ATA KHAN & CO.
    Chartered Accountants 
    2007   2006
    Taka   Taka
12. Other liabilities        
Provision for income tax (Note12.1)      2,043,476,311       1,811,940,579
Deferred Tax (Note 12.2)             7,200,000    - 
Benevolent fund.             2,500,000             2,500,000
Adjusting account credit  balance             67,144,894             7,325,230
Govt. guarantee fund for special agri credit.           8,801,000             8,801,000
Fund for credit on Nath Bank (Pak) Ltd.               151,284                151,284
Balance of exchange houses .         366,012,670         323,352,346
Reserve for unforeseen losses            40,964,047           36,964,047
Interim dividend payable                223,560                223,560
Audit fee payable                130,000                130,000
Advance deposit and advance rent.             2,652,429             3,170,427
Consumers credit risk fund & personal loan scheme         17,062,399           16,714,359
Excise duty payable                921,548             2,012,404
Cash assistance.           25,568,122                   8,128
Bonus           78,163,688           71,595,190
Provision for classified loans and advances (Note 12.3)       455,901,594         583,548,567
General provision for un-classified advances (Note 12.4)       370,500,000         323,900,000
General provision on off-balance sheet exposures(Note 12.5)         44,200,000    - 
Provision for Gratuity (Note 12.6)           46,489,009    - 
Provision for classified other assets (Note 12.7)         87,360,961         164,500,000
Provision for classified fixed assets            22,300,000           22,300,000
Provision for diminution in value of  Investment          23,250,000           23,250,000
Interest suspense account (Note 12.8)         188,952,604         259,519,358
Clearing house adjustment    -                  11,329
SEDP fund mobilization account               368,491                 37,619
Un- claimed dividend '2003             5,003,482             5,073,300
Un- claimed dividend '2004             5,631,926             5,698,256
Un- claimed dividend '2005             1,990,332             2,506,428
Un- claimed dividend '2006             7,993,830    - 
Proposed dividend     -            39,932,960
  Total    3,920,914,181       3,715,166,371
12.1 Provision for income tax (current tax)        
Provision held at the beginning of the year      1,811,940,579       1,193,940,579
Add: Provision made during the year (current  tax)       727,000,000         618,000,000
Less: Tax paid/adjustment        (495,464,268)                        -  
Balance at the end of the year Total     2,043,476,311       1,811,940,579
         
12.2 Deferred Tax         
Deferred Tax Assets        
Opening Balance as on 1January 2007    -     - 
Add: Addition during the year    -     - 
Closing Balance as on 31 December 2007  -     - 
         
Deferred Tax liability        
Balance as on 1 January 2007    -     - 
Addition during the year (Note -13.2.1)             7,200,000    - 
Balance as on 31 December  2007             7,200,000    - 
         
         
12.3 Provision for classified loans and advances       
The movement in specific provision for Bad & Doubtful Debts    
Provision held at the beginning of the year         583,548,567         574,373,185
Fully provided debts written off during the year      (340,148,316)        (329,602,618)
Recoveries of amounts previously written off           3,301,343           70,000,000
Specific provision for the year         300,000,000         358,600,000
Prov. transferred to general provision UC Loans & Adv.        (46,600,000)            (3,122,000)
Prov. transferred to general provision off balance sheet exp.        (44,200,000)    - 
Recoveries and provision no longer required  -           (86,700,000)
Net charge to profit and loss account    -                         -  
Provision held at the end of the year         455,901,594         583,548,567
12.4 The movement in general provision on unclassified loans & advances     
Provision held at the beginning of the year         323,900,000         279,378,000
Specific general provision for the year    -           41,400,000
Provision transferred from classified loans & advances         46,600,000             3,122,000
Provision held at the end of the year         370,500,000         323,900,000
5,390
 Center
Total provsion held at the end of the year
        826,401,594         907,448,567
12.5 Provision for Off Balance Sheet Exposures      
Balance at the beginning of the year     -     - 
Amount transferred from Prov.for Bad Debts         44,200,000    - 
Balance at the end of the year           44,200,000    - 
         
12.6 Provision for Gratuity        
Opening balance 1 January 2007   -   -
Provision made during the year            70,000,000   -
Payement made during the year           (23,510,991)   -
Balance at the end of the year           46,489,009   -
         
         
12.7 Provision for classified other assets