointapplicants.Wherejointapplicantisacceptedinpart,thebalance of any amount paid on application will be refunded without interest to the person named first in the applicationform.

MaterialContracts

a. b. c. d.

UnderwritingAgreementsbetweentheCompanyandtheUnderwriters. IssueManagementAgreementbetweentheCompanyandICBCapitalManagementLimited. ContractbetweenthecompanyandtheCentralDepositoryBangladeshLtd.(CDBL). Credit Rating Agreement between the Company and Credit Rating Agency of Bangladesh Ltd. (CRAB)

Copies of the aforementioned contracts and documents and a copy of Memorandum and Articles of AssociationoftheCompanyandtheConsentOrderfromtheSecuritiesandExchangeCommissionmay beinspectedonanyworkingdayduringofficehoursattheCompanysRegisteredOffice.

Manager(s)totheIssue

ICBCapitalManagementLimitedistheManagertotheIssue.TheIssueManagerwillgetTk. 12,00,000.00asissuemanagementfee.

CommissiontotheBankertotheIssue

Commissionattherateof0.1%oftheamountcollectedwillbepaidtotheBankerstotheIssueforthe servicestoberenderedbythem.

Page 52

CorporateDirectory

RegisteredOffice: Auditors:

Banker

ManagertotheIssue NameandAddressoftheLawyer:

1,Paribagh,MymensinghRoad,Ramna,Dhaka1000. M/SKaziZahirKhan&Co. CharteredAccountants 67/4,Kakrail(G&3rdFloor) Dhaka1000 ABBankLtd. BasicbankLtd. CommercialBankofCeylonPlc DutchBanglaBankLimited EximbankLimited IslamiBankLimited MercantileBankLimited MutualTrustBankLimited NationalBankLimited PrimeBankLimited PubaliBankLimited ShahjalalIslamiBankLimited SocialInvestmentBankLimited SoutheastBankLimited StandardBankLimited StandardCharteredBankLimited TheCityBankLtd. UttaraBanklimited TrustBankLimited UnitedCommercialBankLtd. ICBCapitalManagementLtd. BDBLBhaban(Level16),8,DITAvenue,Dhaka1000. Chowdurys&Hyders Barristers,AdvocatesandConsultants Room#4/L,MeherbaPlaza(4thfloor), 33 Topkhana Road, Dhaka- 1000

AllinvestorsareherebyinformedbytheCompanythattheCompanySecretarywouldbedesignatedas compliance officer who will monitor the compliance of the Acts, and rules, regulations, notification, guidelines, conditions, orders/directions etc. issued by the Commission and/or stock exchange(s) applicabletotheconductofthebusinessactivitiesoftheCompanysoastopromotetheinterestofthe investorsinthesecurityissuedbytheCompany,andforredressalofinvestorsgrievances.

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BANKERS TO THE ISSUE

InvestmentCorporationofBangladesh(ICB) NSCTower,PuranaPaltan,Dhaka. ChittagongBranch,Chittagong. RajshahiBranch,Rajshahi. KhulnaBranch,Khulna. BarisalBranch,Barisal. SylhetBranch,Sylhet. BograBranch,Bogra. LocalOffice,KashfiaPlaza,Nayapaltan,Dhaka.

IslamiBankBangladeshLimited LocalOffice,Dhaka(ControllingBranch) BarisalBranch,Barisal. CoxsBazarBranch,CoxsBazar. ForeignEx.Br.,Dhaka. KhatungonjBranch,Chittagong. MotijheelBranch,Dhaka. RajshahiBranch,Rajshahi. SylhetBranch,Sylhet. AgrabadBranch,Chittagong. BograBranch,Bogra. FarmgateBranch,Dhaka. GulshanBr.,Gulshan,Dhaka. KhulnaBranch,Khulna. NawabpurBranch,Dhaka. SadarghatBranch,Dhaka. MymensinghBranch,Mymensingh.

TrustBankLimited. PrincipalBranch,Dhaka. DilkushaCorporateBranch,Dhaka KafrulBranch,Dhaka RadissonWaterGardenBranch,Dhaka MirpurBranch,Dhaka KarwanBazarBranch,Dhaka UttaraCorporateBranch,Dhaka NarayangonjBranch,Narayangonj ElephantRoadbranch,Dhaka DhanmondiBranch,Dhaka NarsingdiBranch,Narsingdi Tongibranch,Gazipur JoydebpurBranch,Gazipur AshuliaBranch,Dhaka MymensinghCantt.Branch,Mymensingh. SavarCantt.Branch,Dhaka. S.SCantt.Branch,Ghatail,Tangail HalishaharBranch,Chittagong KadamtoliBranch,Chittagong ComillaCantt.Branch,Comilla FeniBranch,Feni ChowmohoniBranch,Noakhali ComillaBranch,Comilla AshugonjBranch,B.Baria KhulnaBranch,Khulna JalalabadCantt.Branch,Sylhet RangpurCantt.Branch,Rangpur BograCantt.Branch,Bogra
KhawjaYounusAliMedicalCollege&HospitalBranch,Sirajgonj

JessoreCantt.Branch,Jessore ShahjalalUposhaharBranch,Sylhet RajshahiBranch,Rajshahi BarisalBranch,Barisal

ShahjalalIslamiBankLimited DhakaMainBr.,Dilkusha,Dhaka. MitfordBr.,MitfordRoad,Dhaka. DhanmondiBr.,Dhaka. GulshanSouthAvenueBr.,Gulshan,Dhaka. AgrabadBranch,Chittagong. SylhetBranch,Sylhet. KhatungonjBranch,Chittagong. GulshanBr.,Gulshan,Dhaka. KawranBazarBr.,Dhaka. SatmasjidRoadBr.,Dhanmondi,Dhaka. EskatonBranch,dhaka BananiBr.,Banani,Dhaka. MotijheelBr.,Motijheel,Dhaka. BijoynagarBr.,Kakrail,Dhaka. UttaraBr.,Uttara,Dhaka. ForeignEx.Br.,Motijheel,Dhaka.

DutchBanglaBankLtd. BaburHatBranch,Narsingdi. NarayangongBranch,Narayangonj. B.B.RoadBranch,Narayangonj. PatherhatBranch,Chittagong. HathazariBranch,Chittagong. DaniaBranch,Shyampur,Dhaka. KhulanBranch,Khulan. SylhetBranch,Sylhet. DhakaEPZBranch,Savar,Dhaka. BoardBazarBranch,Gazipur. NetiagongBranch,Narayanganj. BograBranch,RazaBazar,Bogra. BarisalBranch,Alekanda,Barisal. SimrailBarnch,Narayanganj. CDAAvenueBranch,Chittagong. JoyparaBranch,Dohar,Dhaka. BiswanathBranch,Sylhet. MouliviBazarBranch,MoulaviBazar. MuradpurBranch,Chittagong. GolapgonjBranch,Pulbari,Sylhet. RajshahiBranch,Rajshahi. SavarBazarBranch,Savar,Dhaka. GazipurChowrastaBranch,Gazipur.

FeniBranch,Feni. ComillaBranch,Comilla. JubileeRoadBranch,Chittagong. KadamtoliBranch,Chittagong. MirzapurBranch,Tangail. CoxsBazarBranch,CoxsBazar. LohagaraBranch,Chittagong. ManikgonjBranch,Manikgonj. FatikchariBranch,Chittagong. KonabariBranch,Gazipur. ChowmuhaniBranch,Noakhali. SonagaziBranch,Sonagazi,Feni. GoalaBazarBranch,Sylhet. KhatungonjBranch,Chittagong. MymensinghBranch,Mymensing. ShahjadpurBranch,Sirajganj. BeaniBazarBranch,BeaniBazar,Sylhet. ChattakBranch,Chhatak,Sunamganj. BanduraBranch,Nawabganj,Dhaka. SaidpurBranch,Nilphamary. RangpurBranch,Rangpur. JessoreBranch,Jessore. HalishaharBranch,Chittagong. BasurhatBranch,Noakhali. SreemongalBranch,Moulivibazar. KushtiaBranch,Kushtia. PabnaBranch,Pabna. NarsingdiBranch,NarsingdiBazar,Narsingdi. SatmosjidRoadBranch,Dhaka. DinajpurBranch,Dinajpur. BhairabBranch,Kishorgonj. DagonbhuiyanBranch,Feni. GobindaganjBranch,Gaibandha. BhultaBranch,Narayangonj. BSCICBranch,Narayangonj. TongiBranch,Tongi,Gazipur. SatkhiraBranch,Satkhira. MadaripurBranch,Madaripur. MunshiganjBranch,Munshiganj. HabigangBranch,Haboganj. ChittagangEPZBranch,Chittagong. FaridpurBranch,ChawkBazar,Faridpur. ShahajalalUposhohorBr.,Sylhet. TangailBranch,Tangail. ONEBankLimited PrincipalBranch,Dhaka. MotijheelBranch,Dhaka. KarwanBazarBranch,Dhaka. GulshanBranch,Dhaka. MirpurBranch,Dhaka. UttaraBranch,Dhaka. DhanmondiBranch,Dhaka. BananiBranch,Dhaka. KakrailBranch,Dhaka. ProgotiSaraniBranch,Dhaka. ElephantRoadBr.,Dhaka. JatrabariBranch,Dhaka. NawabgonjBranch,Dhaka. BangshalBranch,Dhaka. Ganakbari(EPZ)Branch,Dhaka. ImamganjBranch,Dhaka. NarayanganjBranch,Narayanganj. JoyparaBranch,Dhaka. AgrabadBranch,Chittagong. KhatungonjBranch,Chittagong. CDAAvenueBranch,Chittagong. NanupurbazarBranch,Chittagong. CoxsBazarBr,Chittagong. JubileeRoadBr,Chittagong. ChowmuhaniBranch,Noakhali. ChandragonjBranch,Lakshmipur. FeniBranch,Feni. RaipurBranch,Lakshmipur. DagonBhuiyanBranch,Feni. SylhetBranch,Sylhet. SherpurBranch,MoulviBazar. IslampurBranch,Sylhet. JessoreBranch,Jessore. BograBranch,Bogra. SerajgonjBranch,SerajgonjSadar. LakshamBranch,Laksham. RamgonjBranch,Lakshmipur. MaijdeeCourtBranch,Noakhali. BanashriBranch,Dhaka. RajshahiBranch,Dhaka. ShahjadpurBranch,Sirajgonj. JagannathpurBranch,Nadda,Dhaka. TongiBranch,Gazipur. ComillaBranch,Comilla. BasaboBranch,Sabujbag,Dhaka. SatkhiraBranch,Satkhira MadhabdiBranch,Narsindi RangamatiBranch,Rangamati SitakundaBranch,Chittagong MoghbazarBranch,Dhaka

IFICBankLimited FederationBranch,Dhaka. DhanmondiBranch,Dhaka. MoakhaliBranch,Dhaka. BananiBranch,Dhaka. ShantinagarBranch,Dhaka. ElephantRoadBranch,Dhaka.

IslampurBranch,Dhaka. KawranBazarBranch,Dhaka NayaPaltanBranch,Dhaka. UttaraBranch,Dhaka. MalibaghBranch,Dhaka. PallabiBranch,Dhaka. LalmatiaBranch,Dhaka. NarsingdiBranch,Narsingdi NorthBrookHallRoadBr.,Dhaka. NarayangonjBranch,Narayangonj. FaridpurBranch,Faridpur. MymensinghBranch,Mymensingh. StockExchangeBr.,Motijheel,Dhaka. PragatiSaraniBr.,UttarBadda,Dhaka. MirpurBranch,Dhaka. AgrabadBranch,Chittagong. CDAAvenueBranch,Chittagong. MadamBibirHatBr.,Shitakundo, Chittagong. CoxsBazarBranch,CoxsBazar Sk.MujibRd.Br.,Chittagong ComillaBranch,Comilla B.bariaBranch,Brahmanbaria. ChoumuhaniBr.,Noakhali FeniBranch,Feni. AlankerMoreBranch,Chittagong RajshahiBranch,Rajshahi RangpurBranch,Rangpur BograBranch,Bogra PabnaBranch,Pabna DinajpurBranch,Dinajpur KhulnaBranch,Khulna. BoroBazarBr.,Kalibari,Khulna JessoreBranch,Jessore KushtiaBranch,Kushtia BarisalBranch,Barisal SylhetBranch,Sylhet MoulviBazarBranch,MoulviBazar. UposhohorBranch,Sylhet. TultikarBranch,Sylhet. EasternBankLimited PrincipalBranch,Dilkusha,Dhaka. MotijheelBranch,Dhaka. MirpurBranch,Dhaka. BashundharaBranch,Dhaka. ShamolyBranch,Dhaka. NarayangonjBranch,Dhaka. JessoreBranch,Dhaka. ChoumuhoniBranch,Dhaka. AgrabadBranch,Chittagong. KhatungonjBranch,Chittagong. BograBranch,Bogra. KhulnaBranch,Khulna. RajshahiBranch,Rajshahi. SavarBranch,Savar. MoulvibazarBranch,Sylhet. NationalBankLimited AgrabadBranch,Chittagong. AnderkillahBranch,Chittagong. BangshalRoadBranch,Dhaka. BananiBranch,Dhaka. BabubazarBranch,Dhaka. BograBranch,Bogra BarisalBranch,Barisal ElephantRoadBranch,Dhaka. ForeignExchangeBr,Dhaka. GulshanBranch,Dhaka. ImamgonjBranch,Dhaka. IslampurBranch,Dhaka. JatrabariBranch,Dhaka. KawranbazarBranch,Dhaka. KhulnaBranch,Khulna. SylhetBranch,Sylhet FeniBranch,Feni. Sk.MujibRd.Br.,Chittagong Z.H.SikderM.C.Branch,Dhaka. MalibagBranch,Dhaka. KhatungonjBranch,Chittagong. LakeCircusBranch,Dhaka. TongiBranch,Gazipur RiflesSquareBranch,Dhaka. PaglaBazarBranch,Narayangonj. CDAAvenueBranch,Chittagong. MuradpurBranch,Chittagonj. GazipurBranch,Gazipur. SunamgonjBranch,Sunamgonj. MirpurBranch,Dhaka. MohakhaliBranch,Dhaka. MohammadpurBranch,Dhaka. MotijheelBranch,Dhaka. DhanmondiBranch,Dhaka. DilkushaBranch,Dhaka. NewEskatonBranch,Dhaka. NorthBrookeHallBranch,Dhaka. PragatiSaraniBranch,Dhaka. RokeyaSaraniBranch,Dhaka. SavarBazarBranch,Savar. UttaraBranch,Dhaka. ChawkbazarBranch,Chittagong. ChoumuhaniBr.,Noakhali. PahartoliBranch,Chittagonj

HalishaharBranch,Chittagonj. JubilleRoad,Branch,Chittagonj. TangailBrahch,Tangail. ComillaBranch,Comilla RangpurBranch,Rangpur RajshahiBranch,Rajshahi NarayangonjBranch,Narayangonj. NetaigonjBranch,Narayangonj. NarsingdiBranch,Narsingdi. FaridpurBranch,Faridpur. MoulviBazarBranch,MoulviBazar. MymensinghBranch,Mymensingh. BanduraBranch,Dhaka. MercantileBankLtd. MainBranch,Dilkusha,Dhaka. DhanmondiBr,Dhaka KawranbazarBr,Dhaka AgrabadBr,Ctg BananiBr,Dhaka RajshahiBr,Rajshahi NaogaonBr,Naogoan SylhetBr,Sylhet BoardBazarBr,Gazipur NayabazarBr,Dhaka KhatunganjBr,Ctg MohakhaliBr,Dhaka MirpurBranch,Dhaka UttaraBranch,Dhaka JubileeRdBr,Ctg ElephantRdBr,Dhaka MotijheelBr,Dhaka MadamBibirHatBr,Ctg KhulnaBranch,Khulna RangpurBr,Rangpur SatmasjidBr,Dhaka ORNazimRdBr,Ctg BograBranch,Bogra GulshanBr,Dhaka FeniBranch,Feni MoulvibazarBr,M.Bazar BijoynagarBr,Dhaka MoghbazarBr,Dhaka BeaniBazarBranch,Dhaka. BarisalBr,Barisal ComillaBr,Comilla GreeenRdBr,Dhaka SheikhMujibRdBr,Ctg Eng.Inst.Br,Dhaka MazarRoadBr,Dhaka DinajpurBr,Dinajpur. JessoreBr,Jessore ProgatiSaraniBr,Dhaka ChittagongEPZBr,Ctg NarayangonjBr,Narayangonj. NCCBankLimited MotijheelBranch,Dhaka. DilkushaBranch,Dhaka KarwanBazarBranch,Dhaka. MirpurBranch,Dhaka. DhanmondiBranch,Dhaka. MitfordBr.,MitfordRoad,Dhaka. NawabpurRoadBranch,Dhaka KamalBazarBranch,Chittagong. MalibaghBranch,Dhaka. UttaraBranch,Dhaka. MoghbazarBranch,Dhaka. BabubazarBranch,Dhaka. BangshalRoadBranch,Dhaka. ElephantRoadBranch,Dhaka. PragatiSaraniBranch,Dhaka. JatrabariBranch,Dhaka. GulshanBranch,Dhaka. ShyamoliBranch,MirpurRoad,Dhaka. BananiBranch,Dhaka. BijoynagarBr.,Kakrail,Dhaka. SavarBranch,Savar. IslampurBranch,Dhaka. JoydevpurBranch,Gazipur. MadaripurBranch,Madaripur. TangailBrahch,Tangail. AgrabadBranch,Chittagong. KhatungonjBranch,Chittagong. O.R.NizamRoadBranch,Chittagong. JubileeRoadBr,Chittagong. CoxsBazarBranch,CoxsBazar. CEPZBranch,Chittagong. AnderkillaBranch,Chittagong. NarayangonjBranch,Narayangonj. MadamBibirhatBranch,Chittagong. HalishaharBranch,Chittagong KadamtoliBranch,Chittagong MajhirghatBranch,Chittagong. FeniBranch,Feni. LaxmipurBrnach,Laxmipur. ChowmohoniBranch,Noakhali ComillaBranch,Comilla LaldighirparBranch,Sylhet. MymensinghBranch,Mymensingh. CyagalnaiyaBranch,Feni. ChowhattaBranch,Sylhet. MoulviBazarBranch,MoulviBazar. RangpurBranch,Rangpur

RajshahiBranch,Rajshahi BograBranch,Bogra. NaogaonBranch,Naogaon. KhulanBranch,Khulan. JessoreBranch,Jessore. MadunaghatBranch,Chittagong. MutualTrustBankLtd. BabuBazarBranch,Dhaka. BananiBranch,Dhaka. DhanmondiBranch,Dhaka. DholaikhalBranch,Dhaka. DilkushaBranch,Dhaka. ElephantRoadBranch,Dhaka. FulbariaBranch,Dhaka. GulshanBranch,Dhaka. MohammadpurBranch,Dhaka. MTBCorporateCenterBranch,Dhaka. PallabiBranch,Dhaka. PanthapathBranch,Dhaka. PrincipalBranch,Dhaka. ProgatiSaraniBranch,Dhaka. SavarBranch,Dhaka. ShanirAkhraBranch,Dhaka. TongiBranch,Dhaka. UttaraModelTownBranch,Dhaka. NarayanganjBranch.Narayanganj SonargaonBranch.Narayanganj AgrabadBranch,Chittagong. AlankarMourBranch,Chittagong. CDAAvenueBranch,Chittagong. JubileeRoadBranch,Chittagong. KhatungonjBranch,Chittagong. FeniBranch,Feni. RajshahiBranch,Rajshahi. RangpurBranch,Rangpur. BograBranch,Bogra. PabnaBranch,Pabna. KushtiaBranch,Kushtia. SylhetBranch,Sylhet. MoulviBazarBranch,Sylhet. GournadiBranch,Barisal. JessoreBranch,Jessore. HobiGonjBranch,HobiGonj. TheCityBankLtd. B.B.AvenueBranch,Dhaka. DhakaChamberBranch,Dhaka. DhanmondiBranch,Dhaka. ShaymoliBranch,Dhaka. ImamagonjBranch,Dhaka. JohnsonRoadBranch,Dhaka. KawranbazarBranch,Dhaka. NewMarketBranch,Dhaka. VIPRoadBranch,Dhaka. IslampurBranch,Dhaka. NawabgonjBranch,Dhaka NawabpurBranch,Dhaka. PragatiSaraniBr.,Dhaka. TanbazarBranch,Narayangonj. ZinziraBr.,Dhaka. TongiBranch,Gazipur. AgrabadBranch,Chittagong. JubileeRoadBranch,Chittagong. KhatungonjBranch,Chittagong. AndarkillaBr.,Chittagong. CoxsBazarBr.,Chittagong. ChawkbazarBr.,Chittagong. PahartoliBr.,Chittagong. ComillaBranch,Comilla. NarsingdiBr.,Narsingdi. ZindaBazarBranch,Sylhet. BandarBazarBranch,Sylhet. AmborkhanaBr.,Sylhet. MoulviBazarBr.,Sylhet. RajshahiBranch,Rajshahi. BograBranch,Bogra. RangpurBr.,Rangpur. SirajgonjBr.,Sirajgonj. KhulnaBranch,Khulna. JessoreBr.,Jessore. BarisalBranch,Barisal. BasicBankLimited BarisalBranch,Barishal BograBranch,Bogra ChowmuhanaBranch,Moulvibazar ComillaBranch,Comilla DewanhatBranch,Chittagong DhanmondoBranch,Dhanmondi GazipurChowrastaBranch,Gazipur JessoreBranch,Jessore KhatungonjBranch,Chittagong. KhulnaBranch,Khulna. MirpurBranch,Dhaka. NarsingdiBranch,Narshingdi. RajshahiBranch,Rajshahi. RangpurBranch,Rangpur. SaidpurBranch,Nilphamari. SavarBranch,Savar SatinagarBranch,Dhaka SirajgonjBranch,Sirajgonj UttaraBranch,Dhaka ZindabazarBranch,Sylhet

Page 54

REVISEDAUDITORSREPORT TOTHESHAREHOLDERS OF GSPFinanceCompany(Bangladesh)Limited WehaveauditedtheaccompanyingBalanceSheetofGSPFinanceCompany(Bangladesh)Limitedasat December31,2010andtherelatedIncomeStatementandCashFlowStatementfortheyearended.The preparation of these financial statements is the responsibility of the companys management. Our responsibilityistoexpressanindependentopiniononthesefinancialstatementsbasedonouraudit. Scope: WeconductedourauditinaccordancewithBangladeshStandardsonAuditing(BSA).ThoseStandards requirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingthe accounting principles used and significant estimates made by management, as well as evaluating the overallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforour opinion. Opinion: In our opinion, the financial statements along with notes thereon, prepared in accordance with BangladeshAccountingStandards(BAS),giveatrueandfairviewofthestateoftheCompanysaffairsas atDecember31,2010andoftheresultsofitsoperationsanditscashflowsfortheyearthenendedand comply with the Companies Act. 1994, Financial Institutions Act. 1993, the Securities and Exchange Rules 1987 and other applicable laws and regulations as well as practice followed by Financial Institutions. Wealsoreportthat: (i) wehaveobtainedalltheinformationandexplanationswhichtothebestofourknowledgeand beliefwerenecessaryforthepurposesofourauditandmadedueverificationthereof; (ii) inouropinion,properbooksofaccountsasrequiredbylawhavebeenkeptbytheCompanyso far as it appeared from our examination of those books and proper returns adequate for the purposeofouraudit; (iii) theCompanysBalanceSheetandIncomeStatementdealtwithbythereportareinagreement withthebooksofaccountandreturns; (iv) theexpenditureincurredwasforthepurposeoftheCompanysoperations;

Page 55

 (v)

thefinancialpositionoftheCompanyatDecember31,2010andtheincomefortheyearthen ended have been properly reflected in the financial statements and the financial statements havebeenpreparedinaccordancewiththegenerallyacceptedaccountingprinciples; thefinancialstatementshavebeendrawnupinconformitywiththerulesandregulationsissued byBangladeshBanktotheextentapplicabletotheCompany; adequate provisions have been made for advances, which are, in our opinion, doubtful of recovery; thefinancialstatementsconformtotheprescribedstandardssetintheaccountingregulations issued by the Bangladesh Bank after consultation with the professional accounting bodies of Bangladesh; theinformationandexplanationsrequiredbyushavebeenreceivedandfoundsatisfactory. This Balance Sheet of 2010 has been revised by transferring the amount of Bonus Share provisionfortheyearended2009forTk.2,15,98,500/totheRetainedEarningsBalanceforthe year ended 2010 in compliance with SECs letter no. SEC/CI/IPO38/2004/451 dated June 27,2011andasperBoardresolutionofGSPFinanceCompany(Bangladesh)LimiteddatedJune 27,2011.

(vi) (vii) (viii)

(ix) (x)

Sd/ Dated,Dhaka KaziZahirKhan&Co. June28,2011 CharteredAccountants

Page 56

GSP FINANCE COMPANY (BANGLADESH) LIMITED REVISED BALANCE SHEET AS AT DECEMBER 31, 2010 Notes PROPERTY AND ASSETS Cash In hand (including foreign currencies) Balance with Bangladesh Bank and its agents bank(s) (including foreign currencies ) Balance with banks and others financial institutions In Bangladesh Outside Bangladesh Money at call and short notice Investments Governments Others 5 4 14,106,320 549,433 13,556,887 61,646,706 61,646,706 120,000,000 125,450,952 125,450,952 1,629,115,736 1,629,115,736 314,577,754 654,343,825 2,919,241,293 9,038,602 2,396,346 6,642,256 91,860,772 91,860,772 46,924,617 46,924,617 1,883,036,937 1,883,036,937 320,150,147 478,697,663 2,829,708,738 Amount in Taka 2010 2009

6 7

Leases , loans and advances Bills Purchased and discounted Fixed assets including premises, furniture and fixtures Other assets Non-business assets Total assets LIABILITIES AND CAPITAL Liabilities
Borrowings from banks ,other financial institutions and agents:

8 9 10 11 12

13

1,206,189,666

1,199,927,655

Deposits and other accounts Current deposits Bills payable Savings deposits Term deposits Bearer certificate of deposit Other deposits Other liabilities

14

619,890,700 619,890,700 385,166,975

678,886,996 678,886,996 318,603,164

15

Total Liabilities

2,211,247,341

2,197,417,815

Capital / Shareholders' Equity Paid up capital Statutory reserve Other reserve Retained earnings: Proposed bonus share for the year 2010 Retained earnings balance Total liabilities and Shareholders' equity

16 17 18 19

707,993,952 215,985,000 158,304,253 251,402,124 60,475,800 21,826,775 2,919,241,293

632,290,923 215,985,000 143,163,647 251,402,124 21,740,152 2,829,708,738

Page 57

Amount in Taka 2010 2009 OFF-BALANCE SHEET ITEMS : Contingent liabilities Acceptances and endorsements Letter of guarantee Irrevocable letter of credit Bills for collection Other contingent liabilities 19.1 50,000,000 50,000,000 50,000,000 50,000,000

Other commitments 19.2 Documentary credits and short term trade and related transactions Forward assets purchased and forward deposits placed Undrawn note issuance and revolving underwriting facilities Undrawn formal standby facilities, credit lines and other commitments Others Total off-balance sheet items including contingent liabilities

The accompanying notes form an integral part of these financial statements.

Sd/Company Secretary

Sd/Director

Sd/Managing Director

Signed as per our annexed report of even date

Dated, Dhaka June 28, 2011

Sd/Kazi Zahir Khan & Co. Chartered Accountants

Page 58

GSP FINANCE COMPANY (BANGLADESH) LIMITED REVISED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31,2010 Amounts in Taka 2010 Notes Interest income from leases,loans and advances Interest expenses on borrowings, deposits,etc Net interest income Investment income Commission , exchange and brokerage Other operating income Total operating income Salary and allowances Rent, taxes,insurance,electricity,etc. Legal expenses Postage,stamp,telecommunication,etc. Stationery,printing,advertisements,etc. Managing Director's salary and allowances Dirctors' fees Audit fees Charges on loan losses Depreciation and repairs of company's assets Other operating expenses Total operating expenses Profit before provision Provision for leases,loans and advances Other provision Total provision Total profit before income tax Provision for income tax Net profit after income tax Retained earnings brought forward from previous year Appropriations: Statutory reserve Bonus share issued Retained earnings carried to the balance sheet Earning per share (EPS) 36 21 22 23 24 25 26 27 28 29 30 31 32 33 34 247,054,078 (232,218,143) 14,835,935 106,540,772 16,067,340 137,444,047 7,776,593 588,183 159,850 427,488 923,345 2,626,000 290,000 75,000 6,410,448 9,859,266 29,136,173 108,307,874 (23,349,567) (23,349,567) 131,657,441 55,954,412 75,703,029 21,740,152 97,443,181 17 37 19 38 15,140,606 15,140,606 82,302,575 35.05 322,262,277 (210,614,456) 111,647,821 21,601,834 26,731,560 159,981,215 9,443,440 822,205 387,000 583,247 1,114,718 1,910,000 240,000 75,000 7,857,827 12,724,586 35,158,022 124,823,193 77,912,658 77,912,658 46,910,535 19,936,977 26,973,558 10,446,306 37,419,864 5,394,712 10,285,000 15,679,712 21,740,152 12.49 2009

35

The accompanying notes form an integral part of these financial statements

Sd/Company Secretary

Sd/Director

Sd/Managing Director Signed as per our annexed report of even date

Dated,Dhaka June 28, 2011

Sd/Kazi Zahir Khan & Co. Chartered Accountants

Page 59

GSP FINANCE COMPANY (BANGLADESH) LIMITED REVISED PROFIT AND LOSS ACCOUNT (Merchant Banking) FOR THE YEAR ENDED DECEMBER 31,2010 Amounts in Taka 2010 Notes Operational Revenue Profit on sale of share Dividend income from share investment Underwriting commission Portfolio management income Total Operational Expenses General & administrative expenses Provision for investment in share 40,312,927 4,773,120 75,000 66,862,755 112,023,801 9,760,157 843,760 150,000 13,200,483 23,954,400 2009

20.3 15.3

3,003,659 2,479,371 5,483,030 106,540,772

5,763,482 (3,410,916) 2,352,566 21,601,834

Profit transferred to profit and loss account

23

GSP Finance Company (Bangladesh) Limited has been issued with a separate Merchant Banking license on August 24,1999 by Securities and Exchange Commission to do all types of Merchant Banking Activities.

The accompanying notes form an integral part of these financial statements.

Sd/Company Secretary

Sd/Director

Sd/Managing Director

Signed as per our annexed report of even date

Dated, Dhaka June 28, 2011

Sd/Kazi Zahir Khan & Co. Chartered Accountants

Page 60

GSP FINANCE COMPANY (BANGLADESH ) LIMITED REVISED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2010 Amount in Taka 2010 2009

Cash flows from operating activities:

Interest receipt in cash Interest payment Dividend receipts Recoveries of loan previously written-off Income taxes paid Receipts from other operating activities Payments for other operating activities Cash generated from operating activities before changes in operating assets and liabilities Increase / decrease in operating assets and liabilities Statutory deposit Trading securities Leases, loans and advances Other assets Deposit and other accounts Other liabilities on account of customers Trading liabilities Other liabilities Net cash from operating activities 242,358,741 (226,926,847) (955,034) 122,608,112 (23,199,873) 113,885,099 301,292,945 (205,118,569) (296,608) 50,685,960 (28,739,582) 117,824,146

253,921,201 (175,646,162) (58,996,296) 26,870,792 66,563,812 112,713,347 226,598,446

(69,035,543) (364,239,831) 334,565,390 (22,228,195) 55,059,094 (65,879,085) 51,945,061

Cash flows from investing activities:

Proceeds from sale of securities Payments for purchases of securities Purchase of fixed assets Proceeds from sale of fixed assets Payment against lease obligation Net cash used in investing activities 286,264,796 (364,791,130) (616,283) 327,376 (78,815,242) 86,099,424 (74,206,270) (3,858,986) 8,034,168

Cash flows from financing activities:

Receipts of borrowings from banks, other financial institutions and agents Repayment of borrowings from banks, other financial institutions and agents Receipts against issue of share capital Dividend paid in cash Net cash from financing activities Net increase / (decrease) in cash and cash equivalents Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at the end of the year 700,000,000 (724,460,609) (24,460,609) 123,322,595 72,430,431 195,753,026 470,000,000 (501,510,286) (31,510,286) 28,468,943 72,430,431 100,899,374

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Amount in Taka 2010 2009

Cash and cash equivalents at the end of the year cash in hand (including foreign currencies) Balance with Bangladesh Bank and its agent bank(s) (including foreign currencies) Balance with banks and other financial institutions Money at call and short notice

549,433 13,556,887 61,646,706 120,000,000 195,753,026

2,396,346 6,642,256 91,860,772 100,899,374

These financial statements should be read in conjunction with the annexed notes 1 to 48.

Sd/Company Secretary

Sd/Director

Sd/Managing Director Signed as per our annexed report of even date

Dated, Dhaka June 28, 2011

Sd/Kazi Zahir Khan & Co. Chartered Accountants

Page 62

GSP FINANCE COMPANY (BANGLADESH) LIMITED

REVISED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2010

Particulars Balance as at January 01, 2009 Profit for the year Transferred to statutory reserve Transferred to provision for Tax Bonus share issued (2008) Revaluation of properties Balance as at 31st December 2009 Changes in accounting policy Restated balance Surplus/deficit on account of revaluation of properties Surplus/deficit on account of revaluation of investment Currency transaction differences Net gains and losses not recognized in the profit and loss account. Net profit after tax for the year Transferred to statutory reserve Balance as at 31st December 2010

Paid up Statutory General Retained Capital capital (Tk.) Reserve(Tk.) Reserve(Tk.) Reserve(Tk.) Earnings (Tk.) 205,700,000 132,752,124 137,768,935 10,446,306 46,910,535 5,394,712 (5,394,712) (19,936,977) 10,285,000 (10,285,000) 118,650,000 215,985,000 251,402,124 143,163,647 21,740,152 215,985,000 251,402,124 143,163,647 21,740,152 -

Total (Tk.) 486,667,365 46,910,535 (19,936,977) 118,650,000 632,290,923 632,290,923 -

215,985,000

251,402,124

15,140,606 158,304,253

75,703,029 (15,140,606) 82,302,575

75,703,029 707,993,952

The accompanying notes form an integral part of these financial statements.

Sd/Company Secretary

Sd/Director

Sd/Managing Director

Signed as per our annexed report of even date

Dated, Dhaka June 28, 2011

Sd/Kazi Zahir Khan & Co. Chartered Accountants

Page 63

GSP FINANCE COMPANY (BANGLADESH) LIMITED

REVISED LIQUIDITY STATEMENT (Analysis of maturity of assets and liabilities) FOR THE YEAR ENDED DECEMBER 31, 2010 Particulars Assets : Cash in hand Balance with Bangladesh Bank and its agents Balance with banks and other financial institutions Money at call and short notice Investments Leases,loans and advances Fixed assets including premises, furniture and fixtures Other assets Non-business assets Total assets (A) Liabilities : Borrowings from banks, other financial institutions and agents Deposits and other accounts Provision and other liabilities Total liabilities (B) Net liquidity gap (A - B) Up to 1 month Taka 549,433 13,556,887 48,646,706 120,000,000 52,859,252 245,500,077 481,112,355 1-3 months Taka 60,000,000 16,071,425 3-12 months Taka 13,000,000 7,175,000 118,988,891 3,318,333 578,527,031 721,009,255 1-5 years Taka 1,248,555,343 14,911,420 50,139,381 1,313,606,144 Above 5 years Taka 5,416,700 296,348,001 25,677,413 327,442,114 Total Taka 549,433 13,556,887 61,646,706 120,000,000 125,450,952 1,629,115,736 314,577,754 654,343,825 2,919,241,293

76,071,425

30,722,620 50,000,000 80,722,620 400,389,735

4,006,863 63,368,613 67,375,476 8,695,949

121,167,089 324,050,584 445,217,673 275,791,582

1,050,293,093 181,871,503 385,166,975 1,617,331,571

600,000 600,000

1,206,189,665 619,890,700 385,166,975 2,211,247,340 707,993,953

(303,725,427) 326,842,114

Sd/Company Secretary

Sd/Director

Sd/Managing Director

Signed as per our annexed report of even date

Dated, Dhaka June 28, 2011

Sd/Kazi Zahir Khan & Co. Chartered Accountants

Page 64

GSP FINANCE COMPANY (BANGLADESH) LIMITED

REVISED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2010 1.0 1.1 CORPORATE INFORMATION: Legal Status GSP Finance Company (Bangladesh) Limited is a Financial Institution (FI) incorporated in Bangladesh on October 29, 1995 as a Public Limited Company under the Companies Act, 1994. The Company offers lease finance of all types of plant, machinery, equipment and vehicles both for industrial and commercial use. The Company received its certificate of commencement of business on January 14, 1996 and its license on March 04, 1996 as required under Section 4(1) of the Financial Institutions Act, 1993. The Company went into commercial operation on April 17, 1996. The Company also got a separate license from Securities and Exchange Commission on August 24, 1999 for working as a Merchant Bank. Nature of Business The Company carries out the following types of business: Lease Financing. Term Finance Acceptance of Term Deposit Factoring Term Lending Money Market Operation Merchant Banking. 2.00 2.1 SIGNIFICANT ACCOUNTING POLICIES : Basis of Accounting These Financial Statements have been prepared under historical cost convention following accrual basis of accounting and in compliance with the requirements of companies Act 1994, Bangladesh Accounting Standards (BAS) and Financial Institution Act 1993. 2.2 Separate books of Accounts The company maintains separate office and books of accounts for the merchant banking operation as required under the regulations of Securities and Exchange commission. 2.3 Merchant Banking Operation Revenues are recognized on accrual basis. Merchant Banking income are recognized from the trading of shares, dividend from the holding of shares,commission on share trading by customers and interest on loan. Dividend income from the holding of shares are recognized on declaration basis. 2.4 Profit or Loss on Sale of shares Profit or loss arising from the sale of shares are accounted for on cash basis.

1.2

1.3

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2.5

Borrowing Costs Borrowing costs are recognized as expenses in the period in which they are incurred in accordance with benchmark treatment of BAS 23.

2.6

Revenue Recognition As per BAS 18, revenue is recognized when it is expected that the economic benefits associated with the transaction will flow to Company and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be measured reliably.

2.6.1 Lease Financing Interest is recognized as and when it is accrued. Lease interest outstanding over 2 months are recognized as interest suspense and not as revenue. Fee based income and delinquent charges from lease operations are accounted for on cash basis.

2.6.2 Interest on Direct Finance Interest on term finance is recognized when interest is accrued. No interest on loan is accounted for as revenue where any portion of capital or interest is in arrear for more than 2 months. Fee based income and delinquent charges from loan operations are accounted for on cash basis. 2.7 Accounting for Leases Books of accounts for leasing operation has been prepared following the criteria of Bangladesh Accounting Standard 17 (BAS 17) under Financing Method since assets leased out to customers under lease agreements transfer substantially all the risks and rewards associated with the ownership of the assets, other than legal title, to customers and all leases are full payout leases. In accordance with BAS 17 the aggregate lease receivables including the unguaranteed residual value throughout the primary lease term are recorded as gross receivable while the excess of gross receivable over acquisition cost including the interest during period of acquiring lease assets constitutes the unearned lease income. The unearned income is recognized as revenue over the lease period generating a constant rate of return over lease period. 2.8 Accounting for direct finance Direct finance consisting of short term & long term finance are maintained based on the accrual method of accounting. Outstanding amount of long term loans has been shown in the balance sheet as assets under the head of Direct finance. Interest earnings are recognized as operational revenue. 2.9

Fixed Assets
Freehold assets are recognized at cost of acquisition less accumulated depreciation with impairment losses, if any, in compliance with the benchmark treatment of BAS 16 "Property, Plant and Equipment.

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2.10

Depreciation Fixed Assets for Company's own use are depreciated at different ranges from 10% to 20% applying straight line method throughout the estimated span of useful life ranging from five to ten years. Rate of depreciation is as follows: Type of Assets Land & Land Development Office Building Furniture & Fixtures Telephone System Motor Vehicles Electrical Goods & Installation Office Equipment Generator & Installation House Property Rate 0% 10% 10% 20% 20% 20% 20% 20% 10%

2.11

Provisions for Doubtful loss on Leases and Direct Finance Provisions for classified and unclassified leases and direct finance receivables have been made as per guidelines of Bangladesh Bank through FID circular no. 08 of 2002 , FID circular no.03 ,May 03 of 2006 and other directives as applicable as follows: 1 to 2 Unclassified 1% 3 to 5 SMA 5% 6 to 11 Sub-standard 20% 12 to 17 Doubtful 50% 18 and over Bad or Loss 100%

2.12

Employees Benefits Scheme

2.12.1 Defined Contribution Plan 2.12.1. Provident fund The Company operates a contributory provident fund for its permanent employees. Provident fund is administered by a Board of Trustees and is funded by contributions partly from the employees and partly from company at a predetermined rate. The contributions are invested separately from the Company's Assets by the Trustees. 2.12.1. Other long term benefits The Company operates a group life insurance scheme for all of its permanent employees. It maintains a health insurance for hospitalisation of all of its permanent employees,which include their spouse. 2.12.2 Defined benefit Plan 2.12.2. Gratuity The Company operates an unfunded gratuity scheme. Employees are entitled to gratuity benefit after completion of minimum ten years uninterrupted service in the company. The gratuity payment is calculated on the basis of Actuarial Report.The proposal for funding facilities of the gratuity fund is alredy under consideration of NBR.

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2.13

Corporate Tax

2.13.1 Current Tax Provision for Taxation for the Company has been sufficiently kept and the company has sufficient fund for taxation liabilities arising out of tax refunds in previous years. 2.13.2 Deferred Tax The Company has conducted an exercise to find out deferred tax liability/asset based on temporary differences arising from the carrying amount of an asset or liability in the balance sheet and its tax base . Accordingly deductible temporary differences have been ascertained resulting in no deferred tax arising during this year. 2.14 Trade Receivables Trade receivables at the balance sheet date are stated at amounts which are considered realizable. 2.15 Payable and Accruals Liabilities are recognized for the amounts to be paid in future for goods and services received. 2.16 Provisions A provision is recognized in the Balance Sheet when the Company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 2.17 General Comparative Information Comparative information has been disclosed in respect of the year 2009 for all numerical information in the Financial Statements and also the narrative and descriptive information where it is relevant for understanding of the current year's Financial Statement. Previous year figures have been rearranged wherever considered necessary to conform to current year's presentation. 2.18 Renewal of FDR and interest thereon FDR if not encashed on due date, is considered automatically renewed with interest earned upto maturity date and due at the equivalent current rate of interest. 2.19 Rounding off Monetary figures in the financial statements have been rounded off to the nearest Taka. Amount in Taka 2010 3.00 SHARE CAPITAL : Authorized Capital : 10,000,000 Ordinary shares of Tk. 100 each Issued, Subscribed & Paid up Capital : 2,159,850 Ordinary shares of Tk.100 each % of share holding 2010 Domestic Shareholding Position Foreign Shareholding Position 61.82% 38.18% 100.00% 133,531,600 82,453,400 215,985,000 54,068,600 161,916,400 215,985,000 1,000,000,000 215,985,000 1,000,000,000 215,985,000 2009

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Details of Share Holding Position as on 31.12.2010 Number of Holders Holding Position in %

Range of share Quantity

Amount Tk. 636,000 3,210,000 10,357,300 11,197,800 13,348,500 71,669,000 105,566,400 215,985,000

Less than 500 shares 501 to 5000 shares 5001 to 10000 shares 10001 to 20000 shares 20001 to 30000 shares 30001 to 50000 shares 50001 to 100000 shares 100001 to 200000 shares 200001 to 300000 shares Above 300000 shares Total

1 2 4 2 1 3 3 16

0.29 1.49 4.80 5.18 6.18 33.18 48.88 100%

4.00 4.1

CASH 2010 Cash in hand In local currency In foreign currency

Amount in Taka 2009

549,433 549,433

2,396,346 2,396,346

4.2

Balance with Bangladesh Bank and its agents Bank(s) In local currency In foreign currency 13,556,887 13,556,887 6,642,256 6,642,256

4.3

Cash Reserve Requirement (CRR) and Statutory Liquidity Reserve (SLR) Cash Reserve Requirement @ 2.5% and Statutory Liquidity Reserve @ 5% have been calculated and maintained in accordance with FID Circular # 02 and 06 dated 10 November 2004 and 31 may 2001 respectively. a) Cash Reserve Requirement Required Reserve (2.5% on term deposit ) Actual Reserve maintained (note -4.2) Surplus / (deficit) b) Statutory Liquidity Reserve Required Reserve Actual Reserve maintained (note -4.1,4.2 and 5) Surplus / (deficit) 24,102,000 75,753,026 51,651,026 22,377,000 100,899,374 78,522,374 6,197,000 13,556,887 7,359,887 6,313,000 6,642,256 329,256

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Amount in Taka 2010 5 Balance with banks and other financial institutions In Bangladesh Current accounts (note-5.1) Short term deposit accounts (note-5.2) Savings acconts (note-5.3) Fixed deposit accounts (note-5.4) 2009

1,171,121 47,475,585 13,000,000 61,646,706

153,051 78,707,721 13,000,000 91,860,772 -

Outside Bangladesh

The company does not maintain any account outside of Bangladesh 5.1 Current account Commercial Bank of Ceylon Plc Dhaka Bank Ltd. Mutual Trust Bank Ltd. One Bank Ltd. Prime Bank

109,736 42,985 236,105 782,295 1,171,121

50,000 11,921 44,305 46,825 153,051

5.2

Short term deposit account AB Bank Ltd Basic Bank Ltd. Commercial Bank of Ceylon Plc (Money Market A/c) Dutch Bangla Bank Ltd. Exim Bank Ltd. Islami Bank Ltd. Mercantile Bank Ltd. Mutual Trust Bank Ltd. National Bank Ltd. Prime Bank Ltd. Pubali Bank Ltd. Shahjalal Islami Bank Ltd Social Investment Bank Ltd. Southest Bank Ltd. Standard Bank Ltd. Standard Chartered Bank Ltd. The City Bank Ltd. Trust Bank Ltd. United Commercial Bank Uttara Bank Ltd

88,653 39,830,243 763,204 138,321 62,030 152,535 134,836 53,356 1,028,716 51,654 1,792,103 12,964 19,692 260,913 2,192,905 116,163 649,979 127,318 47,475,585 -

89,228 50,153,687 167,102 61,660 145,162 2,517,838 8,236,043 6,538,399 86,601 53,583 3,027,646 12,385 20,842 42,596 5,571,483 1,767,035 48,112 65,680 102,639 78,707,721 -

5.3

Savings accounts The company does not maintain any savings account

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Amount in Taka 2010 5.4 Fixed deposit accounts BASIC Bank Ltd. Shahjalal Islami Bank Ltd Standard Bank Ltd. 5.5 Maturity grouping of balance with banks and other financial institutions On demand Up to 1 month Over 1 month but not more than 3 months Over 3 months but not more than 1 year Over 1 year but not more than 5 years Over 5 years 6 Money at call and short notice: Eastern Bank Ltd. 7 Investments Investment classified as per nature: Government (note -7.1) Others (note-7.2) 7.1 Government Securities: Treasury bills National investment bonds Bangladesh Bank bills Government notes / bonds Prize bonds others Other investments: Investment in shares (Annexure-A) Debenture and bonds Other investment Gold etc. 125,450,952 125,450,952 52,859,252 60,000,000 7,175,000 5,416,700 125,450,952 46,924,617 46,924,617 45,924,617 1,000,000 46,924,617 125,450,952 125,450,952 46,924,617 46,924,617 120,000,000 120,000,000 1,171,121 47,475,585 13,000,000 61,646,706 153,051 78,707,721 10,000,000 3,000,000 91,860,772 6,000,000 1,000,000 6,000,000 13,000,000 13,000,000 13,000,000 2009

7.2

7.3

Maturity grouping of investments: On demand Up to 1 month Over 1 month but not more than 3 months Over 3 months but not more than 1 year Over 1 year but not more than 5 years Over 5 years

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Amount in Taka 2010 8 8.1 Leases , Loans and advances : a) Inside Bangladesh Leases (note -8.2) Loans Cash credits Overdrafts 2009

1,227,151,582 401,964,154 1,629,115,736 1,629,115,736

1,395,718,590 487,318,347 1,883,036,937 1,883,036,937 1,316,768,731 78,949,859 1,395,718,590

b) outside Bangladesh

8.2

Leases Advances for leases (note -8.2.1)

1,143,921,521 83,230,061 1,227,151,582

8.2.1 Advance for leases These represent disbursements made to clients for procuring assets under lease and on execution advances are transferred to lease finance. 8.3 Sector wise leases, loans and advances Public sector Co-operative sector Private sector 123,892,266 1,505,223,470 1,629,115,736 156,958,108 1,726,078,829 1,883,036,937

8.4

Residual maturity grouping of leases,loans and advances On demand Up to 1 month Over 1 month but not more than 3 months Over 3 months but not more than 1 year Over 1 year but not more than 5 years Over 5 years 235,421,232 10,078,845 16,071,425 118,988,891 1,248,555,343 1,629,115,736 226,686,599 36,191,680 88,575,042 209,533,446 1,322,050,170 1,883,036,937

8.5

Leases, loans and advances on the basis of significant concentration a) Leases, loans and advances to Directors and organizations related to Directors (fully secured) b) Leases, loans and advances to Chief Executive Officer and other senior executives c) Leases, loans and advances to customers groups: i) Leases ii) Loans 111,219,873 -

1,173,986,083 343,909,780 1,629,115,736

1,395,718,590 487,318,347 1,883,036,937

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Amount in Taka 2010 2009

As at 31 December 2010, GSP Finance Company (Bangladesh) Limited have investment exceeding 30% of its equity for which approval obtained from Bangladesh Bank. d) Leases, loans and advances on sector basis: i) Textiles ii) Garments and Accessories iii) Transport (including Marin Transport) iv) Chemicals and pharmaceuticals v) Iron,Steel and Engineering vi) Agricultural Equipments and Agro Industries vii) Power and Energy viii) Electronics and Electrical ix) Information technology (IT) x) Paper printing and Packaging xi) Plastic xii) Real Estate and Housing xiii) Food and Beverage xiv) Glass and Ceramics xv) Services xvi) Others 8.6 Leases, loans and advances on geographical basis: Inside Bangladesh: Urban : Dhaka Division Chittagong Division Khulna Division Rajshahi Division Barisal Division Sylhet Division Rural : Dhaka Division Chittagong Division Khulna Division Rajshahi Division Barisal Division Sylhet Division 1,517,076,256 112,039,480 1,629,115,736 1,815,871,624 67,165,313 1,883,036,937 174,971,583 111,220,380 445,947,793 73,599,805 17,493,074 37,858,708 61,353,961 3,943,328 1,839,860 19,530,407 105,909,402 170,010,880 405,436,555 1,629,115,736 229,600,344 98,599,375 469,699,486 166,499,864 18,766,306 24,680,725 26,365,488 5,431,965 39,399,943 101,199,843 397,760,459 305,033,139 1,883,036,937

Outside Bangladesh: Total

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Amount in Taka 2010 8.7 Classiification of Leases, loans and advances : Unclassified : Standard Special mention account Classified : Sub-standard Doubtful Bad/Loss Total Net Leases ,loans and advances : Total Leases , loans and advances (note- 8) Less : Non-performing leases, loans and advances (note-8.7) Interest suspenses (note-15.5) Provision for leases, loans and advances 2009

1,109,686,445 197,407,467 1,307,093,912 18,311,347 880,549 302,829,928 322,021,824 1,629,115,736 1,629,115,736 322,021,824 82,698,049 107,851,831 512,571,704 1,116,544,033

1,239,282,573 228,814,965 1,468,097,538 133,567,858 194,800,162 86,571,379 414,939,399 1,883,036,937 1,883,036,937 414,939,399 76,439,117 131,201,398 622,579,914 1,260,457,023

8.8

8.9

Particulars of Leases, loans and advances: a) Lease, loans and advances considered good and in respect of which the financial institution is fully secured b) Lease , loans and advances considered good against which the financial institution holds no security other than the debtors personal guarantee c) Lease , loans and advances considered good secured by personal undertaking of on or more parties in addition to the personal guarantee of the debtors d) Lease , loans and advances adversely classified : provision not maintained there e) Lease , loans and advances due by directors or officers of the financial institution or any of them either seperately or lointly with any other person f) Lease , loans and advances due from companies or firms in which the directors of the financial institution have interest as directors, partners,managing agents or in case of the private companies , as members g) Maximum total amount of leases , loans and advances including temporary advances made in any time during the year to the directors or managing directors or officers of the financial institution or any of them either separately or jointly with any other person h) Maximum total amount of leases, loans and advances including temporary advances granted during the year to companies or firms in which the directors of the financial institution have interest as directors, partners, managing agents or in case of the private companies, as members i) Due from banks and other financial institutions

509,483,635

603,448,787

746,421,401

820,717,525

373,210,700 1,629,115,736 -

458,870,625 1,883,036,937 -

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Amount in Taka 2010 j) Classified leases , loans and advances i) Classified leases, loans and advances on which no interest has been charged ii) Provision on classified leases , loans and advances
iii) Provision kept against leases, loans and advances classified as bad debts

2009

322,021,824 88,120,994 86,351,062 82,698,049

414,939,399 36,723,538 38,749,089 76,439,117

iv) Interest credited to interest suspense account (note-15.5) k) Cumulative amount of written-off leases, loans and advances: Opening balance Amount written -off during the year

Amount realized against leases,loans and advances The amount of written-off / classified leases, loans and advances for which law suites has been filed 8.10 Suits filed by the company :

As at 31 December 2010 , GSP Finance Company (Bangladesh) Limited filed 08 suits against 05 clients under Artha Rin Adalat Ain -2003, Total suit amount was Tk. 36,09,48,722/- only. 9 Bills purchased and dicounted Payable in Bangladesh Payable outside Bangladesh -

As at 31 December 2010, GSP Finance Company (Bangladesh) Limited was not involved in any transactions relating to bills purchase and or discount. 10 Fixed assets including premises, furniture and fixures: Cost: Opening Balance Addition during the year Adjustment during the year Closing Balance (A) Less : Accumulated Depreciation : Opening Balance Charged during the year: Addition during the year Closing Balance (B) Written Down Value (A-B) (Annexure -B )

350,295,723 616,283 350,912,006 3,523,490 347,388,516 30,145,576 5,861,300 36,006,876 3,196,114 32,810,762 314,577,754

227,786,737 122,508,986 350,295,723 350,295,723 23,802,136 6,343,440 30,145,576 30,145,576 320,150,147

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Amount in Taka 2010 11 Other assets Advance to Portfolio account (note-11.1) Corporate Tax paid in advance Tax deducted at source Advance, Deposits and Prepayments Sundry Debtors 571,590,211 25,677,413 1,955,954 48,183,427 6,936,819 654,343,825 2009 374,113,882 27,687,541 1,000,920 64,767,022 11,128,298 478,697,663

11.1 Advance to portfolio account : Loans given to portfolio account holders through merchant banking unit of the company as per license granted by Securities and Exchange Commission. 12 Non-business assets -

13

As at 31 December 2010, GSP Finance Company (Bangladesh) Limited does not have any non-business assets. Borrowings from banks ,other financial institutions and agents: In Bangladesh (note-13.1) Outside Bangladesh (note-13.2) 1,206,189,666 1,206,189,666 1,199,927,655 1,199,927,655

13.1 In Bangladesh Bank overdraft Mutual Trust Bank Ltd. Shahjalal Islami Bank Ltd. United Commercial Bank Call borrowing Bangladesh Commerce Bank Ltd. Dutch Bangla Bank Ltd Trust Bank Ltd Longterm loan Basic Bank Ltd Commercial Bank of Ceylon Ltd. Dutch-Bangla Bank Ltd. Debenture Loan (ICB) Mercantile Bank Ltd. Mutual Trust Bank Ltd National Bank Ltd. One Bank Ltd. Prime Bank Ltd. Shahjalal Bank Ltd Social Islami Bank Ltd Standard Bank Ltd. The City Bank Ltd Trust Bank Ltd. Uttara Bank Ltd.

25,745,207 4,977,413 30,722,620 109,593,347 200,000,000 34,999,334 37,023,456 42,767,205 29,166,663 73,699,604 160,238,089 23,441,964 224,399,828 56,304,491 176,255,293 1,167,889,273

60,000,000 100,000,000 60,000,000 220,000,000 33,048,410 8,333,326 40,000,000 44,999,334 47,567,993 67,879,629 45,833,333 155,895,103 202,830,172 58,927,016 109,073,884 9,547,078 95,161,088 48,631,293 967,727,658

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Amount in Taka 2010 Banglash Bank refinancing Banglash Bank (IDA fund) 7,577,773 7,577,773 2009 12,199,997 12,199,997 -

13.2 Outside Bangladesh

As at December 2010, the company does not have any borrowing from outside Bangladesh. 13.3 Security against borrowing froms banks, other financial institutions and agents. Secured 1,198,611,893 Unsecured 7,577,773 1,206,189,666

967,727,658 232,199,997 1,199,927,655

Borrowing from banks,other financial institutions and agents are secured by floating charges with R.J.S.C on all moveable and immovable assets of the company ranking Pari-Passu secirity sharing agreement among the lenders. 13.4 Maturity grouping of borrowings from banks,other financial institutions and agents. Repayable on demand Up to 1 month Over 1 month but not more than 3 months Over 3 months but not more than 1 year Over 1 year but not more than 5 years Over 5 years 14 Deposits and other accounts: Current deposits (note-14.1) Bills payable (note-14.2) Savings deposits (note-14.3) Term deposits ( note-14.4) Bearer certificate of deposit ( note-14.5) Other deposits ( note-14.6) 30,722,620 4,006,863 121,167,089 1,050,293,093 1,206,189,665 619,890,700 619,890,700 220,000,000 20,322,656 88,049,545 299,519,358 572,036,096 1,199,927,655 678,886,996 678,886,996 -

14.1 Current deposits

To confirm the Bangladesh Bank's guidelines regarding deposits, the company does not operate any current deposit account. 14.2 Bills payable As at 31 December 2010 , the company does not have any bills payable -

14.3 Savings deposits To conform with the Bangladesh Bank's guidelines regarding deposits, the company does not operate any savings deposit account. 14.4 Term deposits Deposits from banks and other financial institutions (note-14.4.1) 393,117,033 440,117,033 238,769,963 Deposits from customers (note-14.4.2) 226,773,667 619,890,700 678,886,996

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Amount in Taka 2010 14.4.1 Deposits from banks and other financial institutions Agrani Bank Ltd Bangladesh Commerce Bank Limited Dutch Bangla Bank Ltd Eastern Bank Ltd Mercantile Bank Ltd Sonali Bank Ltd Trust Bank Ltd Continantal Insurance Company Ltd Green Delta Insurance Company Ltd Reliance Insurance Company Ltd United Insurance Company Ltd 50,000,000 100,000,000 100,000,000 80,000,000 50,000,000 500,000 3,117,033 9,500,000 393,117,033 50,000,000 50,000,000 50,000,000 80,000,000 50,000,000 50,000,000 100,000,000 500,000 4,117,033 5,000,000 500,000 440,117,033 2009

14.4.2 Deposits from customers Deposits from general public Deposits from companies 147,014,990 79,758,677 226,773,667 138,047,492 100,722,471 238,769,963 -

14.5 Bearer certificate of deposit

To conform with the Bangladesh Bank's guidelines regarding deposits, the company does not have any bearer certificate of deposit. 14.6 Other deposits As at 31 December 2010 , the company does not have any other deposit account. 14.7 Maturity grouping of deposits and other accounts: Repayable on demand Up to 1 month Over 1 month but not more than 6 months Over 6 months but not more than 1 year Over 1 year but not more than 5 years Over 5 years but not more than 10 years Over 10 years 15 Other liabilities Expenditure and other payable (note-15.1) Provision for leases,loans and advances (note-15.2) Provision for investment in share (note-15.3) Provision for income tax (note-15.4) Interest suspense account (note-15.5)
Advance rental / installment against leases, loans and advances

50,000,000 381,568,613 5,850,584 181,871,503 600,000 619,890,700 8,169,510 107,851,831 7,403,423 120,502,490 82,698,049 56,874,173 1,667,500 385,166,975

900,000 433,278,529 143,346,653 87,601,814 13,760,000 678,886,996 13,191,641 131,201,398 4,924,052 66,558,206 76,439,117 24,981,250 1,307,500 318,603,164

Provision for gratuity

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Amount in Taka 2010 15.1 Expenditure and other payable Sundry Creditors Tax deduted at source Accrued interest on deposits Audit Fee Value Added Tax deducted at source Security Deposit (Tenancy -BCDL) Security Deposit (Tenancy- New Wave Group) 15.2 Provision for leases,loans and advances This represents the amount calculated as per circular issued by the Bangladesh Bank in this regard to cover all the required provision of the company as at 31 December 2010. Total provision is made up as follows: Movements in provision on classified leases,loans and advances (A) Balance on 01 January Provision made during the year Balance at 31 December 108,811,754 (20,690,760) 88,120,994 36,723,538 72,088,216 108,811,754 2,751,201 4,834,562 75,000 200,000 308,747 8,169,510 2009 5,474,072 7,419,314 75,000 23,255 200,000 13,191,641

Movements in provision on unclassified leases,loans and advances (B) Balance at 01 January 22,389,644 Provision made during the year (2,658,807) Balance at 31 December 19,730,837 Total (A+B) 107,851,831 15.3 Provision for investment in shares Balance at 01 January Provision made during the year Balance at 31 December (Annexure -A for detail) 15.4 Provision for income tax: Balance at 01 January Provision made during the year Adjustment for the year for 2007 Balance at 31 December This is arrived as at under: Year Opening balance 4,924,052 2,479,371 7,403,423 66,558,206 55,954,412 122,512,618 2,010,128 120,502,490 Current tax provision Adjusted as per assessment/reversal

16,565,202 5,824,442 22,389,644 131,201,398

8,334,968 (3,410,916) 4,924,052 49,111,429 19,936,977 69,048,406 2,490,200 66,558,206 Closing balance

Year ended 2001 32,578,393 28,338,015 4,240,378 Year ended 2002 4,240,378 42,882,847 10,506,502 36,616,723 Year ended 2003 36,616,723 793,103 35,823,620 35,823,620 Year ended 2004 35,823,620 Year ended 2005 35,823,620 35,823,620 Year ended 2006 35,823,620 23,049,759 30,526,868 28,346,511 Year ended 2007 28,346,511 13,860,932 5,906,787 36,300,656 Year ended 2008 36,300,656 12,810,773 49,111,429 Year ended 2009 49,111,429 19,936,977 2,490,200 66,558,206 Year ended 2010 66,558,206 55,954,412 2,010,128 120,502,490 The company's tax assessment has been completed upto Assessment Year 2009-2010. Sufficient provision for taxation has been made for the year.

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Amount in Taka 2010 15.5 Interest suspense account This represents interest on lease and loans income not recognized as income according to Bangladesh Bank's FID circular # 03 of 2006. Details are as follows: Balance at 01 January
Add: Amount transferred to interest suspense account during the year Less: Amount recovered from interest suspense account during the year

2009

Balance at 31 December 15.5.1 Details of interest suspense account Interest suspense for unclassified leases , loans and advances (A) Standard Special mention account Interest suspense for classified leases , loans and advances (B) Sub - standard Doubtful Bad/Loss Total (A+B) 16 16.1 16.2 Share Capital: Authorized capital 10,000,000 Ordinary shares of Tk. 100 each Issued, Subscribed & Paid up Capital : 2,159,850 Ordinary shares of Tk.100 each % of share holding 2010 61.82% 38.18% 100.00%

76,439,117 21,200,837 (14,941,905) 82,698,049

21,197,363 56,439,370 (1,197,616) 76,439,117

12,701,870 12,701,870 1,959,537 119,257 67,917,384 69,996,178 82,698,048

13,675,537 13,675,537 19,465,666 33,716,722 9,581,192 62,763,580 76,439,117

1,000,000,000 215,985,000

1,000,000,000 215,985,000

Domestic Shareholding Position Foreign Shareholding Position 16.3

133,531,600 82,453,400 215,985,000

54,068,600 161,916,400 215,985,000

Raising of share capital GSP Finance Company (Bangladesh) Limited raised its share capital as follows: Year Type of issue of paid up capital Opening capital Allotment Allotment Allotment Allotment Allotment Bonus Bonus Bonus No. of shares Value of shares Cumulative paid up capital 2,250,500 4,750,500 147,668,200 150,000,000 160,000,000 170,000,000 187,000,000 205,700,000 215,985,000

1995 1995 1996 1997 2000 2001 2005 2007 2008

22,505 25,000 1,429,177 23,318 100,000 100,000 170,000 187,000 102,850

2,250,500 2,500,000 142,917,700 2,331,800 10,000,000 10,000,000 17,000,000 18,700,000 10,285,000

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16.4

Holding of shares as on December 2010. Number of Holders Holding Position in %

Range of share Quantity

Amount Tk. 636,000 3,210,000 10,357,300 11,197,800 13,348,500 71,669,000 105,566,400 215,985,000

Less than 500 shares 501 to 5000 shares 5001 to 10000 shares 10001 to 20000 shares 20001 to 30000 shares 30001 to 50000 shares 50001 to 100000 shares 100001 to 200000 shares 200001 to 300000 shares Above 300000 shares Total 16.5 Capital adequacy requirement

1 2 4 2 1 3 3 16

0.29 1.49 4.8 5.18 6.18 33.18 48.88 100%

As per Clause 4(Gha) of The Financial Institutions Regulations 1994 and Bangladesh Bank's circulars in this regard, status of the company's capital adequacy is as under: Total liabilities 6% of total liabilities Taka 132,674,840 Rquired capital Paid up capital, statutory reserve & retained earnings Taka 456,591,828 Excess/(deficit) capital Taka (43,408,172)

Taka 2,211,247,341

Taka 500,000,000

According to the DFIM circular # 09 dated November 04,2009 paid up capital has to be raised toTk.500,000,000 with in 31 December 2010 17 Statutory Reserve Amount in Taka 2010 2009

According to the Rule 6 of The Financial Institutions Regulation 1994, the company transfers 20% of its net profits for the respective year to statutory reserve. Details movement of the reserve are as follows: Balance at 01 January Add: Transferred during the year Balance at 31 December 18 Other Reserve: Capital Reserve : Balance at 01 January Add: Transferred during the year Balance at 31 December 251,402,124 251,402,124 132,752,124 118,650,000 251,402,124 143,163,647 15,140,606 158,304,253 137,768,935 5,394,712 143,163,647

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Amount in Taka 2010 19 Retained earnings Balance at 01 January Less: Issue of bunus shares for the year Add: Net profit for the year Less: Transfer to statutory reserve Balance at 31 December Apportionment: Proposed bonus share for the year 2010 Retained earnings balance 19.1 Contingent liabilities Acceptances and endorsements Letter of guarantee (19.1.1) Irrevocable letter of credit Bills for collection Other contingent liabilities 21,740,152 75,703,029 97,443,181 (15,140,606) 82,302,575 60,475,800 21,826,775 82,302,575 2009 10,446,306 (10,285,000) 26,973,558 27,134,864 (5,394,712) 21,740,152 21,740,152 21,740,152 50,000,000 50,000,000 50,000,000 50,000,000

19.1.1 Letter of guarantee Claims lodged with the company which is not recognized as loan Money for which the company is contingently liable in respect of the following: Directors Government Banks and other financial institutions others

19.2

20

Undrawn formal standby facilities, credit lines and other commitments Others As at 31 December 2009, the company does not have any liabilities , which was not shown in the accounts. Income statement Income : Interest, discount and similar income (note-20.1) 353,594,850 343,864,111 Dividend income Commission, exchange and brokerage Gains less losses arising from dealing in securities Gains less losses arising from dealing in foreign currencies Other operating income (note-24) 16,067,340 26,731,560 Profit less losses on interest rate changes 369,662,189 370,595,671 Expenses: Interest expenses on deposits,borrowings,etc. (note-22) 232,218,143 210,614,456 Charges on losses regarding leases, loans and advances Administrative expenses (note-20.2) 12,866,459 14,575,610 Other operating expenses (note-34) 9,859,266 12,724,586 Depreciation on company's fixed assets (note-33) 6,410,448 7,857,827 261,354,315 245,772,478 108,307,874 124,823,193

Other commitments Documentary credits and short term trade and related transactions Forward assets purchased and forward deposits placed Undrawn note issuance and revolving underwriting facilities

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Amount in Taka 2010 20.1 Interest, discount and similar income Interest income on leases,loans and advances (note-21) Investment income (note-23) 20.2 Administrative expenses Salary and allowances (note-25) Rent, taxes, insurance, electricity, etc. (note-26) Legal expenses (note-27) Postage,stamp,telecommunication etc. (note-28) Stationery,printing,advertisement etc. (note-29) Managing Director's salary and allowances (note-30) Directors' fee (note-31) Auditors' fee (note-32) 7,776,593 588,183 159,850 427,488 923,345 2,626,000 290,000 75,000 12,866,459 9,443,440 822,205 387,000 583,247 1,114,718 1,910,000 240,000 75,000 14,575,610 247,054,078 106,540,772 353,594,850 322,262,277 21,601,834 343,864,111 2009

20.3

Administrative expenses for merchant banking: Salary & allowances Telephone, internet and mobile CDBL charge Loss on share trading

2,723,581 37,341 242,737 3,003,659

5,625,741 39,597 46,727 51,418 5,763,482

21

Interest income on leases,loans and advances: Lease income Interest on loans Interest during grace period Total interest income on leases,loans and advances Interest on balance with banks and other financial instititutions

152,870,573 89,591,390 4,124,341 246,586,304 467,774 247,054,078

197,507,826 111,092,698 12,935,312 321,535,836 726,441 322,262,277

22

Interest expenses on deposits,borrowings,etc. : a) Interest expenses on borrowings : Intertest on term loans Intertest on call loans Interest on debenture loan Interest on loan (IDA Fund) Intertest on Bank over draft Bank charges

b) Interest expenses on deposits : Total 23 Investment income: Profit on merchant banking

141,073,361 13,489,200 2,700,000 552,723 2,993,784 156,760 160,965,828 71,252,315 232,218,143

140,736,598 8,977,208 5,400,000 783,334 1,483,158 230,485 157,610,783 53,003,673 210,614,456

106,540,772 106,540,772

21,601,834 21,601,834

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Amount in Taka 2010 24 Other operating income: Income from FDR Documentation charge on lease finance Late payment charge on lease finance Service charge income on lease finance Transfer fees on lease finance Processing fees on lease finance Income from house property Interest on call loan Profit on sale of fixed assets Miscellaneous earnings Salary and allowances: Basic pay and allowances Bonus (note-25.1) Company's contribution to provident fund Retirement benefit and gratuaity Annual leave encashment 25.1 Bonus Festival Performance Rent, taxes, insurance, electricity, etc.: Rent,rate and taxes Insurance Power and electricity Legal expenses : Legal expenses Postage,stamp,telecommunication etc.: Postage and courier Telephone, fax, internet and mobile Stamp and court fee Stationery, printing, advertisement, etc.: Printing and stationery Advertisement and publicity Managing Director's salary and allowances : Remuneration Other benefits Directors' fees : Fees Directors fee Other benefits 5,962,333 864,654 589,606 360,000 7,776,593 864,654 864,654 331,031 257,152 588,183 159,850 159,850 56,972 325,142 45,374 427,488 290,055 633,290 923,345 2,400,000 226,000 2,626,000 7,764,050 673,537 645,853 360,000 9,443,440 673,537 673,537 393,209 428,996 822,205 387,000 387,000 40,698 480,078 62,471 583,247 322,760 791,958 1,114,718 1,221,000 689,000 1,910,000 1,232,089 1,070,968 8,795,910 133,875 759,417 37,840 1,164,464 2,377,778 494,999 16,067,340 2009 1,189,601 1,395,325 21,708,335 852,089 611,105 78,520 712,000 184,585 26,731,560

25

26

27

28

29

30

31

290,000 290,000 290,000

240,000 240,000 240,000

Directors' fees include fees for attending the meeting by the non-executive directors. Each director was remunerated @ Tk. 5,000/- per meeting from which 15% value added tax on the attendence fee was deducted at source.

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Amount in Taka 2010 32 33 Audit fee: Depreciation and repairs of company's assets: Depreciation on company's fixed assets (Annexure-B) Repairs of companies fixed assets Other operating expenses: Office maintenance Travelling and conveyances Motor vehicle running expenses Fees and subscriptions Staff welfare Newspaper,books and periodicals Staff training and education Entertainment expenses Business promotion 75,000 75,000 5,861,300 549,148 6,410,448 2,596,655 1,485,296 1,262,368 579,717 899,986 34,501 8,000 1,652,743 1,340,000 9,859,266 2009 75,000 75,000 6,343,440 1,514,387 7,857,827 3,541,137 1,655,525 1,982,926 269,108 991,732 31,180 22,500 2,571,478 1,659,000 12,724,586

34

35

Provision for leases, loans and advances: Provision for classified leases, loans and advances Provision for unclassified leases, loans and advances (20,690,760) (2,658,807) (23,349,567) 72,088,216 5,824,442 77,912,658

36

Provision for income tax: Current tax Deferred tax 55,954,412 55,954,412 19,936,977 19,936,977

The Company has made sufficient provision for taxation. In addition to provision, there is refund (receivable) of Tk. 25,677,413/- and interest thereon @ 10% p.a. wef 2001 and 2002 as per section -72 of Income Tax Ordinance 1984. The Company has already received credit note from Income Tax Authority. As per section 32(2)(7) of Income Tax Ordinance 1984 there is no tax on capital gain. 37 Dividend : Dividend in the form of bonus share @ 28% for the year 2010 has been proposed by the Board of Directors in its meeting held on 1st February 2011. Earning per share : Earning per share (EPS) is calculated in accordance with Bangladesh Accounting Standard No.33. Earning per share has been calculated as follows: Net profit after tax Number of ordinary shares outstanding Earning per share 75,703,029 2,159,850 35.05 26,973,558 2,159,850 12.49

38

No diluted EPS is required to be calculated for the year since there was no scope of dilution of share during the year under review.

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39

Related party disclosures : GSP Finance Company (Bangladesh) Limited does not have any related party disclosure. Unacknowledged debt : The company had no claim against it which has not been acknowledged as debt at the balance sheet date. Number of employes : The total number of full time employees of the company and their remuneration above Tk.48,000/- per annum were 32. There were no employees earning less than Tk. 48,000/- per year. Number of Board meeting and remuneration for attending thereof : Board of directors meetings were held during the year and directors remuneration for attending the board meeting was paid as per Company Law and Bangladesh Bank guidelines.No director has been paid any remuneration for any special service rendered. Receivable from directors : No amount is due from any of the directors of the company. Disclosure regarding branch : As at December 2010, the company has no branch in or outside of Bangladesh. Disclosure of Executive Committee : To conform with the Bangladesh Bank guidelines,the Board of Directors of GSP Finance Company(Bangladesh) Limited costituted the Executive Committee of the company comprising members from the Board and the committee met forty two times during the year 2010. Disclosure on Audit Committee: Particulars of Audit Committee According to the guidelines of Bangladesh Bank,the Board of Directors of GSP Finance Company(Bangladesh) Limited constituted the Audit Committee of the company. Details of the committee members are as follows:
Name Status in

40

41

42

43

44

45

46 46.1

the company Mr. Siraj U. Haider Mr. Moin U. Haider Mr. Helal Uddin Mr. Mizanur Rahman
Director Director Executive Director General Manager
& Company Secretary

Status with committee

Chairman Member Member Secretary

46.2

Activities of the audit committee during the year. In the year 2010 the Audit Committee carried out the following activities: a) The committee reviewed the financial reporting system in place to ensure reliability of information provided to the shareholders and strict adherence and compliance to the accounting policies and requirement of Bangladesh Accounting Standards and Bangladesh Bank. b) Monitoring and review of the compliance regarding the security documentation as approved by the Board of Directors. c) Regular monitoring of the company's portfolio. d) Review of the company's overdue position with the objective of reduction in amount and quality. e) Review and recommendation to the Board regarding the delinquent portfolio against which litigation started by the company.

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f) Review and recommendation to the Board regarding reschedule of facilities. g) Monitoring the internal control system of the company and its compliance. h) Discussion on the reports issued by Bangladesh Bank and statutory auditors and actions taken by the management. 46.3 Effective internal control and security documentation of the company: Having assessed the internal financial controls,information system and reporting models, the committee is in the opinion that: a) Procedures followed by the management for internal control of the company's activities under the manual set by the management in line with Bangladesh Bank's guidelines are satisfactory. b) Company's assets are resonably safeguarded and the financial position of the company is sound enough. c) Overdue and litigation position of the company as stated by the management presents a true and fair view. 47 Subsequent events : No material events occurred after the balance sheet date, non disclosure of which could affect the ability of the users of the financial statements to make proper evaluation and decisions. Highlights on the overall activities : Sl no. Particulars 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Paid up capital Total capital Capital surplus / (deficit) Total assets Total deposits Total leases, loans and advances Total contingent liabilities and commitments Credit deposit ratio % of classified leases,loans and advances against total leases,loans and advances Profit after provisions and income tax Leases,loans and advances classified during the year Provission kept against classified leases,loans and advances Provision surplus / (deficit) Cost of fund Interest earning assets Non-interest earning assets Return on assets (ROA) % Return on investment (ROI) % Income from investment Earnings per share Net income per share Price earnings ratio (times)

48

Amount in Taka 2009 215,985,000 380,888,799 (119,111,201) 2,829,708,738 678,886,996 1,883,036,937 50,000,000 277.37 22.04 26,973,558 414,939,399 108,811,754 11.64 2,021,822,326 807,886,413 1.06% 13.54% 21,601,834 12.49 12.49 8.01

215,985,000 456,591,828 (43,408,172) 2,919,241,293 619,890,700 1,629,115,736 262.81 19.77 75,703,029 322,021,824 88,120,994 11.11 1,936,213,394 983,027,899 2.59% 28.83% 106,540,772 35.05 35.05 2.85

Sd/Company Secretary

Sd/Director

Sd/Managing Director

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GSP FINANCE COMPANY (BANGLADESH) LIMITED INVESTMENT IN SHARES AS AT 31 DECEMBER 2010 ANNEXURE - A Sl. No. 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 Name of the issuer company ACI Formula Ltd Aftab Automobiles BSRM Steel Ltd. CDBL Eastern Cables EBL 1st Mutual Fund Grameen Phone KPCL Lafarge Surma Cement Metro Spinning Orascom Telecom (Bond) PLFSL (Pref. share) R.A.K. Ceramics Summit Power Trust Bank Ltd. No. of Shares 10,000 492,246 1,000 56,947 4210 16000 10,000 4,169 500 6,000 2 37,991 5,058 183,901 28 Cost price as at 31 Dec. 2010 (Tk) 1,741,186 60,000,000 2,303,366 5,416,700 3,523,433 417,549 2,674,378 704,350 240,392 570,948 20,000,000 5,000,000 1,098,972 21,750,000 9,678 125,450,952 1% Provision made on investment in portfolio A/C: Balance as at 31 December, 2010 Market Price as at 31 Dec. 2010 (Tk.) 1,398,000 60,000,000 2,118,500 5,416,700 3,031,200 294,400 2,645,179 469,429 281,875 522,000 20,000,000 5,000,000 867,953 21,750,000 21,091 123,816,327 Provision required as at 31 Dec. 2010 (Tk.) 343,185 184,866 492,233 123,149 29,199 234,922 48,948 231,019 1,687,521 5,715,902 7,403,423

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GSP FINANCE COMPANY (BANGLADESH) LIMITED SCHEDULE OF FIXED ASSETS AS AT 31 DECEMBER 2010

ANNEXURE - B SL No. C Opening Balance on 01.01.10 288,150,000 14,182,331 9,445,504 6,582,945 878,341 8,142,290 834,704 1,128,896 20,950,712 350,295,723 O Addition S Adjustment during the period 3,523,490 3,523,490 T D E P R E C I A T I O N Closing Rate Opening Charged on Adjustment Balance as on % Balance on 31.12.10 During 31.12.10 01.01.10 the period 288,150,000 14,182,331 10 4,566,097 1,418,233 10,033,954 6,606,378 882,741 4,618,800 834,704 1,128,896 20,950,712 347,388,516 20 10 20 20 20 20 10 7,193,720 4,689,114 806,190 5,365,121 810,904 784,341 5,930,089 30,145,576 854,366 314,216 27,766 908,802 17,067 225,779 2,095,071 5,861,300 3,196,114 3,196,114 Written Down Value as on 31.12.10 288,150,000 8,198,001 1,985,868 1,603,048 48,785 1,540,991 6,733 118,776 12,925,552 314,577,754

Particulars

as on
31.12.10 588,450 23,433 4,400 616,283

1 Land & Land Development 2 Office Building 4 Office Equipment 5 Furniture & Fixtures 6 Telephone Systems 7 Motor Vehicle 8 Electrical Goods & Installation 9 Generator & Installation 10 House Property Total

Closing Balance as on 31.12.10 5,984,330 8,048,086 5,003,330 833,956 3,077,809 827,971 1,010,120 8,025,160 32,810,762

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AdditionaldisclosuresintheFinancialStatementsofGSPFinanceCompany(Bangladesh)Limitedforthe yearendedDecember31,2010 With reference to the Securities and Exchange Commission Letter no.SEC/CI/IPO38/2004/604 dated August 23, 2011 we are pleased to provide hereunder the additional disclosures relating to the audited financial statementsofGSPFinanceCompany(Bangladesh)LimitedfortheyearendedDecember31,2010. 01. Anewnoteno.18.1shallbeinsertedasunder:

1stRevaluation
Therevaluationofcompanysassetswasfirstmadeon14thMarch,2007byaregisteredsurveyfirmnamed G.K.AdjustersLtdwhichisanenlistedvaluationsurveyorofreputedbanksandinsurancecompaniesin Bangladesh. They have appropriate qualifications and experience in the valuation of properties in the relevant locations. The valuation, which conforms to National/International Valuation Standards, was arrived at by reference to market evidence of transaction prices for similar properties in the area. Such revaluationwasinaccordancewithBAS16.Thesummaryofrevaluationisshownbelow:

(Asperauditedaccounts)
Description Land&LandDevelopment OfficeBuilding Total

Bookvalueason 01.01.2007 46,215,900 1,771,976

Revaluation surplusason 31.12.2007 123,284,100 9,468,024 132,752,124

Revaluedvalueas on31.12.2007

169,500,000 11,240,000

Reasons for Valuation: The valuation has been made for reflection of actual value of its assets. The revaluedamountwasincorporatedintheaccountsason31.12.2007. TherevaluationsurplusamountofTk.132,752,124.00hasbeenkeptasrevaluationreserve/otherreserve account.ThebalanceofrevaluationreservewasTk.132,752,124.00ason31.12.2007. 2ndRevaluation Therevaluationofcompanysassetswasagainmadeon3rdDecember,2009byaregisteredsurveyfirm named G. K. Adjusters Ltd which is an enlisted valuation surveyor of reputed banks and insurance companies in Bangladesh. They have appropriate qualifications and experience in the valuation of properties in the relevant locations. The valuation, which conforms to National/International Valuation Standards, was arrived atby reference to market evidence of transaction prices forsimilar properties in thearea.Thesummaryofrevaluationisshownbelow:

(Asperauditedaccounts)
Description Land&LandDevelopment Total

Bookvalueason 01.01.2009 169,500,000

Revaluation surplusason 31.12.2009 118,650,000 118,650,000

Revaluedvalue ason31.12.2009 288,150,000

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Reasons for Valuation: The valuation has been made for reflection of actual value of its assets. The revaluedamountwasincorporatedintheaccountsason31.12.2009. TherevaluationsurplusamountofTk.118,650,000.00hasbeenkeptasrevaluationreserve/otherreserve account. Both the revaluation surplus/effects has been disclosed in the fixed assets schedule in the BalanceSheet.ThustotalrevaluationsurplusofTk.251,402,124hasbeenmadeasunder: Description AssetvalueBefore RevaluationAmount Revaluationsurplus Revaluation(Tk.) (Tk) (Tk) LandandLand 46,215,900 288,150,000 241,934,100 Development OfficeBuilding 1,771,976 11,240,000 9,468,024 Total 47,987,876 299,390,000 251,402,124

TheCompanyhasnotmadeanyrevaluationduringtheyear2010. ItmaybementionedherethatthoughseparatedisclosurehasnotbeenshownasperscheduleXIunder the Companies Act 1994 but the disclosures regarding revaluation for the successive years are already thereasincludedinthefixedassetscheduleoftheBalancesheetofrespectiveyear. 02. Anewnoteno.2.13.3shallbeinsertedasunder:

Deferredtaxationisabasisofallocatingtaxchargestoparticularaccountingperiods.Thekeytodeferred taxationliesinthefollowingtwoquitedifferentconceptsofprofits. 1. theaccountingprofit(orthereportedprofit),whichisthefigureofprofitbeforetax,reportedtothe shareholdersinthepublishedaccounts. 2. thetaxableprofit,whichisthefigureofprofitonwhichthetaxationauthoritiesbasetheirtax calculations.

Accountingprofitandtaxableprofit: Thedifferencebetweenaccountingprofitandtaxableprofitiscausedby: permanentdifferences temporarydifferences Permanentdifferences: oneoffdifferencesbetweenaccountingandtaxableprofitscausedbycertainitemsnotbeingtaxable/ allowable differenceswhichonlyimpactonthetaxcomputationofoneperiod differenceswhichhavenodeferredtaxconsequenceswhatever. Anexampleofpermanentdifferencescouldbecliententertainingexpensesorfines. Temporarydifferences: Temporarydifferencesaredifferencesbetweenthecarryingamountofanassetorliabilityinthe statementoffinancialpositionanditstaxbase(theamountattributedtothatassetorliabilityfortax purposes). Examplesoftemporarydifferencesinclude: certaintypesofincomeandexpenditurethataretaxedonacash,ratherthanonanaccrualsbasis,e.g. certainprovisions

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thedifferencebetweenthedepreciationchargedonanoncurrentassetsthatqualifiesfortax allowancesandtheactualallowances(taxdepreciation)given(themostcommonpracticalexampleof atemporarydifference). Noncurrentassetsaretheimportantexampleoftemporarydifferences.

One important reason why deferred tax should be recognized is that profit for tax purposes may differ from the profit shown by the financial statements. Such a difference may be caused by permanent or temporaryfactors.Forexample,ifanexpensesintheincomestatementisnotallowedfortaxpurposes,a permanentdifferencearise. Nothingcanbedoneaboutthat,andtheincreasedtaxchargejusthastobeaccepted. Atemporarydifferenceariseswhenanexpenseisallowedforbothtaxandaccountingpurposes,butthe timingoftheallowancediffers.Forexample,ifreliefforcapitalexpenditureisgivenatafasterratefortax purposesthanthedepreciationinthefinancialstatements,thetaxchargewillbelowerinthefirstyears thanitwouldhavebeenifbasedontheaccountingprofit,butinsubsequentyearsthetaxchargewillbe higher. Consideringallthepointsthecompanyhasconductedanexercisetofindoutdeferredtaxliability/asset based on temporary differences arising from the carrying amount of an asset or liability in the balance sheet and its tax base and accordingly deductible temporary differences have been ascertained but resultinginnodeferredtaxliabilityarisingduringtheyearunderaudit. AcalculationsheetisattachedunderAnnexureDherewith. 03. Anewnoteno.18.2shallbeinsertedasunder: AsperBAS16,para39therevaluationsurplusincludedinequitymaybetransferreddirectlytoretained earningswhenthesurplusisrealized;Thewholesurplusmayberealizedontheretirementordisposalof theasset.However,someofthesurplusmayberealizedastheassetisusedbytheenterprise;insucha case, the amount of the surplus realized is the difference between depreciation based on the revalued carryingamountoftheassetanddepreciationbasedontheassetsoriginalcost. ItisobservedthatproperdepreciationonappreciatedvalueofBuildinghasbeenmadebutasperpractice nodepreciationchargedinthevalueofland.Sincethedepreciationonrevaluedassetshasbeencharged to profit and loss account, revaluation surplus remain unchanged. This has been depicted in enclosed AnnexureC. 04. Anewnoteno.35.1shallbeinsertedasunder: The company has fully provided for all the classified accounts in compliance with Bangladesh Bank FID circularno.14dated26thJune,2000andFIDcircularno.03dated3rdMay,2006andithasbeensubmitted toBangladeshBankquarterlyaspertheirprescribedformat.ThepositionofCLvisvisprovisionthereof fortheyear2009and2010aregivenbelow: RequiredProvision(Tk) ProvisionKept(Tk) AsperCLasonDecember31,2010 107,351,831 107,851,831 AsperCLasonDecember31,2009 130,701,398 131,201,398 (23,349,567) (23,349,567) We note that as on 31.12.2010 the required provision on the classified lease/loan was Tk.107,351,831. SincetherewasanexcessofTk.23,349,567overtheprovisionrequiredforthe year2010ascomparedto provisionkeptfor2009,thesurpluswastakentotheincomeof2010todepictafairviewofincomefor

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the year 2010. Details of summary on CL position along with required provision are shown in enclosed sheet(AnnexureE) 05. Anewnoteno.10.1shallbeinsertedasunder: The company revalued its Land and Land Development and Office Building by a registered survey firm named G.K. Adjusters Limited after 2 years of 1st revaluation as the value of land increased significantly duringtheyears2007to2009.SuchrevaluationwasinaccordancewithBAS16underpara30to33.

ItmaybementionedharethattheFinancialStatementsof2007and2008wereauditedbyanotheraudit firm and we were appointed on April 12, 2009 to audit the Accounts for the onward period to which auditingtheAccountsfortheyear2009falls.Wefoundthatthemajorportionoffixedassets(Landand LandDevelopmentandOfficeBuilding)worthyofrevaluationwasrevaluedonMarch14,2007andLand and Land Development was revalued on December 03, 2009 by a registered survey firm named G.K. AdjustersLimitedtoreflectthefairmarketvalueoftheproperty. Itnowrevealsthattheentirepropertiesofthecompanyhavenotbeenrevalued. ThePositionofRevaluationsurplusoftheAccountsof2010isgivenbelow: Description LandandLand Development OfficeBuilding Total 06. (a) Anewnoteno.11.2shallbeinsertedasunder: ThecompanywasgrantedMerchantBankingLicensebySEConAugust24,1999.MerchantBankingunit granted loans to its portfolio account holders numbering 407 accounts as on December 31, 2010 as per guidelinesgivenbySECscircular/letterno.SEC/CMRRCD/2006159/admin/0129datedOctober11,2007, SEC/CMRRC/200143/74datedDecember13,2010andothercirculars/guidelinesissuedbySECfromtime to time as per margin requirements fixed by SEC. The statement of Advance to portfolio accounts is enclosedunderAnnexureF

AssetvalueBefore Revaluation(Tk.) 46,215,900 1,771,976 47,987,876

RevaluationAmount (Tk) 288,150,000 11,240,000 299,390,000

Revaluationsurplus (Tk) 241,934,100 9,468,024 251,402,124

(b) Anewnoteno.11.3shallbeinsertedasunder: Details of Sundry Debtors accounts have been checked item wise. We observed that out of total Tk.6,936,819 a sum of Tk.3,017,889 has since been realized. The balance amount of Tk.3,918,930 consideredtoberealizable.ThestatementofSundryDebtorsisenclosedunderAnnexureG 07. Anewnoteno.35.2shallbeinsertedasunder.

The reason for higher profit during the year under audit is that income from investment was Tk.106,540,772whichwasTk.21,601,834inthepreviousyear.TheaddingbackofsurplusofTk.23,349,567 fromprovisionwasnotthelonefactorofhigherincome. Itwillbeobservedfromthefinancialstatementsof2009and2010thataftertaxprofitfortheyear2010 wasTk.75,103,029asagainstthatofTk.26,973,558fortheyear2009.Theissueofaddingbackprovisionof Tk.23,349,567 to profit and loss account is considered to be a genuine surplus of provision over the

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requiredamountfortheyear2010asprovisionhasbeenkeptasperBangladeshBankcircularbytaking intoconsiderationthedeductiblevalueofcollateralsecurityagainsteachLease/loan. The details regarding adding back of Tk.23,349,567 from provision has already been clarified in note no.35.1

08. Anewnoteno.38.1shallbeinsertedasunder: Dividendintheformofbonusshare@28%fortheyear2010hasbeenproposedbytheBoardofDirectors initsmeetingheldon1stFebruary,2011andthesamewasapprovedinthe16thAnnualGeneralMeeting oftheCompanyheldonFebruary15,2011anditwasalreadysubmittedtotheSecuritiesandExchange CommissiononApril05,2011tosecuretheirconsentonit.Theconsentisintheprocessofconsideration ofSEC. Afterconsidering28%bonussharefortheyear2010,dilutedEPSwillbeasunder: 2010 2009 Netprofitaftertax 75,703,029 26,973,558 Numberofordinaryshares 2,764,6082,159,850 EarningsPershare(EPS) 27.38 12.49 09. Anewnoteno.13.5shallbeinsertedasunder:

Generallythecompanyborrowsfundthroughtermloans,SODandcallloansfrombanksunderthe followinggeneralconditions: TermsandConditions: a. Typeoffacility b. Amount c. Tenure d. Purpose e. Moratoriumperiod f. RepaymentPeriod g. Rateofinterest/Profit(varyingfrombanktobankdependingontenureandcostoffundand availabilityoffundoftherespectivelendingbank) h. Settlement i. Prepayment/EarlyTermination j. Disbursement/Availabilityperiod k. Security l. Expiry m. Specialconditions n. Documentations

Such term loans/SODs are secured by acceptance of sanction letter, offering post dated cheques for the principal loan amount, installment charges, signing of charge documents, creation of Paripassu security sharingchargewithRegistrarofJointStockCompaniesandFirms(RJSC)andinsomecases some banks sign loanagreementsbutthecreationofParipassusecuritysharingagreementwithRJSCisthevitalsecuritycover for the lending banks. For call loans there is no practice of obtaining any security by the call loan providing banks. Sd/ Dated,Dhaka KaziZahirKhan&Co. September11,2011 ChaarteredAccountants

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GSP FINANCE COMPANY (BANGLADESH) LIMITED SCHEDULE OF FIXED ASSETS AS AT 31 DECEMBER 2010 (a). Non-Revalued Assets SL No. C Opening Balance on 01.01.10 46,215,900 4,714,307 9,445,504 6,582,945 878,341 8,142,290 834,704 1,128,896 20,950,712 98,893,599 O Addition S Adjustment during the period 3,523,490 3,523,490 T D E P R E C I A T I O N Closing Rate Opening Charged on Adjustment Balance as on % Balance on 31.12.10 During 31.12.10 01.01.10 the period 46,215,900 4,714,307 10 1,953,961 471,431 10,033,954 20 7,193,720 854,366 6,606,378 10 4,689,114 314,216 882,741 20 806,190 27,766 4,618,800 20 5,365,121 908,802 3,196,114 834,704 20 810,904 17,067 1,128,896 20 784,341 225,779 20,950,712 10 5,930,089 2,095,071 95,986,392 27,533,440 4,914,498 3,196,114 ANNEXURE - C Written Down Value as on 31.12.10 46,215,900 2,288,915 1,985,868 1,603,048 48,785 1,540,991 6,733 118,776 12,925,552 66,734,568

Particulars

as on
31.12.10 588,450 23,433 4,400 616,283

1 2 4 5 6 7 8 9 10

Land & Land Development Office Building Office Equipment Furniture & Fixtures Telephone Systems Motor Vehicle
Electrical Goods & Installation

Generator & Installation House Property Sub-Total

Closing Balance as on 31.12.10 2,425,392 8,048,086 5,003,330 833,956 3,077,809 827,971 1,010,120 8,025,160 29,251,824

(b). Revalued Assets SL No.

Particulars

1 2

Land & Land Development Office Building Sub-Total Total Assets (a+b)

C Opening Balance on 01.01.10 241,934,100 9,468,024 251,402,124 350,295,723

O Addition

as on
31.12.10 616,283

S Adjustment during the period 3,523,490

T D E P R E C I A T I O N Closing Rate Opening Charged on Adjustment Balance as on % Balance on 31.12.10 During 31.12.10 01.01.10 the period 241,934,100 9,468,024 10 2,612,136 946,802 251,402,124 2,612,136 946,802 347,388,516 30,145,576 5,861,300 3,196,114

Closing Balance as on 31.12.10 3,558,938 3,558,938 32,810,762

Written Down Value as on 31.12.10 241,934,100 5,909,086 247,843,186 314,577,754

Page 95

GSP Finance Company (Bangladesh) Ltd. DeferredTaxCalculationSheet 1.TemporarydiferrencebetweenFinancialreportingbaseandTaxbaseaccounting:Fixedassets Assessmentyear20072008 Assessmentyear20082009 AsperFinancial Asper AsperFinancial Asper Temporary deductible/(tax reportingBase Temporary Particulars reportingBase TaxBase TaxBase
able) diferrences deductible/(taxa ble)diferrences

AnnexureD
Assessmentyear20092010 AsperFinancial Asper Temporary reportingBase TaxBase
deductible/(taxab le)diferrences

Cost:OpeningBalance Additionduringtheyear Adjustmentduringtheyear ClosingBalance Less:AccumulatedDepreciation OpeningBalance

68,679,786 16,671,635 85,351,421 1,900,000 83,451,421

69,366,009 16,671,635 86,037,644 1,900,000 84,137,644

83,451,421 137,527,134 220,978,555 3,821,919 217,156,636

84,137,644 137,527,134 221,664,778 3,821,919 217,842,859

217,156,636 10,630,101 227,786,737 227,786,737

217,842,859 10,630,101 228,472,960 228,472,960

13,081,658

13,028,315

14,666,317

13,900,022

17,665,696

14,235,461

Chargedduringtheyear
Adjustmentduringtheyear ClosingBalance WrittenDownValue DeferredTaxasset 2.ProvisionforGratuity

3,484,658
16,566,316 1,899,999 14,666,317 68,785,104

2,771,706
15,800,021 1,899,999 13,900,022 70,237,622
1,452,518

5,448,298
20,114,615 2,448,919 17,665,696 199,490,940

2,784,358
16,684,380 2,448,919 14,235,461 203,607,398
4,116,458

6,136,440
23,802,136 23,802,136 203,984,601

3,595,170
17,830,631 17,830,631 210,642,329
6,657,728

653,633

1,852,406

2,995,978

GSPFinanceCompany(Bangladesh)LimitedismaintainingagratuityfundwhichisunfundedanditisunderprocessmakingitfundedbytheNationalBoardofRevenue.Sinceit isunfunded,thetaxauthoritydisallowedprovisionforgratuityexpenseseveryyear.ThisdifferenceispermanentdifferencebetweenFinancialreportingbaseandtaxbase accounting.Sodeferredtaxisnotrequiredtobemaintainedforthispurpose. RecognitionofDeferredTaxLiabilities:ThegeneralprincipleinIAS12isthatdeferredtaxliabilitiesshouldberecognizedforalltaxabletemporarydifferences. RecognitionofDeferredTaxAssets:Adeferredtaxassetshouldberecognizedfordeductibletemporarydifferences,unusedtaxlossesandunusedtax creditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized. MeasurementofDeferredTaxAssetsandLiabilities:Deferredtaxassetsandliabilitiesshouldbemeasuredatthetaxratesthatareexpectedtoapplytothe periodwhentheassetsisrealizedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedbytheendofthereporting period.Themeasurementshouldreflecttheentity'sexpectations,atthebalancesheetdate,astothemannerinwhichthecarryingamountofitsassetsand liabilitieswillberecoveredorsettled. TheabovecalculationhavebeenmadebasingontheAssessmentyears20072008,20082009and20092010ascompletedbytheTaxationAuthorityandAssessmentyear20102011is underprocessofAssessmentbytheTaxationAuthorityattheirend.

Soconsideringtheabovepointswehaveconductedanexercisetofindoutdeferredtaxliability/assetbasedontemporatydifferencesarisingfromthecarryingamountofan assetorliabilityinthebalancesheetanditstaxbaseandaccordinglydeductibletemporarydifferenceshavebeenascertainedbutresultinginnodeferredtaxarisingduring thisyear.

Page 96

GSP Finance Company (Bangladesh) Limited Required Provision on lease, Loan & advance as per Bangladesh Bank Circular Classifications Portfolio Standard SMA Total for Unclassified SS DF BL Total for classified Total 1,036,309,876 194,920,365 1,231,230,241 18,311,347 880,549 307,829,928 327,021,824 1,558,252,065 2010 Base for provision as per BB guidelines 690,956,099 150,717,085 Provision Required 6,909,561 12,321,276 19,230,837 1,415,184 354,748 64,165,034 88,120,994 107,351,831 Provision Kept (A) 6,909,561 12,821,276 19,730,837 1,415,184 354,748 64,165,034 88,120,994 107,851,831 Portfolio 1,160,332,713 228,814,965 1,389,147,678 133,567,858 194,800,162 86,571,379 414,939,399 1,804,087,077 2009 Base for provision as per BB guidelines 1,160,332,713 215,139,428 Provision Required 11,630,507 10,756,971 22,387,479 21,385,235 48,179,596 38,749,089 108,313,920 130,701,398 Provision Kept (B) 11,632,673 10,756,971 22,389,644 21,385,235 48,179,596 39,246,923 108,811,754 131,201,398

Annexure-E
Addition/(Adjustment) (A-B)

(2,658,807)

7,075,921 709,495 64,165,034

106,926,175 96,359,191 38,749,089

(20,690,760) (23,349,567)

Note: SMA = Special Mention Account, SS = Sub Standard, DF = Doubtful, BL = Bad/Loss. BB=Bangladesh Bank

Page 97

GSP Finance Company (Bangladesh) Limited

1, Paribagh, Mymensingh Road, Ramna, Dhaka-1000
Balance Statement as on 31.12.2010

Annuxure-F
Account No.
1000 1001 1002 1003 1004 1005 1006 1007 1008 1009 1010 1011 1012 1013 1014 1015 1016 1017 1018 1019 1020 1021 1022 1023 1024 1025 1026 1027 1028 1029 1030 1031

Name
Monira Akter Saiful Islam Titu Md. Alhaj Uddin S.M. Sabbir Ahmed,Kazi Shaheen Hossain Mujib Hossain Chowdhury Munshi Mazba Zaman Md. Faisal Ahmed Md. Iftakharul Alam Bhuyan,Maruf Amin Md. Mahbubul Alam Khan,Md. Nurul Hoda Md. Shamim Reza Shamim Md. Sohel Akhter A.B.M Fazlur Rashid Repon Chandra Sarker A.K.M. Abdul Motaleb,Mainul Islam Syeda Shahnaz Masud Masihur Rahman Chowdhury S. M. Kabir,Md. Wasi Uddin Kaji Jasim Uddin Mintu Mohammad Shafiullah ANWAR-UL-HALEEM Abul Kalam Azad ,Khandaker Mustak Ahammed Md. Rakib Hasan RIPON CHANDRA SAHA AD VIEW LTD. Iftekhat Hossain Mir Sabbir Ahmed Md. Sumsul Alam Talukder Abdullah-Al-Azim Masum Parves Md. Manik Hossen Molla Md. Abdul Hannan Dr. Badrun Nahar Bula

Balance
(448,251.27) (3,039,367.03) (128,148.49) 1,138.15 (1,153,569.07) (320,421.13) (55,674.30) 7,047.25 (304,753.76) 1,243.90 (99,200.94) (92,197.18) (310,635.42) (256,082.25) (192,280.69) 27,820.71 (981,659.63) 15,904.62 (54,265.04) 42,634.64 11,563.62 9,299.38 10,048.83 6,879.60 (26,187.94) (21,292.73) 12,760.82 61,490.20 4,243.00 4,848.64 1,449.76 (14,472.91)

Page 98

1032 1033 1034 1035 1036 1037 1038 1039 1040 1041 1042 1043 1044 1045 1050 502 506 508 510 511 512 513 515 517 518 522 523 527 528 532 533 534 535 536 539 540 541 543 544

Mst. Nahid Sultana Md. Shahid Ullah Miaji Mostafa Mahmud Md. Sazadur Rahman Mohammad Atiqur Rahman Md. Majibur Rahman Fattah Al Jafar Muhammad Atiar Rahman Kishore Kumar Das,Swapna Rani Das Md. Abdul Karim Sarker Syed Rezaul Karim MD. RASEL UDDIN Md. Shahidul Islam Md. Reazul Islam Md. Shakhawat Hossain S.M Atique-uz-Zaman A.K.M. Asadullah Bhuiyan Rita Akther Meherina Kamal Md. Akher Ali Md. Moniruzzaman Md. Shohel Rana Syeda Muatisira Maleque Nehal Hossain A.A. Munir Hasan Md.Zubair Akther Khan Mr.Masum Alamgir Chowdhury Md. Mustafa Jabed A.K.M. Shamsuddin Ratan Md. Sadat Hossain Md. Sanwar Hossain Md. Afzal Hossain Sazzad Hossain Tajuddin Ahmed Md. Akhirul Islam Mohammad Sabur Khan Md. Belayet Hossain Avijit Bhattacharjee,Shatadal Das Md. Abdus Satter Sarkar

(8,764.98) (75,756.58) (1,217,181.81) 8,582.64 15,620.27 (98,058.61) 17,214.65 3,266.34 5,517.22 1,561.18 7,199.69 254,000.00 385.83 249,000.00 91,404.07 (289,070.38) (1,546,356.31) (196,865.27) 2,063.02 (1,143,708.16) (446,377.40) 10,052.78 (97,072.47) (662,849.51) (1,039,734.89) (954,495.18) (899,180.98) (120,616.28) (1,003,410.75) 438,291.21 8.86 (882,154.02) (95,969.87) (638,093.87) 2,441.98 (245,259.80) (13,391.73) (2,934,187.94) (1,584,455.41)

Page 99

545 546 547 549 550 553 554 555 556 558 559 560 561 562 563 564 565 566 567 569 571 572 573 574 575 576 578 579 580 581 582 583 584 585 586 587 588 589 590

B.M. Shahabuddin Mahbuba Islam Rasheda Moazzem Mrs. Lutfunnessa Shahnewaz,Kazi Shahnewaz Mrs. Afifa Khatoon Mohammad Asad-uz-Zaman Md. Shahjahan Kabir Sania Mehdi Nafisa Akbar Sayeed Kaisar,Dr. Salma Sharmin Obaidur Rashid Khan Golam Rabbani Famid Karim Bhuiya Md. Alamgir Hossain Hasmath Mahmud Md. Rafiqul Alam,Mrs.Shahnaj Parveen Md.Rafiqul Alam Mrs. Shahnaj Parveen Bakhtair Uddin Ahmed Masud Ahmed Ghazi Hisham-Ur-Rashid Md. Saidur Rahman Md. Mustafizur Rahman,Saleha Khatoon Mr. Fazlur Rahman Mollah Kazi Rashedul Hassan Sahara Begum Chowdhury,Zubair Ahmad Chowdhury Md. Lychur Rahman Md. Harun Ur Rashid ,Jesmin Khan Md. Abdul Barek Howlader Md. Wahedun Nabi Chowdhury Md. Abdul Aziz Hazi A.R. Badal Mr. Mominullah (Javed) Mohammad Abdul Azim,Nahid Rahman Md.Ajgar Ali Ahabab Zubair A.K. Sabbir Hasan Zubair Sohel Sala Uddin

18,450.86 (1,045,154.76) 10,252.93 (982,444.75) (1,893,164.20) (431,351.37) 3,271.31 (63,270.66) (5,802.83) (1,006,466.62) (1,347,480.49) 6,935.47 694.28 153.22 13,595.83 (336,903.92) (1,155,337.95) (250,462.26) (909,964.86) (3,978,863.35) 13,666.51 (341,691.26) (3,336,392.28) (89,044.22) (4,734,415.91) 8,758.66 11,224.65 (5,519,331.27) (615,280.02) 24.36 124.87 13,278.11 (110,602.99) (134,704.54) (670,164.69) (9,066,127.03) (1,169,205.10) (1,921,847.46) (1,437,390.55)

Page 100

592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 617 618 619 620 621 622 624 625 626 627 628 629 630 631

Manzurul Karim,Fouzia Nahid Mr. Narayan Chandra Saha,Ms.Shibani Saha Khan Md. Kamruzzaman Maruf Brig Gen Abdul Mannan Miah (Retd),Mrs. Salma Mannnan Kazi Moinul Haque Mr. Siraj Uddin Haider Md. Fahim Haider Md. Shamsuzzoha Mohammad Babar Hossain Saifuddin Mahmud Mr. Md. Tanjimul Islam Fayez Ahmed Md. Ektedar Rahman Md. Anisul Haque Md. Mamunur Rashid Md. Shareful Islam Shaikh Mohammad Salim Hossain Sabina Yeasmin Mohammed Tanvir Islam Chowdhury Md. Idris Ali Md. Zillur Rahman Basunia Mohammed Abu Bakar Siddique Md. Mahbubur Rahman Md. Ala Uddin Md.Abul Hossain Md. Khairul Alam Hasna Hena Sajeda Chowdhury A.K.M. Jahangir Khan Md. Mubarak Ali Rubayet Rashid Romel Nurunnahar Lipy Mahamudul Hoque Subir Baishnab Mr.Mohammad Muslim Chowdhury Mahmood Sk. Md. Abdul Hayee Nathem Al-Deen Minaoar Hossain Tanzil Mohammad Zakir Hossain Sajeda Iqbal

218,510.27 (469,246.36) (524,769.65) (2,270,094.09) 17,809.85 2,813.72 (200,475.36) (2,178,877.77) (1,474,786.42) (331,218.87) 1,471.17 3,323.23 (1,793,910.73) (347,832.72) (1,656,350.36) (6,959.05) (1,576,337.69) (188,794.38) (714,941.19) 4,147.80 (466,351.78) (3,356,272.20) (2,569,791.62) (166,523.81) (965,877.48) (667,424.90) (532,694.64) (158,132.83) (49,549,302.66) (2,957,580.65) (515,259.03) (246,307.66) (7,473,129.66) (1,480,729.34) (314,646.03) (5,413,698.30) (223,173.90) 13,003.79 (849,612.97)

Page 101

632 634 635 636 637 638 639 640 641 642 643 645 646 647 648 649 650 651 652 653 654 655 658 659 661 662 663 665 667 668 669 670 671 672 673 674 675 676 678

Mizanur Rahman Md. Nahidul Islam Faraque Ahammad Raj Nurul Islam Moni Ataur Rahman Khan Md. Rafiqul Islam Subir Baishnab,Kazi Sharif Ahmed Md.Nazrul Islam Nazim uddin Ahmed Mohammad Ataur Rahman,Sabina Akter Jahan Shaila Md. Nuruzzaman,Morsheda Zaman Munni Syed Opel Shahabuddin Md. Sayeadul Arefin Md. Shahidul Islam,Most. Parvin Akter Ali Emam Hossain Maksuda Karim Kartick Chandra Paul Tamanna Nasrin A.Z.M. Jalaluddin Hasina Akhter Md. Rafiqul Islam Md. Nurul Amin Abul Kalam Azad,Shahnoor Azad Jayed Bin Jasim,Ziauddin Ahmed Zahadul Islam Ahad Mohammad Bhai Md. Farid Hossain Mosharraf Hossain Md. Rezaul Karim Md. Makbul Alam Mohammed Zakir Hossain S.M.Kamrul Hasan Md. Jahangir Alam Tipu Md. Mahbubul Alam Khan Mossarof Hossain Md. Zahedul Islam Kamrun Nahar Sammi K.M. Mozibul Haque Goutam Basak ,Manik Paul

(886,846.25) (787,387.97) (260,862.67) (2,682,521.76) 10,398.24 (2,332,618.29) (64,293.43) (946,391.80) (35,370.37) (2,015,198.86) (571,990.46) 24,033.10 (519,701.81) (486,410.37) (301,907.04) (154,018.69) (482,001.46) (819,643.56) (629,988.04) (5,030,473.80) (1,813,528.94) (301,547.16) (661,402.32) (808,449.60) 36,491.13 (1,038,148.30) (323,613.07) (824,391.23) (1,848,315.36) (709,142.07) (957,718.71) (1,155,277.01) (209,795.96) (194,339.89) (1,192,384.65) 908.91 (1,865,209.70) 153,868.80 (1,185,747.69)

Page 102

679 680 681 682 683 684 685 686 687 688 689 690 692 693 694 695 696 697 698 699 700 701 702 703 704 705 706 707 709 710 711 712 713 714 715 716 717 718 719

Rubaiyet Rashid Romel,Begum Roaman Ivy Khurshed Alam Chowdhury Abu Zafor Md. Moshab Uddin,Md. Saifur Rahman Mohammad Abdul Halim Mohammad Nayeem Uddin Arshad Hosein Md. Alamgir Hossain Md. Rezaul Haque Md. Imamul Hossain Abdul Waseh Taufique Akber Towhid Akbar Ariful Islam Polash Khan Md. Tohiduzzaman Shakil Mohammad Mostafa Kamal Md. Rukonuzzaman Shahanaj Sharmin Md. Sharif-Al-Kamal Jobeda Khatun Rashed Ahmed Monir Chowdhury Sami Md. Sultan Mohmud Razee Mohammad Fakhrul Md. Akter Hossain Mamun Md. Ishtiaq Mahmud Md. Ashiqur Rahman Khan Md. Moinuddin Chowdhury Ahad-Uz-Zaman Meherun Hussain,Fakhrul Islam Munshi Mohammed Tanvir Islam,Mohammed Nurul Islam Chowdhury Md. Farhad Hossain Patwary Md. Shafiqur Rahman Md. Sayeadul Arefin,Shefa Ahmed Md. shawkat Kamal Md. Nuruzzaman Md. Ruhul Amin Md. Arifur Rahman Md. Fazlul Karim Md. Abul Kalam Azad

(819,318.49) (6,757,592.35) (769,885.39) (534,425.42) (576,315.95) (1,698,911.47) (468,962.51) (712,149.68) 6,662.18 (290,179.98) (309,017.94) 400,305.81 (324,448.89) (2,515,509.30) (20,529,796.14) (2,419,565.66) (1,986,935.76) 7,752.52 (851,117.96) 6,554.07 (1,153,103.29) (967,651.63) 14,969.14 (5,849,796.07) (840,791.26) (445,100.72) (2,757,939.82) (492,649.10) (1,257,162.67) (1,019,189.17) (1,787,186.44) (122,093.51) (278,690.07) 697,897.09 (32,317.12) (11,851,060.08) (266,324.51) 4,975,019.06 2,771.76

Page 103

720 721 722 725 726 727 728 729 730 731 732 733 734 735 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 757 758 759 760 761

A.B.M. Fazlul Karim,Golok Kumar Sarker Mohammad Aminul Islam,Md. Abul Khair Dhally Md. Mominur Rahman,Md. Mosaddeq Hossain Md. Abdullah Faruque Mir Md. Amir Hossain Md. Iqbal Hossain,Sajeda Iqbal Rahmat Nawaz Fahmi Md.Shahadat Hossain Sikder Md. Abdus Salam Md. Harun-or-Rashid Moghal Md. Hadiuzzaman Mohammed Ahmed Ansari Md. Azad Rahman Md. Ruhul Amin Md. Sofir Uddin Saidur Rahman Bakul Dr. Humayn Kabir Faria Shabnam Daina Shakiba Shabnam Dona Nazim Farhan Choudhury Md. Moklesur Rahman Md. Abdullah Mohammad Fazle Manzur Md. Sohidul Islam Sirajuddin Haider,Nasreen Haider Khadiza Akter Nupur Md. Abdul Alim Md. Faruk Ahammed Mohammad Ali Hossain Shahid Malik Azizul Haque Khan Md. Rashedul Alam Md. Farid Hasan Khan Md. Shahjada Md. Rezanul Hoque Md. Alomgir Hossain D.M Mahabubur Rahman Md. Anwar Hossain Jewel Md. Jahangir Alam

(603,793.32) (1,010,099.10) (640,349.19) (620,070.09) (813,039.87) 323,943.42 2,902,649.47 (621,103.50) (626,509.26) (33,049.65) (180,978.19) 6,853.87 (730,869.66) (565,454.07) (123,300.20) (1,120,364.54) 47,182.98 (4,267,176.93) (4,319,593.02) 608,904.01 (417,504.08) (6,615,945.26) (29,509.07) 50,688.02 (1,329.25) (702,230.71) 9,938.90 (88,944.59) 10,570.25 (1,376,721.92) (1,324,091.90) (601,015.39) 95,951.89 (228,101.64) (430,224.45) (678,959.39) (1,047,722.01) (814,789.69) (338,556.65)

Page 104

762 763 764 765 767 768 769 770 771 772 773 774 775 777 778 779 780 781 782 783 784 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 802

S.M. Touhiduzzaman Md. Enamul Haque Babu Irin Hossain Ruma Md. Abu Jahid Md. Abul Hossain,A K M Shahid Ullah Golam Sarwar Nazmul Hossain Sumona Akhter Nasreen Haider Md. Zahurul Islam Md. Minhaj Uddin Md. Rezuanul Karim Khan Farian Yusuf Md. Asaduzzaman Md. Badsha Miah Mrs. Shamsun Nahar Lovely Md. Sharifujjaman Modhurima Dey Amin S M Refaul Karim Shah Md. Nazrul Islam Anwar Hossain Md. Shahidullah Dr. Md. Ishtiaque Alam Most. Kawser Parvin,Badrun Nahar Sumi Golok Kumar Sarker Md. Ferdous Islam Md. Arshad Iftekhar Md. Fazlul - Karim,Md.Atiqul Kobir Md. Showkat Hossain Sikder K.M. Iqbal Hossain Md. Iqbal Hossain Ahabab Zubair,Zubair Sohel Md. Shakhawat Hosen Md. Ayub Ali Mst. Shamsun Nahar Begum Harendra Nath Karmaker Zahirul Anowar Kabir Uddin Ahmed Md. Shajedul Islam

(329,547.54) (18,654,582.73) (11,346,819.02) (169,130.08) (527,004.20) 1,126,832.94 (93,395.27) (1,556,340.45) 865.00 (1,291,944.14) (827,235.03) (1,349,095.92) (5,393,091.01) (563,960.45) (528,529.76) (875,557.03) (762,605.00) (385,292.29) (2,862,500.44) (967,393.43) 10,652.08 (1,186,549.09) (455,023.89) (54,288.16) (304,311.72) (735,233.53) (743,256.62) (2,582,453.24) (5,740,105.92) (669,328.85) (163,230.68) (1,259,739.51) (341,525.46) (309,019.98) (881,313.64) (2,101,867.11) (520,036.97) (2,341,651.11) (615,380.41)

Page 105

803 804 806 807 808 809 810 811 812 813 814 815 816 817 818 819 820 821 822 823 824 825 826 827 828 829 830 831 832 833 834 835 836 837 838 839 840 841 842 843 844 845 846 847

Md. Mahfug Siddiq Liton Retheta Reza,Mohammad Arif Chowdhury Begum Munawara Khanam,Rizwana Islam Rizwana Islam Begum Munawara Khanam Sultana Akhter Md. Nurun Nabi Chowdhury Md. Alamgir Kabir,Rokshana Akther Arafat Rahman Md. Firoz Akhter Anowar Babul Md. Nurun Nabi Rafiqul Islam Farhana Seraj Shamir Datta A.K.M. Rabiul Karim Md. Irfan Ullah Khan Md. Billal Hossain Md. Abu Obayed Dr. Md. Rezaul Haque Pk,Md. Tajuddin Kamal Sayeeka Huq Rashadul Karim Chowdhury Md. Masud Hossain Mia,Faridul Islam Chowdhury Taufiqur Rahman Shohani Rahman Md. Nurul Hoda Shafiqur Rahman Md. Abdul Gafur Tahmina Khanom Md. Tofazzal Hossain Khan Md. Mohsin Ali Dr. Md. Shahadot Hossain Sheikh Dr. Ali Zaheer Al-Amin Shaiful Islam Khan Md. Harun-or-Rashid Mrs. Asma Chowdhury B.M.Takabber Md. Shafiqul Islam,Dewan Shafiqul Islam Sayeed Kaisar Mijanur Rahman Mrs. Aftab Taser Shakil Ahamed Farzana Lucky Ali Obaidur Rahman Khan

(12,574,631.23) (454,294.62) (160.01) (160.01) (160.01) (84,083.29) (312,769.41) (184,121.02) 1,077.75 (270,654.86) (250,188.78) (38,909,865.52) 856,133.52 (537,833.18) (19,683,774.61) (546,682.18) (3,841,633.82) (1,161,329.57) (421,349.40) (3,379,414.46) (797,312.42) (642,214.16) 2,192.81 (1,689,147.92) (642,477.45) (217,427.30) 7,901.40 28,453.70 (896,106.56) (2,197,720.44) 7,724.83 (589,923.29) (887,970.29) (203,755.82) (298,087.06) (132,321.31) (539,843.08) (166,598.65) (717,943.98) (1,899,676.89) (689,265.57) (705,685.77) 19,643.34 (1,209.49)

Page 106

848 849 850 851 852 853 854 855 856 857 858 859 861 862 863 864 865 866 867 868 869 870 871 872 873 874 875 876 877 878 879 880 881 882 883 884 885 886 887 888 889 890 891 892 893 894 895 896

Quazi Moshiour Rahman Md. Shahidul Islam Lt. Col. Sheikh Md Sarwar Hossain A-1 Trade International Md. Mosaddeq Hossain,Md. Abu Rasel Khondakar Md. Matiar Rahman Imtiaz Shamim Dewan Afreen Choudhury Ekhlas Uddin Jewel Md. Abdulla Abu Sayed Moshaid Ali Md. Mahfuzur Rahman Khan Md. Khairul Abed Md. Anisul Hasan A.K.M. Akteruzzaman Md. Maznur Rahman Md. Tohiduzzaman Shakil ,Md. Yousuf Bhuiyan Kazi Rashedul Haque Md. Ashraful Alam Md. Nurul Haque Most. Mongarin Tanzina A.K.M. Abdul Motaleb Golam Saroar Rasid MD. ZAHIRUL ISLAM KHAN MD. KHURSHED ALOM MAHFOOZUR RAHMAN S.M. AMINUR Rahim Md. Khashruzzaman Md. Anowar Hossain LIBERAL CO-OPERATIVE SOCIETY LTD. Md. Jahangir Hamid RATAN KUMAR SOMADDER KHANDAKER AHSAN MAHMUD MD. SALIM ULLAH CHOWDHURY Md. Shariful Islam Sabrin Akhter MD. MOBARAK HOSSAIN Md. Alamgir Kabir Mohammad Ismail Hossain Md. Kabir Hossian Howlader Mohammad TIpu Sultan,Md. Ataur Rahaman Md. Ferdous Alam Khan Mrs. Shahana Hussain Md. Wahiduzzaman Md. Abdul Malek Md. Shamsul Alam Amit Halder Animesh Mridha

(3,478,431.88) (845,383.46) (1,755,451.42) (5,473,530.73) (258,444.21) (1,684,141.49) (144,165.87) (281,117.85) (303,072.44) (822,403.48) (449,141.81) (523,257.95) (252,673.29) (602,390.95) (1,841,511.18) (384,769.24) (285,902.05) (378,748.93) (5,629,890.28) (234,588.06) (5,145,939.63) (534,870.59) (666,328.06) (36,932.93) (385,945.94) (2,695,721.78) (14,520,042.90) (891,124.22) (1,850,707.86) 44,750.43 (855,581.47) (773,450.03) (259,679.33) (278,387.23) (264,699.71) (37,630.72) (337,524.63) (472,462.37) (379,451.70) (338,753.00) 10,933.35 (796,589.46) (77,942.39) (1,192,499.79) (598,044.60) (181,884.78) (468,368.00) (379,173.16)

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897 898 899 900 901 902 903 904 905 906 907 908 909 910 911 912 913 914 915 916 917 918 919 920 921 922 923 924 925 926 927 928 929 930 931 932 933 934 935 936 937 938 939 940 941 942 943 944

Nasir Uddin Yaser Hassan Shahid Mohammad Iqbal Khan Tahmina Akter Mijanur Rahman,Nur Muhammad Shipon Md. Mostofa Kamal Khondoker Mohammad Ali Dr. Md. Rezaul Haque Pk SAUDA BEGUM Kawser Parvin K.G. Kabir,Kanak Chowdhury SHEHAB CHOWDHURY Md. Akram Hossain Md. Liaquat Ali Saju Hosein Dr. Abdul Matin Noman Chowdhury Md. Mostafa Kamal Md. Munzurul Islam A. Razzak Mollah Mahima Rahman Md. Nure Alam (Mintoo) Adil Rizwan Saidul Hossain Fatiha Kabir Mim Mohammad Bazlur Rahman Most. Masuma Khatun Kazi Sharif Ahmed Shah Ahmed Shihab Chowdhury Md. Ahadur Khan Md. Hassan Iqbal Md. Obaydul Haque Md. Sultanul Islam Md. Kamruzzaman Md. Khairul Alam Md. Wazed Hossen Pramanik Tofail Ahmed Mainul Hossain Mohammad Nurul Islam Md. Mamdudur Rahman Md. Awlad Hossain Kutub Alam Chowdhury Md. Iklil Mondal Md. Younus Miah Bazlul Haque Israt Jahan Binti Abdul Latif,Abu Shamim Md. Mamun Raquib Md. Fakhrul

(151,092.06) (405,020.44) (471,606.05) (1,027,815.53) (1,192,604.90) (545,599.20) (1,255,836.47) 7,749.07 60,703.52 (269,426.55) (4,780,458.78) (19,321.36) (239,573.12) (1,973,910.64) (90,879.06) (2,282,989.21) (2,595,813.64) (603,787.03) (257,263.10) (228,947.04) 2,699.50 (384,218.65) (315,176.19) (781,322.76) (254,538.50) (122,181.05) (456,775.52) 11,607.84 (265,225.54) (1,011,375.47) (1,290,373.92) (513,178.92) (1,012,317.44) (1,063,211.79) (366,444.36) (165,479.47) (4,834,773.08) (212,217.42) (312,238.65) (3,019,864.10) (511,221.82) (6,813,834.03) 160,499.22 (269,695.62) 4,349,328.36 (1,450,976.27) 16,054.71 (6,738,530.76)

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945 946 947 948 949 950 951 952 953 954 955 956 957 958 959 960 961 962 963 964 965 966 967 968 969 970 971 972 973 974 975 976 977 978 979 980 981 982 983 984 985 986 987 988 989 990 991 992

Mohammad Tipu Sultan Md. Sanower Khan Pavel Hazi Md. Badrul Alam Md. Amzad Hossian Prodhan Bimal Chandra Bhowmik Md. Shafiul Alam Mohammad Abul Hossain Md. Ashrafuzzaman Monir Hossain Md. Masum Miah Md. Afsarul Haque Md. Emran Khandaker Abdullah Al Jubaier Goodluck Multipurpost Co-Operative Society Ltd. Md. Shawkat Ali Md. Wahiduzzaman Tamimy Md. Nasar Ahmed Md. Nazim Uddin Md. Muzib Ullah M. Fouzul Kabir Khan Dr. Fahmida Hossain Md. Aslam Parvez Md. Wahiduzzaman,Md. Mosaroorf Hossain Md. Shahjan Ali (Nannu) Md. Abdul Kader Joaddar Fatik Chandra Mohammad Zubair Akhter Khan,Sohel Akhter Khan Mohammad Abdul Quader Sabber Ahmed Siddique Salim Bhuiyan Md. Ahsan Ullah Sarker Md. Tazul Islam A.Z. Kamruzzaman Dalim Md. Anwar Sadat,Md. Ruhul Amin Md. Arif Hossain Faruk Kabeer Md. Kabir Hossain Md. Abul Kalam Azad MD. Mostafa Kamal,Mohammed Ali Arshad Md. Ashrafuzzaman Md. Saidur Rahman,Most. Farida Khatun Mohammad Balayet Hossain Mirda Mohammad Masud Hussain Abul Moqsud,A.F.M. Ershadul Haque Nazneen Parveen Nabani Kumar Kundu Mortoza Hasan Sajedur Rahman Neiham

9,398.03 (991,345.04) 87,959.32 (4,521,127.16) (623,787.95) 41,721.45 (427,425.21) (479,608.82) (456,471.01) (305,797.53) (232,304.45) (317,295.70) (63,061.50) 1,984.34 (190,661.54) 4,565.89 (234,109.48) (119,495.02) (143,532.64) (534,683.94) (237,546.63) (1,160,539.71) (1,532,191.28) (41,703.64) (1,474,609.08) (835,799.46) (36,712.68) (221,323.98) (255,749.88) 3,497,099.92 (362,756.93) (650,465.57) (390,705.83) (486,810.06) (161,313.50) (211,452.24) (261,024.06) (626,555.07) (441,948.50) (80,074.24) (621,555.42) (949,264.19) (256,466.86) (323,583.42) (132,145.12) (515,806.42) (199,229.07) (364,366.30)

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993 994 995 996 997 998 999

Md. Abdus Samad Md. Ruhul Amin A.K.M. Ashadujjaman Nur Md. Mokhlesur Rahman Tania Rahman Md. Mahbubul Alam Shah Muhammad Manjurul Mowla

(304,225.04) (231,878.93) (50,473.36) (308,080.38) 6,249.68 (175,840.89) (242,231.05)

Total loan balance

(571,590,211.45)

Page 110

GSP Finance Company (Bangladesh) Limited SUNDRY DEBTORS

Annexure-G
SUBSIDIARY ACCOUNTS IUBAT 1233/LS/05 IPSSL Oval Trade Sangstha (1165/LS/04) Tamijuddin Textile (1147/LS/04 Malencha Food Agr # 1200/LS/04 Doal Appeerls Engineer Bellal Hossain Delta School(1187/LS/04) Multi Securities & Services Habib Vegetable Agr# 1327/LS/08 Hi-pro Feed Mills Silk Line Express (1217/LS/2004 Unitech Holding Fantasy Billiard Centre & Agr # 9040/TL/07 Active Travels Agr 1303/LS/07 Anudip Autos Ltd Agr# 1125/LS/03 ABSCO Ltd Dhaka Chemical & Soap Ind.Ltd. (1131/LS/2003) Total
CURRENCY IN TAKA

1,798,714 78,772 74,705 31,830 41,086 206,817 220,119 255,596 2,939,117 4,000 1,000 87,560 272,915 187,116 132,949 63,225 197,313 343,986 6,936,819

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Auditors'ReportunderSection135(1),Para24(1),PartIIoftheThirdScheduleoftheCompaniesAct1994 As per section 135(1) of Para 24(1) of Part II of the third Schedule of the Companies Act 1994, GSP Finance Company (Bangladesh) Limited has prepared the following statements of assets and liabilities and operating results for the year ended 31st December 2006, 2007, 2008, 2009, 2010 submitted those to us. Our responsibility is to review the corresponding auditedfinancialstatementsandconfirmtherelatedinformationhavebeencorrectlyextractedfromtherelevantfinancialstatementsrespectively. A.Thecompanywasincorporatedon29October,1995. B.ThestatementofAssetsandLiabilities(BalanceSheet)ofthecompanyfortheyearended31December2006to2010. 2010 PROPERTYANDASSETS Cash Inhand(includingforeigncurrencies) BalancewithBangladeshBankanditsagentsbank(s)(including foreigncurrencies) Balancewithbanksandothersfinancialinstitutions InBangladesh OutsideBangladesh Moneyatcallandshortnotice Investments Governments Others Leases,loansandadvances BillsPurchasedanddiscounted Fixedassetsincludingpremises,furnitureandfixtures Otherassets Nonbusinessassets Totalassets LIABILITIESANDCAPITAL Liabilities Borrowingsfrombanks,otherfinancialinstitutionsandagents: Depositsandotheraccounts Currentdeposits Billspayable Savingsdeposits Termdeposits Bearercertificateofdeposit Otherdeposits Otherliabilities TotalLiabilities Capital/Shareholders'Equity Paidupcapital Statutoryreserve Otherreserve Retainedearnings: Proposedbonussharefortheyear Retainedearningsbalance TotalliabilitiesandShareholders'equity 1,206,189,666 619,890,700 619,890,700 385,166,975 2,211,247,341 707,993,952 215,985,000 158,304,253 251,402,124 60,475,800 21,826,775 2,919,241,293 1,199,927,655 678,886,996 678,886,996 318,603,164 2,197,417,815 632,290,923 215,985,000 143,163,647 251,402,124 21,740,152 2,829,708,738 1,231,437,942 344,321,606 344,321,606 193,563,746 1,769,323,294 486,667,365 205,700,000 137,768,935 132,752,124 10,446,306 2,255,990,659 1,427,679,603 174,996,798 174,996,798 160,058,364 1,762,734,765 480,359,753 187,000,000 132,075,258 132,752,124 18,700,000 9,832,371 2,243,094,518 1,274,228,935 129,854,323 129,854,323 109,646,364 1,513,729,622 356,325,674 187,000,000 121,755,613 702,708 46,867,353 1,870,055,296 14,106,320 549,433 13,556,887 61,646,706 61,646,706 120,000,000 125,450,952 125,450,952 1,629,115,736 1,629,115,736 314,577,754 654,343,825 2,919,241,293 2009 9,038,602 2,396,346 6,642,256 91,860,772 91,860,772 46,924,617 46,924,617 1,883,036,937 1,883,036,937 320,150,147 478,697,663 2,829,708,738 AmountinTaka 2008 7,903,474 1,589,743 6,313,731 64,526,957 64,526,957 58,817,771 58,817,771 1,814,001,394 1,814,001,394 203,984,601 106,756,461 2,255,990,659 2007 8,340,515 176,292 8,164,223 131,694,382 131,694,382 20,404,609 20,404,609 1,651,191,786 1,651,191,786 199,490,940 231,972,286 2,243,094,518 2006 4,192,759 840,939 3,351,820 156,584,791 156,584,791 30,419,660 30,419,660 1,525,340,609 1,525,340,609 68,785,104 84,732,373 1,870,055,296

Dated, Dhaka October 09, 2011

sd/ KaziZahirKhan&Co. CharteredAccountants

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C.ThestatementofOperatingresultofthecompany(Profit&Lossaccount)fortheyearended31December2006to2010. AmountsinTaka 2008

2010

2009

2007

2006

Interestincomefromleases,loansandadvances Interestexpensesonborrowings,deposits,etc Netinterestincome Investmentincome Commission,exchangeandbrokerage Otheroperatingincome Totaloperatingincome Salaryandallowances Rent,taxes,insurance,electricity,etc. Legalexpenses Postage,stamp,telecommunication,etc. Stationery,printing,advertisements,etc. ManagingDirector'ssalaryandallowances Dirctors'fees Auditfees Chargesonloanlosses Depreciationandrepairsofcompany'sassets Otheroperatingexpenses Totaloperatingexpenses Profitbeforeprovision Provisionforleases,loansandadvances Otherprovision Totalprovision Totalprofitbeforeincometax Provisionforincometax Netprofitafterincometax Retainedearningsbroughtforwardfrompreviousyear Appropriations: Statutoryreserve Generalreserve Dividendpaid Bonusshareissued Retainedearningscarriedtothebalancesheet Earningpershare(EPS)asperfacevalueofTk.100.00pershare **Earningpershare(EPS)asperfacevalueofTk.10.00pershare

247,054,078 (232,218,143) 14,835,935 106,540,772 16,067,340 137,444,047 7,776,593 588,183 159,850 427,488 923,345 2,626,000 290,000 75,000 6,410,448 9,859,266 29,136,173 108,307,874 (23,349,567) (23,349,567) 131,657,441 55,954,412 75,703,029 21,740,152 97,443,181 15,140,606

322,262,277 (210,614,456) 111,647,821 21,601,834 26,731,560 159,981,215 9,443,440 822,205 387,000 583,247 1,114,718 1,910,000 240,000 75,000 7,857,827 12,724,586 35,158,022 124,823,193 77,912,658 77,912,658 46,910,535 19,936,977 26,973,558 10,446,306 37,419,864 5,394,712 10,285,000 15,679,712 21,740,152 12.49 1.25

259,773,122 (209,175,990) 50,597,132 (5,215,416) 31,714,315 77,096,031 17,254,187 757,112 152,485 847,918 1,240,999 2,085,877 128,000 75,000 7,441,225 10,756,372 40,739,175 36,356,856 7,888,471 7,888,471 28,468,385 12,810,773 15,657,612 28,532,371 44,189,983 5,693,677 9,350,000 18,700,000 33,743,677 10,446,306 7.61 0.76

264,298,346 (196,982,052) 67,316,294 12,276,677 39,083,640 118,676,611 17,462,367 428,217 194,065 972,408 1,366,610 2,800,000 144,000 75,000 5,448,298 14,504,510 43,395,475 75,281,136 23,682,912 23,682,912 51,598,224 13,860,932 37,737,292 51,604,724 89,342,016 10,319,645 50,490,000 60,809,645 28,532,371 20.18 2.02

219,584,446 (174,694,349) 44,890,097 519,385 40,124,055 85,533,537 14,779,224 347,867 239,655 766,627 804,336 2,800,000 90,000 75,000 3,484,658 8,296,393 31,683,760 53,849,777 2,628,090 2,628,090 51,221,687 23,049,759 28,171,928 107,139,762 135,311,690 10,244,337 61,200,000 17,000,000 88,444,337 46,867,353 16.57 1.66

15,140,606 82,302,575 35.05 3.51

**BoardofDirectorshaddecidedtodenominatethesharepricefromTk.100.00toTk.10.00pershareon12thSeptember2011whichhasbeenapprovedbytheshareholders oftheCompanyintheirExtraOrdinaryGeneralMeetingdated4thOctober2011andnecessaryamendmentsinthecapitalclauseoftheMemorandumandArticlesofAssociation oftheCompanyweremadeaccordingly.TheMemorandumandArticlesofAssociationoftheCompanyhasdulybeencerifiedbytheRegistrarofJointStockCompanies&Firms on5thOctober2011.

Dated, Dhaka October 09, 2011

sd/ KaziZahirKhan&Co. CharteredAccountants

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D.TheCashflowstatementofthecompanyfortheyearended31December2006to2010 AmountinTaka 2008

2010 Cashflowsfromoperatingactivities: Interestreceiptincash Interestpayment Dividendreceipts Recoveriesofloanpreviouslywrittenoff Incometaxespaid Receiptsfromotheroperatingactivities Paymentsforotheroperatingactivities Cashgeneratedfromoperatingactivitiesbefore changesinoperatingassetsandliabilities Increase/decreaseinoperatingassetsandliabilities Statutorydeposit Tradingsecurities Leases,loansandadvances Otherassets Depositandotheraccounts Otherliabilitiesonaccountofcustomers Tradingliabilities Otherliabilities Netcashfromoperatingactivities Cashflowsfrominvestingactivities: Proceedsfromsaleofsecurities Paymentsforpurchasesofsecurities Purchaseoffixedassets Proceedsfromsaleoffixedassets Paymentagainstleaseobligation Netcashusedininvestingactivities Cashflowsfromfinancingactivities: Receiptsofborrowingsfrombanks,otherfinancial institutionsandagents Repaymentofborrowingsfrombanks,otherfinancial institutionsandagents Receiptsagainstissueofsharecapital Dividendpaidincash Netcashfromfinancingactivities Netincrease/(decrease)incashandcashequivalents Effectsofexchangeratechangesoncashandcashequivalents Cashandcashequivalentsatbeginningoftheyear Cashandcashequivalentsattheendoftheyear Cashandcashequivalentsattheendoftheyear cashinhand(includingforeigncurrencies) BalancewithBangladeshBankanditsagentbank(s) (includingforeigncurrencies) Balancewithbanksandotherfinancialinstitutions Moneyatcallandshortnotice

2009

2007

2006

242,358,741 (226,926,847) (955,034) 122,608,112 (23,199,873) 113,885,099

301,292,945 (205,118,569) (296,608) 50,685,960 (28,739,582) 117,824,146

234,305,226 (190,938,224) (204,641) 35,506,019 (34,527,735) 44,140,645

277,411,507 (197,503,780) 402,065 38,768,884 (37,947,177) 81,131,499

222,319,366 (175,221,106) (165,596) 39,798,245 (28,199,102) 58,531,807

253,921,201 (175,646,162) (58,996,296) 26,870,792 66,563,812 112,713,347 226,598,446

(69,035,543) (364,239,831) 334,565,390 (22,228,195) 55,059,094 (65,879,085) 51,945,061

(118,085,723) 60,045,343 1,190,628 (7,765,599) (1,459,273) (66,074,624) (21,933,979)

(135,001,854) (147,641,978) 68,840,585 (3,020,364) 32,185,324 (184,638,287) (103,506,788)

138,623,495 (63,446,842) 33,941,880 (13,873,473) 7,991,917 103,236,977 161,768,784

286,264,796 (364,791,130) (616,283) 327,376 (78,815,242)

86,099,424 (74,206,270) (3,858,986) 8,034,168

20,809,690 (62,014,417) (10,630,101) (51,834,828)

10,015,051 (3,493,110) 6,521,941

3,098,259 (16,671,635) (13,573,376)

700,000,000 (724,460,609) (24,460,609) 123,322,595 72,430,431 195,753,026

470,000,000 (501,510,286) (31,510,286) 28,468,943 72,430,431 100,899,374

555,000,000 (539,485,659) (9,350,000) 6,164,341 (67,604,466) 140,034,897 72,430,431

134,301,241 (7,569,047) (50,490,000) 76,242,194 (20,742,653) 160,777,550 140,034,897

39,067,939 (11,248,965) (61,200,000) (33,381,026) 114,814,382 45,963,168 160,777,550

549,433 13,556,887 61,646,706 120,000,000 195,753,026

2,396,346 6,642,256 91,860,772 100,899,374

1,589,743 6,313,731 64,526,957 72,430,431

176,292 8,164,223 131,694,382 140,034,897

840,939 3,351,820 156,584,791 160,777,550

Dated, Dhaka October 09, 2011

sd/ KaziZahirKhan&Co. CharteredAccountants

E . Dividend declared

The Company has declared dividends for the last five years as follows: AmountinTaka 2008 Nil 5%

Cash dividend Stock dividend (%)

2010 Nil 28%

2009 Nil 10%

2007 5% 10%

2006 27% Nil

Note:TheBoardofDirectorshaddeclared10%bonussharefortheyear2009andappliedtoSECforapprovalwhichhasdeclinedbySECvideletterno.SEC/CI/CPLC29/200294 datedFebruary14,2011(receivedtheletteronFebruary20,2011).

F.ThecompanyhasnosubsidiaryatthemomentbuttheyhavesubmittedaproposaltoSECforconvertingtheirMerchantBankingUnitasasubsidiarycompanyasperSEC letterno.SEC/REG/MBPolicy/PartVI/2008/504datedDecember22,2010.

G. No proceeds or part of proceeds of the issue of shares were applied directly by the company for the purchase of any other business.

Dated, Dhaka October 09, 2011

sd/ KaziZahirKhan&Co. CharteredAccountants

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We have examined the following accounting ratios of GSP Finance Company (Bangladesh) Limited for the year ended 31st December 2006 to 2010, which have been submitted by the management of the company to us. The preparation of the following Ratio Analysis is the responsibility of the Company's management. Our responsibility is to review them and certify as to whether they have been properly prepared using acceptable principles on the basis of audited financial statements for the years ended 31st December 2006 to 2010.

2010 Liquidity Ratios Current ratio Quick ratio Times interest earned Debt-equity ratio Operating Ratios Accounts receivable- turnover ratio Inventory- Turnover ratio Assets- turnover ratio Profitability Ratios Gross margin ratio Operating income ratio Net income ratio Return on assets ratio Return on equity ratio Earningpershare(EPS)asperfacevalueofTk.100.00pershare
**Earningpershare(EPS)asperfacevalueofTk.10.00pershare

2009 1.38 1.38 1.59 4.13 0.74 0.74 1.76 2.83

Ratio /Percentage 2008 1.12 1.12 1.39 4.66

2007 1.10 1.10 1.54 4.36

2006 1.10 1.10 1.49 3.81

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A 29.77 20.34 2.59 44.14 35.05

3.51

N/A 33.07 7.35 1.06 19.73 12.49

1.25

N/A 15.04 5.32 0.70 7.24 7.61

0.76

N/A 23.81 11.94 1.69 17.51 20.18

2.02

N/A 21.06 10.75 1.53 12.05 16.57

1.66

**BoardofDirectorshaddecidedtodenominatethesharepricefromTk.100.00toTk.10.00pershareon12thSeptember2011whichhasbeenapprovedbytheshareholders oftheCompanyintheirExtraOrdinaryGeneralMeetingdated4thOctober2011andnecessaryamendmentsinthecapitalclauseoftheMemorandumandArticlesofAssociation oftheCompanyweremadeaccordingly.TheMemorandumandArticlesofAssociationoftheCompanyhasdulybeencerifiedbytheRegistrarofJointStockCompanies&Firms on5thOctober2011.

Formula Current ratio = Current assets / Current liabilities Quick ratio = (Current assets - Inventories) / Current liabilities Times interest earned = (Income from operation+Finance cost) / Finance cost Debt-equity ratio = Long term debts / Share holder equity Operating income ratio = operating income / Total Operating revenue Net income ratio = Profit after tax / Total operating revenue Return on assets ratio = Profit after tax / average assets Return on equity ratio = Profit after tax/average shareholders equity Earnings per share = Profit after tax / Number. of shares

Dated, Dhaka October 09, 2011

sd/ KaziZahirKhan&Co. CharteredAccountants

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Rating Report GSP Finance Company (Bangladesh) Limited

Ratings Long Term : BBB3 Short Term : ST-4 Date of Ratings : 06 March 2011 Valid till : 30 June 2012 Methodology :CRABs Financial Institutions rating methodology (www.crab.com.bd) Analysts Fareba Naz Shaule Financial Analyst fareba.naz@crab.com.bd Md. Saiful Islam Jr. Financial Analyst saiful@crab.com.bd Financial Highlights
BDT in million

1.0 RATIONALE Credit Rating Agency of Bangladesh Limited (CRAB) has assigned the long term rating of GSP Finance Company (Bangladesh) Limited (hereinafter called as GSPB or the Company) to BBB3 (pronounced Triple B three) and short term rating to ST-4. CRAB performed the rating surveillance based on financial statements up to 31st December 2010 and other relevant information. Financial Institutions rated BBB3 have adequate capacity to meet their financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the Financial Institutions to meet their financial commitments. BBB3 rated FIs are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. Financial Institutions rated ST-4 are considered to have below average capacity for timely repayment of obligations. Such capacity is highly susceptible to adverse changes in business, economic, or financial conditions than for obligations in higher categories. Financial Institutions rated in this category are characterized with average liquidity, internal fund generation, and access to alternative sources of funds. The rating reflects the Companys strength in operational efficiency and low leverage position. The rating however is constrained by asset quality as well as high exposure and dependence on capital market.

Particulars Leases, Loans & Advances Non Performing Loans Shareholder's Equity Total Assets Total Deposits Operating Income Operating Expenses Net Profit (after tax)
1,950 1,900 1,850 1,800 1,750 1,700 1,650 1,600 1,550 1,500

2010 2009 1,629.12 1,883.04 322.02 414.94 707.99 632.29 2,919.24 2,829.71 619.89 678.89 137.44 159.98 29.14 35.16 75.70 26.97
25%

22.04% 19.77%

BDT in million

20% 15% 10%

6.80%

5% 0%

2008 2009 Credit Portfolio

2010 Gross NPL Ratio

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FIs

GSPB was incorporated in 1995 and commenced its operation in 1996. The Company offers loans and lease finance of all types of plant, machinery, equipment and vehicles both for industrial and commercial use. Companys 61.82% shares are held by domestic shareholders and 38.18% by foreign shareholders. In 2010 investment income of the Company strongly dominated the revenue stream with 77.52% of total income followed by net interest income (10.79%). GSPBs net interest income was reduced by 86.71% as the Company could not pass on the higher fund cost to the borrowers timely. As a result, net interest margin decreased by 5.01 percentage points. Return on average assets improved by 1.57 percentage points mainly due to sharp rise in net profit margin backed by higher investment income. GSPB managed to restrict its cost to income ratio in the line of industry average and stood at 21.20% at the end of 2010 The Company was mainly funded by borrowings from other Banks & FIs (66.05%) and by term deposits (33.95%). Of the total borrowings 96.82% was from long term loan. GSPB actively participated in call money market throughout 2010. The Company was net borrower to the call market throughout 2010 except in December. Call money rate picked up in December (avg. rate 33.54%). The Company had assets sensitive position in all the interest sensitive maturity buckets. Companys total asset was dominated by loans, advances & leases, 55.81% which experienced negative growth in 2010. Companys credit portfolio was not reasonably diversified in terms of intrinsic and concentration risk. GSPBs top 20 large loan exposures was 74.79% of total leases, loans & advances (2009:65.88%) and at the end of 2010 six leases & loans facilities were reported as classified (2 in Bad/Loss category). The concentration of investment shows an increasing trend. During this period the investment of the Company increased by 167.35% and the yield of investment was 45.95%. Company invested in capital market through portfolio management by merchant banking wing. GSPB made this entire investment in quoted and unquoted securities. But market value (BDT 123.82 million) of quoted shares of which lower than the cost value (BDT 125.45 million) as on 31st December 2010. In 2010 GSPBs NPL decreased but it was still 19.77% in 2010 (2009: 22.04%). However, considering the margin loans in leases, loans & advances portfolio, gross NPL ratio reduced to 14.63% in 2010 (2009: 18.38%). Gross NPL reduced on the back of rescheduling (7.41% of total loans) and cash recovery (3.49% of total loans). During this period the Company also managed to reduce fresh NPL generation which was 5.20% of total loans in 2010 (2009:20.31% of total loans). GSPBs special mention account (SMA) to leases, loans & advances was 12.12% (2009:12.15%). As per Bangladesh Bank regulation the minimum paid up capital of any financial institution should be BDT 500 million by 31 December 2010 against which GSPB had paid up capital of BDT 215.99 million. However, total capital (tier1+tier2) of the Company was BDT 476.32 million in 2010 (2009: BDT 403.28 million).

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2.0 COMPANY PROFILE

FIs

GSPB incorporated on October, 1995 and commenced its operation on April, 1996. The Company offers loans and lease finance of all types of plant, machinery, equipment and vehicles both for industrial and commercial use. The authorized capital of the Company was BDT 1,000 million. Domestic shareholders hold 61.82% and foreign shareholders hold 38.18% of paid up capital. The Company also got a separate license from Securities & Exchange Commission (SEC) on August, 1999 for working as a Merchant Bank. GSPB Board took a bold step in line with SECs guideline by forming a subsidiary company for merchant banking activities named GSP Investments Limited from 2011. The shareholding of this subsidiary company is 51% share held by GSP Finance Company (BD) Ltd. and the remaining 49% held by existing shareholders of GSPB on pro rata basis. 3.0 OPERATIONAL PERFORMANCE 3.01 Earnings & Volatility
Exhibit 1: Segregation of Revenue BDT in million 2010 Particulars Net Interest Income Investment Income Other Operating Income Total Operating Income Amount 14.84 106.54 16.07 137.44 % of Total 10.79% 77.52% 11.69% 100.00% Growth -86.71% 393.20% -39.89% -14.09% Amount 111.65 21.60 26.73 159.98 2009 % of Total 69.79% 13.50% 16.71% 100.00% Growth 120.66% -15.71% 107.51%

During 2010 the composition of operating income changed than that of 2009. In 2010 investment income dominated the revenue stream having 77.52% of total operating income. GSPBs interest income reduced by 23.34% resulted from reduction of lending rate along with reduction of leases, loans & advances portfolio as well as reduced balance with Banks & FIs. Borrowing cost of GSPB accounted for 69.32% of interest expense and the rest was accounted for deposit collection. In 2010, though the borrowings increased marginally and deposit base decreased the interest expenses increased by 10.26% due to increase in cost of deposits & borrowings. In 2010 net interest income reduced by 86.71%. Investment income 77.52% of the operating income grew by 4.93 times backed by 167.35% increase in investment. Of the total investment income, BDT 66.86 million (59.69% of operational revenue of Merchant banking unit) was from portfolio management income. Other operating incomes which includes different type of charges, interest from FDR and call loan etc reduced by 39.89%.

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Exhibit 2: Key Performance Indicators BDT in million Particulars Interest Income Interest Expense Net Interest Income Investment Income Other Operating Income Total Operating Income Total Operating Expenses Pre Provision Profit Total Provision Profit (before tax) Tax Provision Profit (after tax) 2010 Amount 247.05 232.22 14.84 106.54 16.07 137.44 29.14 108.31 (23.35) 131.66 55.95 75.70 Growth -23.34% 10.26% -86.71% 393.20% -39.89% -14.09% -17.13% -13.23% -129.97% 180.66% 180.66% 180.66% Amount 322.26 210.61 111.65 21.60 26.73 159.98 35.16 124.82 77.91 46.91 19.94 26.97 2009 Growth 24.06% 0.69% 120.66% -514.19% -15.71% 107.51% -13.70% 243.33% 887.68% 64.78% 55.63% 72.27%

FIs

Operating expenses composed of personnel expenses (about 47.47% of operating expenses), infrastructure cost and other overhead cost. Companys personnel expenses decreased by 8.37% and other operating expenses reduced by 21.30%. Cost to income ratio was almost stable and staff cost to income ratio increased marginally.
Exhibit 3: Efficiency Ratios1 Particulars Cost to Income Ratio (%) Staff Cost to Income Ratio (%) 2010 21.20 7.57 2009 21.98 7.10 2008 52.84 25.09

GSPBs pre provision profit decreased by 13.23% and total provision expenses also reduced by 129.97% resulted from lower expenses in specific and general provision. The Company had excess provision in 2009 which eventually helped to reduce the provision expenses in 2010. Therefore, profit before tax increased by 180.66%. 3.02 Profitability During 2010 GSPBs net interest margin decreased by 5.01 percentage points resulted from 86.71% decrease in net interest income. Return on average assets improved by 1.57 percentage points mainly due to sharp rise in net profit margin backed by higher investment income. In 2010 Company marginally improved its leverage position. Return on average equity also soared by 6.48 percentage points backed by higher growth in profit after tax.
Exhibit 4: Profitability Ratios Particulars Return on Average Assets (after tax) (%) Return on Average Equity (after tax) (%) Net Profit Margin (after tax) (%) Net Interest Margin (%) Asset Utilization (%) Leverage Multiplier (times) 2010 2.63 11.30 55.08 0.78 4.78 4.29 2009 1.06 4.82 16.86 5.79 6.29 4.55

Income is net of interest expenses

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3.03 Asset Evaluation

FIs

In 2010 total assets of the Company reached BDT 2,919.24 million registering a growth of 3.16%. Assets of the Company was mainly dominated by leases, loans & advances (55.81% of total assets) and followed by other assets (22.41% of total assets), fixed assets (10.78% of total assets). Major portion (87.35%) of other assets was advance to portfolio account registering a growth of 52.79%.
Exhibit 5: Asset Composition BDT in million Particulars Cash Balance with Banks & Other FIs Money at Call & Short Notice Investments Loans, Advances & Lease Finance Fixed Assets Other Assets Total Assets 2010 Amount 14.11 61.65 120.00 125.45 1,629.12 314.58 654.34 2,919.24 % of Total 0.48% 2.11% 4.11% 4.30% 55.81% 10.78% 22.41% 100.00% Growth 56.07% -32.89% 167.35% -13.48% -1.74% 36.69% 3.16% Amount 9.04 91.86 46.92 1,883.04 320.15 478.70 2,829.71 2009 % of Total 0.32% 3.25% 1.66% 66.55% 11.31% 16.92% 100.00% Growth 14.36% 42.36% -20.22% 3.81% 56.95% 348.40% 25.43%

3.04 Investment In 2010 investment portfolio of the Company reached BDT 125.45 million registering a growth of 167.35%. Company invested in capital market through portfolio management by merchant banking wing. In 2010 the merchant banking wing registered a substantial growth both in terms of client base and size of the fund managed. In 2010 number of client stood 505 (2009:199) and fund managed stood BDT 1,692.32 million (2009: BDT 686.07 million). GSPB made this entire investment in quoted and unquoted securities of 16 different non govt. companies. The market value of quoted shares was BDT 123.82 million against cost value of BDT 125.45 million as on 31st December 2010. The Company made BDT 2.48 million provision against required provision of BDT 1.69 million for fall in market value of securities. During the year Company realized BDT 40.31 million profits from sale of securities. The yield on average investment was 45.95% in 2010 (2009: 15.61%). 3.05 Credit Quality In 2010 GSPBs non-performing loans (NPL) decreased to BDT 322.02 million which was BDT 414.94 million in 2009. Gross NPL ratio of the Company was still 19.77% in 2010 (2009: 22.04%). However, considering the margin loans in leases, loans & advances portfolio, gross NPL ratio reduced to 14.63% in 2010 (2009: 18.38%). Gross NPL reduced on the back of BDT 120.75 million (7.41% of total loans) rescheduling and BDT 56.82 million cash recovery (3.49% of total loans). During this period the Company also managed to reduce fresh NPL generation which was 5.20% of total loans in 2010 (2009:20.31% of total loans). Of the total NPL 94.04% belonged to bad & loss category, 5.69% substandard and 0.27% in doubtful.

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Exhibit 6: NPL Movement

FIs
BDT in million 2010 2009 Amount 123.28 382.49 10.79 80.05 414.94 % of Total Loans 6.55% 20.31% 0.57% 4.25% 22.04% Amount 215.64 139.19 18.26 213.29 123.28 2008 % of Total Loans 11.89% 7.67% 1.01% 11.76% 6.80%

Particulars Opening Balance of NPL Add: Fresh NPL Generation Less: Cash Recovery Less: Rescheduling Closing Balance of NPL

Amount 414.94 84.65 56.82 120.75 322.02

% of Total Loans 25.47% 5.20% 3.49% 7.41% 19.77%

In 2010 required provision was BDT 107.35 million against which GSPB maintained BDT 107.85 million an excess of BDT 0.50 million. Companys NPL coverage ratio in 2010 was 33.49% (2009:31.62%) and net NPL ratio was 10.37% (2009:13.53%).
Exhibit 7: Loan Loss Provision BDT in million 2010 Particulars General Provision Held Specific Provision Held Total Provision Held Total Provision Required Provision Surplus/(Shortfall) Amount 19.73 88.12 107.85 107.35 0.50 % of Total Loan 1.21% 5.41% 6.62% 6.59% 0.03% Amount 22.39 108.81 131.20 130.68 0.53 2009 % of Total Loan 1.19% 5.78% 6.97% 6.94% 0.03%

CRAB looks at pre-provision profit (PPP) to net leases, loans & advances for assessing GSPBs ability to survive in future problems. In 2010 PPP to net leases, loans & advances was 7.43% which was 7.35% in 2009. PPP to net leases, loans & advances indicate that 7.43% of currently performing leases, loans & advances can be written off without charging on reserves and equity. On the other hand, special mention account (SMA) to leases, loans & advances was 12.12% (2009:12.15%). 3.05.01 Loan Portfolio Analysis
Exhibit 8: Concentration on Leases, Loans & Advances BDT in million 2010 Particulars Agricultural Equipment & Agro Chemical & Pharmaceuticals Electronics & Electrical Food & Beverage Garments Iron, Steel & Eng. Plastic Power & Energy Real Estate & Housing Service Textile Transport Others Total *Sector Wise NPL Rate = (b/a) 100 Amount (a) 37.86 73.60 3.94 105.91 111.22 17.49 1.84 61.35 19.53 170.01 174.97 445.95 405.45 1,629.12 Sector wise NPL (b) 68.33 52.23 32.85 7.63 41.73 15.15 79.77 24.33 322.02 Sector wise NPL Rate* 64.52% 46.96% 53.55% 39.07% 24.55% 8.66% 17.89% 6.00% 19.77% Amount (a) 24.68 166.50 26.37 101.20 98.60 18.77 5.43 39.40 397.76 229.60 469.70 305.03 1,883.04 2009 Sector wise NPL (b) 60.58 61.65 51.02 13.85 65.56 10.61 146.93 4.74 414.94 Sector wise NPL Rate* 36.38% 60.92% 51.74% 35.15% 16.48% 4.62% 31.28% 1.55% 22.04%

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In 2010 leases, loans & advances reduced by 13.48% and stood at BDT 1,629.12 million. For last two years leases, loans & advances and NPL was highest in transport sector. In 2010, sector wise NPL rate was highest in food & beverage, 64.52% followed by power & energy (53.55%), garments (46.96%) and real estate & housing (39.07%). 3.05.02 Large Leases, Loans & Advances Exposures In 2010 GSPBs top 20 large loan exposures was BDT 1,218.33 million which was 74.79% of total leases, loans & advances (2009:65.88%). At the end of 2010 six leases & loans facilities were reported as classified (2 in Bad/Loss category). 3.06 Capital Adequacy As per Bangladesh Bank regulation the minimum paid up capital of any financial institution should be raised to BDT 500 million within 31st December 2010 against which GSPB had paid up capital of capital of BDT 215.99 million. However, in 2010 total capital (tier1+tier2) of the Company was BDT 476.32 million (2009: BDT 403.28 million).
Exhibit 9: Capital Adequacy Ratios Particulars Shareholders Fund to Total Assets (%) Shareholders' Fund to Deposits and Borrowings (%) Shareholders' Fund to Leases, Loans & Advances (%) Capital Adequacy Ratio (%) Internal Capital Generation (%) 2010 24.25 38.77 43.46 32.02 1.99 2009 22.34 33.65 33.58 28.77 8.82

In 2010, shareholders equity grew by 11.97% to BDT 707.99 million which was 24.25% of total assets and 43.46% of leases, loans & advances. Capital adequacy ratio increased by 3.25 percentage points due to increase in equity. On the other hand, though the profit after tax increased significantly internal capital generation reduced by 6.83 percentage points resulted from proposed bonus share for the year 2009 and 2010 of BDT 82.07 million. 3.07 Funding & Liquidity Of the total funds of GSPB 66.05% was generated from borrowings from other Banks & FIs and 33.95% was from term deposits. Of the total borrowings 96.82% was from long term loan, 2.55% was from bank overdraft and 0.63% from BB refinancing. In 2010 for the total borrowings Company has made interest expenses of BDT 160.97 million. Of the total term deposits 63.42% was collected from Banks & FIs, 23.72% from general public and 12.87% from different companies. During 2010 GSPB made BDT 71.25 million interest expenses. In 2010 shareholders equity was 38.77% of deposits & borrowings (2009:33.65%). Leases, loans & advances to deposits ratio of the Company was 262.81% at the end of 2010 (2009: 277.37%). GSPB actively participated in call money market throughout 2010. The Company was net borrower to the call market throughout 2010 except in December. Call money rate picked up in December (avg. rate 33.54%). In December the average lending rate of the Company was 40.50% whereas throughout the year Companys borrowing rate ranged from 6.09%23.27%.

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Exhibit 10: Call Market Operation Particulars Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Call Lending (Month Avg.) 115.48 Interest Rate 40.50% Call Borrowing (Month Avg.) 194.19 184.29 152.58 188.00 165.16 145.00 195.58 125.48 66.67 69.68 66.25 Interest Rate 7.71% 7.05% 6.09% 6.49% 7.73% 9.51% 6.46% 9.51% 10.52% 9.23% 23.27% BDT in million Call Lending/ (Borrowing) (194.19) (184.29) (152.58) (188.00) (165.16) (145.00) (195.58) (125.48) (66.67) (69.68) (66.25) 115.48

FIs

The Companys asset liability maturity bucket shows that GSPB possessed positive net liquidity gap in all the buckets except 1-5 years bucket. But the cumulative liquidity gap offset the negative gap. In 2010 liquid assets to total deposit & borrowings were 10.72% (2009: 5.37%).
Exhibit 11: Liquidity Profile BDT in million Particulars Total Assets Total Liabilities Net Liquidity Gap Cumulative Liquidity Gap Up to 1 month 481.11 80.72 400.39 400.39 1-3 months 76.07 67.38 8.70 409.09 3-12 months 721.01 445.22 275.79 684.88 1-5 years 1,313.61 1,617.33 -303.73 381.15 Above 5 years 327.44 0.60 326.84 707.99 Total 2,919.24 2,211.25 707.99

3.08 Interest Rate Risk The Company had asset sensitive position in all the buckets. The net gap indicates that the Company will be benefited on rising interest rates and will suffer on decreasing interest rate scenario. For 1 percentage point interest rate increase the GSPB will gain BDT 2.40 million and will lose the same amount for 1 percentage point interest rate decrease.
Exhibit 12: Interest Sensitive Maturity Bucket Up to 1 month 467.01 80.72 386.28 0.32 -0.32 1-3 months 76.07 67.38 8.70 0.34 -0.34 3-12 months 721.01 445.22 275.79 2.40 -2.40 BDT in million Above 12 months 1,641.05 1,232.76 408.28

Particulars Interest Sensitive Assets Interest Sensitive Liabilities GAP Cumulative Earning Impact (1% Points Interest Rate Increase) Cumulative Earning Impact (1% Points Interest Rate Decrease)

3.09 Off Balance Sheet Exposures In 2010 the Company did not have any off balance sheet exposures but in 2009 it had an off balance sheet exposure in letter of guarantee of BDT 50 million.

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4.0 MANAGEMENT 4.01 Senior Management2

FIs

The management team of GSPB is headed by Mr. A.H. Ekbal Hossain, Managing Director. He joined GSPB in June 2009. He worked in senior positions at various banks over the span of his career. Most notably he served as Managing Director of Basic Bank Ltd, Rupali Bank Ltd and Agrani Bank Ltd. Mr. Hossain is aided by one Executive Director and in charges of different departments. (Details are given in annuxure-1). 4.02 Management Committees Credit Committee is comprised of 4 members headed by Managing Director. During the year the Committee met 6 times. Asset Liability Management Committee has 4 members chaired by Executive Director. During the year the Committee met 4 times. Purchase Committee has 5 members chaired by Mr. Moin U. Haider, Director of the Board. The Committee has 4 meetings in 2010. Committee on Merchant Banking is comprised of 6 members headed by Mr. Moin U. Haider, Director of the Board. During the year the Committee met 3 times. Management Committee is comprised of 8 members headed by Managing Director. During the year the Committee met 3 times. Recovery Review Committee has 5 members chaired by Col. M. Nurul Islam psc. (Retd.) or in his absence any other Director. The Committee has 6 meetings in 2010.

4.03 Human Resources Management GSPB has a separate HRD & Administration department which is headed by a Manager designated personnel. The Company had total 31 employees. During 2010 at its various departments the Company recruited 9 new employees and 8 employees left the Company. The Company uses both external and internal recruitment channels. When job openings cannot be filled internally, the HRD looks outside the organization through advertising. After recruitment the Company trains fresh employees for few months in various departments and then offers them foundation & other courses conducted by BLFCA, IFC and Bangladesh Bank etc. 4.04 Credit Policy & Approval Process In order to cater the risk business division has been segregated into (1) Credit & Marketing and (2) Recovery Department. Credit & Marketing Department of the Company generates business as well as they are engaged in exploring and identifying viable clients by way of analyzing the management, market, financial viability and other requisite aspects of

Details is given in Annexue-1

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FIs

proposals incorporating the risk factors involved and identifying mitigating factors. In case of risk assessment the Company follows Credit Risk Grading approach. For approval the credit proposals are sent to the Credit Committee to review but the final approval is given by the Executive Committee of the Board. The Company also has a full- fledged and effective recovery, follow up, collection and monitoring unit for classified Leases & Loans, which is engaged in regular monitoring of clients, to ensure timely collection of installments. Moreover, from 2006 GSPB has a recovery agent named Multi Promotional Service Ltd. To monitor the recovery status the department is accountable to the Recovery Committee. 4.05 Information Technology GSPB has appointed a software firm Technohaven, which is about to complete the implementation process of the automation and it is expected that the full smooth operation will be in place shortly. With the introduction of the software named TeLis, data will be integrated and data security will be ensured. In the meantime the Company has already installed software of Ingenious Technologies in respect of online availability of data from Bangladesh Bank on CIB. 5.0 CORPORATE GOVERNANCE 5.01 Financial Reporting & Disclosures The financial statements of GSPB were audited by chartered accountants firm Kazi Zahir Khan & Co. According to them the financial statements give a true and fair view of the state of the Companys affairs and comply with the Bangladesh Accounting Standards, the Financial Institution Act 1993, the Companies Act 1994, the Securities and Exchanges Rules 1987, the rules and regulations issued by the BB and other applicable laws and regulations. 5.02 Board of Directors The Board of GSPB is composed of 11 members who possess a wide range of skills and experience over a range of professional, business and services. Among them 4 members are nominated by their respective institutions. Mr. Feroz U Haider is the Chairman of the Board. Before joining as the Chairman he served as Managing Director of GSPB. Mr. Haider is a renowned international banker with experience in every senior position in financial institutions in South East Asia. During the year 2010 8 board meetings were held. 5.03 Board Committees Executive Committee comprised of 5 members headed by the Chairman of the Board. The Committee met 29 times during 2010. Audit Committee of GSPB is comprised of 4 members chaired by Mr. Siraj U Haider, Director of the Board. The Committee mainly reviewed the financial reporting system, compliance regarding security documentation, recommend the Board regarding the delinquent portfolio, reschedule of facilities etc. During the year 2 meetings of the Board were held. ------------------

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ANNEXURE-1 CORPORATE INFORMATION List of Directors & their Shareholding Position SL 1 2 3 4 5 6 7 8 9 10 11 Name Mr. Feroz U. Haider Mr. Saber Hossain Chowdhury Rep of Karnaphuli Industries Ltd. Mr. Mohamed Abdul Jalil Rep of Tai Ping Asian Investment Ltd. Mr. Aziz Al Kaiser Mrs. Tabassum Kaiser Mr. Wolf Reter Berthold Mr. Siraj U. Haider Ms. Silwat A. Haider Rep of SF Haider Foundation Ltd. Col. M. Nurul Islam PSC. (Retd.) Mr. Moin U. Haider Alternate Director: Brig. Gen. Gyasuddin A. Chowdhury Mr. Manzur Ur Rahman (Ruskin) Rep of Amber Hll Global Resources Ltd. Designation Chairman Director Director Director Director Director Director Director Director Director Director No of Shares 330,306 337,660 387,698 215,985 215,985 133,485 61,158 29,603 6,360 50,820 284,720

FIs

Holding (%) 15.29% 15.63% 17.95% 10.00% 10.00% 6.18% 2.83% 1.37% 0.29% 2.35% 13.18%

Auditors Kazi Zahir Khan & Co. Chartered Accountants Senior Management Mr. A.H. Ekbal Hossain Mr. Md. Helal Uddin Mr. Asif Rahman Mr. Toaha Muhammad Mr. Md. Mizanur Rahman Mr. Md. Zakir Hossain Md. Mizanur Rahman Mr. A.H.M. Abdullah Mr. Pronoy Kumar Biswas Mr. Abu Mirza Md. Sayeem Managing Director Executive Director AGM, in charge Credit & Marketing DGM & COO, in charge Merchant Banking Unit GM, in charge Finance & Accounting Manager, in charge HRD & Administration Company Secretary, in charge Company Affairs Manager, in charge Recovery Manager, in charge Internal Control Asst. Manager, in charge Information Technology

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Annexure-2
Exhibit 2.01: Segregation of Investment Income BDT in million Particulars Operational Revenue Profit on Sale of Share Dividend Income Underwriting Commission Portfolio Management Income Sub Total Operational Expenses General & Administrative Expenses Provision for Investment in Share Sub Total Total 2010 40.31 4.77 0.08 66.86 112.02 3.00 2.48 5.49 106.54 2009 9.76 0.84 0.15 13.20 23.95 5.76 (3.41) 2.35 21.60 2008 2.36 1.33 0.10 3.79 1.12 7.89 9.01 (5.22)

FIs

Exhibit 2.02: Segregation of Other Assets BDT in million 2010 Particulars Advance to Portfolio Account Corporate Tax Paid in Advance Tax Deducted at Source Advance, Deposits & Prepayments Sundry Debtors Total Amount 571.59 25.68 1.96 48.18 6.94 654.34 % of Total 87.35% 3.92% 0.30% 7.36% 1.06% 100.00% Growth 52.79% -7.26% 95.42% -25.60% -37.67% 36.69% Amount 374.11 27.69 1.00 64.77 11.13 478.70 2009 % of Total 78.15% 5.78% 0.21% 13.53% 2.32% 100.00% Growth 2122.73% -8.25% 42.11% 18.03% 166.80% 348.40%

Exhibit 2.03: Segregation of Total Capital BDT in million Particulars Core Capital Paid up Capital Statutory Reserve Retained Earnings Sub Total Supplementary Capital General Provision Sub Total Total 2010 215.99 158.30 82.30 456.59 19.73 19.73 476.32 2009 215.99 143.16 21.74 380.89 22.39 22.39 403.28 2008 205.70 137.77 10.45 353.92 16.57 16.57 370.48

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ANNEXURE-3 Definition & Formula

FIs

1. Average Assets, Average investment assets, Average Earning Assets and Average equity are calculated on the basis of opening and year end balances. 2. Interest Earning Assets include total loans, advances & leases, money at call & short notice, balance with other FIs & banks. 3. Net Loans Advances & Leases has been calculated by deducting Specific Provision and Interest Suspense Accounts from Gross Loans Advances & Leases. 4. Net Interest Margin = Net interest income / Average Interest Earning Assets. 5. Net Profit Margin = Net Profit After Tax / Operating Income 6. Asset Utilization = Operating Income / Average Assets 7. Leverage Multiplier = Average assets / Average Equity 8. Yield on Average Investment = Income from Investment / Average Investment Assets

Assumptions for Interest Risk Exposure 1. Assets and liabilities are re-priced on the first day of the re-pricing interval and, therefore, that interest rate change affects the whole period. 2. Assets and liabilities are rolled over into the same types of instruments with the same maturities.

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CRAB Ratings
CRAB RATING SCALES AND DEFINITIONS LONG-TERM CREDIT RATING: FINANCIAL INSTITUTION
RATING AAA Triple A (Extremely Strong Capacity & Highest Quality) AA1, AA2, AA3* Double A (Very Strong Capacity & Very High Quality) A1, A2, A3 Single A (Strong Capacity & High Quality) BBB1, BBB2, BBB3 Triple B (Adequate Capacity & Medium Quality) BB1, BB2, BB3 Double B (Inadequate Capacity & Substantial Credit Risk) B1, B2, B3 Single B (Weak Capacity & High Credit Risk) CCC1, CCC2, CCC3 Triple C (Very Weak Capacity & Very High Credit Risk) CC Double C (Extremely Weak Capacity & Extremely High Credit Risk) C Single C (Near to Default) D (Default)

FIs

DEFINITION Financial Institutions rated 'AAA' have extremely strong capacity to meet their financial commitments. 'AAA' is the highest issuer credit rating assigned by CRAB. AAA is judged to be of the highest quality, with minimal credit risk. Financial Institutions rated 'AA' have very strong capacity to meet their financial commitments. They differ from the highest-rated Financial Institutions only to a small degree. AA is judged to be of very high quality and is subject to very low credit risk. Financial Institutions rated 'A' have strong capacity to meet their financial commitments but are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than Financial Institutions in higher-rated categories. A is judged to be of high quality and are subject to low credit risk. Financial Institutions rated 'BBB' have adequate capacity to meet their financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the Financial Institutions to meet their financial commitments. BBB rated FIs are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. Financial Institutions rated 'BB' are less vulnerable in the near term than other lower-rated Financial Institutions. However, they face major ongoing uncertainties and exposure to adverse business, financial, or economic conditions, which might lead to inadequate capacity to meet their financial commitments. BB is judged to have speculative elements and is subject to substantial credit risk. Financial Institutions rated 'B' are more vulnerable than the Financial Institutions rated 'BB', but the Financial Institutions currently have the capacity to meet their financial commitments. Adverse business, financial, or economic conditions are likely to impair the capacity or willingness to meet their financial commitments. B is considered speculative and weak capacity and is subject to high credit risk. Financial Institutions rated 'CCC' are currently vulnerable, and are dependent upon favourable business, financial, and economic conditions to meet their financial commitments. CCC is judged to be of very weak standing and is subject to very high credit risk. Financial Institutions rated 'CC' are currently highly vulnerable. CC is highly speculative and is likely in, or very near, default, with some prospect of recovery of principal and interest. A 'C' rating is assigned to Financial Institutions that are currently highly vulnerable to non-payment, having obligations with payment arrearages allowed by the terms of the documents, or obligations that are subject of a bankruptcy petition or similar action but have not experienced a payment default. C is typically in default, with little prospect for recovery of principal or interest. 'D' is in default. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

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CRAB Ratings
SHORT-TERM CREDIT RATING: FINANCIAL INSTITUTION
RATING ST-1 Highest Grade DEFINITION

FIs

Financial Institutions rated in this category are considered to have the highest capacity for timely repayment of obligations. Financial Institutions rated in this category are characterised with excellent position in terms of liquidity, internal fund generation, and access to alternative sources of funds is outstanding. Financial Institutions rated in this category are considered to have strong capacity for timely repayment. Financial Institutions rated in this category are characterised with commendable position in terms of liquidity, internal fund generation, and access to alternative sources of funds is outstanding. Financial Institutions rated in this category are considered to average capacity for timely repayment of obligations, although such capacity may impair by adverse changes in business, economic, or financial conditions. Financial Institutions rated in this category are characterised with satisfactory level of liquidity, internal fund generation, and access to alternative sources of funds is outstanding. Financial Institutions rated in this category are considered to have below average capacity for timely repayment of obligations. Such capacity is highly susceptible to adverse changes in business, economic, or financial conditions than for obligations in higher categories. Financial Institutions rated in this category are characterised with average liquidity, internal fund generation, and access to alternative sources of funds is outstanding. Financial Institutions rated in this category are considered to have inadequate capacity for timely repayment of obligations susceptible to adverse changes in business, economic, or financial conditions. Financial Institutions rated in this category are characterised with risky position in terms of liquidity, internal fund generation, and access to alternative sources of funds is outstanding. Financial Institutions rated in this category are considered to have obligations which have a high risk of default or which are currently in default. Financial Institutions rated in this category are characterised with risky position in terms of liquidity, internal fund generation, and access to alternative sources of funds is outstanding.

ST-2 High Grade

ST-3 Average Grade

ST-4 Below Average Grade

ST-5 Inadequate Grade

ST-6 Lowest Grade

The rating committee of CRAB is the final authority to award a rating. The rating committee of CRAB is comprised of external independent persons who are not members of the board of the company and they ensure the independence of rating.
Copyright 2008, CREDIT RATING AGENCY OF BANGLADESH LIMITED ("CRAB"). All rights reserved. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT CRABS PRIOR WRITTEN CONSENT. All information contained herein is obtained by CRAB from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided as is without warranty of any kind and CRAB, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall CRAB have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of CRAB or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if CRAB is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY CRAB IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling.

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Interestedpersonsareentitledtoaprospectus,iftheysodesire.Copiesoftheprospectusmaybeobtainedfromtheissuerandtheissuemanager

GSPFINANCECOMPANY(BANGLADESH)LIMITED

APPLICATIONFORM APPLICATIONFORSHARESBYINVESTORSOTHERTHANNONRESIDENTBANGLADESHI(S)

Warning:Pleasereadtheinstructionsonthebackofthisform.Incorrectlyfilledapplicationsorapplicationsfailingtocomplywithanyoftheinstructionsthereinmayberejected. TheManagingDirector BankersSl.No. GSPFINANCECOMPANY(BANGLADESH)LIMITED 1,Paribagh,MymensinghRoad,Ramna,Dhaka1000. DearSir, I/weapplyforandrequestyoutoallotme/us.numbersofSharesandI/weagreetoacceptthesameoranysmallernumberthatmaybeallottedtome/usupontermsof theCompanysProspectusapprovedbytheSecuritiesandExchangeCommissionsubjecttotheMemorandumandArticlesofAssociationoftheCompany.Further,I/weauthorize youtoplacemy/ourname(s)ontheRegisterofMember(s)oftheCompanyanddepositthesaidordinarysharesinmyBeneficiaryOwner(BO)account;I/wefurtherauthorizeyou tosendacrossed(AccountPayeeonly)chequeinrespectofanyApplicationmoneyrefundabletome/usbypost/courieratmy/ourrisktothefirstapplicantsaddressstatedbelow:

No.ofOrdinaryShares............................ofTk.25.00eachincludingapremiumofTk.15.00each. Total subscription money of the amount of Tk. (in figures) .....................,Taka (in words) ..........................................................only deposited vide cash/Cheque/Draft/PayOrderNo..............................Dated.................................on........................................Bank..................................Branch 3. BeneficiaryOwner(BO)AccountNumber (IfyoudonotmentionyourvalidBO(BeneficiaryOwner)AccountNumber,yourapplicationwillbetreatedasinvalid) 4. I/weagreetofullyabidebytheinstructionsgivenherein. 5. ParticularsofApplicant: a)Sole/FirstApplicant Name: Fathers/HusbandsName: MothersName: PostalAddress: PhoneNumber(ifany): Occupation: Nationality: ForRefund:Pleasewritethecorrectandfullnameofbankandbranch(Applicationwillnotbetreatedasvalidifanyoneusesanonscheduledbank.Toavoidthis complication,investorsarerequestednottousethenameofanynonscheduledbank). Forrefundpurpose:I/wewantrefundthroughBankAccountHandDelivery/Courier(Pleaseputtickmarkinwhichrefundwillbemade). TheapplicantshallprovidewiththesameBankAccountNumberintheapplicationformasitisintheBOaccountoftheapplicant.
Incaseofdepositintotheapplicantsbankaccount,theapplicantwillbeartheapplicablecharge,ifany,oftheapplicantsbanker,andtheissuershallsimultaneouslyissuealetterofintimationto theapplicantcontaining,amongothers,thedateandamountremittedwithdetailsofthebankthroughandtowhichbanksuchremittancehasbeeneffected.

1. 2.

ApplicantsBankA/cno. NameoftheBank:Branch:

b)SecondApplicant Name: Fathers/HusbandsName: MothersName: PostalAddress: Occupation:

Nationality

6. 7. (i) (ii)

I/we hereby declare that I/we have read the Prospectus of GSP FINANCE COMPANY (BANGLADESH) LIMITED and have willingly subscribed for .... No. of OrdinarySharesof25.00eachincludingapremiumofTk.15.00pershare. SpecimenSignature(s): Name(inBlockLetters) Signature: Name(inBlockLetters) Signature:

.................................................................................................................................................................................................

BANKERSACKNOWLEDGEMENT Certified that this Bank has received Tk. (in figures)................. (in word .....................................................................) only Mr./Mrs./Ms.........................................................................beingtheApplicationmoneyfor.......................OrdinarySharesofGSPFINANCECOMPANY(BANGLADESH)LIMITED BankersSL.No. Seal&Date AuthorizedSignature (Name&Designation)

from

131

INSTRUCTIONS AsperprovisionofDepositoryAct,1999andregulationsmadethereundershareswillonlybeissuedindematerializedcondition.PleasementionyourBeneficiaryOwner(BO) AccountnumberintheApplicationform.IfyoudonotmentionyourvalidBOaccountnumberyourapplicationwillbetreatedasinvalid. 2.Allinformationmustbetypedorwritteninfull(inBlockletters)inEnglishorinBengaliandmustnotbeabbreviated. 3. ApplicationmustbemadeontheCompanysprintedform/photocopyorontypedcopy/handwrittenformthereof. 4. Applicationmustnotbeforlessthan500OrdinarySharesandmustbeforamultipleof500OrdinaryShares.AnyApplicationnotmeetingthesecriteriawillnotbeconsidered forallotmentpurpose. 5. RemittanceforthefullamountoftheSharesmustaccompanyeachApplicationandmustbeforwardedtoanyoftheBankerstotheIssue.Remittanceshouldbeintheformof Cash/Cheque/BankDraft/PayOrderpayabletooneoftheBankerstothefavouringA/CGSPFINANCECOMPANY(BANGLADESH)LIMITEDandcrossedA/CPayeeonlyand mustbedrawnonaBankinthesametownastheBanktowhichtheApplicationFormhasbeensent. 6. In the case of Joint Application Form, the Allotment Letter will be dispatched to the person whose name appears firstonthis Application Form and where any amount is refundableinwholeorinpartthesamewillberefundedbyAccountPayeeChequebypost/courierservicetothepersonnamedfirstonthisApplicationForminthemanner prescribedintheProspectus. 7. JointApplicationFormformorethantwopersonswillnotbeaccepted.IncaseofJointApplication,eachpartymustsigntheApplicationForm. 8. Applicationmustbeinfullnameofindividualsorcompaniesorsocietiesortrustsandnotinthenameoffirms,minorsorpersonsofunsoundmind.Applicationfromfinancial andmarketintermediarycompaniesmustbeaccompaniedbyMemorandumandArticlesofAssociationandCertificateofIncorporation. 9. An applicant cannot submit more than two applications, one in his/her own name and another jointly with another person. In case an applicant makes more than two applications, all applications will be treated as invalid and will not be considered for allotment purpose. In addition, 15% (fifteen) of the application money will be forfeited by the Commission and the balance amount will be refunded to the applicant. 10. NoreceiptwillbeissuedforthepaymentmadewithApplication,butthebankerswillissueaprovisionalacknowledgementtotheIssueforApplicationlodgedwiththem. 11. Inthecaseofnonallotmentofsecurities,iftheapplicantsbankaccountsasmentionedintheirIPOApplicationFormsaremaintainedwiththebankerstotheIssue,refund amountofthoseapplicantswillbedirectlycreditedintotherespectivebankAccountPayeecheque(s)withbankaccountnumberandnameofbankbranchasmentionedin theapplicationpayableatDhakaorChittagong,asthecasemaybe. 12. AllotmentshallbemadesolelyinaccordancewiththeinstructionsoftheSecuritiesandExchangeCommission(SEC). 13. MakingofanyfalsestatementintheApplicationorsupplyingofincorrectinformationthereinorsuppressinganyrelevantinformationshallmaketheApplicationliableto rejectionandsubjecttoforfeitureofapplicationmoneyand/orforfeitureoftheshare(unit)beforeorafterissuanceofthesamebytheissuer.Thesaidforfeitedapplication money or share (unit) will be deposited in account specified by the Securities and Exchange Commission (SEC). This may be in addition to any other penalties as may be providedforbylaw. 14. Applications,whichdonotmeettheaboverequirements,orApplications,whichareincomplete,shallnotbeconsideredforallotmentpurposes. 15. TheBankerstotheIssueBanksshallbeobligedtoreceivetheA/CPayeeCheque(s)ontheclosingdayofthesubscription. 16. No saleof securities shallbe made, nor shall any money betaken fromany person, in connection withsuch sale untiltwenty five days afterthe prospectus has been published. 17. Theapplicantswhohaveappliedformorethantwoapplicationsusingsamebankaccount,theirapplicationwillnotbeconsideredforlotteryandtheCommissionmay 1. forfeitwholeorpartoftheirapplicationtoo.
BANKERS TO THE ISSUE
InvestmentCorporationofBangladesh(ICB) NSCTower,PuranaPaltan,Dhaka. ChittagongBranch,Chittagong. RajshahiBranch,Rajshahi. KhulnaBranch,Khulna. BarisalBranch,Barisal. SylhetBranch,Sylhet. BograBranch,Bogra. LocalOffice,KashfiaPlaza,Nayapaltan,Dhaka.

IslamiBankBangladeshLimited LocalOffice,Dhaka(ControllingBranch) BarisalBranch,Barisal. CoxsBazarBranch,CoxsBazar. ForeignEx.Br.,Dhaka. KhatungonjBranch,Chittagong. MotijheelBranch,Dhaka. RajshahiBranch,Rajshahi. SylhetBranch,Sylhet. AgrabadBranch,Chittagong. BograBranch,Bogra. FarmgateBranch,Dhaka. GulshanBr.,Gulshan,Dhaka. KhulnaBranch,Khulna. NawabpurBranch,Dhaka. SadarghatBranch,Dhaka. MymensinghBranch,Mymensingh.

TrustBankLimited. PrincipalBranch,Dhaka. DilkushaCorporateBranch,Dhaka KafrulBranch,Dhaka RadissonWaterGardenBranch,Dhaka MirpurBranch,Dhaka KarwanBazarBranch,Dhaka UttaraCorporateBranch,Dhaka NarayangonjBranch,Narayangonj ElephantRoadbranch,Dhaka DhanmondiBranch,Dhaka NarsingdiBranch,Narsingdi Tongibranch,Gazipur JoydebpurBranch,Gazipur AshuliaBranch,Dhaka MymensinghCantt.Branch,Mymensingh. SavarCantt.Branch,Dhaka. S.SCantt.Branch,Ghatail,Tangail HalishaharBranch,Chittagong KadamtoliBranch,Chittagong ComillaCantt.Branch,Comilla FeniBranch,Feni ChowmohoniBranch,Noakhali ComillaBranch,Comilla AshugonjBranch,B.Baria KhulnaBranch,Khulna JalalabadCantt.Branch,Sylhet RangpurCantt.Branch,Rangpur BograCantt.Branch,Bogra
KhawjaYounusAliMedicalCollege&HospitalBranch,Sirajgonj

JessoreCantt.Branch,Jessore ShahjalalUposhaharBranch,Sylhet RajshahiBranch,Rajshahi BarisalBranch,Barisal

ShahjalalIslamiBankLimited DhakaMainBr.,Dilkusha,Dhaka. MitfordBr.,MitfordRoad,Dhaka. DhanmondiBr.,Dhaka. GulshanSouthAvenueBr.,Gulshan,Dhaka. AgrabadBranch,Chittagong. SylhetBranch,Sylhet. KhatungonjBranch,Chittagong. GulshanBr.,Gulshan,Dhaka. KawranBazarBr.,Dhaka. SatmasjidRoadBr.,Dhanmondi,Dhaka. EskatonBranch,dhaka BananiBr.,Banani,Dhaka. MotijheelBr.,Motijheel,Dhaka. BijoynagarBr.,Kakrail,Dhaka. UttaraBr.,Uttara,Dhaka. ForeignEx.Br.,Motijheel,Dhaka.

DutchBanglaBankLtd. BaburHatBranch,Narsingdi. NarayangongBranch,Narayangonj. B.B.RoadBranch,Narayangonj. PatherhatBranch,Chittagong. HathazariBranch,Chittagong. DaniaBranch,Shyampur,Dhaka. KhulanBranch,Khulan. SylhetBranch,Sylhet. DhakaEPZBranch,Savar,Dhaka. BoardBazarBranch,Gazipur. NetiagongBranch,Narayanganj. BograBranch,RazaBazar,Bogra. BarisalBranch,Alekanda,Barisal. SimrailBarnch,Narayanganj. CDAAvenueBranch,Chittagong. JoyparaBranch,Dohar,Dhaka. BiswanathBranch,Sylhet. MouliviBazarBranch,MoulaviBazar. MuradpurBranch,Chittagong. GolapgonjBranch,Pulbari,Sylhet. RajshahiBranch,Rajshahi. SavarBazarBranch,Savar,Dhaka. GazipurChowrastaBranch,Gazipur.

FeniBranch,Feni. ComillaBranch,Comilla. JubileeRoadBranch,Chittagong. KadamtoliBranch,Chittagong. MirzapurBranch,Tangail. CoxsBazarBranch,CoxsBazar. LohagaraBranch,Chittagong. ManikgonjBranch,Manikgonj. FatikchariBranch,Chittagong. KonabariBranch,Gazipur. ChowmuhaniBranch,Noakhali. SonagaziBranch,Sonagazi,Feni. GoalaBazarBranch,Sylhet. KhatungonjBranch,Chittagong. MymensinghBranch,Mymensing. ShahjadpurBranch,Sirajganj. BeaniBazarBranch,BeaniBazar,Sylhet. ChattakBranch,Chhatak,Sunamganj. BanduraBranch,Nawabganj,Dhaka. SaidpurBranch,Nilphamary. RangpurBranch,Rangpur. JessoreBranch,Jessore. HalishaharBranch,Chittagong. BasurhatBranch,Noakhali. SreemongalBranch,Moulivibazar. KushtiaBranch,Kushtia. PabnaBranch,Pabna. NarsingdiBranch,NarsingdiBazar,Narsingdi. SatmosjidRoadBranch,Dhaka. DinajpurBranch,Dinajpur. BhairabBranch,Kishorgonj. DagonbhuiyanBranch,Feni. GobindaganjBranch,Gaibandha. BhultaBranch,Narayangonj. BSCICBranch,Narayangonj. TongiBranch,Tongi,Gazipur. SatkhiraBranch,Satkhira. MadaripurBranch,Madaripur. MunshiganjBranch,Munshiganj. HabigangBranch,Haboganj. ChittagangEPZBranch,Chittagong. FaridpurBranch,ChawkBazar,Faridpur. ShahajalalUposhohorBr.,Sylhet. TangailBranch,Tangail. ONEBankLimited PrincipalBranch,Dhaka. MotijheelBranch,Dhaka. KarwanBazarBranch,Dhaka. GulshanBranch,Dhaka. MirpurBranch,Dhaka. UttaraBranch,Dhaka. DhanmondiBranch,Dhaka. BananiBranch,Dhaka. KakrailBranch,Dhaka. ProgotiSaraniBranch,Dhaka. ElephantRoadBr.,Dhaka. JatrabariBranch,Dhaka. NawabgonjBranch,Dhaka. BangshalBranch,Dhaka. Ganakbari(EPZ)Branch,Dhaka. ImamganjBranch,Dhaka. NarayanganjBranch,Narayanganj. JoyparaBranch,Dhaka. AgrabadBranch,Chittagong. KhatungonjBranch,Chittagong. CDAAvenueBranch,Chittagong. NanupurbazarBranch,Chittagong. CoxsBazarBr,Chittagong. JubileeRoadBr,Chittagong. ChowmuhaniBranch,Noakhali. ChandragonjBranch,Lakshmipur. FeniBranch,Feni. RaipurBranch,Lakshmipur. DagonBhuiyanBranch,Feni. SylhetBranch,Sylhet. SherpurBranch,MoulviBazar. IslampurBranch,Sylhet. JessoreBranch,Jessore. BograBranch,Bogra. SerajgonjBranch,SerajgonjSadar. LakshamBranch,Laksham. RamgonjBranch,Lakshmipur. MaijdeeCourtBranch,Noakhali. BanashriBranch,Dhaka. RajshahiBranch,Dhaka. ShahjadpurBranch,Sirajgonj. JagannathpurBranch,Nadda,Dhaka. TongiBranch,Gazipur. ComillaBranch,Comilla. BasaboBranch,Sabujbag,Dhaka. SatkhiraBranch,Satkhira MadhabdiBranch,Narsindi RangamatiBranch,Rangamati SitakundaBranch,Chittagong MoghbazarBranch,Dhaka

IFICBankLimited FederationBranch,Dhaka. DhanmondiBranch,Dhaka. MoakhaliBranch,Dhaka. BananiBranch,Dhaka. ShantinagarBranch,Dhaka. ElephantRoadBranch,Dhaka.

IslampurBranch,Dhaka. KawranBazarBranch,Dhaka NayaPaltanBranch,Dhaka. UttaraBranch,Dhaka. MalibaghBranch,Dhaka. PallabiBranch,Dhaka. LalmatiaBranch,Dhaka. NarsingdiBranch,Narsingdi NorthBrookHallRoadBr.,Dhaka. NarayangonjBranch,Narayangonj. FaridpurBranch,Faridpur. MymensinghBranch,Mymensingh. StockExchangeBr.,Motijheel,Dhaka. PragatiSaraniBr.,UttarBadda,Dhaka. MirpurBranch,Dhaka. AgrabadBranch,Chittagong. CDAAvenueBranch,Chittagong. MadamBibirHatBr.,Shitakundo, Chittagong. CoxsBazarBranch,CoxsBazar Sk.MujibRd.Br.,Chittagong ComillaBranch,Comilla B.bariaBranch,Brahmanbaria. ChoumuhaniBr.,Noakhali FeniBranch,Feni. AlankerMoreBranch,Chittagong RajshahiBranch,Rajshahi RangpurBranch,Rangpur BograBranch,Bogra PabnaBranch,Pabna DinajpurBranch,Dinajpur KhulnaBranch,Khulna. BoroBazarBr.,Kalibari,Khulna JessoreBranch,Jessore KushtiaBranch,Kushtia BarisalBranch,Barisal SylhetBranch,Sylhet MoulviBazarBranch,MoulviBazar. UposhohorBranch,Sylhet. TultikarBranch,Sylhet. EasternBankLimited PrincipalBranch,Dilkusha,Dhaka. MotijheelBranch,Dhaka. MirpurBranch,Dhaka. BashundharaBranch,Dhaka. ShamolyBranch,Dhaka. NarayangonjBranch,Dhaka. JessoreBranch,Dhaka. ChoumuhoniBranch,Dhaka. AgrabadBranch,Chittagong. KhatungonjBranch,Chittagong. BograBranch,Bogra. KhulnaBranch,Khulna. RajshahiBranch,Rajshahi. SavarBranch,Savar. MoulvibazarBranch,Sylhet. NationalBankLimited AgrabadBranch,Chittagong. AnderkillahBranch,Chittagong. BangshalRoadBranch,Dhaka. BananiBranch,Dhaka. BabubazarBranch,Dhaka. BograBranch,Bogra BarisalBranch,Barisal ElephantRoadBranch,Dhaka. ForeignExchangeBr,Dhaka. GulshanBranch,Dhaka. ImamgonjBranch,Dhaka. IslampurBranch,Dhaka. JatrabariBranch,Dhaka. KawranbazarBranch,Dhaka. KhulnaBranch,Khulna. SylhetBranch,Sylhet FeniBranch,Feni. Sk.MujibRd.Br.,Chittagong Z.H.SikderM.C.Branch,Dhaka. MalibagBranch,Dhaka. KhatungonjBranch,Chittagong. LakeCircusBranch,Dhaka. TongiBranch,Gazipur RiflesSquareBranch,Dhaka. PaglaBazarBranch,Narayangonj. CDAAvenueBranch,Chittagong. MuradpurBranch,Chittagonj. GazipurBranch,Gazipur. SunamgonjBranch,Sunamgonj. MirpurBranch,Dhaka. MohakhaliBranch,Dhaka. MohammadpurBranch,Dhaka. MotijheelBranch,Dhaka. DhanmondiBranch,Dhaka. DilkushaBranch,Dhaka. NewEskatonBranch,Dhaka. NorthBrookeHallBranch,Dhaka. PragatiSaraniBranch,Dhaka. RokeyaSaraniBranch,Dhaka. SavarBazarBranch,Savar. UttaraBranch,Dhaka. ChawkbazarBranch,Chittagong. ChoumuhaniBr.,Noakhali. PahartoliBranch,Chittagonj

HalishaharBranch,Chittagonj. JubilleRoad,Branch,Chittagonj. TangailBrahch,Tangail. ComillaBranch,Comilla RangpurBranch,Rangpur RajshahiBranch,Rajshahi NarayangonjBranch,Narayangonj. NetaigonjBranch,Narayangonj. NarsingdiBranch,Narsingdi. FaridpurBranch,Faridpur. MoulviBazarBranch,MoulviBazar. MymensinghBranch,Mymensingh. BanduraBranch,Dhaka. MercantileBankLtd. MainBranch,Dilkusha,Dhaka. DhanmondiBr,Dhaka KawranbazarBr,Dhaka AgrabadBr,Ctg BananiBr,Dhaka RajshahiBr,Rajshahi NaogaonBr,Naogoan SylhetBr,Sylhet BoardBazarBr,Gazipur NayabazarBr,Dhaka KhatunganjBr,Ctg MohakhaliBr,Dhaka MirpurBranch,Dhaka UttaraBranch,Dhaka JubileeRdBr,Ctg ElephantRdBr,Dhaka MotijheelBr,Dhaka MadamBibirHatBr,Ctg KhulnaBranch,Khulna RangpurBr,Rangpur SatmasjidBr,Dhaka ORNazimRdBr,Ctg BograBranch,Bogra GulshanBr,Dhaka FeniBranch,Feni MoulvibazarBr,M.Bazar BijoynagarBr,Dhaka MoghbazarBr,Dhaka BeaniBazarBranch,Dhaka. BarisalBr,Barisal ComillaBr,Comilla GreeenRdBr,Dhaka SheikhMujibRdBr,Ctg Eng.Inst.Br,Dhaka MazarRoadBr,Dhaka DinajpurBr,Dinajpur. JessoreBr,Jessore ProgatiSaraniBr,Dhaka ChittagongEPZBr,Ctg NarayangonjBr,Narayangonj. NCCBankLimited MotijheelBranch,Dhaka. DilkushaBranch,Dhaka KarwanBazarBranch,Dhaka. MirpurBranch,Dhaka. DhanmondiBranch,Dhaka. MitfordBr.,MitfordRoad,Dhaka. NawabpurRoadBranch,Dhaka KamalBazarBranch,Chittagong. MalibaghBranch,Dhaka. UttaraBranch,Dhaka. MoghbazarBranch,Dhaka. BabubazarBranch,Dhaka. BangshalRoadBranch,Dhaka. ElephantRoadBranch,Dhaka. PragatiSaraniBranch,Dhaka. JatrabariBranch,Dhaka. GulshanBranch,Dhaka. ShyamoliBranch,MirpurRoad,Dhaka. BananiBranch,Dhaka. BijoynagarBr.,Kakrail,Dhaka. SavarBranch,Savar. IslampurBranch,Dhaka. JoydevpurBranch,Gazipur. MadaripurBranch,Madaripur. TangailBrahch,Tangail. AgrabadBranch,Chittagong. KhatungonjBranch,Chittagong. O.R.NizamRoadBranch,Chittagong. JubileeRoadBr,Chittagong. CoxsBazarBranch,CoxsBazar. CEPZBranch,Chittagong. AnderkillaBranch,Chittagong. NarayangonjBranch,Narayangonj. MadamBibirhatBranch,Chittagong. HalishaharBranch,Chittagong KadamtoliBranch,Chittagong MajhirghatBranch,Chittagong. FeniBranch,Feni. LaxmipurBrnach,Laxmipur. ChowmohoniBranch,Noakhali ComillaBranch,Comilla LaldighirparBranch,Sylhet. MymensinghBranch,Mymensingh. CyagalnaiyaBranch,Feni. ChowhattaBranch,Sylhet. MoulviBazarBranch,MoulviBazar. RangpurBranch,Rangpur

RajshahiBranch,Rajshahi BograBranch,Bogra. NaogaonBranch,Naogaon. KhulanBranch,Khulan. JessoreBranch,Jessore. MadunaghatBranch,Chittagong. MutualTrustBankLtd. BabuBazarBranch,Dhaka. BananiBranch,Dhaka. DhanmondiBranch,Dhaka. DholaikhalBranch,Dhaka. DilkushaBranch,Dhaka. ElephantRoadBranch,Dhaka. FulbariaBranch,Dhaka. GulshanBranch,Dhaka. MohammadpurBranch,Dhaka. MTBCorporateCenterBranch,Dhaka. PallabiBranch,Dhaka. PanthapathBranch,Dhaka. PrincipalBranch,Dhaka. ProgatiSaraniBranch,Dhaka. SavarBranch,Dhaka. ShanirAkhraBranch,Dhaka. TongiBranch,Dhaka. UttaraModelTownBranch,Dhaka. NarayanganjBranch.Narayanganj SonargaonBranch.Narayanganj AgrabadBranch,Chittagong. AlankarMourBranch,Chittagong. CDAAvenueBranch,Chittagong. JubileeRoadBranch,Chittagong. KhatungonjBranch,Chittagong. FeniBranch,Feni. RajshahiBranch,Rajshahi. RangpurBranch,Rangpur. BograBranch,Bogra. PabnaBranch,Pabna. KushtiaBranch,Kushtia. SylhetBranch,Sylhet. MoulviBazarBranch,Sylhet. GournadiBranch,Barisal. JessoreBranch,Jessore. HobiGonjBranch,HobiGonj. TheCityBankLtd. B.B.AvenueBranch,Dhaka. DhakaChamberBranch,Dhaka. DhanmondiBranch,Dhaka. ShaymoliBranch,Dhaka. ImamagonjBranch,Dhaka. JohnsonRoadBranch,Dhaka. KawranbazarBranch,Dhaka. NewMarketBranch,Dhaka. VIPRoadBranch,Dhaka. IslampurBranch,Dhaka. NawabgonjBranch,Dhaka NawabpurBranch,Dhaka. PragatiSaraniBr.,Dhaka. TanbazarBranch,Narayangonj. ZinziraBr.,Dhaka. TongiBranch,Gazipur. AgrabadBranch,Chittagong. JubileeRoadBranch,Chittagong. KhatungonjBranch,Chittagong. AndarkillaBr.,Chittagong. CoxsBazarBr.,Chittagong. ChawkbazarBr.,Chittagong. PahartoliBr.,Chittagong. ComillaBranch,Comilla. NarsingdiBr.,Narsingdi. ZindaBazarBranch,Sylhet. BandarBazarBranch,Sylhet. AmborkhanaBr.,Sylhet. MoulviBazarBr.,Sylhet. RajshahiBranch,Rajshahi. BograBranch,Bogra. RangpurBr.,Rangpur. SirajgonjBr.,Sirajgonj. KhulnaBranch,Khulna. JessoreBr.,Jessore. BarisalBranch,Barisal. BasicBankLimited BarisalBranch,Barishal BograBranch,Bogra ChowmuhanaBranch,Moulvibazar ComillaBranch,Comilla DewanhatBranch,Chittagong DhanmondoBranch,Dhanmondi GazipurChowrastaBranch,Gazipur JessoreBranch,Jessore KhatungonjBranch,Chittagong. KhulnaBranch,Khulna. MirpurBranch,Dhaka. NarsingdiBranch,Narshingdi. RajshahiBranch,Rajshahi. RangpurBranch,Rangpur. SaidpurBranch,Nilphamari. SavarBranch,Savar SatinagarBranch,Dhaka SirajgonjBranch,Sirajgonj UttaraBranch,Dhaka ZindabazarBranch,Sylhet

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 Interestedpersonsareentitledtoaprospectus,iftheysodesire.Copiesoftheprospectusmaybeobtainedfromtheissuerandtheissuemanager GSPFINANCECOMPANY(BANGLADESH)LIMITED

APPLICATIONFORM

APPLICATIONFORSHARESBYNONRESIDENTBANGLADESHI (TobesentdirectlytotheCompanysCorporateOffice)

WARNING:Pleasereadtheinstructionsatthebackofthisform.Incorrectlyfilledapplicationsorapplicationsfailingtocomplywithanyoftheinstructionsthereinmayberejected

TheManagingDirector

GSPFINANCECOMPANY(BANGLADESH)LIMITED

1,Paribagh,MymensinghRoad,Ramna,Dhaka0.

DearSir I/Weapplyforandrequestyoutoallotme/usnumberofSharesandI/weagreetoacceptthesameoranysmallernumberthatmaybeallottedto me/us upon terms of the Companys Prospectus approved by the Securities and Exchange Commission and subject to the Memorandum and Articles of AssociationoftheCompany.I/weauthorizeyoutoplacemy/ourname(s)ontheRegisterofMembersoftheCompanyanddepositthesaidordinarysharesin my/ourBeneficiaryOwner(BO)account;I/wefurtherauthorizeyoutosendaCrossed(Accountpayeeonly)Chequeinrespectofanyapplicationmoney refundabletome/usbypost/courieratmy/ourrisktothefirstapplicantsaddressstatedbelow:

1. 2. 3. 4. 5. 6.

No.ofOrdinaryShares...................................ofTk.25.00eachincludingapremiumofTk.15.00each. TotalsubscriptionmoneyoftheamountofTk.(infigures).....................,Taka(inwords)...........................................onlyconvertibleintoUSD attherateofUSDollar1.00=Tk.................../UKPoundSterling1.00=Tk............................/EURO1.00=Tk................ PaymentbyDraft/ChequeNo................................date....................................forUSDollar/UKPoundSterling/EURO/Tk...drawn on....................................Bank................................branch......................

BeneficiaryOwner(BO)AccountNumber

(IfyoudonotmentionyourvalidBO(BeneficiaryOwner)AccountNumber,yourapplicationwillbetreatedasinvalid) I/weagreetofullyabidebytheinstructionsgivenherein. ParticularsofApplicant(s)

a)Sole/FirstApplicant Name: Fathers/HusbandsName: MothersName: MailingAddress: Occupation: PassportNo.: DateofBirth:

Nationality: Validupto:

ForRefund:Pleasewritethecorrectandfullnameofbankandbranch(Applicationwillnotbetreatedasvalidifanyoneusesanonscheduledbank.Toavoidthis complication,investorsarerequestednottousethenameofanynonscheduledbank).

ApplicantsBankA/CNo.: NameoftheBank: Branch: TheapplicantshallprovidewiththesameBankAccountnumberintheapplicationformasitisintheBOaccountoftheapplicant. b)SecondApplicant Name: Fathers/HusbandsName: MothersName: MailingAddress: Occupation: Nationality: PassportNo.: Validupto: DateofBirth:

NomineesName: MailingAddress:

Nominee: Name Mailing Address

7. I/We hereby declare that I/we have read the Prospectus of GSP FINANCE COMPANY (BANGLADESH) LIMITED and have willingly subscribed for............................ OrdinarySharesofTk.25.00eachincludingapremiumofTk.15.00pershare.

8.SpecimenSignature(s): Sole/FirstApplicant: SecondApplicant: Nominee:

NameinBlockLetters

Signature

* Please see the instructions in paragraphs 14 & 15 for the evidence required to establish Non-Resident Bangladeshis Status.

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INSTRUCTIONS As per provisions of Depository Act, 1999 and regulations made thereafter shares will only be issued in dematerialized condition. Please mention your BO (BeneficiaryOwner)accountnumberintheApplicationForm.IfyoudonotmentionyourvalidBO(BeneficiaryAccount)accountnumber,yourapplicationwillbe treatedasinvalid. 2AllinformationmustbewrittenortypedinBlockLettersinEnglishandmustnotbeabbreviated. 3. Applicationmustnotbeforlessthan500OrdinarySharesandmustbeforamultipleof500OrdinaryShares.Anyapplicationnotmeetingthiscriterionwillnotbe consideredforallotmentpurpose. 4. Application must be accompanied by a foreign demand draft drawn on a bank payable at Dhaka or cheque drawn out of foreign currency deposit account maintainedinBangladeshforthefullvalueofSharesfavoringGSPFINANCECOMPANY(BANGLADESH)LIMITEDandcrossedACCOUNTPAYEEONLY. 5 ApplicationshallbesentbytheapplicantdirectlytotheCompanywithinJanuary12,2012soastoreachtheCompanywithinJanuary21,2012.AnyApplication sentafterJanuary12,2012orreceivedbytheCompanyafterJanuary21,2012willnotbeconsideredforallotmentpurpose. 6. RefundagainstoversubscriptionshallbemadeinthecurrencyinwhichthevalueofShareswaspaidforbytheapplicantthroughA/CPayeeChequepayableat Dhakawithbankaccountnumber,BanksnameandBranch. 7.Incaseofoversubscription,allotmentshallbemadebylotterysolelyinaccordancewiththeinstructionsoftheSecuritiesandExchangeCommission. 8. Moneyreceiptofclearanceofdraftorcheque,asthecasemaybe,shallbesentbyposttotheapplicantbytheCompany. 9. Joint Application by two persons will be acceptable. In such a case, allotment or refund shall be made by post to the first applicant. Note that a nonresident Bangladeshi (NRB) applicant cannot submit more than two applications, one in his/her own name and another jointly with another person by one cheque/DD/PO/ by US $/UK Pound Sterling/EURO/Taka (supported by a foreign currency encashment certificate). More than two applications by one cheque/DD/PObyUS$/UKPoundSterling/EURO/Taka(supportedbyaforeigncurrencyencashmentcertificate)willnotbeallowed. 10. Applicationmustbemadebyanindividual,acorporationorCompany,atrustorasocietyandnotbyafirm,minororpersonsofunsoundmind. 11. Makingofanyfalsestatementintheapplicationorsupplyingofincorrectinformationthereinonsuppressinganyrelevantinformationshallmaketheapplication liabletorejectionandsubjecttoforfeitureofapplicationmoneyand/orforfeitureoftheshare(unit)beforeorafterissuanceofthesamebytheissuer.Thesaid forfeited application money or share (unit) will be deposited in accountspecified by Securities and ExchangeCommission (SEC). Thismay be in additionto any otherpenaltiesasmaybeprovidedforbylaw. 12.TheintendingNRBapplicantsshalldepositthesharesubscriptionmoneybyaUS$/UKPoundSterling/EUROdemanddraftdrawnonanybankandpayableinDhaka, Bangladesh, or through a nominee paying out of a nonresident foreign currency deposit account maintained in Bangladesh or in Taka, supported by a foreign currencyencashmentcertificateissuedbythebankconcerned,forthepriceoftheordinarysharesappliedfor,throughacrossedbankchequemarkedAccount Payeeonly,suchthattheissuerscollectingbankcancleartheproceedsanddepositthesameintotheissuersaccountintime. 13. Thespotbuyingrate(TTClean)inUS$/UKPoundSterling/EUROofSonaliBankasprevalentonthedateofopeningofsubscriptionwillbeapplicablefortheNon ResidentBangladeshi(NRB)applicants. 14. The applicant shall furnish photocopies of relevant pages of valid passport(s) in support of his/her being a NRB , dual citizenship or of the foreign passport bearinganendorsementfromtheconcernedBangladeshiEmbassytotheeffectthatnovisaisrequiredforhim/hertotraveltoBangladesh. 15. Incaseofjointapplication,thejointapplicantshallalsosubmitsupportingpapers/documentsinsupportofhisbeinganNRBasmentionedinpara14(above). 16. An applicant cannot submit more than two applications, one in his/her own name and another jointly with another person. In case an applicant makes 1.

more than two applications, all applications will be treated as invalid and will not be considered for allotment purpose. In addition, 15% (fifteen) of the application money will be forfeited by the Commission and the balance amount will be refunded to the applicant.

17.Noissueofordinarysharesshallbemadenorshallanymoneybetakenfromanyperson,inconnectionwithsuchissueandsubscription,until25daysafterthe Prospectushasbeenpublished. 18.Inthecaseofnonallotmentoftheordinaryshares,iftheapplicantsbankaccountsasmentionedintheirapplicationformsaremaintainedwithanyofthebankers totheissue,theamountrefundedtothoseapplicantswillbedirectlycreditedintotheirordinaryrespectivebankaccountsasmentionedintheirapplicationforms. Otherwise,refundswillbemadeonlythroughAccountPayeecheque(s)withbankaccountnumberandnameofbankbranchasmentionedintheapplication form,payableatDhaka,Chittagong,Khulna,Barisal,RajshahiorSylhet,asthecasemaybe.

19. The applicants who have applied for more than two applications using same bank account, their application will not be considered for lottery and the Commission may forfeight whole or part of their application too.

THE NRB APPLICATION ALONG WITH THE FOREIGN CURRENCY DRAFT, AS ABOVE, IS TO BE SUBMITTED TO THE COMPANYS HEAD OFFICE DIRECTLY WITHIN THE STIPULATEDTIMEMENTIONEDINPARA5.

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