FAREAST FINANCE & INVESTMENT LIMITED Service with smile Aiming HIGHAiming HIGH Fareast Finance & Investment Limited is always | » Aiming High and promises to keep going ahead.| Aiming HIGH ‘The secret to success is to always Aim High and set big goals. We, at Fareast Finance & Investment Limited (FFIL), have started in a small-scale, but we have served our clients with dedication and improved our performance with diligence - the end result was BRIGHT and POSITIVE. Setting big goals inspired us to take action and helped us in making an impact in the financial arena, To achieve ‘greatness, we started small, with the goal of achieving long term growth. These small steps were enormously helpful for us in growing bigger and caring a positive image amongst our competitors, FFIL always believes that our activities, commitment and innovations will provide complete satisfaction to our clients, customers, shareholders and the relevant business partners. 2018 has been a Year of Progress and a turning point for FFIL, These factors, along with the remarkable economic expansion of the country, helped the company to record a positive growth of 114.14 percent net profit over the previous year. FFIL is moving in the right track, and with its skilled, dedicated and efficient employees, will climb further up. Let’s not forget the ample support we have received from our valued clients, shareholders, customers and most importantly our concerned business partners, FFIL is always Aiming High and promises to keep going ahead. We are sure that within a very short time we will be one of the leading financial institutions of the country.| Walking collectively ‘The vision of Fareast Finance & Investment Limited is to become the market leader in the financial sector. In following that the company started its journey and always tried to develop its products with unique features and placed before the door of the clients. ‘The company also provides prompt and exceptional services to the customers as and when required, By dint ofthis, company creates its brand image and reliability to the customers as well as the other stakeholders In spite of looking to the short term success; Fareast Finance management crossed its fingers for attaining the long term growth. That helped the company to continue the achievement in short term as well as long term. The strength of company’s financials together with the opportunities for future growth, led the company to a range of successful initiatives. The diversity of products and services of the company worked as a key to its strength, Over the years Farcast Finance established itself in such a way that accomplished its position by being clear and easily understandable to the customers. Fareast Finance always helped the stakeholders by making good credit facility to the clients, by deliv- ering customized solutions whenever needed to its customer, by standing beside them in their sluggish period and finally, providing good return to the shareholders, Despite having various financial challenges including acute liquidity crisis in the sector of the economy in the year 2018, Fareast Finance is in action to meet, ly. In the current year 2019, with our all stakeholders | accompanying the community as awhole by walk- ‘the goals of the company.| Focus and strength Flexibility and diversity in business is Fareast Finance’s focus; Creative ideas and innovative financial solutions is Fareast Finance’s strength. Service with smile is Fareast Finance’s Belief; Fareast’s motto is dedication; and Fareast’s mission is to serve with values and ethics. Focus of Fareast Finance is a strategy by which the company concentrates its resources on expanding the business. Management usually employs its focus strategy in the known segments and has products to competitively satisfy the customers’ need. However, owing to the changing nature of business the focus area may often shift or change. Besides, Fareast Finance's strength is its capacity to resist outdoor force or pressure through its capital, knowledge, skill and other advantages that is acquired over the years. Farcast Finance believes that cach of its activities must provide satisfaction to its customers and progress to their wealth. Fareast Finance management feels for what its clients feel to make their lis style more comfortable, convenient and peaceful. Fareast Finance does not believe to customers’ ideas and new thinking. Fareast Finance believes that in this worked yesterday may not fit for today. Keeping this in view Fareast alLetter of transmittal All Shareholders Bangladesh Bank Bangladesh Securities and Exchange Commission Registrar of Joint Stock Companies & Firms Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Dear Siris), Annual report for the year ended 31 December 2018 We ate pleased to enclose a copy of the Annual Report of Fareast Finance & Investment Limited together with the Audited Financial Statements including Balance Sheet as at 31 December 2018, Profit and Loss Account, Cash Flow Statement and Statement of Changes in Equity for the year ended 31 December 2018 along with "Notes thereon for your kind information and record, ‘Thank you. Sincerely yours, war ‘Nazmun Nahar ACS ‘Assistant Vice President and Assistant Company Secretary 20 August 2019 www.ffilbd.com | 05‘dessa All esteemed Shareholders Dear Sir(s), It is an honor and satisfaction for me to address you again and tell you about what Fareast Finance & Investment Limited has achieved in 2018, [will share with you the actions and initiatives we have embarked ‘upon so far and will request you to consider the company’s prospects and future plans. 2018 was a period of recovery for the company and we hhave come out of the downtum stronger with a restructured ‘organization. For the year 2018, the company's net profit(loss) after income tax stood at Tk. 132.53 million which was Tk.(937.72) million for the period ended on 31st December 2017 and the earings per share for 2018 was Tk.0.81 recording a positive growth of 114.14 percent over the previous year. At the end of the year 2018, the retum on asset was 1.04 percent which was a negative figure of 6.78 percent at the end of the year 2017. These above mentioned figures indicate that your company has been able to navigate through the difficult challenges of the recent past more effectively. This has langely been due to the strong fundamentals of your company and foresight of your Board and ‘management in putting into place a business strategy based on its core ‘competencies, 2018 was a good year for Fareast Finance & Investment Limited (FFIL). As we look back on last year, it is remarkable how well our ‘company has performed. There was high activity to collect from non performing loans in the last year. As on 31 December 2018, company’s total classified loans, advances and leases was Tk.1,525.52 million as compared to Tk.1,844.39 million of the same period of 2017. Full \ebdibttiiecy br eoturs provision was made against those classified portfolio as per Bangladesh Bank —_ guidelines. During the year 2018, FFIL faced an uncomfortable liquidity position and disbursed total Tk.105.91 million, whereas in the year 2018 the contract amount was Tk.5.6 million. Total deposits stood at Tk.5,577.93 million as on 31st December 2018 against Tk.6,908.50 million as on 3st December 2017. In view of present economic development effort in Bangladesh the Small and Medium Enterprise (SME) sector plays an important role, because here the economy is much more labour concemed. The outstanding SME loans as on 31st December 2018 stood at Tk.898.23 million which was 8.99 percent of total loans & advances of the company. ‘The cost of borrowing of FFIL has pick up to 11.63 percent in 2018 against 9.51 percent in 2017. Continuous efforts were given for reducing the borrowing cost by utilizing the low cost funds and decreasing the bank dependency as ‘much as possible. It gives me more pleasure that, we are working with a long term horizon instead of just quick, short term results. Our strategy is to become a simpler, better financial institution that delivers balanced and sustainable outcomes for our customers, community, our people, and shareholders. Fareast Finance & Investment Limited has been engaged in promoting corporate social responsibilities throughout the year. The company paid total Tk.0.44 million for disaster management, arts and culture, education, health and other under