Bangladesh National Insurance Co. Ltd. Annual...

CONTENTSCompany Profile 02Board of Directors 03Branch Office 04Financial Highlights 05Company Performance at a Glance 06-07 08 Credit Rating Report

09 Notice of 20th AGM

10-13 Director’s Report

14-24 Status of Compliance of Corporate Governance

25 Audit Committee Report

26 Decnaration of CEO & CFO

27-28 Auditors Report

Statement of Financial position 29-30Statement of Comprehensive Income 31Other Comprehensive Income 32 Income Appropriation Account 33Consolidated All Business Revenue Account 34 35 Fire Insurance Revenue Account 36 Marine Cargo Insurance Revenue Account

37 Marine Hull Insurance Revenue Account

38 Motor Insurance Revenue Account

39 Miscellaneous Insurance Revenue Account

Statement of Changes in Equity 40Statement of Cash Flows 41Classified Summary of the Assets 42 43-61 Notes to Financial Statements

62-64 Annexures

65 Schedule of Fixed Assets

66 Directors Certificate

67 Proxy Form

Bangladesh National Insurance Co. Ltd. Annual Report -2015

Company NameBangladesh National Insurance Company Limited

Date of IncorporationMay 21, 1996

Date of CommencementJune 01, 1996

Date of Registration to Carry on General Insurance & BusinessJune 01, 1996

Authorized CapitalTk. 100,00,00,000.00Issued, Subscribed & Paid-up capitalTk. 26,55,00,000.00

Registration Office & Head OfficeWW Tower,68, Motijheel C/A (Level-15) Dhaka-1000.Phone : (PABX) 9573481-8, Fax : 88-02-9555704.

Nature of BusinessAll Kinds of General Insurance Business

AuditorsRahman Mostafa Alam & Co.Chartered Accountants

COMPANY PROFILE

02


CHAIRMANAbdul Baset Majumder

VICE CHAIRMANMostafa Kamal

DIRECTORS Beauty Akter Md. Abdur Rouf Tahmina Binthe Mostafa Farida Akter Tanjima Binthe Mostafa Tanveer Ahmed Mostafa Taif Bin Yousuf Yousuf Ali Md. Abdul BatenHasina Begum

BOARD OF DIRECTORS

03

AUDITORSRahman Mostafa Alam & Co.

Chartered Accountants

INDEPENDENT DIRECTORSProfessor Dr. Goutam Buddha Das

Fakhruddin Ahmed, FCMA, FCAMohammed Salim, FCMA

CHIEF EXECUTIVE OFFICER (Acting)Md. Omar Farooq


BRANCHESLocal Office58, Dilkusha C/A (7th Floor).Dhaka-1000.Tel: 9573524-5, 9587886 Fax: 9573525

Dilkusha Branch72, Dilkusha C/A (6/B Floor)Dhaka-1000.Tel: 9575392, 9583428 Fax: 9575392

Motijheel BranchAmin Court Building, 62-63, Motijheel C/A,Dhaka- 1000. Tel: 9587267,9573526Fax: 9587267

Gulshan BranchIslam MansionHouse No: 39, Road No. 126, Gulshan-1,Dhaka. Tel: 9841219, Fax: 9841219

V.I.P. Road Branch33 Anjuman Mofidul Islam Road, Kakrail,Dahak- 1000. Tel: 9337268Fax: 9343578

Kawran Bazar Branch57/E, Kazi Nazrul Islam Avenue (4th Floor).Tejgaon, Dhaka-1215.Tel: 9117592 Fax: 9117629

B.B.Avenue Branch9, B.B. Avenue, Dawn Plaza (10th Floor),Dhaka- 1000. Tel: 9585074 Fax: 9584982

Jatrabari BranchAbdur Rahim Bhuiyan Center (3rd Floor)80/C/2, Bibirbagicha, Uttar Jatrabari, Dhaka.Tel: 7554458, 7554456

Bangshal Branch70 Shaheed Nazrul Islam Sharani (3rd Floor),Bangshal, Dhaka- 1100.Tel: 9586275 Fax: 9586274

Moulvi Bazar BranchHazi yousuf manson (2nd Floor)56 Midford Road BabubazarDhaka.1100, Tel: 7342935

Narayangonj Branch16/3, S. M. Maleh Road, Tan Bazar,Narayangonj. Tel: 7630454

Bagerhat BranchHouse No. 54, Rail Road, Bagerhat.Mob: 01713-903897, 01811212146

Sk.Mujib Road BranchGausiya Tofayel Tower (4th Floor)1837, Sk. Mujib Road (Badamtoli)Agrabad. Chittagong, Mob: 01711760150

Uttara BranchDomino Terno H # 32, F # B-2 (2nd Floor) Road # 01,Sector-03, jasim Uddin Road Uttara, Dhaka-1230Tel: 7911545, Fax: 7911540

Agrabad BranchAkteruzzaman Center (9th Floor).21-22, Agrabad C/A, Chittagong.Tel: (031) 721408-9 Fax: (031) 721409

Jessore BranchM.K Road, Jess Tower (3rd Floor),Jessore. Tel: (0421) 68505

Khatungonj BranchSalma Tower (3rd Floor), 398/A,Khatungonj C/A, Chittagong. Tel: 031-2851478,Fax: 031-2851479

Khulna Branch58, Khan-A-Sabur Road (1st Floor),Khulna. Tel: 041-730296

Noapara BranchHaji Idrish Ali Market (2nd floor), Avoynagar,Noapara, Jessore.Mob: 01711976511

Faridpur BranchAlipur Moor, Faridpur,Tel: 0631-65782

Chowmuhani BranchN. S. Tower (3rd Floor), Karimpur Road,Chowmuhani, Noakhali. Mob: 01718113152

Rajshahi Branch226 Shaheb Bazar (2rd Floor),Moni Chattar, Ghoramara, Boalia,Rajshahi. Tel: 01670622103

Rangpur BranchHouse No. 06 Road No. 2/1,Shalban Mistripara, Kotwali, Rangpur.Tel: 0521-65904

Jamalpur BranchBhai Bhai Cloth Store (1st Floor),Baro Masjid Road,Sakal Bazar, Jamalpur.Mob: 01716552802

Paltan BranchAzad Centre, 55, Purana Polton (11/A)Dhaka. Tel: 9586623, 9586624

Mymensingh Branch36, Baro Bazar, P. O: Maymensigh,Thana+Upozila: Kotwali, Dist: Mymensingh.Mob: 01912420298

Jubilee Road BarnchKader Tower (7th Floor)128 Jubilee Road, Tinpool, ChittagongMob: 01815632263

04

We may mention that in 2016. We have opened follwing branches,


Mirpur BranchSection-6, Block-Kha, Plot-11, Road No. 01,West Senpara Parbata Thana- Mirpur,Dhaka. Mob: 01910910880,01710247392

DIT BranchMotijheel Square (8th Floor)I/B, DIT Avenue, MotijheelC/A Dainik Bangla Moor, DhakaTel: 9574631, 9574961

Sl. No. Particulars 2015 2014 2013 2012 2011

01 Gross Premium 362.39 326.12 312.98 142.44 129.15

02 Net Premium 270.15 249.43 242.72 84.86 84.00

03 Claims Paid 87.47 122.48 94.32 28.26 44.67

04 Investment & Other Income (Gross) 58.64 43.00 25.16 14.60 1.66

05 Underwriting Profit/Loss 26.11 25.73 23.63 11.48 15.54

06 Net Profit Before Tax 74.35 59.07 40.35 19.97 11.30

07 Paid up Capital 265.50 265.50 60.00 60.00 60.00

08 Deposit Premium 27.66 13.70 23.66 15.22 6.68

09 Total Reserves 310.00 252.15 222.56 134.88 119.45

10 Total Assets 832.25 723.65 437.88 348.81 304.15

11 Total Liabilities 229.09 192.31 131.67 138.70 118.01

12 Cash & Bank Balances 609.90 522.69 253.12 197.23 151.81

13 Face Value Per Share (In Taka) 10.00 10.00 100.00 100.00 100.00

14 Earning Per Share (In Taka) 2.01 2.62 55.95 25.03 16.78

15 Book Value Per Share (In Taka) 17.60 15.74 308.98 268.03 243.00

FINANCIAL HIGHLIGHTS

05

Bangladesh National Insurance Co. Ltd.

(Amount in Million)

Claims Paid

-

20.00

40.00

60.00

80.00

100.00

120.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5

Amount in Million (Tk.)


06

CLASS WISE GROSS PREMIUM INCOME-2015

Company Performance at a Glance

Net Premium Income

Investments & Others Income

84.00 84.86

242.72 249.43 270.15

-

50.00

100.00

150.00

200.00

250.00

300.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5

AMOUNT IN MILLION (TK.)


1.66

14.60

25.16

43.00

58.64

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5




Fire28.55%

Marine Cargo39.60%

Misc.11.26%

Motor20.45%

Marine Hull0.14%

44.67

28.26

94.32

122.48

87.47

07

Total Reserve Total Assets

Cash & Bank Balance

Earning Per ShareBook Value Per Share

N.B: From 2014 to 2015 Earning Per Share and book value per share has been calculated on per share value of Tk. 10.00 and EPS and BPS in previous year from 2011 to 2013 are calculated based on book value of per share Tk.100.

119.45 134.88

222.56 252.15

310.00

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5



304.15 348.81

437.88

723.65

832.25

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5



151.81 197.23

253.12

522.69

609.90

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5



16.78

25.03

55.95

2.62 2.01 -

10.00

20.00

30.00

40.00

50.00

60.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5

AMOUNT IN TAKA

Amount in Taka

243.00 268.03

308.98

15.74 17.60 -

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5

AMOUNT IN TAKA

Amount in Taka


CREDIT RATING REPORT On Bangladesh National Insurance Company Limited.

Bangladesh National Insurance Company Limited has been rated by Emerging Credit Rating Ltd. On the basis of audited financial statements for the Period 1st January to 31st December 2014 and other relevant information. The summary of Rating is presented below.

Long Term Rating “A”

Short Term Rating ECRL-2

Outlook Stable

Date of Rating September 30, 2015

Validity of Rating Till September 29, 2016

Emerging Credit Rating Ltd. has assigned “A” rating in the long Term and “ECRL-2” in the short term to Bangladesh National Insurance Company Limited.

The Company rated “A”:- Insurance companies rated A possess strong ability to meet their policyholder obligations but are somewhat more susceptible to adverse changes in economic and underwriting conditions than companies in higher-rated categories.

The Company rated “ECRL-2”:- An institution rated ECRL-2 has a strong capacity to meet its financial commitments in a timely manner; however, it is somewhat susceptible to adverse developments in the economy, and business and other external conditions.

08


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Date of Declaration Valid till Long term rating Short term rating Outlook

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12

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13

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14

Certification to the Board of Directors of the Bangladesh National Insurance Company Limited under Section 2CC

of the securities and Exchange Ordinance, 1969

This is to certify that the management of The Bangladesh National Insurance Company Limited has complied with the necessary requirements of Corporate Governance for the year ended 31 st December, 2015 as per compliance requirements of the conditions imposed by Bangladesh securities and Exchange Commission’s Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August, 2012 issued under Section 2CC of the Bangladesh Securities and Exchange Ordinance 1969.

Dated : 25-02-2016Place : Dhaka, Bangladesh

Mahfuz Amin Nowsher & Co.Chartered Accountants


BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDCertificate on Compliance Status of Corporate Governance Guideline

by Bangladesh National Insurance Company Limited

Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission Notification No. SEC/CMRRCD/ 2006-158/134/Admin/44 dated 07 August 2012 Issued under section 2CC of the Securities and Exchange Ordinance, 1969.

Report under condition no. 7.00 of above referred notification

Board of DirectorsBoard's Size: The Number of Board members of the company shall not be less than 5 ( Five ) and more than 20 (Twenty )is not less than 5 and more than 20

Title

Complied

Remarks

Not complied

Condition no.

Compliance Status(Put in the appropriate

Column)

11.1

Independent Directors:1.2At least One Fifth (1/5) of total number of directors in the company’s Board shall be independent directors

Independent director does not hold any share or holds less than 1% shares of the total paid up capital

Independent director or his family members are not connected with the company’s any sponsor or director or shareholder who holds 1% or more shares of the total paid- up -shares on the basis of family relationship

Does not have any other relationship, whether pecuniaryt or otherwise,with the company or it's subsiIndependent Director is not a member, director or officer of any Stock Exchange

Independent Director is not a member,director or office of any stock exchange

1.2(i)

1.2(ii) a)

1.2(ii) b)

1.2(ii) c)

1.2(ii) d)

Independent director is not a shareholder,director or office or any member of stock exchange or an intermediary of the capital market

1.2(ii) e)

Independent director is not a partner or an executive or was not a partner or an executive during the preceding 3 ( three) years of the concerned company’s statutory audit firm

1.2(ii) f)

Independent director shall not be an independent director in more than 3 ( three) listed companies

1.2(ii) g)

Independent director has not been convicted by a court of competent jurisdiction as adefulter in payment of any loan to a bank or a non bank financial institution

1.2(ii) h)

Independent director is not been convicted for a criminal offence involving moral turpitude

1.2(ii)(i)

Independent director shall be nominated by the board of directors and approved by the shareholders in the AGM

1.2(iii)

√

√

√

√

√

√

√

√

√

√

√

√

15


Title

Complied

Remarks

Not complied

Condition no.


Column)

1.2(iv)

The tenure of office of an independent director shall be for a period of 3 (three) years , which may be extended for 1 ( one) term only .

Post of independent director (s) shall not remain vacant for more than 90 (ninety) days

1.2(v) The Board shall lay down a code of conduct of all Board members and annual compliance of the code to be recorded.

Qualification of Independent Director (ID)Independent Director Shall be a knowledgeable individual with integrity who is able to ensure compliance with financial, regulatory and corporate laws and can make meaningful contribution to business. The person should be a business Leader/ corporate Leader/ Bureaucrat/ University Teacher with Economics or Business Studies or Law background / professionals like Chartered Accountants Cost & Management Accountants , Chartered Secretaries . The independent director must have at least 12 ( twelve ) years of corporate management/ professional experiences.

1.2(vi)

1.31.3(i)

1.3(ii)

In special cases the above qualifications may be relaxed subject to prior approval of the Commission.

1.3(iii)

Chairman of the Board and Chief Executive Officer 1.4Chairman of the Board and the Chief Executive Officer shall be filled by different individuals. The Chairman of the company shall be elected from among the directors of the company. The Board of Directors shall clearly define respective roles and responsibilities of the Chairman and the Chief Executive Officer.

1.4

The Directors Report to Shareholders shall include the following additional statements:

1.5

Industry outlook and possible future developments in the industry

1.5(i) Available in Annual Report

Available in Annual Report



No such extra ordinary gain

or loss in accounts

Segment -wise or product- wise performance1.5(ii)

Risks and concerns.1.5(iii)

Discussion on Cost of Goods sold Gross Profit Margin and Net Profit Margin

1.5(iv)

Discussion on continuity of any Extra - Ordinary gain or loss

1.5(v)

√

√

√

√

√

√

√

√

√

√

√

√

16


Title

Complied

Remarks

Not complied

Condition no.


Column)

1.5(vi)

Utilization of proceeds from public issues, right issues and / or through any others instruments.

Basis for related party transactions a statement of all related party transactions should be disclosed in the annual report

An explanation if the financial results deteriorate after the company goes for initial public Offering (IPO) , Repeat public offering (RPO), Rights Offer, Direct Listing, etc.

Remuneration to directors including independent directors.The financial statements prepared by the management of the issuer company present fairly its state of affairs the result of its operations cash flows and changes in equity.

1.5(vii)

1.5(viii)

If significant variance occurs between quarterly Financial performance and annual Financial Statements the management shall explain about the variance on their annual Report.

1.5(ix)

1.5(x)

1.5(xi)

Proper books of account of the issuer company have been maintained.

1.5(xii)

Appropriate accounting policies have been consistently applied in preparation of the financial statements and that the accounting estimates are based on reasonable and prudent judgment.

1.5(xiii)

International Accounting Standards ( IAS)/ Bangladesh Accounting Standards ( BAS)/ International Financial Reporting Standards ( IFRS) / Bangladesh Financial Reporting Standards ( BFRS) / as applicable in Bangladesh, have been followed in preparation of the financial statements and any departure there from has been adequately disclosed .

1.5(xiv)

The system of internal control is sound in design and has been effectively implemented and monitored

1.5(xv)

There are no significant doubts upon the issuer company's ability to continue as a going concern. If the issuer company is not considered to be a going concern , the fact along with reasons thereof should be disclosed

1.5(xvi) Details furnished in

Annual Report

No such significant deviation observed



Not declared dinidend 2014

Significant deviations from the last years operating results of the issuer company shall be highlighted and the reasons thereof should be explained

1.5(xvii)

Key operating and financial data of at least preceding 5 ( five ) years shall be summarized

1.5(xviii)

If the issuer company has not declared dividend (cash or stock) for the year, the reasons thereof shall be given

1.5(xix)

The number of Board meeting held during the year and attendance by each director shall be disclosed

1.5(xx)

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√



Not Applicable

17


Title

Complied

Remarks

Not complied

Condition no.


Column)

1.5(xxi)

Shareholding pattern

Pattern of Shareholdings:

Parent / Subsidiary/ Associated Companies and other related parties (name wise details)

Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and their spouses and minor Children ( name wise details)

Executives

1.5(xxi)1.5(xxi) a)

1.5(xxi) b)

1.5(xxi) c)

Shareholders holding 10% or more voting interest in the company (name wise details)

1.5(xxi) d)

Appointment re-appointment of director:1.5(xxii)

Resume of the director 1.5(xxii) a)Nature of his /her expertise in specific functional areas1.5(xxii) b)Names of companies in which the person also holds the directorship and the membership of committees of the board

1.5(xxii) c)

CFO,Head of bInternal Audit And CS2The company shall appoint a chief Financial Officer (CFO). A Head of Internal Audit (Internal 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 Audit and the CS.

2.1

Attendance of CFO and Company Secretary at the meeting of the Board of Directors

2.2

Audit Committee3The audit Committee shall be composed of at least 3 (three) members

3(i)

The Board of Directors shall appoint members of the Audit Committee who shall be directors of the company and shall include at least 1 (one) independent director

3.1(ii)

All members of the audit committee should be " financially literate" and at least 1 (One) member shall have accounting or related financial management experience

3.1(iii)

When the term of service of the committee members expires or there is any circumstance causing any committee member to be unable to hold office until expiration of the term of service, thus making the number of the committee members to be lower than the prescribed number of 3 (three ) person , the Board of Directors shall appoint the new Committee member(s) to fill up the vacancy (ies) immediately or not later than 1 (one) month from the date of vacancy ( ies) in the Committee to ensure continuity of the performance of work of the Audit Committee

3.1(iv)

√

√

√

√

√√

√

√

√

√

√

√

Nil




18


Title

Complied

Remarks

Not complied

Condition no.


Column)

3.1(v)

The quorum of the Audit Committee meeting shall not constitute without at least 1 (one) Independent director.

The company secretary shall act as the secretary of the Committee

Chairman of the Audit Committee The Board of Directors shall select 1 (one) member of the Audit Committee to be Chairman of the Audit Committee , who shall be an independent director.

3.1(vi)

3.23.2(i)

Chairman of the audit committee shall remain present in the Annual General Meeting (AGM)

3.2(ii)

Role of Audit Committee3.3Oversee the financial reporting process3.3(i)Audit committee monitor choice of accounting policies and principles

3.3(ii)

Audit committee monitor internal Control Risk Management process

3.3(iii)

Audit committee oversee hiring and performance of external auditors

3.3(iv)

Audit committee review alongwith the management, the annual financial statements before submission to the board for approval

3.3(v)

Review along with the management the quarterly and half yearly financial statement before submission to the board for approval

3.3(vi)

Review the adequacy of internal audit function3.3(vii)Review statement of significant related party transactions submitted by the management

3.3(viii)

Review management Letters/ Letter of Internal Control weakness issued by statutory auditors

Reporting to the Audit Committee

3.3(ix)

When money is raised through initial public offering(IPO)/ Repeat Public Offering(RPO)/Rights issue the company shall disclose to the Audit Committee about the uses/applications of funds by major category (capital expenditure, sales and marketing expenses, working capital, etc.) on a quarterly basis, as a part of their quarterly declaration of financial results. Further, on an annual basis, the company shall prepare a statement of funds utilized for the purposes other than those stated in the offer document/prospectus

3.3(x)

3.4

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

Reporting to the Board of Directors3.4.1The Audit Committee shall report on its activities to the Board of Directors

3.4.1(i)

19


Title

Complied

Remarks

Not complied

Condition no.


Column)

3.4.1 (ii)(a)Suspected or presumed fraud or irregularity or material defect in the internal control system

report on conflicts of interests

Suspected infringement of laws, including securities related laws, rules and regulations

3.4.1 (ii) b)

3.4.1(ii) c)

any other matter which shall be disclosed to the Board of Directors immediately

3.4.1(ii) d)

If the Audit committee has reported to the Board of Directors about anything which has material impact on the financial condition and results of operation and has discussed with the Board of Directors and the management that any ratification is necessary and if the Audit committee finds that such rectification has been unreasonably ignored, the Audit committee shall report such finding to the commission

3.4.2

Report on activities carried out by the Audit committee, including any report made to the Board of Directors under condition 3.4.1(ii) above during the year, shall be signed by the Chairman of the Audit Committee

3.5

Engagement of External / Statutory Auditors:4

Non-engagement of external/statutory auditors in appraisal or valuation services or fairness opinions

4(i)

Non-engagement of external/statutory auditors in financial information systems design and implementation

4(ii)

Non-engagement of external/statutory auditors in book keeping or other services related to the accounting records or financial statements

4(iii)

Non-engagement of external/statutory auditors in borker-dealer services

4(iv)

Non-engagement of external/statutory auditors actuarial services

4(v)

√

√

√

√

√

√

√

√

√

√

√

√

√

√

Non-engagement of external/statutory auditors in internal audit Services

4(vi)

Non-engagement of external/statutory auditors in Any other service that the Audit Committee determines

4(vii)

No partner or employees of the external audit firms shall possess any share of the company they audit at least during the tenure of their audit assignment of that company

4(viii)

Audit / certification services on compliance of corporate governance as required under clause (i) of condition 7

4(ix)

20


Title

Complied

N/A N/ANo holding / subsidiary

exists


exists


exists


exists


exists

Remarks

Not complied

Condition no.


Column)

5(i) Provision relating to the composition of the Board of Directors of the holding company shall be made applicable to the composition of the Board of Directors of the subsidiary companyAt least 1 (one) independent director on the Board of Directors of the holding company shall be a director on the Board of Director s of the subsidiary company

5(ii)

The minutes of the Board meeting of the subsidiary company shall be placed for review at the following Board meeting of the holding company

5(iii)

The minutes of the respective Board meeting of the holding company shall state that they reviewed the affairs of the subsidiary company also

5(iv)

The Audit Committee of the holding company shall also review the financial statements, in particular the investments made by the subsidiary company

5(v)

Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO)

6

The CEO and CFO shall certify to the Board that:- (i) They have reviewed financial statements for the year and that to the best of their knowledge and belief: a) These statement do not contain any materially untrue statement or omit any material fact or contain statement that might be misleading

6(i)a

These statement together present a true and fair view of the company`s affairs and are in compliance with existing accounting standards and applicable laws

6 (i) b

There are to the best of knowledge and belief , no transactions entered into by the company during the year which are fraudulent, illegal or violation of the company`s code of conduct

6(ii)

−

√

√

√

√

√

Reporting and Compliance of Corporate Governance:7The company shall obtain a certificate from a practicing professional Accountant /Secretary ( Chartered Accountant /Cost and Management Accountant/ Chartered Secretary) regarding compliance of conditions of corporate Governance Guidelines of the Commission and shall send the same to the shareholders along with the Annual Report on a yearly basis

7(i)

The directors of the company shall state, in accordance with the Annexure attached, in the directors' report whether the complied with these conditions

7 (ii)

Right shares were not issued by the company in case of non-compliance with the SEC notification non-SEC/CMRRCD/2006-158/134/Admin/44, dated 07 August,2012 regarding Corporate GovernanceThe directors of the company shall state, in accordance with the Annexure attached, in the directors' report whether the complied with these conditions

7 (iii)

Subsidiary Company5

21


1.05(xx) The number of Board Meeting held during the year and attendance by each Director is as under:

SL. PositionTotal

AttendanceRemarks

1 Chairman 5

2Vice

Chairman6

3 Director 64 Director 65 Director 56 Director 47 Director 68 Director 69 Director 6

10 Director 611 Director 412 Director 613 Independent Director 314 Independent Director 315 Independent Director 3

16 Chief Executive Officer 6

17Chief Executive Officer

(Acting)0

Md. Sana Ullah

6Mrs. Hasina Begum 6Professor Dr.Goutam Buddha Das

Md.Omar Farooq

Mohammed Salim,FCMA

6

66

Mr. Taif Bin Yousuf

666

Mr. Yousuf Ali

Mr. Abdur RoufMrs. Tahmina Binthe Mostafa

Total nos. of Meeting from

01.01.15 to 31.12.156

6

6

Name of Directors

Mr. Abdul Baset Mojumder

Mr. Mostafa Kamal

Mrs. Beauty Akter

0

Mr. Abdul BatenMr. Tanveer Ahmed Mostafa

Mrs. Farida Akter 6

666

6

Fakhruddin Ahmed,FCMA,FCA

Mrs. Tanjima Binthe Mostafa

1.05(xxi) Pattern of Shareholdings:

As at December 31,2015 the pattern of Shareholdings is given below:

Remarks--

Under Process

44,250,000

General Public Including Unit Fund, Mutual Fund, Financial Institutions etc.

Total Shares

17,700,000

No. of Shares26,550,000

ParticularsSponsors & Directors

22


1.05(xxi) (a) Shareholding of Parent/Subsidiary/Associated Companies and other related parties: Nil

1.05(xxi) (b) Shareholdings of Directors & Sponsors are as under:

Shares % Shares %1 Chairman 8,850,000 3.33% 8,850,000 2.00%2 Vice Chairman 24,248,330 9.13% 24,248,330 5.48%3 Director 10,000,000 3.77% 10,000,000 2.26%4 Director 11,550,000 4.35% 11,550,000 2.61%5 Director 32,083,340 12.08% 32,083,340 7.25%6 Director 33,083,340 12.46% 33,083,340 7.48%7 Director 8,958,330 3.37% 8,958,330 2.02%8 Director 41,751,670 15.73% 41,751,670 9.44%9 Director 11,408,330 4.30% 11,408,330 2.58%10 Director 8,958,330 3.37% 8,958,330 2.02%11 Director 8,958,330 3.37% 8,958,330 2.02%12 Director 10,750,000 4.05% 10,750,000 2.43%13 Sponsor Shareholder 12,000,000 4.52% 12,000,000 2.71%14 Sponsor Shareholder 12,000,000 4.52% 12,000,000 2.71%15 Sponsor Shareholder 1,000,000 0.38% 1,000,000 0.23%16 Sponsor Shareholder 10,000,000 3.77% 10,000,000 2.26%17 Sponsor Shareholder 10,000,000 3.77% 10,000,000 2.26%18 Sponsor Shareholder 8,900,000 3.35% 8,900,000 2.01%19 Sponsor Shareholder 1,000,000 0.38% 1,000,000 0.23%

General Public Including Unit Fund,Mutual Fund,Financial Institution etc - 0.00% 177,000,000 40.00%

265,500,000 100.00% 442,500,000 100.00%

Mr. Wasekur Rahman

Mr. Muhammad ZakariaMr. M.F KamalMr. Md. Abu TaherTasnim Binthe Mostafa

Mr. Abdul BatenMrs. Hasina BegumMr. Yousuf AliMrs. Farida Akter

Mrs. Tahmina Binthe MostafaMr. Taif Bin Yousuf

Mrs. Beauty Akter

Mr. Tanveer Ahmed Mostafa

Mr. Abdul Baset Mojumder

Shareholdings of Directors/Sponsor Shareholders

Designation After IPOBefore IPO

Mr. Mostafa Kamal

Mr. Nasir UddinMr. Belayet Hossain

Mr. Abdur RoufMrs. Tanjima Binthe Mostafa

Sl. No

1.05(xxi) (b) Shareholding of Chief Executive Officer, Company Secretary, Chief Financial Officer, Head ofInternal Audit and their spouses and minor children are as under as on 31.12.2015:

Holdings(%)

0000

0

No. of Shares

0

00Sharmin Akhter

Md.Abul Hasan Khan

Designation

Chief Executive Officer ( Acting )

Company Secretary (Acting )Head of Internal Audit

Chife Financial Officer (Acting )

Name

Md.Omar Farooq

Khandoker Rezaur Rahman

23


1.05(xxi) (c) The Shareholdings of the Executives are as under:

Sl. No

DesignationHoldings

(%)1 Addl.MD 02 Addl.MD 03 DMD 04 DMD 05 DMD 06 DMD 07 DMD 00

Md.Rafiqul Islam

Md. Yunus Khan Jasim

Kazi Md.Shafiqul IslamBahauddin Ahmed

Md.Omar Farooq 00

Name No. of Shares

Md. Emdadul HaqueIshraq Khan

0000

1.05(xxi) (d) The List of Shareholders holding ten percent (10%) or more voting interest in the company: Nil

3.00 Audit Committee:v The Audit Committee has been formed in the meeting held on date 08.06.2015.

Abdul Baset MajumderChairman

24


25

Audit Committee ReportThe Audit The Audit Committee of Bangladesh National Insurance Company Limited Comprise of 03 (Three) Committee: members nominated by the Board of Directors which is as under: 1. Mr. Mohammed Salim, FCMA Chairman 2. Mr. Yousuf Ali Member 3. Mrs. Tahmina Binthe Mostafa Member As per regulatory requirement, the Company Secretary Khandoker Rezaur Rahman (Acting) as the Secretary of the Board of Audit Committee. A total of 02 (Tow) meeting were held since the last Annual General Meeting of Bangladesh National Insurance Company Limited held on September 20, 2015.

The Board of Audit Committee has been constituted with an Independent Director having accounting and Financial Management Experience as Chairman.The Additional Managing Director, Head of Internal Audit Department and Chief Financial Officer (CFO) attended the meeting(s) by invitation.

Role of Audit Committee of the Board can play an effective role in providing a bridge betweenAudit the Board and Management, Shareholders and other Stakeholders. The Board of Directors of Committee: Bangladesh National Insurance Company Limited recognized the importance of the Audit Committee. The Key role of the Committee is to assist the Board in discharging its responsibilities

for financial and business discipline, financial reporting, corporate governance and internal control. The Following are the prime responsibilities for the Audit Committee.

i) To evaluate Whether management is setting the appropriate compliance culture of internal control and ensuring that all employees have good understanding of their roles and responsibilities . ii) To review the existing risk management policies and procedures for ensuring an effective internal check and control system. iii) To review the financial statements and determine whether they are complete and consistent with the accounting standard set by the regulatory authorities. iv) To review the efficiency and effectiveness of internal audit function. v) To review the findings and recommendations made by the internal auditors for removing the irregularities detected. vi) To review the auditing performance of external auditors and their audit reports and recommending to the board for appointment or removal or external auditors.Activities: During the period under review, the committee, interalia, focused on the following activities: i) Reviewed quarterly financial statement of the company to measure the performance. ii) Reviewed significant internal audit findings and advised the management to rectify the deficiencies and improve operational performance and compliance. iii) The Audit Committee recommended strengthening of Internal Audit Department with Skill manpower to increase capacity and efficiency of the Audit Department iv) Reviewed and examined the Draft Annual Financial Statements 2015 made out in line with accounting standard set by the regulatory authorities and recommended to place the same before the Board for consideration.Acknowledge The audit committee would like to express their sincere thanks to the members of the Board, Ement: key management personnel, internal audit Division and all employees for their utmost co-operation extended by them.

Mohammed Salim, FCMA Chairman

Board Audit Committee


26

RESPONSIBILITY STATEMENT OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

Including Duties as per Condition No. 6 of Corporate Governance Guidelines

The Financial Statement are prepared in accordance with Bangladesh Accounting Standards issued by The Institute of Chartered Accountants of Bangladesh and in compliance with Insurance Act 2010, Company Act 1944, Securities and Exchange Rules 1987 and the Listing Regulations of the Dhaka and Chittagong Stock Exchanges.

We are responsible for establishing and maintaining proper internal control system. We have designed such control or caused such control to be designed under our supervision, to ensure that material information relating to the Company is made known to us and for safeguarding the company’s assets and preventing and detecting fraud and error.

We have evaluated the effectiveness of the Company’s internal control system are satisfied that the internal control system were effective as of the end of the period under review. Moreover significant estimates and accounting policies that involve a high degree of complexity and judgment were discussed with our external auditors and the audit committee of the Board.

We certify to the Board that:- (i) We have reviewed financial statements for the year 2015 and that to the best of our knowledge and belief:

(a) These statement do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

(b) These statement represent a true and fair view of the Company’s affairs and are in compliance with existing accounting standards and applicable

(ii) There are, to the best ok knowledge and belief, no transactions entered into by the company during the year which are fraudulent, illegal or violation of the company’s code of conduct.

DatedDhaka, February 25, 2016

Mr. Mostafa Jasim RaihaniChief Financial O�cer

Md. Omar FarooqChief Executive O�cer (Acting)


27

Auditors’ Report to the shareholders Of

Bangladesh National Insurance Company Limited

We have audited the accompanying financial statements of Bangladesh National Insurance Company Limited (the company), which comprise the Statement of Financial Position as at December 31, 2015, and the related statement of profit or loss and other comprehensive income, other comprehensive income, Income Appropriation Account, Consolidated Revenue Account, Fire Insurance Revenue Account, Marine Cargo Insurance Revenue Account, Marine Hull Insurance Revenue Account, Motor Insurance Revenue Account, Miscellaneous Insurance Revenue Account, statement of Changes in Equity, Statement of Cash Flows for the year then ended, Form “AA” as at December 31, 2015 and a summary of significant accounting policies and other explanatory information disclosed in Notes 1 to 50 and Annexure-A to D.

Management's Responsibility for the Financial Statements

Management of the company is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards (BFRS), and Insurance Act 2010, Insurance Rules 1958, SEC Rules 1987 and the Companies Act 1994 and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management of the company, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the Financial Statements present fairly in all material respects, the financial position of the company as at December 31, 2015 and their Financial Performance and Cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standard (BFRS), Insurance Act 2010, Insurance Rules 1958, SEC Rules 1987 and the Companies Act 1994 and comply with the other applicable laws and regulations.


28

We also report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof ;

b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination of those books ;

c) the statement of Financial Position and statement of profit or loss and other Comprehensive Income and its Cash Flows dealt with by the report are in agreement with the books of accounts and drawn as per Insurance Act 2010 ;

d) the expenditure incurred and payments made were for the purpose of the company’s business ;

e) as per section 63(2) of the Insurance Act 2010, as amended, we certify that to the best of our knowledge and belief and according to the information and explanations given to us, all expenses of management wherever incurred and incurred directly or indirectly in respect of insurance business of the company transacted in Bangladesh during the year under report have been duely debited to the related Revenue Accounts and the profit or loss and other Comprehensive Income of the company and ;

f) as per section 59 (5), of the Insurance Act 2010 as emended rule 1958, we also certify that to the best of our information and as shown by its books, the company during the year under report has not paid to any person any commission in any form outside Bangladesh in respect of any of its business re- insured abroad.

Dated : Dhaka Rahman Mostafa Alam & Co.February 25, 2016 Chartered Accountants


29

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDStatement of Financial Position

As at 31 December, 2015

A. Shareholder's Equity and Liabilities:Share Capital: Authorized Share Capital 19 1,000,000,000 1,000,000,000

Issued, Subscribed and Paid up Capital 20 265,500,000 265,500,000

Reserve or Contingency Account 21 201,866,870 152,325,290 Reserve for Exceptional Losses 159,778,372 132,763,396 Income Appropriation Account 42,088,498 19,561,894

Total Shareholders' Equity 467,366,870 417,825,290

Balance of Funds and Accounts: 22 108,132,357 99,821,335 Fire Insurance Business Account 23,973,689 27,108,715 Marine Cargo Insurance Business Account 46,420,879 39,083,686 Marine Hull Insurance Business Account 120,753 84,043 Motor Insurance Business Account 28,545,509 25,231,193 Miscellaneous Insurance Business Account 9,071,527 8,313,698 Premium Deposits Account 23 27,664,912 13,698,421 Liabilities and Provisions 229,088,868 192,306,355 Sundry Creditors-Including Provision forExpenses and Taxes 24 76,620,890 50,961,145 Deferred Tax Liability 26 7,586,026 6,460,083 Amount due to other persons or bodies Carrying on Insurance Business 25 30,093,243 52,860,105 Estimated liabilities in respect of outstanding Claims whether due or intimated 27 114,788,709 82,025,022 Total Shareholders' Equity and Liabilities 832,253,007 723,651,403

Particulars Notes Amount in Taka31.12.2015 31.12.2014

Notes


30

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDStatement of Financial Position

As at 31 December, 2015

Non-Current Assets 133,460,487 131,433,858

35 77,797,828 75,148,550 Fixed Assets -At Cost 123,749,861 112,793,632 Less: Accumulated Depreciation 45,952,033 37,645,082

55,662,659 56,285,308 Investment-At cost (BGTB) 28 25,000,000 25,000,000 Investment in Shares 29 30,662,659 31,285,308 Current Assets 698,792,520 592,217,545 Outstanding Premium 30 - 2,329,978 Interest Accrued but not Due 31 29,120,679 24,192,925 Amount Due from Other Persons or Bodies Carrying on Insurance Business 32 1,931,708 3,504,304 Sundry Debtors-Including Advances, Deposits & Prepayments 33 57,435,761 39,121,170 Stock of Stationery 36 404,173 379,945 Cash and Bank Balances 34 609,900,199 522,689,223 Total Property and Assets 832,253,007 723,651,403


The accompanying notes from 1 to 50 & Annexure- A to D form an integral part of the financial statement.

Chief Executive Officer (Acting) Director Director Chairman

Signed in terms of our separate report of even date.

Dated : DhakaFebruary 25,2016

Rahman Mostafa Alam & Co. Chartered Accountants


31

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDStatement Of Profit or Loss and Other Comprehensive Income

For the Year ended December 31, 2015

Expenses of Management ( Not Applicable to any particular Fund or Account) Directors' Fees 369,000 497,950 Meeting Expenses 7,320 6,585 Advertisement & Publicity 91,161 103,903 Subscription & Registration 1,511,417 1,295,443 Depreciation 35 8,306,952 7,590,125 Audit Fees 123,500 172,500 Net Profit before tax 74,345,384 59,066,017 Total 84,754,734 68,732,523

Interest on FDR, STD and BGTB 37 57,951,678 42,215,377 Dividend Income in Share Business 688,136 785,787

Profit /(Loss) Transferred from: 26,114,920 25,731,359 Fire Insurance Revenue Account (4,905,372) 1,088,609 Marine Insurance (Cargo) Revenue Account 18,669,824 18,840,972 Marine Insurance (Hull) Revenue Account (181,275) 62,322 Motor Insurance Revenue Account 7,089,409 3,320,188 Miscellaneous Insurance Revenue Account 5,442,334 2,419,268 Total 84,754,734 68,732,523 Earnings Per Share (EPS) 42 2.01 2.62








32

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEOther Comprehensive Income


Profit After Tax 42 53,258,849 38,280,338 Other comprehensive income (622,651) - Revaluation Surplus - - Profit & Loss on Investment in Shares (622,651) - Changes in fair value the shares avilable for sale - -

Total Comprehensive Income 52,636,198 38,280,338








33

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDIncome Appropriation Account


Balance brought forward from last year 19,561,894 10,066,600 Written Back of share Fluctuation Reserve afteradjusting current period loss on share 21.03 - 5,157,683 Net Profit before Tax b/d 74,345,384 59,066,017 93,907,278 74,290,300

Reserve for Exceptional Losses 21.01 27,014,976 24,942,727 Income Tax Expenses: 66,892,302 49,347,573 Current Tax 43 19,960,592 14,325,596 Deferred Tax 26 1,125,943 6,460,083 Worker's Profit Participation Fund 3,717,269 - Dividend paid - 9,000,000 Balance Transferred to Statement of Financial Position 21.02 42,088,498 19,561,894

Total 93,907,278 74,290,300 Earning Per Share (EPS) 42 2.01 2.62







Amount in Taka31.12.2015 31.12.2014


34

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDConsolidated Revenue Accoun


Claims under the policies less Reinsurance: Paid during the year 81,574,906 98,530,526 Total estimated liability in respect of outstandinclaims at the end of the year whether due or intimated 27 114,788,709 82,025,022 196,363,615 180,555,548 Less: Outstanding claims at the end of the previous year 82,025,022 81,349,472 114,338,593 99,206,076 Agency Commission 39 48,675,907 43,402,776 Expenses of Management 38 91,423,587 95,534,951 Reserve for un-expired risks of Premium Income for the year 22 108,132,357 99,821,335 Profit / (Loss)Transferred to Statement of Comprehensive Income 26,114,920 25,731,359 Total 388,685,364 363,696,497 Balance of Account at the beginning of the year 99,821,335 97,175,581 Premium Less Reinsurance 41 270,149,763 249,427,271 Commission on Reinsurance ceded 18,714,266 17,093,645 Total 388,685,364 363,696,497







Particulars


35

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDFire Insurance Revenue Account


Claims under the policies less Reinsurance: Paid during the year 34,751,916 22,677,651 Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated 27 20,161,227 19,034,698 54,913,143 41,712,349 Less: Outstanding claims at the end of the previous year 19,034,698 19,286,639 35,878,445 22,425,710

Agency Commission 39 15,017,060 14,196,844 Expenses of Management 38 26,101,434 28,670,039 Reserve for un-expired risks being 40%of Premium Income for the year 22 23,973,689 27,108,715 Profit/(Loss) Transferred to Statement of Comprehensive Income (4,905,372) 1,088,609 Total 96,065,256 93,489,917 Balance of Account at the beginning of the year 27,108,715 17,883,192 Premium Less Reinsurance 41 59,934,223 67,771,786 Commission on Reinsurance ceded 9,022,318 7,834,939 Total 96,065,256 93,489,917








36

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDMarine Cargo Insurance Revenue Account


Claims Under The Policies Less Reinsurance: Paid during the year 13,382,611 49,615,434 Total estimated liability in respect of outstandingclaims at the end of the year whether due or intimated 27 77,340,984 49,849,856 90,723,595 99,465,290 Less: Outstanding claims at the end of the previous year 49,849,856 57,443,048 40,873,739 42,022,242 Agency Commission 39 19,203,725 16,500,101 Expenses of Management 38 36,203,740 36,198,193 Reserve for un-expired risks being 40% 22 46,420,879 39,083,686 of premium income for the year Profit/(Loss) transferred to Statement of Comprehensive Income 18,669,824 18,840,972

Total 161,371,907 152,645,194 Balance of Account at the beginning of the year 39,083,686 48,476,809 Premium Less Reinsurance 41 116,052,197 97,709,214 Commission on Reinsurance ceded 6,236,024 6,459,171 Total 161,371,907 152,645,194








37

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDMarine Hull Insurance Revenue Account


Claims under the policies less Reinsurance: Paid during the year 159,010 4,366 Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated 27 - - 159,010 4,366 Less: Outstanding claims at the end of the previous year - - 159,010 4,366 Agency Commission 39 - - Expenses of Management 38 127,993 95,535 Reserve for un-expired risks being 100% of premium income for the year 22 120,753 84,043 Profit/(Loss) transferred to Statement of Comprehensive Income (181,275) 62,322 Total 226,481 246,266 Balance of Account at the beginning of the year 84,043 148,976 Premium Less Reinsurance 41 120,753 84,043 Commission on Reinsurance ceded 21,685 13,247 Total 226,481 246,266








38

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDMotor Insurance Revenue Account


Claims under the policies less Reinsurance: Paid during the year 27,992,727 22,404,330 Total estimated liability in respect of outstandingclaims at the end of the year whether due or intimated 27 11,600,183 7,454,153 39,592,910 29,858,483 Less : Outstanding claims at the end of the previous year 7,454,153 2,998,470 32,138,757 26,860,013

Agency Commission 39 10,799,462 9,480,315 Expenses of Management 38 18,696,124 19,068,776 Reserve for un-expired risks being 40% 28,545,509 25,231,193 of premium income for the year 22Profit/(Loss) transferred to Statement of Comprehensive Income 7,089,409 3,320,188 Total 97,269,261 83,960,485 Balance of Account at the beginning of the year 25,231,193 20,382,295 Premium Less Reinsurance 41 71,363,772 63,077,983 Commission on Reinsurance ceded 674,296 500,207 Total 97,269,261 83,960,485








39

BANGLADESH NATIONAL INSURANCE COMPANY LIMITED Miscellaneous Insurance Revenue Account


Claims under the policies less Reinsurance: Paid during the year 5,288,642 3,828,745 Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated 27 5,686,315 5,686,315 10,974,957 9,515,060 Less: Outstanding claims at the end of the previous year 5,686,315 1,621,315 5,288,642 7,893,745 Agency Commission 39 3,655,660 3,225,516 Expenses of Management 38 10,294,296 11,502,408 Reserve for un-expired risks being 40% of 22 9,071,527 8,313,698 Premium income for the year Profit/(Loss) transferred to Statement of Comprehensive Income 5,442,334 2,419,268 Total 33,752,459 33,354,635

Balance of Account at the beginning of the year 8,313,698 10,284,309 Premium Less Re-Insurance 41 22,678,818 20,784,245 Commission on Re-insurance ceded 2,759,943 2,286,081 Total 33,752,459 33,354,635








40

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDStatement Of Changes in Equity






At 01 January 2015 265,500,000 132,763,396 - 19,561,894 417,825,290

Net Profit before Tax - - - 74,345,384 74,345,384

Provision for Income Tax - - - (19,960,592) (19,960,592)Investment Fluctuation Reserve - - - --Reserve for Exceptional Losses - 27,014,976 - (27,014,976) - Deferred Tax Expenses - - - (1,125,943) (1,125,943)

Woeker's Profit Participation Fund - - - (3,717,269) (3,717,269)Dividend Paid for the year 2013 - - - - - At 31 December 2015 265,500,000 159,778,372 42,088,498 467,366,870

Particulars Share CapitalReserve for Exceptional

Losses

Investment Fluctuation

Reserve

Total Shareholders

Equity

( Amount in Taka )Income

Appropriation Account


41

BANGLADESH NATIONAL INSURANCE COMPANY LIMITED Statement Of Cash flows


Cash Flows from Operating Activities: Cash Receipts from Insurers and Others 345,101,490 297,489,485 Cash Paid for Claims and Management Expenses (229,892,929) (212,884,299)Income Tax Paid & Deducted at Source (17,041,351) (7,211,962) Net Cash Generated from Operating Activities 98,167,210 77,393,224

Cash Flows from Investing Activities Investment in Bonds / Shares - 1,458,214 Acquisition of Property, Plant & Equipments etc. (10,956,229) (5,779,099)

Net Cash used in Investing Activities (10,956,229) (4,320,885) Cash Flows from Financing ActivitiesProceeds from Issuing of Shares - 205,500,000 Dividend Paid - (9,000,000) Net Cash Generated/ (Used) in Financing Activities - 196,500,000 Net Increase in Cash and Bank Balances 87,210,981 269,572,339 Cash and Bank Balances at the Beginning of the Year 522,689,223 253,116,884 Cash and Bank Balances at the End of the Year 609,900,199 522,689,223 Net Operating Cash Flow per Share (NOCFPS) 3.70 8.66

Particulars Amount in Taka31.12.2015 31.12.2014







42

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDFORM "AA"

Classified Summary Of Assets as at December 31, 2015





31.12.2015 31.12.2014

Deposit against Bangladesh Govt.Treasury Bond 25,000,000 25,000,000 At Cost

Investment in Shares 30,662,659 31,285,308 Realisable Value

Cash on Fixed Deposit and STD Account with Bank 605,039,984 519,575,121 Bookvalue

Cash in Hand and Current Account with Bank 4,618,277 2,664,212 Do

Stamp in Hand 241,938 449,890 Do

Outstanding Premium - 2,329,978 Do

Interest Accrued but not due 29,120,679 24,192,925 Do

Amount due from other persons or bodies Carrying on Insurance business

1,931,708 3,504,304 Do

Sundry Debtors Including Advances, Deposits & Prepayments

57,435,761 39,121,170 Do

Fixed Assets (At Cost less Depreciation) 77,797,828 75,148,550 Written Down Value

Stock of Stationery 404,173 379,945 At Cost

Total 832,253,007 723,651,403

Class of Assets Book Value

Remarks

25,000,000

30,662,659

605,039,984

4,618,277

241,938

-

29,120,679

1,931,708

57,435,761

77,797,828

404,173

832,253,007


43

BANGLADESH NATIONAL INSURANCE COMPANY LIMITEDNotes to the Financial Statements


1.00 Corporate Information–Domicile, Legal Form and Country of IncorporationThe Company was incorporated in Bangladesh as a Public Company Limited by Shares on the 21 day of May, 1996 under the Companies Act, 1994 and its commencement of business was started from 21 day of May, 1996 and the registration from the Controller of Insurance was received to start general insurance business on 18th day of June, 1996 which has been renewed upto 31 Dec, 2015.

Address of Registered Office The registered office of the Company is located at 68,Motijheel Commercial Area (Level-15), Dhaka-1000. The operation of the company are being carried out through its 27 nos. of branches located all over Bangladesh with Head office at 68, Motijheel C/A, Dhaka.

Principal Activities and Nature of Operation The main objective of the Company is to carry on all kinds of insurance, guarantee and indemnity business other than life insurance business.

2.00 Basis of Preparation The following underlying assumptions, measurement base, laws, rules, regulations and accounting

pronouncements have been considered in preparing and presenting the financial statements: Going Concern Accrual Basis Historical Cost Convention Generally Accepted Accounting Principles ( GAAP) and practices in Bangladesh The Companies Act, 1994 Insurance Act, 2010 Insurance Rules ,1958 followed for the purpose of prescribed format. The Securities and Exchange Rules, 1987 The Accounting Standards adopted by the Institute of Chartered Accountants of Bangladesh (ICAB).

2.01 Premium Recognition Premium is recognized when insurance policies are issued, but the premium of company's share of

public sector insurance business (PSB) is accounted for in the year in which the statements are received from Sadharan Bima Corporation.

3.00 Compliance of Bangladesh Financial Reporting Standards (BFRSs) The Financial Statements have been prepared in accordance with the Bangaladesh Financial Reporting

Standards (BFRSs), including Bangladesh Accounting Standards (BASs).

4.00 Risk and Uncertainty for use of Estimates and JudgmentsIn conformity with the Bangladesh Financial Reporting Standards (BFRSs) including the Bangladesh Accounting Standards (BASs) in preparation of financial statements the management is required to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and for contingent assets and liabilities that require disclosure during and at the date of financial statements.

Actual results could differ from those estimates. Estimates and underlying assumptions are used for accounting of certain items such as long-term contracts, provision for doubtful accounts, depreciation and amortization, taxes, reserves and contingencies.


44

5.00 Compliance of Bangladesh Accounting Standards (BASs)Considering relevant significant accounting issues, in preparing and presenting these financial statements, the company implemented the following Bangladesh Accounting Standards BASs issued and revised by the ICAB in light of the International Accounting Standards Board (IASB) as per current practices prevailing in Bangladesh as on the balance sheet date:

6.00 Specific Accounting Policies Selected and Applied for Significant Transactions and Events For significant transactions and events that have material effect, the Company’s Director's selected

and applied specific accounting policies within the framework of BAS 1 ["Preparation and Presentation of Financial Statements"], in preparation and presentation of financial statements have been consistently applied throughout the year and were also consistent with those used in earlier years.

For proper understanding of the financial statements, accounting policies set out below in one place as prescribed by the BAS 1 “Preparation and Presentation of Financial Statements”.

(a) Revenue Recognition Revenue represents invoiced value of policies. Revenue is recognized when policies are made. Invoices were made after satisfying the following conditions as prescribed by BAS 18 "Revenue Recognition":

(i) the significant risks and rewards of ownership of the policies have been transferred to the policyholder; (ii) the amount of revenue was measured reliably; (iii) it was probable that the economic benefits relating to the transactions will flow to the Company; (iv) neither continuing managerial involvement nor effective control usually associated with ownership of the policy was retained by the Company; and (v) cost relating to the transactions was measured reliably.

(b) Materiality and aggregation Each material class of similar items is presented seperately in the Financial Statements. Item

of a dissimilar nature or function are presended seperately unless are immaterial.

(c) Revenue AccountWhile preparing the Revenue Account, the effect of necessary adjustment has duly been given in to accounts in respect of re-insurance business ceded and accepted. Re-Insurance Premium ceded has been accounted for into accounts.

SL.NO Name of BAS No. of BAS Status 1 Presentation of Financial Statements 1 Complied 2 Statement of Cash Flows 7 Complied 3 Events after the Balance Sheet Date 10 Complied 4 Income Tax 12 Complied 5 Property, Plant and Equipment 16 Complied 6 Revenue 18 Complied 7 Related Party Disclosure 24 Complied 8 Financial Instruments Presentation 32 Complied 9 Earnings Per Share 33 Complied 10 Provision,Contingent Liabilities and Contingent Assets 37 Complied


45

Surplus or deficit on revenue has been arrived at after providing for un-expired risks @ 40% on all business except Marine Hull Insurance for which 100% provision has been created for un-expired risks.

(d) Premium and Claim The total amount of premium earned on various classes insurance business underwritten during the period has been duly accounted for in the books of account of the Company and while preparing the financial statements the effect of re-insurance ceded as well as the effect of total estimated liabilities in respect of outstanding claims at the end of the period whether due or intimated have also been reflected in order to arrive at the net underwriting profit for the period. (e) Management Expenses The management expenses charged to Revenue Account amounting to Tk 91,423,587 repr sent approximately 25.23% of Gross Premium of Tk 36,23,90,173 (including public sector business). The said management expenses have been apportioned 28.55% to fire,39.74% to marine (cargo & hull), 20.45% to motor,11.26% to miscellaneous business as per activity/Premium Income. Property , Plant & Equipment (f) Recognition & measurement These are capitalized at the cost of acquisition and subsequently stated at cost less accumu

lated depreciation in compliance with the benchmark treatment of BAS 16 "Property, Plant and Equipment". The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use and other related incidental charges. Expenditure incurred after the assets have been put into operation, such as repairs & maintenance is normally charged off as revenue expenditure in the period in which it is incurred. In situation where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use of the fixed assets, the expenditure is capitalized as an additional cost of the assets.

(g) Subsequent Cost The cost of replacing a component of an item of property , plant and equipment is recognized

in the carrying amount of the item if iit is probable that the future economic benefits associtaed with the part will flow to the company and its cost can be measured reliably.

(h) Depreciation In respect of all fixed assets, depreciation is provided to amortize the cost of the assets after

commissioning, over their expected useful economic lives in accordance with the provision of BAS 16 "Property, Plant and Equipment"

Depreciation on Fixed Assets has been charged at a reducing balance method. 12month's depreciation has been charged on the book value of Fixed Assets excluding Land at the rates varying from 5% to 30%. Depreciation is charged at the rate shown below: Office Equipment 20% Books & Periodicals 20% Car/Motor Vehicles 25% Office Decoration 30% Furniture & Fixture 10% Telephone Installation 15% Building 5%

Full month Depreciation is charged during the month of acquisiton and no depreciation is charged during the month of disposal.


46

De-recognition An item of property , plant and equipment is de-recognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the assets is included in the statement of comprehensive income in the year the asset is de-recognized.

(i) Disposal of Fixed AssetsOn disposal of Fixed assets ,the cost and accumulated depreciation are eliminated and gain or loss on such disposal is reflected in the income statement ,which is determined with reference to the net book value of the assets and net sales proceeds.

(j) Investment in FDR and SharesInvestment is stated at its cost of acquisition and interest earned on statutory deposits lying with the Bangladesh Bank in the form Bangladesh Govt. Treasury Bond and the interest and profit earned on term deposit have been duly accounted for on accrual basis. The Statement of Comprehensive Income also reflects the income on account of interest on investment in FDR,Bond, Shares and Miscellaneous Income. The market value or cost price of investment in share whichever is lower have been taken as investment of share.

(k) Sundry Debtors (Including Advance, Deposits and Pre-Payments) These are carried at original invoice amounts, which represent net realizable value.

(l) Cash and Cash EquivalentsFor the purpose of Statement of Financial Position and Statement of Cash Flows, cash in hand, fixed deposit with other banks, collection in hand, stamp in hand and bank balances represent Cash and Cash Equivalents considering the BAS 1 "Preparation and Presentation of Financial Statements" and BAS 7 "Statement of Cash Flows", which provide, that cash and cash equivalents are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value and are not restricted as to use.

(m) Other Current AssetsOther current assets have a value on realization in the ordinary course of the company's business which is at least equal to the amount at which they are stated in the Statement of Financial Position .

(n) Income Tax

Current TaxCurrent Tax has been provided on the estimated taxable profit for the year under review at 42.5% tax rate being the tax rate applicable for Insurance Company. It also includes adjustments for earlier year's short/excess provision.

Deferred Tax The company has adopted deferred Tax during the period under review in compliance with the provisions of Bangladesh Accounting Standards ( BAS-12 ) 'Income Taxes' the company's policy of recognition of Deferred Tax Assets/Liabilites is based on temporary differences (Taxable or Deductable) between the carrying amount ( Book Value) of assets and liabilites for financial reporting purposes and its tax base, and accordingly,deferred tax income/expenses has been considered to determine net profit after tax and Earning Per Share ( EPS).

Provision for Income Tax Basis of Provision for Income Tax: Net Profit -Reserve for exceptional loss x tax rate.


47

(o) Dividend No Dividend has been paid for the year 2014 by The Board of Directors.

(p) Cost of Post Employment Benefits

(i) Defined Contribution Plan There is no defined contribution plan.

(ii) Defined Benefits Plan There is no defined benefits plan.

(iii) Insurance Scheme There is no Insurance scheme covering personal accident or death or partial or full disability.

(iv) Number of Employees There were 362 Employees at the period ended for 31 Dec, 2015 whose salary exceeds Tk. 3,000 per month.

Particulars No. of EmployeesChief Executive Officer 1 Additional Managing Director 2 Deputy Managing Director 5 Assistant Managing Director 2 Senior General Manager 5General Manager 14Deputy General Manager 12Sr. Assistant General Manager 1 Assistant General Manager 19Officers 115Other Employees 186

Total 362

(q) Other Corporate Debt, Accounts Payable, Trade and Other Liabilities These liabilities are carried at the anticipated settlement amount in respect of policies and

services received, whether or not billed by the policyholder and the supplier.

(r) ProvisionsProvisions are liabilities of uncertain timings or amount. Provisions are recognized when the company has a present legal or constructive obligation as a result of past events.As per BAS 37 it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.

(s) Earnings per Share (EPS)The Company calculates earnings per share (EPS) in accordance with BAS 33 Earnings Per Share" which has been shown on the face of Statement of Comprehensive Income. The disclosure has been made in the Note 42 in respect of numerator (net profit) and denominator (weighted average number of shares) used in the calculation of basic EPS with necessary computation and reconciliation.Basic Earnings This represents earnings for the year attributable to ordinary shareholders, as there was no preference dividend, minority interest and extra ordinary items, the net profit for the year has been considered as fully attributable to the ordinary shareholders.

Diluted Earnings per ShareNo diluted Earnings Per Share (EPS) is required to be calculated for the year as there was no scope for dilution during the year under review.


48

(t) Reserve for Exceptional LossesProvision for exceptional losses has been made during the year under audit.

(u) Share of Public Sector BusinessCompany's Share of Public Sector business is accounted for in the period in which the complete set of accounts from Sadharan Bima Corporation (SBC) is received. During the period the company has included 4 (Four) quarters of its share of the Public Sector business as confirmed by the Sadharan Bima Corporation (SBC) in the following manner:

(v) Recognized Gains and LossesNo gain or loss was directly dealt with though the shareholders equity without being recognized in the Statement of Comprehensive Income.

Therefore, net profit after tax for the year is the total recognized gains.

(w) Historical Cost Income and ExpenditureAs there was no extra ordinary item, there was no difference in profit from ordinary activities before taxation and the net profit before tax. Furthermore, as there was no revaluation of fixed assets in previous years and during the year under review, there was no factor like the differences between historical cost depreciation and depreciation on revalued amount, realization of revenue surplus on retirement or disposal of assets etc. Therefore, no separate note of historical cost profit and loss has been presented.

(x) Statement of Comprehensive Income The results for the year were not materially affected by the following: (a) transactions of a nature not usually undertaken by the company;(b) circumstances of an exceptional or non-recurring nature;(c) charges or credits relating to prior years.

7.00 Classified Summary of Assets The valuation of all assets as at 31st Dec, 2015 as shown in the Statement of Financial Position and

in the classified summary of assets in Form AA annexed with the report has been reviewed and the said assets have been set-forth in the Statement of Financial Position at amount not exceeding their realizable or market value in aggregate.

8.00 Financial Instruments and Derivatives Primary Financial Instruments (Financial Assets and Liabilities)

The disclosure of primary financial instruments carried at the Statement of Financial Position date alongwith the recognition methods and risks involved are summarized in Note 44 in accordance with the provisions of BAS 32 Financial Instruments: "Disclosure and Presentation."

9.00 Derivative Financial InstrumentsThe Company is not a party to any derivative contract at the Statement of Financial Position date, such as forward exchange contract, currency swap agreement or interest rate option contract to hedge currency exposure related to import of raw materials and others or principal and interest obligations of foreign currency loans.

Period Particulars of Quarter No. 1st July, 2013 to 30th Sept, 2014 3rd Quarter of 2014 1 (One) 1st Oct, 2013 to 31st December, 2014 4th Quarter of 2014 1 (One) 1st Jan, 2014 to 31st March , 2015 1st Quarter of 2015 1 (One) 1st April, 2014 to 30th June , 2015 2nd Quarter of 2015 1 (One) Total 4 (Four)


49

10.00 Information by Industry Segments and Geographical Areas Industry Segment InformationNo mention is made because the company does not have any segment other than the general insurance business.

Geographic Segment Information Not applicable as the company does not have any business unit outside Bangladesh.

11.00 Reporting CurrencyThe Financial Statements are presented in Bangladeshi Taka which is the Company's functional currency. No Foreign Currency Transactions was transacted during the year and thus the conversion of Foreign Currency into Bangladeshi Taka Currency is not required the year ended 31 Dec,2015.

12.00 Comparative Information and Re-Arrangement thereofComparative information have been disclosed in respect for the year 31st Dec, 2015 for all numerical information in the financial statements and also the narrative and descriptive information when it is relevant for understanding of the current year's financial statements.Figures of the year 2014 have been rearranged whenever considered necessary to ensure comparability with the current year.

13.00 Transactions with Related PartiesDuring the year under review the Company carried out the transactions with the related parties in the normal course of business and on arm's length basis.

14.00 Events after Reporting PeriodIn compliance with the requirements of BAS 10[ Events After Reporting Period ]: This standards require that an entity should not prepare financial statements on a going concern basis, if events after reporting period indicate that going concern assumption is not appropiate. Absence of any event after Balance Sheet Date no action required under this head.

15.00 Approval of the Financial Statements The financial statements were approved by the Board of Directors on 25.02.2016

16.00 Reporting Period The Financial Statements of the Company cover for the period from 1 January 2015 to 31 December 2015.

17.00 Statement of Cash FlowsStatement of Cash Flows is prepared principally in accordance with BAS 7 "[Statement of Cash Flows]" and the Cash Flow from the operating activities have been presented under direct method as required by the Securities and Exchangre Rules 1987 and considering the provisions of Paragraph 19 of BAS 7 which provides that " Enterprises are Encouraged to Report Cash Flow from Operating Activities Using the Direct Method".

18.00 Components of the Financial StatementsAccording to the International Accounting Standards (BAS) 1 "Presentation and Preparation of Financial Statements", the complete set of Financial Statements includes the following components: (i) Statement of Financial Position as at 31 Dec, 2015; (ii) Statement of Comprehensive Income for the year ended 31 Dec, 2015;(iii) Income Appropriation Account for the year ended 31 Dec, 2015; (iv) Revenue Accounts (Fire, Marine Cargo, Marine Hull, Motor, Miscellaneous Insurance Revenue Account) for the year ended 31 Dec, 2015;(v) Statement of Changes in Equity for the year ended 31 Dec, 2015;(vi) Statement of Cash Flows for the year ended 31 Dec, 2015;(vii) Accounting Policies and Explanatory Notes.


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STATEMENT OF FINANCIAL POSITION A. SHAREHOLDER'S EQUITY AND LIABILITIES

19.00 SHARE CAPITAL AUTHORIZED SHARE CAPITAL 100,000,000 Ordinary Shares of Tk. 10/= each. 1,000,000,000 1,000,000,000

The Company has raised Authorised Capital to Tk. 100.00 crore divided into 100,000,000 ordinary shares of Tk. 10/- each on 09/03/2014.

20.00 ISSUED, SUBSCRIBED AND FULLY PAID UP CAPITAL26,550,000 Ordinary Shares of Tk. 10/- each fully paid upin cash 265,500,000 265,500,000

As detailed below :

21.00 RESERVE OR CONTINGENCY ACCOUNT This is made up as follows: 21.01 Reserve for Exceptional Losses 159,778,372 132,763,396 21.02 Income Appropriation Account 42,088,498 19,561,894 201,866,870 152,325,290

AMOUNT (TK.)31.12.2015 31.12.2014

Name of Directors /Shareholders Status Class of Share No. of SharesSubscribed

Sl. No.

1 Mr. Abdul Baset Majumder Chairman Ordinary 885,000 2 Mr. Mostafa Kamal Vice Chairman Ordinary 2,424,833 3 Mrs. Beauty Akter Director Ordinary 1,000,000 4 Mr. Abdur Rouf Do Ordinary 1,155,000 5 Mrs.Tahmina Binthe Mostafa Do Ordinary 3,308,334 6 Mrs. Farida Akter Do Ordinary 1,075,000 7 Mrs.Tanjima Binthe Mostafa Do Ordinary 3,208,334 8 Mr.Tanveer Ahmed Mostafa Do Ordinary 4,175,167 9 Mr. Taif bin Yousuf Do Ordinary 895,833 10 Mr. Yousuf Ali Do Ordinary 895,833 11 Mr. Abdul Baten Do Ordinary 1,140,833 12 Mrs. Hasina Begum Do Ordinary 895,833 13 Mr. Muhammad Zakaria Shareholder Ordinary 1,200,000 14 Mr. M.F. Kamal Do Ordinary 1,200,000 15 Mr. Md. Abu Taher Do Ordinary 100,000 16 Tasnim Binte Mustafa Do Ordinary 1,000,000 17 Mr. Wasekur Rahman Do Ordinary 1,000,000 18 Mr. Nasir Uddin Do Ordinary 890,000 19 Mr. Belayet Hossain Do Ordinary 100,000 Total 26,550,000


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21.01 RESERVE FOR EXCEPTIONAL LOSSES This is made up as follows: Opening Balance 132,763,396 107,820,669 Add: During the year 27,014,976 24,942,727 159,778,372 132,763,396

This represents profit set-aside up to the year under review as expenses to meet exceptional losses. This reserve has been created as per requirement of paragraph 6(2) of 4th Schedule of the Income Tax Ordinance, 1984.

The company has made the reserve for exceptional losses amounting to Tk 270,149,763 @10% ofnet premium income earned during the period as detailed below:

21.02 INCOME APPROPRIATION ACCOUNT This is made up as follows: Opening Balance 19,561,894 10,066,600

Add: Profit for the year 74,345,384 59,066,017 Add: Written Back of share Fluctuation Reserve - 5,157,683 93,907,278 74,290,300 Less: Reserve & Provisions: 51,818,780 54,728,406 Reserve for Exceptional Losses 27,014,976 24,942,727 Provision for Income Tax 19,960,592 14,325,596 Dividend paid - 9,000,000 Deferred Tax Expenses ( Note: 26.00 ) 1,125,943 6,460,083 Worker's Profit Participation Fund 3,717,269 - 42,088,498 19,561,894

21.03 INVESTMENT FLUCTUATION RESERVE - -

i) * Calculation of Adjustment in current year : Share value as at 31.12.2010 - Less: Share value as at 31.12.2015 - - Less: Loss shown from 2010 to 2013 - -

AMOUNT (TK.)31.12.2015 31.12.2014

AMOUNT (TK.)31.12.2015

AMOUNT (TK.)31.12.2014Particulars

Fire Insurance Business 59,934,223 67,771,786 Marine Cargo Insurance Business 116,052,197 97,709,214 Marine Hull Insurance Business 120,753 84,043 Motor Insurance Business 71,363,772 63,077,983 Miscellaneous Insurance Business 22,678,818 20,784,245 Total 270,149,763 249,427,271

PARTICULARS AMOUNT (TK.)31-12-2015

AMOUNT (TK.)31-12-2014

Opening Balance - 7,500,000.00 Add: Addition for the year - - Less: *Adjustment in current year [ Note: 21.03(i) ] - 2,342,317.22 Less: ** Written back in Income Appropriation Account [ Note: 21.03 (ii) ] - 5,157,682.78 - -


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ii)**Calculation of Written back in Income Appropriation Account : Fluctuation Reserve created from 2010 to 2013 - Less:Adjustment in current year - 22.00 BALANCE OF FUNDS AND ACCOUNTS

This represents Reserve for un-expired risks provided against the Net Premium Income including Public Sector Business of the year at the rate of 40% on different classes of business except Marine Hull Insurance for which 100% as shown below:

23.00 PREMIUM DEPOSITS ACCOUNT

Balance on this account represents net premium received against cover notes for which no policy has been issued within 31 December, 2015.

24.00 SUNDRY CREDITORS INCLUDING PROVISION FOR EXPENSES AND TAXES

The balance is made as under:

CLASSES OF BUSINESS AMOUNT (TK.) AMOUNT (TK.)31.12.2015 31.12.2015

PERCENTAGE

Fire 40% 23,973,689 27,108,715 Marine Cargo 40% 46,420,879 39,083,686 Marine Hull 100% 120,753 84,043 Motor 40% 28,545,509 25,231,193 Miscellaneous 40% 9,071,527 8,313,698 Total 108,132,357 99,821,335

AMOUNT (TK)31.12.2015

AMOUNT (TK)31.12.2014

Class of Business : Marine Cargo 27,664,912 13,698,421 27,664,912 13,698,421

Particulars

Particulars

AMOUNT (TK.)31.12.2015

AMOUNT (TK.)3.12.2014

Liability for Agency Commission 2,424,852 1,551,384 Income Tax Deducted on Salary 106,150 446,192 Provision For Other Expenses - 25,500 Provision for Audit Fees 262,500 262,500 Provision for Income Tax (Company) 63,571,518 43,610,926 Provision for VAT/ VAT Payable 2,227,150 1,556,475 Liability for Insurance Stamp 1,421,877 1,397,244 Provision for Bills Payable 2,889,574 2,110,924 Worker's Profit Participation Fund 3,717,269 - Total 76,620,890 50,961,145


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25.00 AMOUNT DUE TO OTHER PERSONS OR BODIES CARRYING ON INSURANCE BUSINESS

This represents balance of account with various Private/Public Sector Insurance Companies in respect of co-insurance/ re-insurance transactions and amount payable to co-insurer/re-insurer. The break up of the amount is noted below:

26.00 DEFERRED TAX LIABILITYa) Deferrd Tax Liability are arrived at as follows :

b) Deferred Tax Expenses/Income

NAME OF THE PERSONS OR BODIES:31.12.2015 31.12.2014

A. Co-Insurance Premium Payable: Green Delta Insurance Co. Ltd. - 1,215,601 Rupali Insurance Co. Ltd. - 9,342 Phoenix Insurance Co. Ltd. 16,022 16,022 Provati Insurance Co. Ltd. 84,735 164,866 Central Insurance Co. Ltd. - 99,880 Prime Insurance Co. Ltd. - 6,649 Eastern Insurance Co. Ltd. 97,649 101,600 Bangladesh General Insurance Co. Ltd. 47,040 47,040 Mercantile Insurance Co. Ltd. 24,555 50,385 Global Insurance Co. Ltd. 101,600 101,600 Janata Insurance Co. Ltd. 16,926 16,926 Northern General Insurance Co. Ltd. - 131,211 Sub Total 388,527 1,961,122 B. Re-Insurance Creditors (SBC) 29,704,716 50,898,983 Sub Total 29,704,716 50,898,983 Total (A+B) 30,093,243 52,860,105

Amount ( Tk )

PARTICULARS Amount ( Tk )31.12.2015

Book value of Depreciable Fixed Assets 77,797,828 Less: Tax Base Value 59,948,356 Taxable Temporary Difference 17,849,472 Applicable Tax Rate 42.50%Deferred Tax ( Assets ) / Liabilites 7,586,026

PARTICULARS Amount ( Tk )31.12.2015

Closing Deferred Tax Liabilites 7,586,026 Opening Deferred Tax Liabilites 6,460,083 Deferred Tax Expenses/(Income) 1,125,943


54

27.00 ESTIMATED LIABILITIES IN RESPECT OF OUTSTANDING CLAIMS WHETHER DUE OR INTIMATED The break up of the amount is noted below:

B. PROPERTY AND ASSETS28.00 INVESTMENTS AT COST

The amount represents the value of 10 (Ten) years Bangladesh Govt. Treasury Bond at cost kept with NCC Bank according to the provision of Section 23 (B) of Insurance Act,2010 The 1st Schedule item 2 (B) as detailed below:

CLASSES OF BUSINESS PRIVATE SECTOR PUBLIC SECTOR TOTAL31.12.2015

TOTAL31.12.2014

Fire 20,161,227 - 20,161,227 19,034,698 Marine Cargo 77,340,984 - 77,340,984 49,849,856 Motor 11,600,183 - 11,600,183 7,454,153 Miscellaneous 5,686,315 - 5,686,315 5,686,315 Total 114,788,709 - 114,788,709 82,025,022

PARTICULARS AMOUNT (TK.)

31.12.2015AMOUNT (TK.)

31.12.2014

25,000,000 25,000,000 1 No. 10 (Ten) years Bangladesh Govt. Treasury Bond at Face Value of Tk. 90,00,000 each vide instrument ID BD0922301108 Date 15-02-2012 & instrument ID BD0923341103 Date 13-03-2013 BP ID BDNICCNCC BP Tk. 1,60,00,000.00 respectively.

AMOUNT (TK.)31.12.2015 31.12.2014

29.00 INVESTMENT IN SHARES: 30,662,659 31,285,308The market price of investment in shares as per requirement of BAS-39 has been shown as under:

Name of the Company31.12.2015

No. of Shares

Face Value per

share

Acquisition Cost

MarketMarket Value

as on31.12.2015

LowerValue

A. Listed Securities at cost: ICB Islami Bank Ltd. 147000 10 1,470,000 4.20 617,400 617,400 BD Finance Inv 61054 10 6,010,018 13.01 794,466 794,466 Jamuna Bank ltd 57903 10 1,746,216 12.10 700,626 700,626 Lankabangla Finance 45292 10 6,420,280 27.50 1,245,530 1,245,530 One Bank Ltd 28675 10 1,178,760 14.80 424,390 424,390 Prime Bank Ltd 35640 10 1,986,930 17.40 620,136 620,136 SIBL 117700 10 3,266,175 14.70 1,730,190 1,730,190 Southeast Bank Ltd 92610 10 4,474,386 17.00 1,574,370 1,574,370 Trust Bank ltd 42281 10 1,757,527 22.60 955,551 955,551 Right Share - - - - Balance with Stock Broker (2,782) - - Sub total 28,307,510 8,662,659 8,662,659 B.Unlisted Securities at cost: Energyprima Ltd 200000 110 22,000,000 22,000,000 22,000,000 Total ( A+B ) 50,307,510 30,662,659 30,662,659


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AMOUNT (TK.)31.12.2015 31.12.2014

30.00 OUTSTANDING PREMIUM - 2,329,978

31.00 INTEREST ACCRUED BUT NOT DUE (On FDR & Bangladesh Govt. Treasury Bond) This is made up as follows:

32.00 AMOUNT DUE FROM OTHER PERSONS ORBODIES CARRYING ON INSURANCE BUSINESSThe amount represents the total receivable from various persons or bodies carrying on insurance business as co-insurance as on 31 December, 2015. The details of which are given below:

33.00 SUNDRY DEBTORS (INCLUDING ADVANCES DEPOSITS & PREPAYMENTS) The break up amount is as under:

PARTICULARSAMOUNT (TK.)

31.12.2015AMOUNT (TK.)

31.12.2014Interest on FDR 28,137,609 23,209,855 Interest on BGTB 983,070 983,070 Total 29,120,679 24,192,925

AMOUNT (TK.)31.12.2015

AMOUNT (TK.)31.12.2014

PARTICULARS

Security Deposits Against Telephone 58,000 58,000 Advance against Office Rent 3,543,584 2,326,614 Advance Income Tax (Company) 53,678,945 36,637,594 Advance against Salary 51,299 98,962 Deposit Clearing 103,933 - Total 57,435,761 39,121,170

AMOUNT (TK.)31.12.2015

AMOUNT (TK.)31.12.2014

NAME OF THE PERSON OR BODIES

Green Delta Insurance Co. Ltd. 211,917 1,427,518Rupali Insurance Co. Ltd. 20,151 29,493 Karnaphuli Insurance Co. Ltd. 95,642 95,642 Continental Insurance Co. Ltd. 207,937 207,937 Reliance Insurance Co. Ltd. 64,392 64,392 Federal Insurance Co. Ltd. 21,046 21,046 Provati Insurance Co. Ltd. - 80,131 Central Insurance Co. Ltd. 807,750 907,630 Prime Insurance Co. Ltd. 19,927 26,576 Eastland Insurance Co. Ltd. 133,512 133,512 Eastern Insurance Co. Ltd. - 3,951 United Insurance Co. Ltd. 8,125 8,125 Mercantile Insurance Co. Ltd. - 25,831 Takaful Insurance Co. Ltd. 844 844 Agrani Insurance Co. Ltd. 59,044 59,044 United Insurance Co. Ltd. 2,815 2,815 Standard Insurance Ltd. 137,500 137,500 Northern General Insurance Co. Ltd. 141,106 272,317 Total 1,931,708 3,504,304


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34.00 CASH AND BANK BALANCES The amount is made up as follows:

34.01 Fixed Deposit Receipts (FDR) : 1) FDR issued by different Bank in favour of the Company.

34.02 Short Term Deposit Account & Cash in Hand a) STD Balances are in agreement with Bank balance of respective account, where necessary reconciliation was done.b) Cash Balances have been certified by the local management.

35.00 Fixed Assets Less Depreciation (Annexure - IV) This is arrived at as under:

Cost as on 01-01-2015 112,793,632 107,014,533 Add: Addition during the year 10,956,229 5,779,099 123,749,861 112,793,632 Less: Depreciation: Dep. as on 01-01-2015 37,645,083 30,054,958 Depreciation charged during the year 8,306,952 7,590,125 45,952,035 37,645,083 Balance as on 31-12-2015 77,797,826 75,148,549

36.00 Stock of Stationery This is made up as follows: Balance as on 01-01-2015 379,945 158,963

Add : Purchase during the year 2,045,900 1,880,351 2,425,845 2,039,314 Less : Consumed during the year 2,021,672 1,659,369 Balance as on 31-12-2015 404,173 379,945

37.00 INTEREST ON FDR, STD AND BGTB This is made up as follows:

AMOUNT (TK.)31.12.2015

AMOUNT (TK.)31.12.2014

PARTICULARS

Fixed Deposit Receipts ( Annexure-I) 556,974,992 478,667,289 Short Term Deposit Account ( Annexure-II) 48,064,992 40,907,832 Cash in Hand ( Annexure-III) 4,618,277 2,664,212 Stamps in Hand 241,938 449,890 Total 609,900,199 522,689,223

AMOUNT (TK.)31.12.2015 31.12.2014

AMOUNT (TK.)31.12.2015

AMOUNT (TK.)31.12.2014

PARTICULARS

Interest on STD Account 1,542,244 1,446,643Interest on FDR 53,451,934 37,773,518Interest on BGTB 2,957,500 2,995,216Total 57,951,678 42,215,377


38.00 ALLOCATION OF MANAGEMENT EXPENSES (APPLICABLE TO FUND) NAME OF BUSINESS APPORTIONED DIRECT CHARGE AMOUNT (TK.) AMOUNT (TK.) 31.12.2015 31.12.2014 Fire 26,101,434 - 26,101,434 28,670,039 Marine Cargo 36,203,740 - 36,203,740 36,198,193 Marine Hull 127,993 - 127,993 95,535 Motor 18,696,124 - 18,696,124 19,068,776 Miscellaneous 10,294,296 - 10,294,296 11,502,408 Total 91,423,587 - 91,423,587 95,534,951

39.00 AGENCY COMMISSION Class wise Agency Commission are as follows:

CLASS OF BUSINESS DIRECT GOVT. AMOUNT (TK.) AMOUNT (TK.) 31.12.2015 31.12.2014 Fire 15,017,060 - 15,017,060 14,196,844 Marine Cargo 19,203,725 - 19,203,725 16,500,101 Marine Hull - - - - Motor 10,799,462 - 10,799,462 9,480,315 Miscellaneous 3,655,660 - 3,655,660 3,225,516 Total 48,675,907 - 48,675,907 43,402,776

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40.00 GROSS PREMIUM INCOME

Class wise Private & Govt. Gross Premium Income are as follows:

CLASS OF BUSINESS DIRECT GOVT. Fire 100,113,730 3,353,689 103,467,419 97,872,174 Marine Cargo 128,024,834 15,468,558 143,493,392 123,541,965 Marine Hull - 547,995 547,995 331,531 Motor 71,996,411 2,096,666 74,093,077 65,104,118 Miscellaneous 24,371,068 16,417,222 40,788,290 39,269,245 Total 324,506,043 37,884,130 362,390,173 326,119,033

AMOUNT (TK.) AMOUNT (TK.)31.12.2015 31.12.2014


41.00 NET PREMIUM INCOME

Premium Income Fire Marine Marine ( H) Motor Miscellaneous Amount

3,353,689 15,468,558 547,995 2,096,666 16,417,222 37,884,130

Private Business: Less Refund 100,113,730 128,024,834 - 71,996,411 24,371,068 324,506,043103,467,419 143,493,392 547,995 74,093,077 40,788,290 362,390,173

R/I Premium Accepted - - - - - -

103,467,419 143,493,392 547,995 74,093,077 40,788,290 362,390,173

R/I Premium Ceded 43,533,196 27,441,195 427,242 2,729,305 18,109,472 92,240,410

Premium Less Reinsurance 59,934,223 116,052,197 120,753 71,363,772 22,678,818 270,149,763

( Amount in Taka )

PSB

58

42.00 EARNINGS PER SHARE (EPS) AS PER BAS 33 Basic Earnings per Share (EPS) Basic EPS = Net profit after tax No. of Shares during the year

AMOUNT ( TK ) AMOUNT ( TK )

EPS 2.01

2.62

31.12.201431.12.2015

Computation of Earnings Attributable to Ordinary Shareholders:

AMOUNT (TK.) AMOUNT (TK.)

Net Profit before Tax 74,345,384 59,066,017

Less: Provision for Income Tax 19,960,592 14,325,596

Less: Deferred Tax Expenses/Income 1,125,943 6,460,083

Profit After Tax 53,258,849 38,280,338

31.12.201431.12.2015PARTICULARS

Computation of weighted average number of Shares Outstanding.

Particulars No. of shares Daily Product for the period

Weighted Average No. of Shares for the period

Issued for the Year 26,550,000 365 days 26,550,000

Total 26,550,000 26,550,000

January to December

Outstanding Period


43.00 CALCULATION OF PROVISION FOR INCOME TAX This is made up as follows:

44.00 INTRINSIC VALUE OR NET ASSETS VALUE

AMOUNT (TK.) AMOUNT (TK.)31.12.2015 31.12.2014

Profit before Tax 74,345,384 59,066,017Less: Reserve for Exceptional Losses 27,014,976 24,942,727Less: Dividend Income 688,136 785,787

27,703,112 25,728,51446,642,272 33,337,503

Tax on Profit 19,822,965 14,168,439Tax on Dividend Income 137,627 157,157Provision for Income Tax 19,960,592 14,325,596

PARTICULARS

AMOUNT (TK.)31.12.2015

A. ASSETS:

Investment at cost 25,000,000

Investment in Shares 30,662,659

Interest Accrued but not due 29,120,679

1,931,70857,435,761

Cash and Bank Balances (including stock of stamp) 609,900,199

Fixed Assets and Stock of Stationary 78,202,001

832,253,007

B. LIABILITIES:

Balance of Funds and Accounts 108,132,357

114,788,709

30,093,243

76,620,890Premium Deposit Account 27,664,912

7,586,026

Sub Total 364,886,137

Total Net Assets (A-B) 467,366,870

No. of Shares 26,550,000

Intrinsic Value/ Net Assets Value per Share (NAV) 17.60

Deferred Tax Liability

Sundry Creditors (Including provision for expenses, Taxes)

Amount due from other persons or bodies carrying on Insurance Business

Sundry Debtors (Including Advances, Deposits & Prepayments)

Estimated Liabilities in respect of outstanding claims whether due orintimatedAmount due to other persons or bodies carrying on Insurance Business

PARTICULARS

Sub Total

59


45.00 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURE UNDER BAS 32 "FINANCIAL INSTRUMENTS: DISCLOSURE AND PRESENTATION".

Setout below is a year-ended balance of carrying amounts (book value) of all financial assets and liabilities (Financial Instruments):

46.00 RELATED PARTY TRANSACTIONS-DISCLOSURE UNDER BAS 24 "RELATED PARTY DISCLOSURE"

During the year under review the Company carried out the transactions with the related parties in the normal course of business and on arm's length basis.

47.00 PAYMENT / PERQUISITES TO DIRECTORS

No amount of money was spent by the Company for compensating any member of the Board for services rendered other than Board Meeting Fee.

Non InterestMaturity within Maturity after Bearingone year one year

Financial Assets

Bangladesh Govt. Treasury Bond - 25,000,000 - 25,000,000

Investment in FDR 556,974,992 - - 556,974,992

Interest accrued but not due 29,120,679 - - 29,120,679

Sundry Debtors - - 57,435,761 57,435,761

Investment in Shares - - 30,662,659 30,662,659

Stamp in Hand - - 241,938 241,938

Cash at Bank 48,064,992 - - 48,064,992

Cash and Cash Equivalents - - 4,618,277 4,618,277

Total 634,160,663 25,000,000 92,958,635 752,119,298Financial Liabilities

Outstanding Claims - - 114,788,709 114,788,709

Sundry Creditors - - 76,620,890 76,620,890

Total - - 191,409,599 191,409,599

Net Fin. Assets/Liabilities 634,160,663 25,000,000 (98,450,964) 560,709,699

Interest BearingParticulars

Total

Amount in Taka

Name of Relationship

Nature of Transaction

Transaction Amount ( TK)

Common Directors Insurance Premium 9,831,341 M/S.Meghna Group

Name of Party

60


48.0

0CO

NTIN

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LIA

BILI

TIES

Ass

esse

d

Inco

me/

As

sess

ed

(Lo

ss)

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12

34

56

= (4

-5)

7

2005

2006

-07

24,2

92,8

9512

,414

,024

419,

444

11,9

94,5

80

2006

2007

-08

27,6

39,6

7713

,932

,880

1,15

4,71

812

,778

,162

2007

2008

-09

12,9

60,0

236,

099,

140

2,45

8,02

43,

641,

116

2008

2009

-10

8,13

2,92

1

3,54

9,23

42,

036,

503

1,51

2,73

1

2009

2010

-11

25,4

93,5

2911

,789

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7,50

4,22

64,

285,

400

Befo

re A

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2010

2011

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13,2

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6,41

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16,7

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931,

609

1,23

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84,

699,

451

Appe

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Trib

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2013

-14

20,4

82,6

249,

330,

457

4,55

6,63

74,

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820

Appe

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pro

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2013

2014

-15

-

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6,77

4,33

4As

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bef

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DCT

2014

2015

-16

-

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96As

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2016

-17

-

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144,

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69,2

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61


1 A.B. Bank Ltd. 12,531,393 11,833,003 2 Agrani Bank 2,327,833 2,252,976 3 Al-Arafa Bank Ltd. 11,972,012 10,166,323 4 Bangladesh Commerce Bank Ltd. 5,444,763 5,022,941 5 Bank Asia Ltd. 5,544,988 500,000 6 BASIC Bank Ltd. 2,034,755 995,009 7 Dhaka Bank Ltd. 19,412,493 17,989,281 8 Dutch Bangla Bank Ltd. 17,278,367 15,797,045 9 Eastern Bnak Ltd. 1,542,937 1,542,937 10 EXIM Bank Ltd. 18,035,343 11,441,033 11 gsp finance company (BD) Ltd. 2,500,000 2,500,000 12 ICB Islami Bank Ltd. 2,630,670 4,525,937 13 IDLC Finance Limited 5,000,000 - 14 IFIC Bank Ltd. 7,482,391 7,318,072 15 Islami Bank B/D Ltd. 17,702,633 15,746,435 16 Jamuna Bank Ltd. 13,970,163 12,544,946 17 Janata Bank Ltd. 7,561,700 7,057,874 18 Lanka Bangla Finance Ltd 3,000,000 - 19 Mercantile Bank Ltd. 2,133,555 1,982,463 20 Midland Bank Ltd. 2,181,250 2,000,000 21 Modhumoti Bank Ltd. 171,963,389 224,645,611 22 Mutual Trust Bank Ltd. 13,504,476 12,031,281 23 National Bank Ltd. 35,130,998 32,055,551 24 NCC Bank Ltd. 6,036,353 5,153,091 25 NRB Commercial Bank Ltd. 1,101,800 1,000,000 26 One Bank Ltd 500,000 - 27 Prime Bank Ltd. 1,488,502 1,379,950 28 Pubali Bank Ltd. 5,491,100 5,145,101 29 Rajshahi Krishi Unnayan Bank 1,647,254 1,647,254 30 Rupali Bank Ltd. 1,045,029 952,574 31 SBAC Bank Ltd 2,000,000 - 32 Shajalal Islami Bank Ltd. 8,992,166 7,449,525 33 Social Islami Bank Ltd. 22,048,843 17,364,822 34 Southeast Bank Ltd. 9,549,079 7,497,264 35 Standard Bank Ltd 2,787,898 2,656,69836 The City Bank Ltd. 2,093,937 1,937,485 37 The Farmers Bank Ltd. 49,555,875 3,337,500 38 UCBL 23,992,107 20,828,80939 Union Bank Ltd 33,730,000 - 40 Uttara Bank Ltd 2,962,694 1,868,49841 Premier Bank Ltd 1,066,246 500,000 556,974,992 478,667,289

SL. No. Name of Bank Amount (Tk.)31-12-2015

Amount (Tk.)31-12-2014

Annexure-A

The details bank wise balance of Fixed Deposit Receipts account (FDR) as on 31-12-2015 as per books of accounts are as under:

62


1 A B Bank Ltd. 1,248,429 1,407,675 2 Agrani Bank Ltd. 180,424 649,455 3 Al-Arafa Islami Bank Ltd. 1,830,879 272,545 4 Bangladesh Commerce Bank Ltd. 82,834 82,834 5 Bangladesh Krishi Bank 9,282 9,282 6 Bank Asia Ltd. 6,335 6,335 7 BASIC Bank Ltd. 2,905,726 5,271,781 8 Dhaka Bank Ltd. 114,525 114,525 9 Dutch Bangla Bank Ltd. 762,832 617,241 10 Eastern Bank Ltd. 16,539 16,539 11 Exim Bank Ltd 1,443,991 - 12 ICB Islami Bank Ltd. 670,401 672,28113 IFIC Bank Ltd. 4,243,745 2,736,86314 Islami Bank Bangladesh Ltd. 3,003,079 3,950,23615 Jamuna Bank Ltd. 1,933,302 1,500,43316 Janata Bank Ltd. 1,359,761 239,86217 Modhumoti Bank Ltd 282,799 - 18 Mutual Trust Bank Ltd. 3,685,671 6,004,59519 National Bank Ltd. 831,882 487,04820 NCC Bank Ltd. 6,204,047 2,728,10421 NRB Bank Ltd 80,766 - 22 One Bank Ltd. 516,343 620,17323 Premier Bank Ltd 2,082,160 983,91924 Prime Bank Ltd. 1,547,111 1,394,34225 Pubali Bank Ltd. 2,316,564 3,852,47426 Rupali Bank Ltd. 198,904 113,13527 Shahjalal Islami Bank Ltd. 6,923,960 5,975,08628 Social Islami Bank Ltd. 1,805,609 102,36829 Sonali Bank Ltd. 553,695 267,59430 Southeast Bank Ltd. 26,209 26,20931 The Farmers Bank Ltd 862,584 - 32 United Commercial Bank Ltd. 141,924 130,53233 Uttara Bank Ltd. 192,680 674,366 48,064,992 40,907,832

SL. No. Name of Bank Amount (Tk.) 31-12-2015

Amount (Tk.) 31-12-2014

Annexure-B

The details bank wise balance of Short Term Deposit receipts account (STD) as on 31-12-2015 as per books of accounts are as under:

63


The details Branch Wise Cash In Hand as on 31-12-2015 are as under:

Annexure-C

64

BRANCH NAME AMOUNT Agrabad Branch 137,775.00 B.B.Avenue Branch 161,118.00 Bongshal Branch 61,783.00 Bagerhat Branch 30,000.00 Chowmuhani Branch 30,000.00 Dilkusha Branch 5,013.00 Faridpur Branch 47,317.00 Gulshan Branch 185,634.00 Head Office 118,874.00 Jamalpur Branch 38,783.00 Jatrabari Branch 200,023.00 Jessore Branch 74,972.00 Jubliroad Branch 215.00 Kawrun Bazar Branch 9.00 Khatungonj Branch 18.00 Khulna Branch 33,194.00 Local Office 54,736.00 Motijheel Branch 15,131.00 Moulvibazar Branch 4,092.00 Mymensingn Branch 10,015.00 Narayangonj Branch 2,496.00 Noapara Branch 25,134.00 Paltan Branch 200,054.00 Rajshahi Branch 50,051.00 Rangpur Branch 44.00 Sheikh Mujib Road 27,652.00 Uttara Branch 2,982.00 V.I.P.Road Branch 300,012.00 Sub Total 1,817,127.00

Insurance Stamp 301,150.00 DD Transit 2,500,000.00 Sub Total 2,801,150.00 Total 4,618,277.00


BA

NG

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ATIO

NA

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OM

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OF

NO

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31

DEC

EMB

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015

Sl.

PART

ICUL

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WRITT

EN

No.

Balan

ce

Addit

ion

Sales

/To

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Charg

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Adjus

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01.01

.2015

year

durin

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year

31.12

.2015

01.01

.2015

year

year

31.12

.2015

31.12

.2015

1La

nd6,0

00,00

0-

- 6,0

00,00

0

--

-

- -

6,000

,000

2

Offic

e Equ

ipmen

t7,8

41,42

31,4

99,00

9

- 9,3

40,43

2

20%

20%

25%

30%

10%

15%

5%

3,749

,185

96

8,349

- 4,7

17,53

4

4,622

,898

3

Book

s & P

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14,00

0

- -

14,00

0

8,839

1,0

32-

9,871

4,1

29

4Ca

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tor V

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,305,0

687,6

85,90

0

- 29

,990,9

68

12

,035,8

78

3,528

,035

- 15

,563,9

13

14,42

7,055

5

Offic

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,290,1

481,3

50,00

0

- 11

,640,1

48

7,4

41,94

7

1,056

,960

- 8,4

98,90

7

3,141

,241

6

Furni

ture &

Fixtu

res3,1

59,94

342

1,320

-

3,581

,263

81

9,649

25

5,095

- 1,0

74,74

4

2,506

,519

7

Telep

hone

Insta

llatio

n95

8,300

-

- 95

8,300

780,2

19

26,71

2-

806,9

31

151,3

69

8Bu

ilding

62,22

4,750

- -

62,22

4,750

12,80

9,364

2,4

70,76

9-

15,28

0,133

46

,944,6

17

Total

112,7

93,63

210

,956,2

29

- 12

3,749

,861

37

,645,0

81

8,306

,952

-

45,95

2,033

77

,797,8

28

COST

DEPR

ECIA

TION

65


66

Bangladesh National Insurance Company LimitedDirector’s Certificate

As per regulation contained in the First Schedule of the Insurance Act, 1938/2010 and as per Section 40-C of the Act certify that:

01. The value of all Assets shown in the Balance Sheet and classified on Form``AA’’ annexed have been reviewed as at 31st December, 2015 & in our belief, the said assets have been set forth in the Balance Sheet at amount not exceeding their realizable or market value under the several headings enumerated in the annexed form

02. All expenses of management wherever incurred, whether directly or indirectly in respect of Fire,

Marine Cargo, Marine Hull, Motor & Miscellaneous insurance business have been fully debited in the respective Revenue Account as expenses.

Cief Executive Officer (Acting) Director Director Chairman

Dated: 25.02.2016Place: Dhaka, Bangaldesh


PROXY FORM

Notes :01. This Proxy Form, duly completed,Signed and affxed with revenue stamp of 10/- must be deposited atleast 48 hours before the meeting of the company’s Registered office. Proxy will be invalid if not signed andStamp as explained above.02. Signature of the Shareholder should match with the Specimen Signature Registered with the Company.

Folio No. -----------------------------------------BO A/C No.--------------------------------------

Name of Member / Proxy : .............................................................................................................................

Folio or BO A/C No..........................................................................................................................................

Signature Shareholder Dated:...........................

Note: Shareholder attending meeting in person to by proxy are requested to complete Attendance slip andhand it over at the entrance of the meeting hall.

RevenueStampTk. 10

ATTENDANCE SLIP

I/We................................................................................................................................................................of....................................................................................................................................................................being a member of Bangladesh National Insurance Company Limited do hereby appoint Mr. / Mrs. / Miss ........................................................................................................................................................................ of....................................................................................................................................................................as my / our proxy, to vote For me / us and on my / our behalf at the 20th Annual General Meeting of the Company to be held on March 14, 2016 at 4.30 P.M. at WW Tower, Level-15, 68 Motijheel C/A, Dhaka and at any adjournment thereof or at any ballot to be taken in consequence thereof.

Signed this--------------------------------------------------------------------------- Day of-----------------------------------------

Signature of Proxy------------------------------------------ Signature of Shareholder ---------------------------------------

I/we hereby record my/our attendance at the 20th Annual General Meeting of the Company being held on March 14, 2016 at 4.30 P.M. WW Tower, Level-15, 68 Motijheel C/A, Dhaka - 1000.

Bangladesh National Insurance Co. Ltd.Registered Office : ww Tower, 68, Motijheel C/A (Level-15), Dhaka-1000.

Phone : 88-02-9573481-8, Fax : 88-02-9555704E-mail : [email protected], Website : www.bniclimited.com

Bangladesh National Insurance Co. Ltd.Registered Office : ww Tower, 68, Motijheel C/A (Level-15), Dhaka-1000.

Phone : 88-02-9573481-8, Fax : 88-02-9555704E-mail : [email protected], Website : www.bniclimited.com

Annual Report -2015

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