ATA KHAN & CO.     Chartered Accountants  UTTARA BANK LIMITED  PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2007   2007         2006 OPERATING INCOME Note Taka         Taka Interest-Income 18.1     2,997,432,877                2,742,042,728 Interest-paid on deposits, borrowings etc. 19     1,876,351,450                1,756,834,891 Net Interest Income       1,121,081,427                  985,207,837 Income from Investment. 20        921,189,131                  557,886,624 Commission,Exchange and Brokerage 21        744,994,717                  823,676,310 Other Operating Income  22        356,650,099                  311,527,018 Total operating income        3,143,915,374                2,678,297,789 OPERATING EXPENSES         Salary and allowances. 23     1,158,073,662                  994,854,499 Rent, taxes,insurance,electricity etc. 24        188,502,215                  117,657,488 Legal expenses 25          11,544,740                    10,802,194 Postage,stamp,telecommunication etc. 26          48,215,055                    48,091,196 Stationery,printing,advertisements etc. 27          40,275,975                    35,076,463 Managing Director's salary & allowances and fees 28           5,060,000                      5,254,000 Directors' fees and expenses 29           1,916,000                      1,893,500 Auditors' fees                130,000                         130,000 Repair, maintenance and depreciation         of Bank's property 30          85,308,986                    72,228,655 Other expenses 31        138,653,184                  110,406,540 Total operating expenses        1,677,679,817                1,396,394,535         Profit/(Loss) before  provision   18     1,466,235,557                1,281,903,254          Provision for loans & advances 32        255,800,000                  400,000,000  Provision for off balance sheet exposures  33          44,200,000    -   Provision for Investment 34  -                     12,650,000 Less:Total provision           300,000,000                  412,650,000 Transfer to gratuity fund            20,000,000    -  Transfer to benevolent fund             2,500,000                      2,500,000 Profit/(Loss) before tax        1,143,735,557                  866,753,254 Provision for Tax:          734,200,000                  618,000,000 Current tax          727,000,000                  618,000,000 Deffered tax              7,200,000                                 -   Profit after tax and provision          409,535,557                  248,753,254 Retained surplus brought forward 16          22,990,765                    14,819,061 Profit available for appropriation          432,526,322                  263,572,315 Appropriations          Statutory reserve            30,000,000                    10,000,000 General reserve    -                     10,000,000 Proposed stock dividend (@ 1:1)          399,329,600                  199,664,800 Cash dividend     -                     39,932,960 Total appropriation          429,329,600                  259,597,760 Retained earnings               3,196,722                      3,974,555 Earning per share (EPS) 40                102.56   124.59 Accompanying notes 1 to 44 form an integral part of these financial statements