Professional Documents
Culture Documents
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MEGHNA LIFE INSUFTANGE
- CO. LTD-
Registered Office
Biman Bhaban (2nd FlooQ, 100, Motijheel CommercialArea, Dhaka-1000
Phone : PABX : 9558297, 9558993, 9556204, Fax: 88-02-9578113
+mail : info@meghnalife.com, Web site : www.meghnalife.com
A
1urMion
Our vision is to lead the Insurance Sector by delivering excellent services to
all categories of policyholders through our trained folk of Insurance actiyists
mtd use of smart latest digital technologt to be delivered at the door steps of
common people.
1urMbtion
* Speedy quali9) services to our policyholders.
* Maintain sustainable growth.
* Follow slrong/high ethics of morality in all spheres of business
op er at ion/activiti es.
* Provide profitable return on shareholders' equity.
* Maintain corporate social responsibilities (CSR).
* Explore new areas/yenues where Insurance owareness has not yet been
developed.
* Protect policyholder's interest.
. * Develop honesty, sincerity, integrity among the service rendering employees.
2
A
Sfrafryic 1Secftva
* To procure Insurance premium in a transparent manner based on
market mechanism within the legal and social framework.
* To provide fficient, innovative and quality products and services
with excellent delivery system to the policyholders.
* To attract/retain e/ficient/capable employees and to enhance their
career through training, motivation and remuneration.
* To contribute meaningfully towards the progress of the nation by
providing corporate social responsibilities.
* Tb generate profit and fair returns to our shareholders ensuring
sustainable growth.
CoreYafues
* Policyholder first (Customer Centricity)
* Ethics (Honesty/sincerity/devotion/Integrity/high moral).
* Transparency
* Responsibility
* Innovation
* Teamwork
1ur Commifrnenf
* Focus on policyholders satisfaction
* Committed to deliver best
financial services to policyholders.
* Catering high degree of professionalism by use of latest digilal
technolog't.
* Creating and maintaining long lasting relationship based on
mutual trust and interest with the policyholders and share
holders.
* Sharing the values and belief of our policyholders.
3'
A
Contenfs Page No.
01. Corporatelnformation 06
09. BusinessHighlights 17
12. FinancialHighlights 18
14. Photographs 22
17 . Chairman's Message 31
A
Confenfs Page No.
32. Form-AA 86
33. Director'sCertificate 87
5
Corporote lnformation
01 . Company
Name of : Meghna Life Insurnace Company Limited
02. Year of Establishment : 1996
03. Date of lncorporation : 5th May 1996
04. Date of Commencement of Business : sth May 1996
05. Authorised Capital : Tk. 60 Crore
06. Paid up Capital : Tk.253,378,040
07. Nature of Business : Life lnsurance Business
08. Registered Office : Biman Bhaban (2nd floor)
100, Motijheel Commercial Area
Dhaka-1 000, Bangtadesh.
11. Bankers : Sonali Bank Ltd., Janata Bank Ltd., Agrani Bank Ltd.
Pubali Bank Ltd., Rupati Bank Ltd.
Uttara Bank Ltd., Bangladesh Krishi Bank
Rajshahi Krishi Unnayan Bank, Bank Al-Falah Ltd.
NCC Bank Lld., Jamuna Bank Ltd.
lslami Bank BD Ltd., The Trust Bank Ltd.
Dhaka Bank Ltd., Prime Bank Ltd.
National Bank Ltd., Bank Asia Ltd., EXIM Bank Ltd.
Brac Bank Ltd., Al-Arafah lslami Bank Ltd.
Eastern Bank Ltd., l.F.l.C Bank Ltd., One Bank Ltd.
Bangladesh Commerce Bank Ltd., AB Bank Ltd.
ICB lslamic Bank Ltd., First Security lslami Bank Ltd.
Mercantile Bank Ltd., Social lnvestment lslami Bank Ltd.
Premier Bank Ltd., Southeast Bank Ltd.
Standard Bank Ltd., Dutch Bangla Bank Ltd.
Shahjalal lslami Bank Ltd., United Commercial Bank Ltd.
Habib Bank Ltd., Mutual Trust Bank Ltd.
South Bangla Agriculture & Commerce Bank Ltd.
NRB Commercial Bank Ltd., Midland Bank Ltd.
The Farmers Bank Ltd., NRB Global Bank Ltd.
BDBL, Unlon Bank Ltd., The City Bank Ltd.
6'
A
Our Journey
1996
5th May lncorporation ofthe company
1998
13th June Launching of Loko Bima (Micro insurance)
200'l
22nd Feb. Launching of lslami Bima (Takaful)
2003
2nd July Launching of lslami Khudra Bima (Takaful)
2005
1lth April Agreement signed with CDBL
27th April Consent received from BSEC for issuance of puplic share ofTk. 45 million
1st Sept. Listing with Dhaka and Chittagong Stock Exchange Limited
4th Sept. First trading at Dhaka and Chittagong stock exchange Limited
2008
loth April Start up of Mobile S[4S prognmme division forthe policy holder
2009
6th Aug. Purchase of eight(8) decimal land at Sagardi at Barisal town
7
&
2010
2012
27th Aug. purchase of 1.23 Decimal land with 2268 sft floor,space at 11lB,
19th Sep. Purchase of 758 sft. Commercial space with 0.0023 acre land at
20't3
18th April Formation of Subsidiary Company in the name
2014
5th May Starting construction on 2.5 Katha Land attached to 17th storied
2015
15th March Start up construction work on 8 decimal land at Sagardi at Barisal
Town.
8
b
Tronsmittol Letter
Sub: Annual Report of Meghna l"ife lnsurance company Ltd. for the year ended 31st December, 2014.
Dear 5ir,
We are pleased to enclose a copy of the Annual Report together with the Audited Accounts & Financial
statements for the year ended 31st December, 20L4 for your kind inforamation and record.
V
With Best Regards
(Aziz Ahmed)
Company Secretary
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1. To.confirm the minutes or,n" , t,n ffi"neral Meeting of the company held on
176 [U,ly 20t4.
z. To receive, consider and adopt the Revenue Accounts of the Company for the year
ended 31st December, 2014 and the Balance Sheet as at that date together with the
reports ofthe Directors and the Auditors thereon.
3. To declare dividend for the year ended 3lst Decembel 2014 as recommended by the
Board ofDirectors.
4. To elect 2 (Two) Directors as perArticles ofAssociation ofthe Company.
5. To approve appointment of Mr. M.A. Majid, FCA as Independent Director of the
Company as per Article 1.2(iii) of BSEC Notificatiot dated 7.8.2012.
6. To appoint Auditors for the year 2015 and to fix their remuneration.
7. To consider renewal of appointment of Chif Executive Officer (CEO) under section
110(1) & i 10(3) ofthe Companles Act 1994.
8. 'lb transact any other business d;ith the permission ofthe Chair.
By order ofthe Board ofDirectors
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(Aziz Ahmed)
Dated:12-07 -2015 Company Seoetary
Notes:
a. The Record Date is 30-07-2015.
b. Shareholders whose names will appear in the share Register/Depository Register on
the Record Date will be eligible to attend the meeting and will quali8r for dividend.
c. A member eligible to attend and vote at the 19th Annual General Meeting, may
appoint a proxy to attend and vote on his/her behalf. Proxy form must be afiixed with
a revenue stamp of Tk. 20l- and submitted to Registered Office of the Company not
later than 72 hours before the time fixed for holding the Arutual General Meeting.
d. The Registration Counter shall remain opened from 8.00 a.m. to 10.30 a.m. as on date.
e. Hon'b1e Shareholders,Adembers are requested to update the particulars of their Bank
Account, change of address and BO ID with 12 Digits Taxpayer's Identification
Number (e-TIN) through Depository Padicipants (DP) before the Record Date. If any
shareholder fails to update their e-TIN before the Record Date Income Tax at source
will be deducted from Dividend payable as per NBR Notification.
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Products & Services
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Board of Directors
Chairman
Nizam Uddin Ahmed
Vtce Chairman
Hasina Nizam
Directors
Nasir Uddin Ahmed
Riaz Uddin Ahmed
Dilruba Sharmin
lndependent Director
Professor Md" Ansar Ali
Khaleda Khanam
M. A. Majid FCA
Company Secretary
Aziz Ahmed
Corporote Monogement & Committees
Chief Executive Officer Audit Committee
Muhammed Shah Alam, FCA Professor Md. Ansar Ali (lndependenl Directoo Chairman
Nasir Uddin Ahmed (Director) Member
Director-Marketing & Development Riaz Uddin Ahmed (Dkector)
Lt. Col. M. Shamsuddin Ahmed (Retd.)
Management Committee
Director- Admin & HR Muhammed Shah Alam, FCA President
Professor Md. Mohiuddin Lt. Col. M. Shamsuddin Ahmed (Retd.) Member
Deputy Managing Directors Professor Md. Mohiuddin
D. S. Taiful lslam D. S. Taiful lslam
N. C. Rudra N. C. Rudra
Md. Sadequr Rahman Md. Sadequr Rahman
Mohammad Tarek, FCA
Senior Executive Director & CFO Md. Abdur Razzaque
Mohammad Tarek, FCA Abu Bakar Siddik Sohel
Ouamrul Hasan Khondker
Senior Executive Directors Md. Abul Bashar
Md. Abdur Razzaque Md. Faruq Ahmed Siddique
Abu Bakar Siddik Sohel Md. Saifuddin Ahmed
Quamrul Hasan Khondker Mohammad Shibbir Hossain FCA
Md. Abul Basher Md. Shamsul Hoque
Mosharraf Hussain Mian Mohd. Mashiur Rahman
Md. Nizam Uddin Anis
Joint Executive Directors
Md. Abu Sahed
Md. Faruq Ahmed Siddique
Aziz Ahmed Member Secretary
Md. Saifuddin Ahmed
General Manager
Md. Yousuf Uddin
13,.
&
Sharioh Council
Company Representative
Nizam Uddin Ahmed Member
Chairman
14 .,.
A
Equity Performance
-15
&
Operational Highlights 2074
Permanent Staff members 1450 Nos.
Casual & Temporary staff members 978 Nos.
16
Business Highlights
A
Comparative Statement of New Business & Business ln-Force
Ekok Bima 2010 2011 2012 2013 2014
New Business
Number of Policies 60,291 60,372 48,410 48,041 47,670
Sum Assured (ln CroreTaka) 565.82 633.'14 640.70 724.12 735.37
1st Year Premium (ln CroreTaka) 46.12 51.68 52.08 58.92 60.77
Business ln-Force
Number of Policies 2,49,236 2,76,334 292,052 309,366 323,305
Sum Assured (ln CroreTaka) 1,446.79 1,662.34 1,813.54 1,967.05 2,O59.43
Loko Bima
New Business
Number of Policies 1,50,895 121,891 46,590 58,079 63,799
Sum Assured (ln Crore Taka) 50.196 455.26 218.70 304.96 394.96
1st Year Premium (ln Crore Taka) 33.94 35.63 22.60 21.57 27.51
Business ln-Force
Number of Policies 5,95,363 619,279 575,943 585,174 562,118
Sum Assured (ln CroreTaka) 1,042.23 1,113.03 877.77 986.48 1,O17 .33
lslami Bima
/Vew Business
Number of Policies 24,855 26,049 15,291 14,664 19,816
Sum Assured (ln CroreTaka) 205.38 222.89 168.85 198.09 279.2
1st Year Premium (ln CroreTaka) 17 .12 18.67 14.07 16.82 24.16
Busrness ln-Force
Number of Policies 86,023 97,946 98,824 106,377 ra,174
Sum Assured (ln CroreTaka) 506.42 571.39 555.12 599.84 728.21
lslami Khudra Bima
New Business
Number of Policies 3'1,666 34,044 13,944 14,648 21,154
Sum Assured (ln Crore Taka) 105.42 134.71 63.93 96.70 203.64
1st Year Premium (ln CroreTaka) 7.82 9.22 6.85 6.90 15.18
Business ln-Force
Number of Policies 99,910 122,420 113,191 121,669 123,947
Sum Assured (ln Crore Taka) 182.74 254.32 178.15 228.46 300.45
Group
A/ew Eusrness
Number of Policies 22262 10 9
Sum Assured (ln CroreTaka) 166.84 75.55 3.92 30.71 68.82
Annual Premium (ln CroreTaka) 1.22 1.34 0.21 0.12
No. of Lives lnsured 8,020 8,513 402 '1091 4,461
Busrness In-Force )o
Number of Policies 22 27 29 JJ
Sum Assured (ln CroreTaka) 147 .06 .09
151 151.72 190.81 369.19
No. of Lives lnsured '13,986 15,004 16,975 17,081 18,539
Swanirvor Bima
New Busrness
Number of Policies 8,927 12,294 7,955 10,250 9,803
Sum Assured (ln Crore Taka) 68.64 127.09 113.75 361.77 159.92
1st Year Premium (ln Crore Taka) 6.08 10.73 8.86 24.19 12.25
Busrness ln Force
Number of Policies 11,154 8,0381 18,398 24,301 26,773
Sum Assured (ln Crore Taka) 84.60 163.15 178.46 441.78 253.46
b
Finoncial Highlights
Business Performance
Business Growth
Tk. in Crore
s00 443.15
400
300
200
100
0
2010 20Lt 20L2 201.3 20L4
Premium
1500
1200 L,047.14
900
600
300
0
20tt 2012 2013 201-4
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250
212.3L
200
150
100
50
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2010 20L1. 20L2 2013 2074
ffi$a&ffi"cm
Tk. !n er*re
1.470.30
1500
1,163.33
1200 1,005.41
900
600
300
0
2010 201.1 2012 20L3 201.4
Assets
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Tk. in Grore
23.18 3.37
! Loans
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lnvestment
Cash &
Ba nk Ba lances
I Fixed Assets
S others
Asset Allocation
in Taka
500 500
400 400
300 300
200 200
100 100
0 0
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(Nizam Uddin Ahmed)
Chairman
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Chief Executive Officer's Report
Meghna Life lnsurance Company Limited was established in 1996 and gradually it became one of the
largest insurance company in the life sector. The company has been operatin! its business activities
abiding by the guidelines of lnsurance Development and Regulatory Authoriiy (IDRA), Bangladesh
securities and Exchange commission (BSEC), stock Exchanges. The Company ha! a wide network all
over the country. The administrative and development work-force are engaged ior earning premium and
management of entire activities so as to achieve the overall target of the Company.
The Company could earn premium to the tune of Tk. 443.15 in 2014 as against Tk. 425.31 in 2013.
The business growth of the Company for the last decade has been signlficant compared to other
competitors. Up to 2014 the company made a steady and satisfactory growth both in earning of premium
and income from investment which played a vital role to run the Company comfortably. Due to imposition
of various types of instructions and guidelines of IDRA in 2014 wilh which work-force was not familiar, our
trend of business got a shock. As a result we had to make tremendous effort for maintaining our
continuous growth in respect of business, operational cost, investment, profit and to administer and train
up Development people to cope with the hard and fast rule of IDRA. In spite of all the odd situations, we
have been able to overcome the hurdles and could show a satisfactory performance during 2014. I extend
my thanks to our Development personnel for their dedication, hard work for the achievement during 2014.
Mention may Jnade that the lnsurance sector faced a new challenge in 2014 fot implementation,
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compliance of,IDRA guidelines and regulations though the rules were framed for betterment and good
governance of the insurance industry as a whole. We express our sincere thanks to IDRA for their
cooperation for operating our activities. lt is worthwhile to state that Meghna Life lnsurance Company is
keen and very much particular to fulfill the regulatory requirements as well as to abide by the instruction! of
Regularity Authorities for the sake of good governance. lt is expected that the Company will obtain benefits
out of such compliances.
ln the field of investment as is required under rule, the Company maintained its tradition without any
violation_. The management of the Company gives priority to fulfill the statutory and regulatory requirements
without fail for which we feel proud.
Since 2005 our company's share are being traded in both the stock Exchanges of the country. As
at 30 December 2014, the market price of company's share stood respectively at rk. 90.60 in bsE
and Tk 88.30 in CSE.
It is to be noted that the Company has planned to maintain Central Data Base in the Head Office for the
safety of the data of the policyholders. Apart from this the Company established 8 Nos. Composite Service
Centers in Divisional Cities and places of business importance in order to ensure proper and prompt
service to the policyholders. Meghna Life Insurance Company being a service organisation considbrs the
Human Resources as an effective tool for its development. The company pays due recognition to the
employees for their contribution. Merit, Seniority, managerial efficiency and sense of respbnsibility are
given priority in promotion and to allow any benefit to employees. The company also gives highest
importance-to training for the development of human resources. As part of human reiources develop-ment
programs, Meghna Life lnsurance Cc.npany endeavored to develop the skill, knowledge, attitud'e and
professional competence of its manpower by arranging various local training. During 2014, many officers
participated in local training programs on different subjects/courses and 345 employees received inservice
training.
Finally, I take the privilege of extending my thanks to the valued policyholders, patrons and well-wishers for
the trust, confidence and continuous support to the company. I also 6xtend my thanks to the IDRA, BSEC,
DSE, CSE and Bankers for their co-operation and suppo( for smooth functi5ning of the Company. I also
convey my regards and gratefulness to the Chairman and Directors of the Board who provided generous
cooperation to me which helped me to run the day to day activities smoothly and effbctively. I am also
pleased to_ put my appreciation for the commitment and dedication of the hanagement t6am and all
category of employees.
33
.C"
The Committee ensures that a sound financial reporting system is well managed, providing
accurate, appropriate and timely information to the Board of Directors, management, regulatory
bodies, shareholders and other interested parties.
During the year under review, the Committee members met four times. The Audit Committee
meetings were held to carry out the following tasks:
0'1. Review of audit report for the year 2014 as submitted by the external auditors.
02. Review of annual financial statement for the year 2014.
03. Review of internal audit reports of the Head Office as well as Zonal Offices.
a6-r"- "--*"*11-
(Professor Md. Ansar Ali)
Chairman
Audit Committee
34
/^ nq-fl qtEr eTir<{ mtrfift FrFKtu
: MEGHNA LIFE INSURANCE cO. LTD.
We have reviewed financial statements for the year ended 2014 and that to the best of our
knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any
material fact or contain statements that might be misleading;
b) these statements together present a true and fair view of the company's affairs and
are in compliance with existing accounting standards and applicable laws.
There are, to the best of knowledge and belief, no transactions entered into by the company
during the yeat 2014 which are fraudulent, illegal or violation of the company's code of
conduct.
Head Office: Biman Bhaban (2nd floor), '100, Motijheel C/A, Dhaka-1000. Bangtadesh
Phone: 9558297, 9558993, 9556204 Fax: 88-02-9578113 Web Site:urww. meghnalife.com
35
_s
j7'ffn!
Head Office:
R.K. Tower (Level 10)
86, Bir Uttam C.R. Datta Road.
(312 Sonargaon Road)
Hatirpool, Dhaka-1205.
To the shareholder of
Meghna Life lnsurance Company Limited
we have reviewed the relevant documents concerning the company's compliance with the
corporate governance matters.
Basis of opinion
we carried out our review in accordance with the guidelines issued by the securities &
Exchange commission under Notification No. sEC/cMRRcD/2006-'158/1 34lAdminl44
dated 07 August 2012.
Period Covered
our review for this certificate is confined to the aspects for the year ended December 31,
2014.
Opinion
In our opinion, based on our review of relevant documents and also information made
available to us by the management, the company,s status on compliance with corporate
governance requirements as shown in Annexure reflects actual position of the company,s
compliance with the condition of corporate Governance Guidelines of sEc applicable for
listed companies.
,/^\
lt J
[VDh*"
Date: Dhaka \'
July 28, 2015 \
SHIRAZ KHAN BASAK & CO.
CHARTERED ACCOUNTANTS
36
Annexure -1
Report on Corporote Governonce
lntroduction
Meghna Life lnsurance Company Ltd is keen and committed to establish high Standard of
corporate governance. Corporate governance aims at ensuring transparency, accountability and
responsibility. The Board of Directors formulates objectives and strategic plans, goals and the
management plays the role of executing those plans under the directives of different Regulatory
Authorities.
Composition of Board
The Board is comprised of '13 (Thirteen) Directors out of which 07 (seven) are from ,A' Group and
03 (Three) are from 'B' Group (Shareholder). There are 3 (Three) lndependent Directors. The
Board of Directors is in full control of the company's affairs and is aiso accountable to the
shareholders. Audit and Management Committees are constituted with Directors of the Board. But
the Chairman of the Board is not a member of any Committee. The Board reviews strategic issues
on a regular basis and exercises control over the performance of the Company.
Responsibilities of the Board
The Board meets regularly depending upon the requirement for decision on specific issues. The
Board has a schedule of matters reserved for decision including major expediture, significant
investment proposals and policy matters. ln certain cases, specific responsibilities are delegated to
Committees within the defined Terms of Reference (TOR). Senior Management Personnel are
being invited to attend the Board meeting to present matters on the businesi under transaction by
the Board' One third of the Directors must retire and seek re-appointment in everyAnnual General
Meeting as per Articles of Association of the company as well as companiei Act 1994. The
Chairman of the Board is appointed from amongst the Directors.
Separate role of Chairman and Ghief Executive Officer (CEO)
ln the Company, the role of Chairman and the CEO is separate and independent from each other.
The CEO is responsible for the Executive management of the company's business activities. The
Chairman has got no executive management function/responsibility, he just runs the Board and
-company
formulate policy guidelines and directives which are beneficial for the as well as to
protect the interest of policy holders & shareholders.
Audit Committee
The Audit Committee is constituted by the Board consisting of 3 (Three) members from Board of
Direclors. One of the lndependent Directors is the Chairman of Audit Committee. Regular
meetings are held as per requirement of the Regulatory Authorities. Different types of Audited and
Unaudited accounts are placed before the committee which in turn recommend ihose to the Board
for approval. Audit Committee follows the various guidelines, procedures, policies and directives of
Regularly Authority to ensure better internal control. The Committee tries to give directives to
follow in order to improve overall performance.
Relationship with shareholders
The Company reports to its shareholders twice a year through Half-yearly (unaudited) report and
detailed.audited.Annual Report The Company also circulateJ Quarterty Atcounts (uniudiied) in 2
widely circulated national daily's for the information of the shareholders (as per the requirement of
the Regularity Authority). Normally once a year the Company meets with ihe shareholder in the
AGM. various price sensitive information are also circulated in the newspapers for the information
of the shareholder with a view to establish a bridge between the company and the shareholders.
37
Annexure -1
Board Meeting Attendance:
During the year 5 (Five) Board Meetings were held and attendance by each Directors are given below:
38
Annexure -2
Status of Compliance of Corporate Governance
satus of compliance with the conditions imposed by the commission's Notification No. sEc/cl\4RRCD/2006-158/134/
Admin/44 dated 07 August 2012 issued under section 2CC of the Bangaldesh Securities and Exchange Ordinance, .1969,
(Report under Condition No. 7.OO)
Condition ComDliance Status Remarks
Title (Pulin tlie appropriale mlumn) ( lf any)
No.
Complied NotComplied
39
Comoliance Status Remarks
Condition
Title (Put ln tlie appropriate column) ( lf any)
No.
Complied NotComplied
40
Condition Comoliance Status Remarks
Title (Pul n tlie apprpprrate collrmn) ( lf any)
No.
Complied NoiComplied
41
Condition Compliance Status Remarks
Title (Putin the appropriale column) ( lf any)
No.
Conrplied NolComp ed
(c) names of companies in which the person also holds the
directorship and the membership of committees of the board.
2.00 : Chief Financial Officer (GFO), Head of lnternat
AuditAnd Company Secretary (CS) :
2.1 The company shall appoint a Chief Financial Officer
Appointment (CFO), a Head of lnternal Audit (lnternal Control and
Compliance) and a Company Secretary (CS). The Board
of Directors should clearly define respective roles,
responsibilities and duties of the CFO, the Head of
lnternal Audit and the CS.
2.2 The CFO and the Company Secretary of the companies
Requirement shall attend the meetings of the Board of Directors,
to attend the provided that the CFO and/or the Company Secretary
Board shall not attend such part of a meeting of the Board of
Meetings Directors which involves consideration of an agenda
item relating to their personal matters.
3. AUDIT COMMITTEE :
42
ComDliance Status Remarks
Condition
Title (Pulin llie appropriate coumn) ( lf any)
No.
Complied NotComplied
43
Condition Comoliance Status Remarks
Title (Putin tie appilpriate column) ( lf any)
No.
Compled Not Comp ed
44
ComDliance Status Remarks
Condition (Putin llie appropriate columr) ( lf any)
Title
No. Conrplied NolComplied
45
Director's Report
Bismillahir Rahmanir Rahim,
On behalf of the Board of Directors and on my own behalf, I have the privilege to welcome you all to the 1gth
Annual General N4eeting of the Meghna Life lnsurance Company Limited and present before you the Annual
Report on the performance of the company together with the Audited Accounts and Financial Statements for
the year ended 31st December, 20'14 and the Auditors' Report thereon.
It is with much pleasure to bring to the notice of the honourable Shareholders that inspite of continued
unstable economic condition prevailing in the country and stiff competition among different insurers the year
2014 was another successful year of the company. This was possible because of the strength of our
marketing forces, soundness of our organisational structure and our constant endeavour to review our
business strategies wherever necessary keeping in view of the quality of business, improved customer
services and reduction of procuration cost in all spheres of business operation.
Business performance:
During the year the Company has earned gross premium income to the tune of Tk. 443.15 crore as against
fk.425.31 crore in the previous year. The growth rate is 4.19%. The quantum of premium earning is
comprised of the following:
(a) Tk. 203.56 crore of premium is earned from 323,305 Ekok Bima valued policies as against Tk. 187.81
crore in the previous year. Rate of increase is 8.38%.
(b) Tk. 103.22 crore of premium is earned from 562,118 Loko Bima (N.4icro) valued policies as against Tk.
111.24 crore in the previous year. Rate of decrease is 7.76%.
(c) Tk. 75.70 crore of premium is earned from 118,174 lslami Bima (Takaful) valued policies as against Tk.
61.93 crore in the previous year showing an inctease ot 22.23o/o.
(d) Tk. 34.92 crore of premium is earned from 123,947 lslami Khudra (Micro) Bima (Takaful) valued policies
as against Tk. 29.25 crorc in the previous year showing increase of 19.38%.
(e) Tk. 23.19 crore of premium is earned from 26,773 Swanirvar Bima valued policies as against Tk. 33.75
crore in the previous year. Rate of dicrease is 45.53%.
(f) Tk. 2.55 crore of premium is earned from 33 Group Bima covering lives against Tk. '1.33 crore in the
previous year. The rate of increase is 91.72ok.
Financial Results:
During the year, total premium income of the company has increased to Tk. 443.15 crore from fk. 425.31
crore in 20'13 showing an increase of 4.'lg% over the previous year. lnvestment income is increased from
Tk. 96.73 crore in 2013 to Tk. 97.57 crore in 2014 showing a increase of 0.86% over the previous year. It
appears that the overall financial performance of the company is satisfactory in the year under review and
registers healthy groMh rate. On the other hand the ratio of management expenses to gross premium
income has dicreased by '1.05%.
46
Director's Report
The break-up of premium income into its components with corresponding figure of 2014 is given below:
Particulars 2014 2013 lncrease (Decrease)
Taka)
(ln crore Taka)
(ln crore (%l
First year premium:
Ekok Bima 60 77 t ---lr3 l
Loko Bima-l\.4icro 27.5'l zt.szv. I
lslami Bima (Takaful) 24.16 43.630/.
lslami Khudra Bima (Ta kafu l)- Nilicro 15.18 I rzooo
I
I
I
300.73 1.7 4
Group lnsurance premium
---------6-7- -- i3- -----aTiT
Total Gross premium 443.15 425.31 4.19
Reinsurance premium 0.87 (oejf (4.39)
Net premium 442.28 424.40 4.21
lnvestment lncome 97.57 96.73 0.86
Other lncome '1.01 1.02 (0.98)
Total lncome 540.86 522.15 3.58
Life Fund 1,340.67 1208.46 -----l-q!4-
Management Expenses:
Commission tt5r6) I
Other overhead
Total Tk. 176.74 174.12
L tz.zsl
(2.571
I
47
Directors' Report
A large network of several hundred offices in the rural as well as Urban Centres throughout the Country
render all necessary services to the policyholders. During the year the management has decided to
install computer in the outstation Zonal & Regional Offices gradually and by now activities of many Zonal
Offices have already been computerised and data are transferred thoroughly ON-LINE technology.
The settlement of claims is a very important aspect of services to the policyholders. Hence the
company has laid great emphasis on expeditious settlement of Maturity, survival as well as death
claims. Recently the Company has decentralised the claims settlement operation through Zonal &
Regional Offices for rendering prompt services to the policyholders. During the year the company has
settled claims for Tk. 212.31 Crore compared to claims for Tk. 160.65 Crore in the previous year.
lT lnfrastructure and its Use:
lnformation Technology and Communication system of lVlLlCL is in advance stage. There is a full fledged
lnformation Technology Department at Head Offlce with 24 lT professionals under the guidance of a
Senior General Manager (Sr. System Analyst). The department is mainly responsible to provide all
necessary automation services for day to day operation as well as to make all available information
which are needed at each level of management for quick and timely dispensation of urgent and important
issues. The entire work has been suitably divided into five Divisions on the basis of product lines.
Presently all Divisions are working independently with stand-alone arrangements to computerize policy
information of a zone for effective control and management of the respective product lines. At present,
total 237 offices of five divisions allover the Country have been automated with computers. l,'loreover, all
237 offices are equipped with Wireless VPN lnternet service to facilitate online data transfer and the plan
is to provide this service to all other offices in near future. Eight (08) Compsite service centres (CSC) in
Comilla, Chandpur, Barisal, Chittagong, Sylhet, Jessore, Bogra, Tangail have been setup with real-time
fibre optics network connection. All services of Head office have been decentralized through these CSC.
The Company has a contingency plan to face any breakdown situation at any place with the quickest
possible time from the Head Office. A good number of in house development and or'r shelf software are in
use. Data backup is taken on daily basis on tapes and stored at a safe place other than the Computer
Center. A separate server is used as data backup to face any disaster.
Mobile SMS Program:
There is a special opportunity through Mobile SMS for the policyholders arranged by MLIC for better
service. With this message any policyholder can get the information about any identified policy easily.
Similar SMS service is also arranged for all the field officers of the company to receive their up to date
business figure.
Human Resources Management:
lnsurance industry is a place where services of experienced hand are absolutely necessary. l\.4LlCL is
fully aware of this fact and from the beginning of its formation it tried to hire top and other executives
from the insurance fields of the country with attractive compensation package. Apart from normal
compensation package, N.4LlCL has introduced shadow employee benefits like Festival Bonus,
Incentive Bonus, gratuity, Contributory Provident Fund, Earned Leave, Sick Leave, Maternity Leave for
Female Employees, Group lnsurance, Housing loan, Motor Cycle Loan, Car Loan etc.
ln order to increase working efficiency, at different level of emplacement, MLICL organizes training for
its employee on regular basis. MLICL organizes in house training from time to time for the field workers
and others related with policy sales, underwriting, claim management, Re-insurance and practice of
Takaful system. During the yeat 2014, a total of 3886 officials attended in the training on various
lnsurance related subjects. The staff strength of the company at the end of 2014 was 2428 ln the same
period and many. officials at different level were promoted.
Audit Committee of the Board:
For ensuring transparency & accountability in the operations of the Company to ensure that the
activities are conducted within the framework of principles and policies as laid down by the Board, as
well as the guidelines of the Bangladesh Securities and Exchange Commission's Notification
No.SEC/CMRRCD 12006-1581 Admin/02-08, dated the 20th February, 2006. The Audit Committee
reviewed the financial statements of the company for the year ended 31.12.2014 audited by the
External Auditors stressing on the importance of the Compliance culture within the company.
48
Directors' Report
Dividend:
The Board of Directors has recommended for declaration of total @ 33% in form of Stock dividend @
20% and cash dividend @ 13% for the yeat 2O14 for all the shareholders While recommending the
Stock & Cash dividend the Board of Directors has taken into consideration the results of Actuarial
Valuation for the year ended 31, December 2014 and the life Fund as on that date.
Sponsor Directors:
ln accordance with Article 96 of the Articles of Association of the Company, 02 (two) sponsor directors
shall retire from office at the 1gth Annual General [,4eeting. The retiring Directors are Mr. Riaz Uddin
Ahmed & Mrs. Jannatul Fardous. Being eligible they offer themselves for re-election.
Public Subscribers' Director:
In accordance with the provision under Article 96 of the Articles of Association of the company and as
provided under lnsurance Act Mrs. Sharmin Nasir, Director shall retire from the office by rotation and
being eligible offers herself for re-election.
It is relevant to mention here that public notification in regard to election of Public 2 (Two) Shareholder
Director has been published in the two national dailies namely The Daily lttefaq and The Daily Star on
18-06-2015.
Auditors:
Pursuant to Section 21 O of the Companies Act. 1994, the Company's statutory auditors Mi s. A Wahab
& Co., Chartered Accountants will retire at the 1gth Annual General l\.4eeting.
It may be noted that N4/s. A Wahab & Co. Chartered Accountants. Express their wellingness to continue
as stitutory auditors for 2015 of the company & M/s. A. Wahab & Co. Chartered Accountants applied
for apointment as statutory auditors fot yeat 2015.
Acknowledgements:
On behalf oi the Board of Directors, I take this unique opportunity to thank all of our honourable
shareholders, Directors, Members of Shariah council and Managing Director for their continued
support and co-operation. I also express my sincere gratitude to our valued policyholders, the office of
the lnsurance Development and Regulatory Authority, Concerned Ministry Registrar of Joint Stock
Companies & Firms, Bangladesh Securities and Exchange Commission, Office of Dhaka & Chittagong
Stock Exchanges Ltd., our Bankers and other esteemed well wishers for their co-operation, support
and confidence.
We also put on record our deep appreciation of the efforts of the marketing personnel and devotion to
duty of all category of employees of the Company.
^co-il,-'
,)
(Nizam Uddin Ahmed)
Chairman
49
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54
A. Wahab & Co.
A
Chartered Accountants
55
.''1:"'..
SHARE CAPITAL:
AUTHORISED
60,000,000 Ordinary shares of Tk. 10 each 600,000,000 600,000,000
The annexed Notes 1 to 33 from an integral part of these financial statements. These financial
Statements were approved by the Board of Director on 12-07 -2015 and were signed on behalf
w'
by the under signed-
/';)
LAZEu,
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER
-_.*9+'
DIRECTOR
56
A- Wahab & Co-
Chartered Accountants
Company Limited
31st December 2014
statements were approved by the Board of Directors on July 12, 2015 and were signed on its behalf by:
A"flU
DIRECTOR
A. WAHAB & CO.
CHARTERED ACCOUNTANTS
Subject to our Separate report of even date.
57
i,n: L
Particulars
EXPENDITURE
CIaims under Policies (lncluding
Provision for
Claims due or intimated)
Less-Reinsurance: 2,123 ,121 ,764 1,606,480,692
By Death
By Survival
By Maturity
By Surrenders
Bonus to Policy Holder
Salaries etc.(Other than to Agents and ihose included in item (b) above) 506,522,377
Gratuity 1,744,149
Travelling and conveyance 23,153,514
Directors Fees 466,750
147,500
588,235
Crediting Rating Fees
Medical Fees 2,09'1,538
Registration Renewal Fee 14,O14,311
Advertisement & Publicity 13,396,398
Printing & Stationary 26,492,391
Policy Stamp Expenses 11 ,a4A,O72
Revenue Stamps 3,1a0,867
Poslage & Telegrams 3,807,621
Telephone, Telex and Fax 14,993,933
Electricity, Gas & Water Charges I,O32,270
Entertainment 14,470,373
lnterest & Bank Charges 18,660,606
Conference I ,6'18,'160
Development Expenses 18,986,034
Prizes and Contest 10,112.629
Repairs and Maintenance 29,295,993
FLreland Lubricants 33,499,O24
Subscription and Donation 2,975,100
Rents for offices belonging io and occupied by the company 88A,4aO
Rents for other offices occupied by the company 104.784,963
Rates & Taxes 5,339,149
Legal and Professional Fees 975,411
lnsurance Expenses 4.259,602
News paper and Periodicals 604,872
Cleaning & Washing Charges 261,879
Training Expenses 566,097
A.G.M Expenses 1,621,815
General Expenses 4,016,550
Contribution to Employees PF 15,107,344
Employees Group lnsurance Premium 663,014
969,761,453 900,19'!,025
OTHER EXPENSESi
Dividend 69,103,'t 04 69,103,104
lncome Tax 31,577,209
Provision for lncome Tax 84,449,502 92,619,869
Provision for Loss on fluctuation of share value 24,766,331
Depreciation 23 42,551,595
Balance of Fund at the end of the year as shown in the Balance Sheet 12,OA4 ,sBg ,7 46
TOTAL TAKA = 15.692.922,183
/7) ^ --
Dated, Dhaka,
July 12, 2015
,H-Lb,
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE
)t,- --OFFICER__-s/4.
W,Mql
DIRECTOR
t\
58
A. Wahab & Co-
&
Chartered Accountants
Company Limited
ended December 31 2014
59
A. Wahab & Co.
Chartered Accountants
Meghna Life lnsurance Company [imited
CashFtffi
For the year e-naeA OecernOe r 3'1, 2014
2014 2013
PARTICULARS TAKA TAKA
Cash llows from Operation Activities :
The annexed Notes 'l to 33 from an integral part of these financial statements. These financial
statements were approved by the Board of Directors on July '12,2015 and were signed on its behalf by:
/'^
tA26b, lw-=--a )-. R n*
z---"' ----=s$>/-R
72
C/
ar./
CHIEFFINANCIALOFFICER CHIEF EXECUTIVE OFFICER OIRECTOR DIRECTOR CHAIRMAN
Dated, Dhaka,
July 12,2015
A, WAHAB & CO.
CHARTERED ACCOUNTANTS
60
A. Wahab & Co,
Chartered Accountants
Meghna Life lnsurance Company Limited
Fortheyearen@
The annexed Notes 1 to 33 form an integral part of these financial statements. These linancial statements were
approved by the Board of Directors on July 12, 201S and were signed on its behalf by:
/a'\
W#lh'{
/ !-./ _- .=}+,
,-.-?
*\ A"#*
\'-J----z
Nrr,-f\!, /$.<*_
'J*'-
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR DIRECTOR CHAIRMAN
61
A A. Wahab & Co.
Chartered Accountants
Meghna Life Insurance Company Limited
Notes to the Financial Statements
For the year ended December 31 2014
A. GENERAL INFORMATION
1.OO THE COMPANY:
Meghna Life lnsurance Company Limited is a Public Ltd. company which came
into operation on May 05, 1996 with an Authorized Share Capital of Tk. 10 crore
divided into 'l 0 lac ordinary shares of Tk. 1 00 each. During the year 20 11 this has
been increased to Tk. 60 Crore divided into 6 Crore ordinary shares of Tk. 10
each as decided in the EGM held on August 04, 2011. The company has been
listed with both the Dhaka and Chittagong Stock Exchanges since 04.09.05- The
company is engaged in life insurance business since its inception.
2.00 Components of the Financial Statements:
The financial statements include the following components:
i) Statement of Financial Position as at 31st December 20'14 (Balance Sheet)
ii) Statement of Comprehensive lncome (Revenue Account)
iii) Statement of Cash Flow for the period ended 31st December 2014
iv) Statement of Changes in Shareholder's Equity
v) Statement of Life lnsurance Fund
vi) Classified Summary of the Assets (Form AA); and
vii) Significant accounting policies, explanatory notes and information.
3.00 Significant Accounting Policies:
Basis of Preparation of Financial Statements and Statement of Compliance
These financial statements have been prepared on the Historical cost basis and
therefore, do not take into consideration of the effect of inflation. The following
undedying laws, rules, regulations and accounting pronouncements have been
considered in presenting the financial statements:
i) The lnsuranceAct, 2010;
ii) The lnsurance Rule, 1958;
iii) The Companies Act, 1994;
iv) The Securities and Exchange Rules, 1987;
v) The lncome Tax Ordinance, 1984;
vi) The Listing Regulations of Dhaka and Chittagong Stock Exchanges;
vii) The Bangladesh Accounting Standards (BAS) 1, 2,7, 8, 10, 12, 16, 18, 19,
34 and 37 which have been adopted by the lnstitute of Chartered Accountants
of Bangladesh (ICAB);
viii) Any other applicable legislation.
ii) Risk and Uncertainties for use of estimates in preparation of Financial Statements:
Ps
requires managemenl to make estimates and assumption that effect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the Financial
Statement and Revenues and Expenses during the period reported. Actual result could differ from
those estimates. Estimates are used for accounting of certain items such as long{erm contracts,
depreciation and amortization, employees' benefit plans, taxes, reserves and contingencies.
62
A
&"HEliP"#"8f;;
iii) Responsibility for Preparation and Presentation of Financial Statements
The Board of Directors is r" tion of
Financial Statements under Section '183 of Companies Act, 1994 and as per the
provision of Bangladesh Accounting Standard (BAS) "The Frame work for the
preparation and presentation of Financial Statements" issued by the lnternational
Accounting Standards Board (IASB).
iv) Cash Flow Statement :
Cash Flow Statement is prepared in accordance with BAS-7 (lAS-7) and Cash Flow
from operating activities have been presented under direct method as outlined in the
Securities and Exchange Rule,'1987.
Cash in hand, Cash at bank, Fixed deposits & Collection in hand have been
considered as the Cash and Cash equivalents for the preparation of the statement,
which were held and available for use by the Company without any restriction and
there was insignificant risk of changes in the value of these assets.
v) Fixed Assets and Depreciation Procedures:
Fixed Assets have been stated in the accounts at cost less accumulated depreciation.
Depreciation on the assets has been charged on written down value method at the
rates mentioned below. On addition during the year depreciation is charged on the
date of acquistion.
Category of Assets Rate of Depreciation
Furniture & Fixture 1jYo
Office & Electrical Equipment 15o/o to 20Yo
Motor Vehicles 20%
House Properties 2.5o/o 1o 5o/o
63
8,;Pif,It3"t"3,i;
appellate Tribunal against assessment order passed by the DCT.
iii) Assessment of lncome Tax for the assessment yeat 2013 - 2014 (Accounting year-
2012) has been completed. But the company has filed appeal with the Taxes
appellate Tribunal against assessment order passed by the DCT.
iv) Assessment of lncome Tax for the assessment year 2014 - 2015 (Accounting year
2013) has not yet been completed. Return has filed with the lncome Tax Authorities.
v) Provision for lncome Tax amounting to Tk. 84,489,502 has been made for the accounting
year 2014 (Assessment yeat 2015-2016) on the basis of net income earned from Life
lnsurance Business during immediate preceding income year.
vi) Advance lncome Tax amounting to Tk. 90,809,123 has been deducted at source during the
year from interest on FDR, Jatio Biniog Bond, Treasury Bond, STD and Dividend lncome.
vii) The company has paid advance lncome Tax amounting to Tk. 35,000,000 during the
year under audit.
b) Deferred Tax:
As the profits and gains of the insurance business from all sources are to be
computed in accordance with the provision in the fourth schedule of the lncome Tax
Ordinance, 1984 and not under different heads of income, the management feels it is
not necessary to make estimate of deferred tax assets/liabilities at this stage as per
the provision of BAS-'12.
c) Value Added Tax (VAT):
VAT is exempted on life insurance business according to section 4 of second
schedule of VAT Act, 1991. VAT deducted at source for various services in
accordance with relevant section of above VAT Act has been deducted and
deposited to Bangladesh Bank through treasury chalan.
x) Employees Benefit:
a) The management of the company has introduced contributory provident fund
for its regular employees duly recognized by National Board of Revenue with
effect from 1 st July 2007.
b) The management of the company has also introduced gratuity for its regular
employee with effect from 1st July 2007.
c) Group lnsurance scheme for all permanent employees was introduced in the year 2010.
xi) lnvestment:
lnvestment are stated at their cost of acquisition, interest on investment is
accounted for on accrual basis but dividend income is accounted for on cash basis.
Adjustment in respect of the market value of investment in shares and debentures
at Balance Sheet date has been considered.
64
&
ffi
&,H35i3"t"3f,;
xiii) Revenue Recognition
a) Premiums are recognized as income; once the related policies have been
issued and the premiums received. Collectable amount of premiums due and
outstanding up to the month of December 20'14 for which grace period has not
been expired and previous installment have been paid, are also recognized.
xiv) Operation:
a) During the year 2014, through the operation of Divisional & Agency Offices the
gross premium earned by the company amounted to Tk. 4,431,502,216 After
ceding for re-insurance premium the net premium from different divisions
amounted lo Ik. 4,422,761 ,O72\he details of net premium from different divisions
were as follows:
Division Amount
Ekok Bima Division 2,052,353,374
Loko Bima Division 1,032,223,931
lslami Bima Division 757,052,267
lslami Khudra Bima Division 349,227.800
Swanirvar Bima Division 231,903,700
Total: 4,422,76',t,O72
b) Management expenses inclusive of commission, salaries, etc. have been charged
to revenue account for an aggregate amount ot Tk.1,767,313,882 The
management expenses represents approximately 39.88% of gross premium and
39.96% of the net premium earned during the year 2014.
c) Payment of Commission to Agent and Employer of Agents represent 22.O3% and
23.09% respectively of the management expenses. These expenses represent
respectively 8.78o/o and 9.21% of gross premium for the year.
d) Renewal of policies during the year represents the policies underuritten in the
preceding years.
xv) Reporting Currency and Level of Precision:
The figures in the financial statements represents Bangladesh currency (Taka),
which have been rounded off to the nearest Taka, unless stated otherwise.
xvi) Comparative lnformation:
Previous year's figures have been rearranged, where necessary, to conform to
current year's presentation-
xvii) Reporting Period:
Financial statements of the company cover one accounting year from 0.1 January
to 31 December consistently.
65
A A. Wahab & Co.
Chartered Accountants
BALANCE SHEET
4.OO SHARE CAPITAL 31-12-2014 31-12-2013
Authorized Capital:
60,000,000 ordinary shares of Tk. 10 each 600,000,000 600,000,000
lssued, Subscribed and paid-up capital :
25,337,804 Ordinary Shares of Tk. 10 each fully paid-up. 253,378,040 230,343,680
31 -',t2-2o',t 4 3',t -12-20',t3
4.01 Opening Balance 230,343,680 230,343,680
Add. Bonus Share lssued During The Year 23,034,360
Total: -.?0AqZ8Jc/lq _4ql4l,6q0
31-12-2014 31-12-2013
4.02 Category of Shareholders Shareholding Shareholding
Sponsor 180 4,533,879 4,118,96'l
General Public 820/, 20,803,925 't8,915,407
Total: 100% 25,337,804 23,034,368
4.03 Distribution Schedule of Paid-up capital Tk. 253,378,040
As per listing rules of the Stock Exchange a distribution schedule of each class of equity
shares and the number of shareholders and percentage as on December 31, 20'14 is given
below:
66
lA
A. Wahab & Co.
Chartered Accountants
a) Ekok Bima:
Death Claim 5,276,939 2,782,650
Survival Benefit 13,213,961 41,913,275
Claim by Maturity 103,630,553 100,690,937
Bonus to Policy Holders 35,282,533 76,717,359
b) Loko Bima:
Death Cfail1r 4,649,922 3,697,631
Survival Benefit 27,540,218 44,391,827
Claim by Maturity 32,225,802 36,735,173
e) Swanirvar Bima:
Death Claim 2,060,300 1,574,000
Survival Benefit 18,200,868 9,659,000
f) Group :
Death 262,500 747 ,500
67
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1j i,jl !.t.
68
].'].',i,'\
Provision has been made for some debtors which is doubtful of recovery in the opinion of
the management.
8.06 Fair Value Change Account: Tk. 178,528,026
The amount represents the difference amount between Book Value and market value of
share as at December 31,2013. The amount was shown under "Fair Value Change Account"
as per IDRA circular on lite -0412012 dated 11 June, 2013,(Guideline for Preparation of
Accounts and Financial Statements: Valuation of Equity Shares).
Particulars 31-',t2-2014 31-12-2013
153,761 ,965
Add : Provision made during the year 24,766,061
Total: 178,528,026 178,528,026
9,00 PremiumDeposit:TK. 12,241,871
The balance of this account represents premium received against policies but for want of
certain necessary information the premium could not be adlusted within December 31, 2014.
10.00 Loans: Tk. 33,683,189
The above balance is made-up as follows:
Particulars Notes 3'l-'12-2014 31-12-2013
Loans on Mortgage of Property 10.01 14,033,998 5,628,430
Loans on lnsurance Policies within their surrender Value 10.02 19,649,191 17,053,489
Total: _!!.q!9{qq 22,681,919
10.01 Loan on mortgage of properties: Tk. 14,033,998
The above balance is made-up as follows:
Particulars 31-12-2014 31-12-2013
Opening balance 5,628,430 6,652,292
Add : Loan paid during the year 10,500,000 1 ,100,000
16,128,430 7,752,292
Less: Loan adjusted during the year 2,094,432 2,123,862
Total: 14,033,998 _!'6?q,490
10.02 Loan of insurer's policies within their surrender value : Tk. 19,649,191
The above balance is made-up as follows:
Particulars 31-12-2014 31-12-2013
Open!ng balance 17,053,489 1s,005,631
Add : Loan paid during the year 8,168,447 6,707,946
25,221,936 21,713,577
Less: Loan recovered & adjusted during the year 5,572,745 4,660,088
Total: 19,649,191 17,053,489
The Loan paid during the year represenbfk. 6,773,492, Tk 1,154,955, Tk. 232,000 & Tk.
8,000 on account of Ekok Bima, lslami Bima, Loko Bima & Swanirvar Bima respectively.
69
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Chartered Accountants
ln Compliance with Section 7(1) of lnsurance Act 2010, the amount has been deposiled in
Bangladesh Bank for which the Bank has purchased 10 years Term Bangladesh Govt.
Treasury Bond :
70
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A, Wahab & Co.
Chartered Accountants
71
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Chartered Accountants
ENGINEERING
48 AFTABAUTO 11,700 94.19 1,102,005.43 786,240
49 APOLOISPAT 28,750 ?3.97 689,194.05 572,125
50 ATLASBANG 936 249.74 233,760 129,823.20
51 AzIZPIPES 30,550 28.24 862,657 .48 626,275
BDLAMPS 20,200 156.10 3,153,257 2,391,680
BSRMSTEEL 549,775 93.59 51 ,455,013.57 48 ,21 5 ,267 .50
54 GPH ISPAT 468,000 62.20 29,107 ,943.60 21 ,481 ,200
NTLTUBES 5,1 55 59.59 307,181 .65 596,949
56 OSMDRYCELL 3 35.86 107.57 215.40
SALAMCRST 3,610 61 .40 221 ,654 124,545
58 SINGERBD 8,781 186.69 1 ,639,281 .29 80
FOOD & ALLIED PRODUCT
59 BATBC 500 626.30 313,150 1,325,150
60 FINEFOODS 29,733 37 .72 1,121 ,495.50 31 8,143.'10
61 FUWANGFOOD 270 40.22 10,860 6,426
62 IVEGCONMILK '18,000 23.02 414,274.13 151,200
bJ IVEGHNAPET 108,000 10.86 1,172,771.80 626,400
64 NTC '1.800 530.01 954,024.61 1,255,500
FUEL & POWER
65 BDWELDING 454,359 29.78 '13,530,027 .44 7,088,000.40
66 BEDL 162,750 40.19 6,540,2'14.72 5,370,750
67 DESCO 262,384 62.97 16,521 ,824.07 '18,235,688
td EASTRNLUB 2,750 319.70 879,175 1,114,575
69 JAI\4UNAOIL 58 118.12 6,851.05 11 ,942.20
70 MJLBD 255,385 82.51 21 ,072,534.67 32,076,356
71 MPETROLEUM 44 10.00 440 I,284
72 SPPCL 174,015 51.87 9,025,533.68 8,683,348.50
73 SUM ITPOWER 155,579 39.83 6 ,',t96 ,245 .87 5,958,675.70
74 TITASGAS 130,025 80.01 10.402,951.62 10,362,992.50
TEXTILE
75 ANLIMAYARN 46,000 27.74 1,276,011.31 975,200
76 APEXWEAV 90,000 134.25 12,082,500 12,082,500
77 CMCKAMAL 1 ,024 29.'10 29,794.71 20,992
78 DACCADYE 69,586 28.74 1,999,766.22 1,002,038.40
79 ENVOY TEX 161,860 51.99 I,414,462.43 8,351,976
80 GENNEXT 95,832 19.06 1,826,375.56 1 ,456,646.40
72
A- Wahab & Co-
Chartered Accountants
73
A. Wahab & Co.
C]]artered Accountants
Unrealized loss due to decrease of market value of existing shares as at 31 Decembel 2014 was
shown under "Fair Value Change Account" as per IDRA circular on ffe -0412012 dated 11 June,
2012,(Guideline for Preparation ofAccounts and Financial Statements: Valuation of Equity Shares)
in note: 8.06.
74
A. Wahab & Co.
Chartered Accountants
75
A A. Wahab & Co.
Chartered Accountants
76
A- wahab & Co.
Chartered Accountants
13.00 lnterest, Dividend and Rent Accrued but not duei Tk.385,620,815
The above balance is made-up as follows:
Particulars Notes 31-12-2014 31-12-2013
lnterest on F.D.R '13.01 243,876,000 268,336,044
lnterest on Jatio Biniog Bond 13.02
lnterest on l\4otor/Bi-Cycle Loan 13.03 346,314 370,917
lnterest on Policy Loan 13.04 7,635,731 6,505,034
lnterest on Mortgage Loan 13.05 1,238,178 1,158,711
lnterest on Govt. Treasury Bond 13.06 132,524,592 113,448,483
lnterest on Secured & Conv Bond 13.07
Total: 385,620,815 390,s69,189
13,04 lnterest on lnsurer's Policies Loan within their Surrender Value: Tk' 7,635,731
77
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Chartered Accountants
78
A, Wahab & Co.
Chartered Accountants
FDR interest Tk. 57,304,998 Govt. Treasury Bond lnterest Tk. 28,095,591 STD lnterest Tk.
2,046,306, Convertable Bond lnterest Tk. 307,865 and Dividend lncome Tk. 3,054,363.
These related to the accounting year 2014 corresponding to assessment yeat 2015-2016
which is eligible for adjustment upon finalization of assessmenl.
14.02@
The above balance is made-up as follows:
Out of total Sundry Debtors oI Ik. 76,778,214 a sum of Tk. 6,549,271 has been considered
doubtful of recovery for which provision has been made upto December 31, 2008 in the
account as per note 8.05.
79
A. Wahab & Co.
Chartered Accountants
Accrued interesl on F.D.R is calculated at the rate fixed by the bank individually as agreed
upon. Out ofTk. 4,705,832,575, Tk. 635,00,000 has been lnvested against tabaru fund.
80
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Chartered Accountants
Depreciation
81
A. Wahab & Co.
Chartered Accountants
REVENUE ACCOUNT:
21 .00 Claim under policies (lncluding Provision for Claims due and intimated
Less
lslami
Particulars Loko Bima lslamiBima Khudra Swanirvar Group Total
Bima Bima
During the year 2014 the company has settled and adjusted Tk. 2,168,441,'178 including
last year outstanding claims worth Tk. 411,454,930 as death claim, maturity claims and
survival benefit. The amount ot Ik.317,307,079 was outstanding as on December 31,
2014. Out of outstanding amount, the company has settled Tk. 383,530,2'19 as of the date
of audit.
At the year end the agency commission payable amounted to Tk. 35,326,283
82
A. wahab & Co.
Chartered Accountants
E,8., L.8., 1.B., l.K.B. & S.B. represents the lndividual Life Division, Ekok Bima Division, Loko
Bima Division, lslami Bima Division, lslami Khudra Bima Division and Swanirvar Bima Division.
The First year premium from all category of business represents 31.43% Renewal Premium for
these business represent 68% and Group lnsurance Premium 0.57%.
b) Claim by the Company not acknowledged as receivable is also NIL as on December 31, 2014.
83
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28.00 Credit facility available to the Company:
There was no Credit facility available to the Company under any contract as on
December 31, 2014 other than trade credit available in the ordinary course of business.
29.00 Related ParBr Disclosure:
The company has no "Related Party" connection as described in BAS 24 with any body
who can exercise significant influence in making financial and operating decision.
30.00 Requirement under Company's Act 1994, Schedule Xl Part - ll
Particulars ?'t-'t2-20't4 ?'t-'t2-20't3
(i) Number of employees drawing salary above Tk. 3,000 PIV 2,055 2072
(ii) Number of employees drawing salary below Tk. 3,000 PM. 390 670
84
A. wahab & Co.
Chartered Accountants
M--
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o,
CHIEF FINAI{CIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR DIRECTOR CHAIRMAN
A-?L"1"'l,k -
Dated, Dhaka, July 12,2015 A. WAHAB & CO,
CHARTERED ACCOUNTANTS
85
A- Wahab & Co.
Chartered Accountants
FORM-"AuA"
@heAssets
a._e!Pee9a!941,2q1a
Annexure - ll
Class of Assets BookValue Market Value Remarks
LOANS ; 33,683,189 33,683,189
Loan on Mortgage Properties f 14.o33.e9sl f t 4Ds3,ee8'l Realizable Value
Loan of lnsurer's Policies within their Surrender Value I rg.o+g.rgt ] I rg,o+g.rgri Realizable Value
OTHER ASSETS :
Advance, deposits & prepayments 643,731,334 643,731,334 Book Value
Sundry Debtors 76,778,214 76,778,214 Book Value
Arnount dre from other persons or bodies carrying on lns. Business 470,431 470,431 Book Value
oFFrcER DrREcroR
arftr,_
CHIEF FINANCIALOFFICER cHrEF ExEcurvE DrREcroR .rfrlroni-
Subject to our Separate report of even date.
86
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k#
As per Regulations contained in the First Schedule of the lnsurance Act, 1938, as
amended, as per Section 40-B of the said Act, we certify that:
1. The value of investment in shares have been taken at cost and the quoted
value thereof mentioned wherever available.
2. The Values of all assets as shown in the Balance Sheet and as classified on
Form "M" annexed have been duly reviewed as at 31st December, 2014 and
in our belief, the said assets have been set forth in the Balance Sheet at
amounts not exceeding their realisable or market values under several
headings as enumerated in the annexed form.
Q^ W-'
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER
__*_g+,
DIRECTOR
A"frU
DIRECTOR
Dated, Dhaka
July 12,2015
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