Delta Life Insurance 2012

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Annual Report 2 12

elta Life Insurance Company Ltd



KI

TransmittalLetter.............................................................................

s1

Notice of the

2 7

Annual General Meeting......................................

5

Boardof Directors ...........................................................................

6

Corporate Management ....................................................................

7

Visio n/G oal/V alue s .........................................................................

8

Fina ncialS tatistics ............................................................................

9

Grap hical P resentation o f Business Perform ance ............................

0

Fro m the Ch airm an's De sk .............................................................

2

Directors' Report .............................................................................

5

Re port of the Au dit C om mitte e ......................................................

6

Report on Corporate Governance ..................................................

7

Auditors' Report ..............................................................................

5

Ba lance She et ....................................................................................

8

Life Revenue Account ......................................................................

0

Cash Flow Statement .......................................................................

3

Statement of Life Insurance Fund ...................................................

4

Statement of Changes in Stockholders Equity................................

5

Form AA .........................................................................................

46

Notes to the Financial Statements .........................................................

48

Dire ctors ' Re spo nsibility State m ent ......................................................

83

Certificate of CEO CFO under Corporate Governance Guidelines..........

84

Imp ortan t O ffices of the Co mp any .........................................................

85

Pr oxy For m A ttend anc e Slip ............................................................

87



Chronology

10 November 1986

ncorporation and

Comm encement of Business

17 December 1986

igning of First Policy

February

988

aunching of Grameen Bima

8 October

993

aunching of Gono Bima

7 February

994

nauguration of Delta Care

Hospitalisation Plan

13 September 1995

isted in Dhaka Stock

Exchange Ltd.

6 December

995

isted in Chittagong Stock

Exchange Ltd.

March

001 Membership of Global Network

for Banking Innovation

in Microfinance GNB I)

4 January

003 Gono Grameen Bima Merged

3 January

01 2

ilver Jubilee of the Company



Transmittal Letter

All Shareholders

Bangladesh Securities and Exchange Commission

Insurance Development and Regulatory Authority

Registrar of Joint Stock Companies Firms

Dhaka Stock Exchange Limited

Chittagong Stock Exchange Limited

Central Depository Bangladesh Limited

All other stake holders

Dear Sirs,

ANNUAL REPORT FOR THE YEAR ENDED

3 st

DECEMBER 2012

We are pleased to enclose herewith a copy of the Annual Report - 2012 together with Audited Financial

Statements for the year ended December 31 , 2012 along with notes thereon for your kind information and

record.

Sincerely yours

let

Abdullah Al-Mansur

Company Secretary

aII

Dort 2012:



Delta Life Insurance Company Ltd.

90 Motij heel Commercial Area, Dhaka-i000, Bangladesh.

Notice of the Twenty seventh Annual General Meeting

Notice is hereby given to all the shareholders of Delta Life Insurance Co. Ltd. that the 27' Annual

General Meeting of the Company will he held on Saturday, the 16th November , 2013 at 3:00 P.M. at

Delta Life Tower, Plot No. 37, Road No. 45 (South) & 90 (North), Gulshan Circle -2 , Dhaka to

transact the following business

genda

To receive, consider and adopt the Directors' and Auditors' Report and the Audited Accounts for

the year ended December 31, 2012.

2

To declare dividend for the year 2012 (Please see note b) as recommended by the Board of

Directors.

3

To elect Directors as per Articles of Association of the Company.

4

To appoint Auditors for the year 2013 and to fix their remuneration.

5

To approve the appointment of Independent Directors (As per Bangladesh Securities and Exchange

Commission's Corporate Governance Guidelines).

Dated, Dhaka

October 21, 2013

By order of the Board of Directors

Sd/-

A bdullah Al-Mansur)

Company Secretary

Notes

a

The Record Date has been fixed on 30th October 2013. The shareholders whose name appears in the

Register of Members of the Company or in the Depository (CDBL) on the Record Date 1.e.30th

October , 2013 shall be entitled to attend the meeting and to receive the dividend.

b

The Board of Directors recommends 21 (twenty one) bonus shares (stock dividend) for existing 1

(one) share of Tk. 10 each out of the surplus emerged in 2012 together with accumulated surplus for

the years 2005 to 2011

c

A Shareholder entitled to attend and vote at the Annual General Meeting (AGM) may appoint a

proxy who must be a shareholder of the Company to attend on his/her behalf. The proxy form, duly

completed & stamped must be deposited at the Registered Office of the Company not less than 48

hours before the time fixed for the Meeting.

d

In accordance with the Judgement of the Appellate Division of the Hon'ble Supreme Court of

Bangladesh dated 20th June , 2013 , all Directors shall retire at the AGM for the year 2012 and may, if

eligible, offer themselves for re-election.

Nomination Form and criteria for qualification of the Directors and Election schedule are available at

the Registered Office of the Company.

e

Admission to the Meeting will be on production of the attendance slip sent with the Annual Report.

05



I

Directors

Mr. Aziz Ahmed FCA CISA

Mr. Borhanuddin Ahmed

Mr. Kazi Faziur Rahman

Mr. Golam Sarwar

Mr. Md. Mujibur Rahman

Mr. Zeyad Rahman

Mr. Arif Ahmed

Ms. Saika Rahman

Ms. Anika Rahrnan

Ms Syeda Soyeli Ahmed

Mr. Md. Abdul Wahab

Mr. M. Anisul Haque FCMA

Mr. Joynul Abedin

Managing Director In-Charge)

Mr. Swapan Kumar Sarkar FCA

Consulting Actuary

Mohammad Sohrab Uddin PhD AlA

ompany Secretary

Mr. Abdullah Al-Mansur



Corporate Management

Managing Director In-Charge)

Mr. Swapan Kumar Sarkar, FCA

Consultant

Mrs. Adeeba Rahman, ACII, Chartered Insurer (UK)

Executive Director

Brigadier General M. Mosharraf Hossain (Retd.)

Dr. Ashraf Uddin

Senior Executive Vice President

Mr. Anwarul Haque

Executive Vice President

Mr. Md. Abdul Hai

Mr. M. Abdullah Saadi

Mr. Md. Ahsan Habib

Mr. Kama] Kumar Sarker, FCCA

Joint Executive Vice President

Mr. Md. Hafizur Rahman Khan

Mr. Khandaker Md. Nurullah

Mr. Md. Kamarul Haque

Mr. Abdullah Al-Mansur

Mr. Md. Lutfor Rahman

Mr. Md. Main Uddin Faruk

Mr. Md. Manzure Mawla

Senior Vice President

Mr. Md. Farhad Jalil

Mr. Tapan Kumar Biswas

Ms. Umme Habiba

Mr. Mohammad Abdul Hai

Dr. Md. Nazrul Islam

Mr. Mahmudur Rahman Chowdhury

Mr. Nripendra Podder

Mr. Md. Abdul Awal

Mr. Md. Asaduzzaman Mallik

Mr. Md. Asif Iqbal

Mr. Md. Saiful Islam

Mr. Mohyminul Islam Miltan Bepari

Bankers

Uttara Bank Ltd

ubali Bank Ltd.

HSBC Bank Ltd.

utch Bangla Bank Ltd.

Bangladesh Krishi Bank Ltd

ajshahi Krishi Unnuan Bank

Janata Bank Ltd.

grani Banak Ltd.

Mercantile Bank Ltd.

upali Bank Ltd.

City Bank Ltd.

outheast Bank Ltd.

Islami Bank Ban

gladesh Ltd

ational Bank Ltd.

Auditors

Hoda Vasi Chowdhury Co.

Chartered Accountants

Premier Bank Ltd.

Sonali Bank Ltd.

Citibank N.A.

Dhaka Bank Ltd.

Bank Asia Limited

Jamuna Bank Ltd.

Al Arafah Bank Ltd.



iji n

l

We will be the premier life insurance Company in Bangladesh.

l

We will serve our customers with respect and will provide the best solution for

their needs.

We will be a Company with qualified professionals who will work together as a

team and serve with dignity and the highest level of integrity. We believe in

excellence and will continuously improve our customer service and will obtain

the loyalty of our customers with service beyond their expectations.

l

Adding value' will he the operative words of our organization.

oat

rovide financial security to our customers with insurance policies that are most suitable

for them.

Make life insurance an easy saving instrument and a profitable one with attractive bonus

and improved customer service.

E

Collect small savings from the people of our country and invest the accumulated savings

in profitable nation building enterprises.

Vauej

T U ST

eamwork

espect for all people

nquestionable integrity

xcellence in everything we do

peed in servicing

l

ruthfulness



2011

1/

3.70

14.19

15.65

2010

10.13

23.34

24 .76

Business Performance -2012

irst Year Premium

Renewal Premium

Group Insurance Premium

Health Insurance Premium

Gross Premium

Investment Income

Claims

Management Expenses

a) Commission

b) Admin. Expenses

Assets

Life Fund

Claims to Premium ( )

Management Expenses to

premium ( )

Dividend on face value of share

Stock

Taka in Crore)

2009

008

107.37

5.32

300.84

66.79

19.94

6.17

10.68

.2 3

438.83

83.51

181.90

27.64

204.22

43 .40

82.43

0.71

58.35

3.24

1750.29

469.60

1613.59

342.47

46 .54

3.47

32.08

2.32

2012

011

010

81.07

28.32

20.45

386.19

39.21

27.13

25 .36

4.33

1.27

16.06

.3 1

4.43

508.68

01.17

83,28

232.76

11.29

00.79

284.29

29.67

20.95

63.05

8.11

4.69

77.73

3.78

8.45

2771.73 465.18

158.87

2633.16

328.20

013.06

55.89

5.83

5.72

27.68

4.30

3.76

21 bonus shares

(Stock dividend)

for each share

of Tk.1O

usiness

Growth

2012

Premium

.5 0

Assets

2.44

Life Fund

3.10

2009

008

1 1

1

I _

442

2.40

19.10

1.23

20.20

2.00

09



Premium Income

Taka in Crore)

II Grou

p

Health

N - G R B

rdinary Li fe

40 0

35 0

30 0

25 0

20 0

15 0

100

250.52

48.63

43.97

212.47

1891

20.06

197.06

1 6 4 2 3

3 0 6 2

J 1 i

3 1 6 4

iJ I

00 8

00 9

01 0

01 1

01 2

Premium Life Fund

T aka in Crore)

—4—Premium —0 Life Fund

2700

2 4 0 0

2 1 0 0

1 8 0 0

1 5 0 0

1 2 0 0

.

.. -

9 00

60 0

51

3 8 . 83

0

2008

009

2633 .16

-4

508.68

2010

012



2 8 9 1 11 12

35

3

25

2

15

1

5

Premium & Claim

Tuka in Crore)

Premium laim

6

4 8 3 2 7

1 1 7

8 6

5

3 8 8 3

3 8 3 5 1

40 0

2 4 3 4

3

42 2

95

2 6 7

84 29

2

2 0 0 8

2 0 0 9

0 10

01 1

2012

Investment Income

Taka in rore

I Assets

(Taka in Crore)

277173

2465.18

2 1 5 8 8 7

1 7 2 9

1 4 6 9 6

4 2 6 4 6

Analysis of Utilisation of Income (in )

U Management Expenses laims rovision • Life Fund

2012

2

2010

2009

2 0 0 8



FROM THE CHAIRMAN S DESK

ear Shareholders

Assalamualaikurn,

I have the pleasure to warmly welcome you all to the 27

Annual General Meeting of Delta Life

Insurance Comp any Ltd. D LICL) on behalf of the Board of Directors of the compa ny. We are delighted

and overwhelme d with your presence at the Annu al General Meeting at our own premises. Thank you

all.

I am pleased to inform you that DLICL has completed another year of profitable operations despite

formidable challenges. Meanwhile, the Annual Report of the Comp any has already been sent to you.

All of you are aware of the fact that Insurance Development and Regulatory Authority IDRA) has laid

down some rules and regulations as to the rate of commission and marketing hierarchy in

2012. W e

strictly restructured our commission schedule and marketing hierarchy in the light of those rules and

regulations. It came heavily in the way of our first year premium income. Despite all these

impediments, Delta Life achieved comm endable growth in renewal prem ium income. It is indicative of

a good conservation rate of businesses and sound underwriting practices.

We registered a significant rate of growth in

2012

in terms of premium income life fund and claims

payment compared to that of 2005-11.

In 2005, our life fund was TK.

843.05 crore in

2012,

it stands at

TK.

2633.15

crore. Similarly, our gross premium income in

2005

was TK.

257.51 crore, and for the year

ending on December

31 2012;

it stands at TK.

508.68

crore. In claims paym ent, a noteworthy growth

has been observed in 2012 compa red to the year

2005. In

2012,

we paid and provided TK.

284.28

crore as

claim, while it was TK. 52.60

crore in the year

2005.

12



I believe that the Directors' Report would present a com prehensive view that would enable yo u to assess

the financial position of the com pany. I assure you that w e shall always stand beside you in securing yo ur

best return on investment.

A brief result of the operational performance of the com pany during the year

2012 and 2011 is juxtaposed

here for your kind convenience:

Total premium income of the company has increased marginally to TK.

508.68

crores in

2012

from

TK. 501.17 crores in

2011,

that is by around

1.50 despite decline in first year premium income.

The m anagem ent expenses as a percentage to total prem ium incom e (gross) has declined. The overall

expenses ratio went dow n to

27.68

in

2012 from

34.30

in 2011.

Claims paid and p rovided to the valued policy holders registered a significant growth of

23.78

in

2012

compared to the year

2011. In

2012,

we paid

TK.284.29

crore, it was

TK. 229.67

crore in

2011.

Investment and other income has also registered a positive growth of around

9.98 in

2012; as such

income has increased from TK. 214.16 crores in 2011

to Tk.

235.53 crores in

2012.

It became p ossible due

to a prudent investment policy of the board.

On behalf of the Board of Directors I wish to extend my heartfelt thanks and gratitude to our valued

policyholders, honourable shareholders, and well-wishers for their continuous support and cooperation.

I also express deep appreciation to the Sponsors, Patrons, and Company Managem ent, all mem bers of

our staff for the constant support/effort they provided to the Company.

Dhaka, October 05, 2013

onzurur Rahman

Chairman

Boa rd of Directors

13



2 t

p l o

p

k, opt

p



2,842,866,842

1,407,782,425

4,250,649,267

192,184,968

4,442,834,235

2,941,914,158

23,282,041,204

107,622,750

2,296,733,387

1,719,473,793

4,016,207,180

121,472,139

4,137,679,319

2,9 79,305,387

20,130,605,300

172,130,517

55.89

27.68

83.56

1.26)

26,331,578,112

3,282,041,204

3.10

aa

Directors Report

Bismillahir Rahmanir Rahim

Respected Shareholders Assalamualaikum

The Board of Directors welcome you all to the

27

Annual General Meeting of Delta Life Insurance

Company Limited and present before you the Annual Report together with the Audited Accounts for the

year 2012 and the Auditors' Report thereon.

The Board of Directors continued to focus on two key priorities in 2012; a) to sustain growth of business,

to improve financial strength and b) to invest in the future. With appropriate attention to compliance with

IDRA regulations, Delta Life made steady progress towards these two areas in 2012.

(iro v1

H

of Rosiness I

inancial strength:

Delta life Insurance Company Ltd. completed another business year in 2012

vidend

for the Year- 2012 is furnished

below:

2012

Amount in Taka

5,086,791,956

5 7,365,054)

5,029,426,902

2,327,639,110

27,682,381

7,384,748,393

2

Amount in Taka

5,011,684,328

36,337,655)

4,975,346,673

2,112,903,816

28,734,217

7,116,984,706

( )

Increase v r

2011

1.50

1.09

10.16

3.48)

3.76

( ) of

Particulars

remium

Income

A. Income

Gross Premium Income

00

Re-insurance

Net Premium

Investment Income Interest,

Dividends)

Other Income

Total Income Subtotal-A)

B. Expenses

i) Claims

ii ) Management Exps.

Total Outgo i+ii)

Ili) Reserve for unexpired risk

Total Expenditure B)

C. Excess of Income Over

Expenditure A-B)

D. Life Fund b/fwd

E. Adjustment made during

the year

F. Life C/fwd C + D + E)

15



The operational results (before tax & dividend) of Delta Life Insurance Company Ltd. for the year ended

31

December, 2012 can be evaluated by various indicators,such as premium income, total income, total

outgo, management expenses and life insurance fund as stated below:

i. Premium Income Gross):

The premium income of the company consists of premium from OL

(Ordinary Life), GN-GRB (Gono Grameen Bima) and Group Insurance business. Although, the

first year premium income (Tk.81.07 crores as against Tk.128.32 crores in 2011) declined (by

36.82 ), the overall premium income has increased marginally to TK. 508.68 crores in 2012 from

TK. 501.17 crores in 2011, that is, by around 1.50 . In March 2012, the Insurance Development

and Regulatory Authority (IDRA) introduced identical commission rate and hierarchy for the

marketing team applicable for all life insurers. As a result, first year premium income was affected

and a significant negative growth was observed. However, growth in volume of renewal premium

13.85 is an indication of increased business conservation ratio as well as improvement in quality

of underwriting. A significant rate of increase has been observed in Group Life and Health

Insurance premium income. It stands at TK. 41.42 crore in 2012 as compared to TK. 33.64 crore

in 2011 registering a growth of 23.13 .

otal Income:

Total income has also increased from TK. 711.70 crores in 2011 to TK. 738.47

crores in 2012 that is by 3.76 during the twelve months ended on 2012.

Investment and other income

has also registered positive growth of around 9.98 in 2012; as

such income has increased from TK. 214.16 crores in 2011 to Tk. 235.53 crores in 2012.

111

Yield on investment:

Average rate of interest yielded in the year 201 2 is 9.84 (10 .23 FY 201 1 )

iv

Total outgo

(Tk.425.06 crores) includes payment to policy holders (claims etc.) commission and

other allowances paid to development staff and officers and management expenses. The total

outgo as a percentage of premium income has increased to 83.56 in 2012 as against 80.14 in

2011. This is mainly due to the increase in claims payment- a clear indication of our commitment

to the policyholders.

V

Expenses: The management expenses as a percentage to total premium income (gross) has

declined. The overall expenses ratio went down to 27.68 in 2012 from 34.30 in 2011. The

overall management expenses are well within the allowable limit.

vi

Life insurance fund:

The life insurance fund has increased from Tk. 2,328.20 crores on

December 2011 to TK.2,633.15 crores on December 2012; that is by more than 13.10 . It is a sign

of healthy growth of business and financial strength.

vii.

Cash flows: Cash provided by operating activities stands at Tk.63.08 crore in 2012, which

represents 12.54 of net premium income. Net operating cash flow per share is Tk.140/-.

ividend

Bonus to the policyholders and shareholders are given from the surplus available for distribution as per the

actuarial valuation report. Following the verdict/judgment of the honourable Supreme Court of Bangladesh

(Appellate Division), pending AGMs for the years 2005-12 shall be held on the same day one after another

with separate and distinct notices.

Surplus for the years 2005-2006, 2007-2008, 2009-2010 & 201 1 have been carried forward. Out of the surplus

emerged in 2012 together with accumulated surplus for the years 2005 to 2011, 21(twenty one) bonus shares

(stock dividend) for each share of TK. 10 has been proposed by the Board of Directors in its meeting held

on October 5, 2013 for approval of the members at the

27th

Annual General Meeting to be held on

November 16, 2013.

16



Press onference

I L)elta Life Insurance Cornpan Ltd.

L 9Ot B*oGIad

n,utanc* Company)

le

I

41

Management

The Company has an appropriate number of officials with proper insurance expertise. The members of the

management team are working in the insurance industry for a long time and participated in various on-job

training programs seminars and conferences both at home and abroad. Timely action and prudent

managerial decisions have enabled the company to withstand competition vis-a-vis other life insurers of the

country and provide quality services to our policyholders.

Investment for the Future:

We put wholehearted efforts to ensure responsible and quality Corporate Governance with the highest level

of integrity. We tried to streamline the organizational structure of the company in a bid to provide quality

services to our clients at an affordable cost We have been recruiting senior insurance professionals as well as

dynamic young individuals who would provide leadership in future and contribute accordingly to the

growth of the company. We continue to provide strategic directions in order to develop values; strengthen

team spirit and improve our core capabilities. Combined together all of these efforts would enable the

company to sustain its growth and improve financial strength in the time to come by way of providing value

added services to our clients

Risk and Concerns

In the competitive business environment risk management is a vital issue to sustain a steady growth of

business. In this regard underwriting procedures have been streamlined to minimize the risks associated

with writing of new businesses. Our policies above a certain amount of sum assured are reinsured with

Munich Re-insurance a globally reputed reinsurance company. This helps us spread the risks.

The company adopts a prudent investment policy which is reflected in investment income over the years.

Detail of the risk control mechanisms of the company is furnished in the notes to the financial statements

Note-3.13

17



Appointment of Auditors:

In compliance with the verdict of the honourable Appellate Division of the Supreme Court of Bangladesh

and following the decision of the Board of Directors, two Chartered Accountant firms namely

MIS. Hodavasi Chowdhury & Co. and M.N Islam & Co. Chartered Accountants were appointed as

external auditors in the 19 AGM for the year 2004 to conduct the audits of the company's accounts for the

years 2005 to 2012. External auditors for the year 2013 shall be appointed in accordance with article no.139

of the Memorandum and Articles of Association of the company and Section 210 & 213 of the Companies

Act 1994. Some Chartered Accountant firms have expressed their willingness for appointment as auditors.

The Board of Directors has evaluated the offers of the firms and recommends that M/S. S. F. Ahmed & Co.

Chartered Accountants be appointed as the external auditors of the Company for the year 2013.

The honorable shareholders will be requested to confirm the appointment of an external auditor firm for

the year 2013 and fix their remuneration in the 27 AGM of the Company.

Election of Directors:

Pursuant to the verdict of the Appellate Division of the Supreme Court of Bangladesh, all the directors shall

retire at the AGM for the year ending 2012 and may, if eligible, offer themselves for re-election. Notably,

the number of directors to be elected shall be within the limit set by the Insurance Act 2010 and the Articles

of Association of the Company.

Directors Responsibility Statement:

In terms of condition no. 1.5 issued by the BSEC notifications no: SEC/CMRRCD/2006-158/134/Admin/44

dated 07 August 2012, the Board of Directors of the Company states that:

a

in the preparation of financial statements, the applicable accounting standards, principles and policies

have been followed along with proper explanations relating to material departures, if any;

b

the management has adopted accounting policies and applied them consistently and made judgments and

estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the

company;

c

the management has taken proper and sufficient care for the maintenance of adequate accounting

records in accordance with the applicable provisions of the Insurance Act 2010 Rules 1958/Companies

Act, 1994, for safeguarding the assets of the company and for preventing and detecting fraud and other

irregularities;

d

the management has prepared the financial statements on a going concern basis and

e

the system of internal control is sound in design

incl Fi;ms been effectively implemented and m onitored.



Resume of the Directors

who have been inducted/co-opted in the

year 2012:

Mr. Zeyad Rahman Sponsor Director

Mr. Zeyad Rahman, son of Mr. Monzurur Rahman was born in a respectable Muslim family of Dhaka in

1983. He was co-opted as the Director of the company on May 23, 2012. He did his BSC in Finance and

Economics from The Pennsylvania State University, USA. He participated in a number of business training

programs, seminars and conferences both at home and abroad. Mr. Rahman was a Policy Holder Director

in Delta Life Insurance Company Ltd. from 2002-2005. He has been the CEO of Rema Tea Company

Limited since January 2000 and CEO of Delta Capital Ltd. since January 2005. He is a former member of

the Listing Committee of the Dhaka Stock Exchange Limited. Mr. Rahman is also involved in various social

works.

Mr. Md. Mujibur Rahman Public Shareholder Director

Mr. Md. Mujibur Rahman was born in 1952 in a respectable Muslim family. He did his B.Com

(Hons) and

M.Com

from the University of Dhaka in 1972 and 1973 respectively. Mr. Rahman was inducted as a

Director on May 23 2012. Beside regular academic education he participated in various professional courses

and seminars both at home and abroad. His area of work experience ranges from Management and

Administration of Accounts, Finance, Internal Audit to Procurement and Supply Chain and Contract and

Commercial Legal affairs since 1975 in the fields of hospitality, readymade garments and real estate

development. He is presently working as the Executive Director of Shanta Properties Limited since 2005.

He is also a member of the Board of Trustees and General Secretary and Treasurer of the philanthropic

nonprofit healthcare provider Centre for Women and Child Health - CWCH operating at Ashulia since

2 4

Mr. M. Anisul Haque FCMA Independent Director

Mr. M. Anisul Haque is a professional Accountant and born in a respectable Muslim family. He was

inducted as an Independent Director of the company on 14th November, 2012. His expertise has been

established through experiences of working in different organizations for long 19 years. In 1996, he

completed his Masters in Management and also did his MBA in 2005. He is a fellow member of The Institute

of Cost and Management Accountants of Bangladesh. He is also associated with different social and

professional organizations.

Mr. Joynul Abedin Independent Director

Mr. Joynul Abedin, son of Haji Mohammad Abdul Gafur, was born in a respectable Muslim family of

Dhaka in 1955. He was inducted as an Independent Director of the company on 14' November 2012. He is

a reputed businessman with an experience of more than 16 years. He is also a Director of Haji Gafur Land

Developers Ltd. since 2002 and Managing Director of Jass Leather Industries Ltd. since 1997. He is a well

known social worker and is associated with various benevolent social services. Mr. Abedin is also the

Chairman of Demra Union Parishad.

19



2,462,757

1,691,616

2,200,581

660,526

366,089

1,837

7,383,406

2,481,187

1,563,982

2,189,076

575,793

305,084

-

,165

7,116,287

18,451,901

7,493,708

385,969

26,3 3 1,578

46,000

16,409,630

6,526,650

345,761

23,282,041

46,000

The segment wise or product wise performance is furnished as follows:

Segment wise operational result and capital employed based on the financial statements and revenue surplus

are set out below:

Amount in Thousand Taka

2012

01 1

Life

Premium Less Reinsurance

- Investment other Income

Gono Grameen Bima


- Investment other Income

Insurance Business


- Other Income

Total Segment Revenue

Segment Results

(Excess of Revenue over Expenditure) before tax interest

- Ordinary Life

- Gono - Grameen Bima

- Group Insurance Business

Total Segment Results

Add:/(Less): Un-allocable expenditure net of un-allocable Income

Total Revenue Surplus

Excess of Revenue over expenditure)

before tax dividend

Capital Employed

Segment Assets Less Liabilities)

- Ordinary Life

- Gono - Grameen Birna

- Group Insurance Business

Total Capital Employed in Segments

Add: Unallocated Corporate Assets Less Corporate Liabilities

,207,735

1,035,282

90,903

L

7,719

21,139

3,216,684

,319,777

168,341)

3,049,537

,151,436

Total Capital Employed in Company

6,377,578

3,328,041

Notes on Segment information

i)

Instead of reporting separately Segment Assets and Liabilities, Capital Employed figures have been

disclosed for an overall understanding of the Company's financial position.

ii)

Un-allocable expenditure, revenue, assets and liabilities are related to common service (not directly

identifiable to the individual segments)

iii)

Un-allocable Corporate Assets Less Corporate Liabilities represents paid-up capital and dividend

equalization reserve.

20



Key O perating and F inancial Statistics

mount in Crore Taka

2012

011

010

00 9

008

First Year Premium

1.07

28.32

20.45

07.37

5.32

Renewal Premium

86.19

39.21

27.13

00.84

66.79


5.36

4.33

1.27

9.94

6.17


6.06

.3 1

4.43

0.68

.2 3

Gross Premium

08.68

01.17

83.28

38.83

83.51

Investment Income

32.76

11.29

00.79

81.90

27.64

Claims

84.29

29.67

20.95

04.22

43.40

Management Expenses

a) Commission

3.05

8.11

4.69

2.43

0.71

b) Admin. Expenses

7.73

3.78

8.45

8.35

3.24

Assets

771.73

465.18

158.87

750.29

469.60

Life Fund

633.16

328.20

013.06

613.59

342.47

Claims to Premium ( )

5.89

5.83

5.72

6.54

3.47

Management Expenses to

7.68

4.30

3.76

2.08

2.32

premium ( )

Dividend on face value of

L

bonus shares

snare

Stock dividend)

Stock

or each share

of Tk.1O

i

c flt

c

f T11 .

/:\

k

1 fTT

\2c?

cTfl

1 >

N OW



U r4

r 4 4

I

Industry s Outlook:

Insurance Development and Regulatory Authority (IDRA), a new regulatory body has been formed in the

year 2011. IDRA has been working hard to identify the drawbacks and streamline the insurance industry

at the same time. IDRA has rightly observed that the insurance industry of Bangladesh suffers from a) lack

of public awareness, b lack of efficient human resources, c lack of proper training, d lack of ICT facilities,

e) low quality customer services and f) high production cost.

In light of the above findings, IDRA has taken a number of steps to undo the drawbacks of the industry.

It is to be noted that Delta Life complies with all the rules regulations issued by the body in a bid to

ensure the development of the industry in the longrun. All Out cooperation by the insurers would enable

IDRA to establish the insurance industry as a vibrant one that would ably contribute to the GDP and

growth of the country.

Corporate Social Respon sibility:

Delta Life Insurance Company Ltd. (DLICL) has always played its part in carrying out corporate social

responsibilities. The Gono-Grameen department of the company provides a low cost insurance net to the

poor of Bangladesh, primarily in the rural areas. DLICL has been sponsoring the prizes of Bishya Sahitya

Kendra's 'Boi Para Karmashuchi' under its Desh Vittik Utkarsha Karjakram for over a decade to promote

reading habit among the school goers. Women's College and National Handball Tournament, Golf

Tournaments, Bangladesh Police Football Championship-2010, BUET alumni association for national

seminar on freeing the nation from Arsenic contamination are DLICL's major sites of sponsorship.

DLICL has been sponsoring the women's handball tournament to promote female participation in games

and sports in the country for over a decade and a half. DLICL has also made donations to the Bangladesh

Thalassaemia Hospital for land procurement and a Braille printer to BERDO, an organization working

towards the development of the blind. All the CSR activities have made Delta Life a trustworthy name in

the country.

Outlook for the year 2 13:

Your company is one of the leading life insurers of the country. It is well known for its large base of

policyholders, huge amount of claims payment, customized products and prudent management. The

company is poised to further consolidate its activities in a bid to maintain its leading position relishing a

healthy growth in all spheres by way of a) developing strong marketing strategy, and b) ensuring sound

insurance practices. The operational results achieved so far in 2013 shows a healthy growth over that of the

year 2012. Our activities would gain further momentum in the coming days of 2013.



The number of Board Meetings and attendance of Directors during the year - 2012 were as follows:

S I am e

esignation

otal

otal number

o umber of

f meetings

meetings ttended

held

'vU. M0n7,urur Rahman

hai rman

i

02

r . Aziz Ahm ed, FCA, CISA (USA)

irector

03

r . Borhanuddin Ahm ed

irector

04

r . Kazi Faziur Rahm an

irector

05

r . Golam Sarwar

irector

06

r . Md. M u j ib u r Rah m an

irector

Inducted as a Director on Ma y

23

2012)

07

r . Z ey ad Rah m an

irector

(Inducted as a Director on M ay 23 , 201 2)

08

s . Adeeba Rahm an, ACII (UK)

irector

0

09 s . Anika Rahm an

irector

10

s. Saika Rah ma n irector

rs. Syeda Soyeli Ahmed

irector

2

r . Ar if Ahm ed

irector

3

r . Md. Abdul Wahab

irector

14

r . M. Anisul Haque, FCM A

ndependent

(Inducted as a Director on November

14, 2012

Director

5

r. Joynul Abedin

ndependent

Inducted as a Director on N ovember 14, 2012

Director

16

r. Md. Nurul Islam

irector

(Resigned on N ovember 6 , 2012 )

17

r. Syed M oazzem Hu ssain

eased as D irector

and Chairman on

2 9 / 0 2 / 2 0 1 2 .

8

r . Syed M ukarram All

eased as

Director on

2 2 / 0 5 / 2 0 1 2 .

9

r . M u h am m ad Rau s h an All

2 0

r. M ohd. Syedul Islam

21

r. Nurul Huda

22

rs. Farida R. Ahmed

23

rs . Fahrnida R. N aser

24 rs. Farida Mostafa

25

r. Nasiruddin Ahmed

26

r . Sadigur Rahm an M al ik

27

r . M ahrnud Hasan

28

r. Habibur Rahman Khan

* Directors not being present in any particular Meeting of the Board of Directors were granted Leave of

Absence.

N.B: In the financial year 2012, a total number of 11 board meetings and 13 numbers of Committee meetings

were held and an aggregate amount of meeting attendance fees incurred for the same stands at

TK12,55,000/-

23



II

The Pattern of Shareholding as on December 31 2012.

1.5 (xxi) (a) Shareholding by Parent/Subsidiaries/Associate companies and other related parties - Nil.

1.5 (xxi) (b) Shareholding by Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer

Head of Internal Audit and their Spouse and minor Children:

Shareholding of Directors:

Si. No.

ame of the Directors

o. of share

r. Monzurur Rahman

4,750

2

r. Aziz Ahmed, FCA, CISA (USA)

,000

r. Borhanuddin Ahmed

6 81

4

r. Kazi Fazlur Rahman

,200

r. Goiam Sarwar

0,000

6

r. Md. Mujibur Rahman

53,650

7

r. Zeyad Rahman

01,880

8

r. Arif Ahmed

0,000

9

s. Adeeba Rahman, ACII (UK)

2 26

10

rs. Syeda Soyeli Ahmed

,200

11

s. Anika Rahman

02,630

12

s. Saika Rahman

01,900

13

r. Md. Abdul Wahab

,000

14

r. M. Anisui Haque, FCMA (Independent Director)

il

15

r. Joynul Abedin (Independent Director)

il

Chief Executive Officer, Company Secretary, Chief

Financial Officer, Head of Internal Audit.

il

1.5 xxi) c) Shares held by Executives:

il

1.5 (xxi) (d) Shareholders holding 10 or more voting rights:

il

9 5TTI9

R 9T

tj rT

cifr

T1

trii



ppreciation

On behalf of the Board of Directors, I wish to extend my heartfelt gratitude to our valued policyholders,

honourable shareholders, Office of the Insurance Development and Regulatory Authority IDRA, our

bankers, Bangladesh Securities and Exchange Commission BSEC), Dhaka and Chittagong Stock

Exchanges and the Central Depository of Bangladesh Ltd. CDBL) for their continuous support and

cooperation. The Board of Directors also expresses deep appreciation to the Sponsors, Patrons, and

Company Management, all members of our staff and well wishers whose continuous support/effort and

patronage have made these results possible.

For and on Behalf of the Board,


onzurur Rahman

Chairman

Board of Directors



CIO

Report of the Audit Committee

The Audit Committee of the Board comprises of the following members of the Board of Directors.

Mr. Mii. \1nied, FCA. CISA (USA)

r. Rorl.iniiddin Ahmed

r. Md. Mujibur Rahman

r. 7ey

ad Rahinan

Chairman

leniber

ember

ember

Si. No Name

t tus

r. Aziz Ahmed FCA CISA

hairman

r. Borhanuddin Ahmed

ember

r. Md. M ujiburRahman

ember

4

r. eyad

Rahman

ember

During the year 2012 the Audit Committee of the Board of Directors conducted six meetings. Among other

things of importance to the Company, the Committee discussed, reviewed and evaluated the following

issues and provided guidelines and directives to improve risk management, internal and management

controls and overall enhancement of the abilities of governing body to fulfill its legal responsibilities.

• Considered and made recommendation to the Board on the appointment and remuneration of

external auditors, M. N. Islam Co. and Hoda Vasi Chowdhury Co. Chartered Accountants for

the year 2 5 to 2 12 in compliance with the verdict dated 2 th June 2 13 of the Appellate Division

of the Supreme Court of Bangladesh Civil Appeal Nos.43 44 of 2012.

• Reviewed the structure of the Internal Audit Department and recommended strengthening it to

improve its ability to produce quality audits.

• Reviewed the Internal Audit Plans of 2012 and later Audit Plans for 2013 and provided guidelines

for appropriate audit coverage based on risk of exposure. Approved the audit plans for the two

years.

• Reviewed the Internal Audit reports and the findings in details of 75 assignments.

• Evaluated Management's performance in setting up the appropriate corporate culture by

communicating the importance of Internal Control and risk management to ensure that all

employees of the company have understood their roles and responsibilities.

• Monitored the corrective measures taken by Management as recommended by Internal Audit to

improve risk management and the financial and operational performance of the Company.

• Reviewed policy guidelines to comply with the rules and regulations of the SEC and Insurance

Regulatory Authorities including anti money laundering processes adopted by the Company.

• Reviewed the Annual Financial Statements of the Company.

ø J

(Aziz Ahmed, FCA, CISA)

Chairman

26



The Report on Corporate Governance

Introduction:

Delta Life Insurance Company Limited has set goals and targets to achieve a high standard of performance

by offering innovative Life Insurance products and services to both village and city-dwellers. Our continued

expansion and success in promoting micro-insurance at affordable rates is a glowing example that Life

Insurance is not only meant for the rich and privileged but also for those who live on minimal income and

savings

The Board of Directors and the Management of Delta Life Insurance Company Limited firmly believe that

protecting the interests of the Shareholders as well as that of the Policyholders is the only way to take the

Company forward.

The Concept of Corporate Governance:

Corporate Governance is a discipline by which a set of laws and regulations framed by the Regulatory

Authorities have been put in place to protect the interests of the policyholders as well as shareholders. These

laws ensure that the Board of Directors of a Company work in a manner assuring transparency,

accountability and integrity in all its activities. The principles of Corporate Governance help a corporate

organization or a Company to minimize conflict of interest in order to safeguard the assets of the company.

Composition of the Board:

The Board of Directors of Delta Life Insurance Company Limited sets the basic plans and principles of

Corporate Governance in compliance with the Regulatory Authorities and oversees that the Management

materialize those plans into actions for the interest of both the Policyholders and the Shareholders.

The Board of Directors of Delta Life Insurance Company Limited is comprised of 15 fifteen) members

including 2 two) Independent Directors, The Members review the implementation process of their strategic

plans in the regular Board and Committee meetings and set internal control mechanism for the best interest

of the Company.

Responsibilities of the Board:

The prime responsibilities of the Board of Directors of Delta Life Insurance Company Limited include

setting the policies and guidelines on investment, recruitment of CEO and other posts, risk analysis and risk

minimization, monitoring and overseeing internal control and compliance of statutory functions and taking

decisions on any significant issue and policy matter of the Company. They sit together in regular meetings

in order to take decisions that guide the management to run the Company smoothly and profitably. In

certain cases the Board form different Sub-Committees and delegate specific responsibilities to the same to

assist the management to solve certain operational and organizational problems, in order to safeguard the

best interests of the Shareholders and Policyholders of the Company.

The role of Chairman and CEO:

The Chairman of the Board of Directors plays a vital role to oversee that the targets, guidelines and policies

adopted by the Board are implemented by the Management properly. Apart from those functions the

Chairman presides over all Board meetings, Annual General Meetings, Extra-Ordinary General Meetings

and any other important internal business meetings and conferences called to motivate sales personnel and

agents in order to improve sales and profitability.

The Chairman appointed the Chief Executive Officer after consulting with the Board of Directors as per

conditions set by the Regulatory Authorities. The Chief Executive Officer reports to the Chairman of the

Board of Directors. His responsibilities include execution of Board decisions, organizational leadership for

growth of income and profitability, development of human resources and setting a vision for future

development of the Company.

7



Audit. coinulittec:

The Audit Committee is constituted by 4 four) members from the Board of Directors. They hold meetings

regularly under the directive of its Chairman. The major function of the Audit Committee is to oversee the

operations of the internal audit department in their pursuit to ensure proper financial control in the

Company. The members also scrutinize all the Audited and Unaudited accounts submitted before them

which are finally forwarded to the Board of Directors with recommendations for approval.

Relationship with Shareholders and other Stakeholders:

The Shareholders and other Stakeholders of Delta Life meet with the Board of Directors and the

Management once a year in the Annual General Meeting where they exchange their views with the Board

on financial and operational aspects of the Company based on audited and un-audited accounts published

quarterly and half-yearly in the Newspapers and annually in the Annual Reports. Their suggestions are

noted and duly implemented whenever deemed appropriate and necessary by the Board of Directors and the

Management

8



CORPORATE GOVERNANCE COMPLIANCE REPORT

nnexure - I

Status of compliance with the conditions imposed by

the Commission's Notification No. SEC/CMRRCD/

2006-158/134/Admin/44 dated 07th August, 2012

issued under section 2CC of the Bangladesh

Securities and Exchange Ordinance , 1969.

Report under condition No.- 7.00.

Condition

itle

ompliance Status

emarks

o ______________

omplied

ot complied

If any)

1.

oard of Directors:

1 .1

oard s Size

1 .2

ndependent Directors:

1.2(i)

t least t/5-of the total number of Directors of

board shall be Independent Directors.

ndependent Di ree t t , r , have been

appoin tedaeeord i r ,gly .

1 . 2 ( 1) a )

ho holds less than 1 shares of total paidup

shares of the company;

1 . 2 ( 1) h )

ot a sponsor of the company and is not connected

with the company's any sponsor or Director or

shareholder who hold 1 or more shares:

1.2(u) c)

ot have any other relationship with the company

its subsidiary/associated companies:

1 . 2 ( u) d )

ot a member, director or officer of any stock

e x c h a n g e ;

1 . 2 ( 1) e )

ot a shareholder, director or officer of any

member of stock exchage or

1 . 2 ( u ) 0

ot or was not a partner or executive during the

preceding 3 (three) years of the company's

statutory audit firm;

1 . 2 ( 1) g )

ot he an independent director in more than 3

(three) listed companies;

1.2(u) Is ) ot been convied by a court of competent

jurisdiction;

1.2(u) i )

ot been convicted for a criminal offence involving

moral turpitude;

1.2 (i i i)

ppointed by the hoard of directors approved by

ill be complied when the

the shareholders in the Annual General Meeting

GM for the year 2012

is h e l d .

( A G M ) ;

1.2 ( iv)

ndependent director's post can't remain vacant. for

more than 90 days;

1.2 (v)

he board shall lay down a code of conduct of all

board members and annual compliance be

r e c o r d e d ;

1.2 (vi ) he tenure of office for a period of 3 (three) years,

which may be extended for 1 (one) termonly.

1 .3

ualification of Independent Director

1.3(i) A knowledgeable individual with integrity and able

to ensure compliance with financial regulatory and

corporate laws and can make meaningful;

1 . 3 (u )

ndependent directors will he business leader

corporate leader with economics or businesstudies

I

or law background and

1.3(ii i)

n special cases the above qualification may be

relaxed subject to prior approval of the

I

commission;

1 .4

hairman of the Board and Chief Executive

Officer

1 .5

he Director's Report to Shareholders

1 . 5 1 )

ndustry outlook & possible future development in

the industry.

29



Condition

itle

ompliance Status

emarks

No

omplied

ot complied

If any)

1 .561)

egment wise performame or product wise

perform nce

1.5(iii)

isks and concerns.

1.5(1v)

iscussion on Cost of goods sold, Gross and Net

/A

Profit Margin.

1.5(v)

iscussion on continuity of any Extra-Ordinary

/A

gain or loss

1 .5(vi)

isclosure of related paity transaction in the

/A

Anua repot

1.5(vii)

tilization of proceeds from public issues, rights

/A

issues and/or through any others instruments.

1.5(vii i )

n explanation if the financial results deteriorate

after the company goes for IPO, RPO, Rights offer,

/A

Direct listing etc.

1 .5( ix)

ignificant variance between quarterly Financial

/A

Performance and Annual Financial Statement.

1 .5(x)

emuneration to directors including independent

directors.

1 .5(xi)

airness of state of the affairs.

1.5(xii)

aintenance of proper hooks of accounts

1.5(xii i )

ppropriateaccounting policies, consistency

applied in preparation of the financial statement on

prudent judgment.

1.5(xiv)

ollowed the rules of IAS/BAS/IFRS/BFRS in

preparing financial statements as applicable in

Bangladesh.

1 .5 (xv )

ound and effective design of internal control has

been implemented & monitored.

1.5(xvi)

bility to continue as

a going concern.

1.5(xvii)

ignificant deviations from last year's operating

results shall he highlighted & reason be explained;

1.5(xvii i) resentation of key operation and financial data for

last 5 (f ive) years.

1.5(xix)

f dividend has not declared for the years, reason

should be given;

1 .5(xx)

umber of Board Meeting held during the financial

1 meetings held with an

year & attendance by each

verage of 92 attendance

1.5(xxi) a)

hareholding pattern disclosure

1 .5 (xx i ) b )

isclosure of shareholding by Directors, CEO,

Company Secretary, CFO, Head of Internal Audit

& their Spouses and minor children.

1.5(xxi) e)

isclosure of shareholding by Executives.

1.5(xxi) d)

hareholders holding ten percent (10 ) or more /A

1.5(xxii) a) rief resume of the director

1.5(xxi i ) b)

ature of his /her expertise.

1.5(xxii) c)

ther companies' directorship & membership of

committees of that Board.

2 . Chief Financial Officer (CFO), Head of nternal

Audit and Company Secretary (CS);

2. 1

ppoirtmeritof:

hief Financial Officer (CFO)

ead of Internal Audit

ompany Secretary (CS)

2 .2

equirement to attend Board Meetings;

hief Financial Officer (CFO)

Company _Secretary _(CS)

3.

Audit Committee

3(i)

ub-committee of the Board of Directors.

3(u) ssisting the Board of Directors for ensuring true

and fair view of the state of affairs;

30



Condition

itle

ompliance Status

em rks

No_________________Complied

ot complied

If any)

3 iii)

uties of the audit committee clearly set forth in

writing.

3.1 onstitution of the Audit Committee

3.1 i)

udit committee membes at least 3 (three)

members

3.1 ii)

udit committee members are appointed by Board

of Directors and inclusion of at least 1 (one)

lready complied on

independent director.

ay 4, 2013.

3.1 iii)

inancial literacy having at least 1 (one) member

with accounting or related financial management

experience.

3.1 iv)

ill up the vacancy immediately or not later than 1

(one) month from vacancy(ies)

3.1 v)

ompany Secretary will act as Secretary.

3.1 vi)

uorum of the Audit Committee with at least 1

lready complied on

one) Independen Drector

ugust 29 2013.

3 .2 hairman of Audit Committee

3.2 i) election of the Chairman of the Audit Committee

ill be compliedin

who shall be an Independent Director

ccordance vrith judgment

of the A ppellate Division

of the Supreme Court on

20/06/2013

3.2 ii)

hairman of Audit Committee shall remain present

in AGM.

3.3

ole

of the Audit Committee

3.3 i )

versee the financial reporting process

3.3 ii)

onitor choice of accounting policies and

principles

3.3 iii)

onitor Internal Control Risk management

process.

3.3 iv)

versee hiring and performance of external

auditors.

3.3 v)

nnual financial statements review along with the

management before sabmission to the Board for

approval.

3.3 vi)

uarterly and half yearly financial statements

review along with the management before

submission to the Board for approval.

3.3 vii)

eview adequacy of internal audit function

3.3 viii)

ignificant related party transaction review.

3.3 ix)

tatutory auditor s report review.

3.3 x)

isclose the use / application of funds raised

/A

through IPO/RPO/Righi. Issue proceeds.

3 .4

eporting of the Audit Committee

3.4.1

eporting to the oard of Directors

3.4.1 i)

eporting its activities to the Board of Directors.

3.4.1 ii) eport to the Board by Audit Committee

3.4.1 ii) a)

onflict of interest.

/A

3.4.1 ii) b)

uspected or presumed fraud or irregularity or

material defect in the internal control system;

3.4.1 ii) c)

uspected infringement of laws, including

/A

securities related laws, rules and regulations;

3.4.1 ii) d)

ny other matter;

3.4.2

eporting to theAuthorities

3. 5

eporting to the Shareholders and General

Investors

4.

xternal /Statutory Auditors should not engage;

4 i)

ppraisal or valuation services or fairness

opinions.

31



Condition

itle

ompliance Status

emarks

No _________________________ Complied [ Not complied

If any)

4 ii)

inancial information systems design and

implementation.

4 iii)

ook-keeping or accounting records or financial

statements.

4 iv)

roker-dealer services.

4 v)

ctuarial services

4 vi)

nternal audit services.

4 vii)

ny other service determined by the audit

committee.

4 viii)

ossess any share by the partneior employees of

the firm at least during the tenure of their audit

assignment.

5.

ubsidiary Company;

5. i)

omposition of Board of Directors.

/A

5. ii)

t least 1 (one) Independent Director from holding

/A

s disclosed in the

company.

otes to the Accounts

5. iii)

onfirmation of minutes by holding company.

A

o. 12.05

5. iv)

onfirmation of minutes of subsidiary company

/A

t Page No. 71

shown in holding company s minutes.

5

v)

eview the financial statements by holding

/A

companys audit commttee.

Duties

of Chief Executive Offiae(CEO) and

Chief Financial Officer (CFO):

6. 1)

eviewing financial statements

6. 1 ) a)

o misleading statements

6 1 ) b)

resent a true and fair view in compliance with

existing accounting standards and applicable laws.

6 i i)

eclaration about/regarding authentication

7

Reporting and Compliance of Corporate

overnance

7. 1)

ompliance certificate from a Professional

Accountant /Secretary.

7. ii)

tatement of Directors in accordance with the

annexure attached whether the company has

complied with.

32



H oda Vas i C how dhur y C o .

Char tered Accoun tants

I ndependen t o r res ponden t F i rm t o

Delo i t te Touche Tohmatsu

CERTIFICATE OF COMPLIENCE

TO THE SHAREHOLDERS

DELTA LIFE IUNSURANCE COMPANY LIMITED

FOR THE YEAR ENDED DECEMBER 31,

2012

As required under the BSEC Corporate Governance Guidelines)

We have examined the compliances of conditions of the Corporate Governance Guidelines of the

Bangladesh Securities and Exchange Commission by Delta Life Insurance Company Ltd. as

stipulated in clause 7 (i) of BSEC Notification No. SEC/CMRRCD/2006-158/134/admin/44 dated

07 August 2012.

The Compliances of conditions of The Corporate Governance Guidelines as stated in the aforesaid

notification and reporting to the status of compliance is the responsibility of the company's

management. Our examination for the purpose of issuing this certification is limited to the

checking of procedures and implementations thereof, adopted by the company for ensuring the

compliance of conditions of corporate Governance and correct reporting of compliance status on

the attached statement on the basis of evidence gathered and representation received.

To the best of our information and according to the explanations given to us , we certify that,

except as reported on the attached status of compliance statement [1.2(i), 1.2(iii), 3.1(u), 3.1(vi),

3.2(i)], the company has complied with the conditions of Corporate Governance stipulated in the

above mentioned BSEC notification dated 7 August 2012. We also state those noncompliances were

occurred due to delay in holding AGM because of pendency of CIVIL APPEAL NO: 43 44 of 2012

for the financial year 2005 to 2012.

Date, October 05, 2013

oda Vasi Chowdhury Co.


33



uditors

Report

.

-•.. 4_•p g, S...

. .

: 4$

.1 T.ieWIIHL..._



Auditors Report

to the hareholders

We have audited the accompanying financial statements of Delta Life Insurance Company Limited, which

comprises Balance Sheet as at 31 December, 2012 and the related Life Revenue Accounts and Cash Flows

Statement, Statement of Changes in Equity for the year ended, and a summary of significant accounting

policies and other explanatory notes.

Management

s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with Bangladesh Financial Reporting Standards (BFRS), the Companies Act 1994, the Insurance

Rules 1958, Insurance Act 2010, The Securities and Exchange Rules 1987 and other applicable laws and

regulations. This responsibility includes: designing, implementing, and maintaining internal control

relevant to the preparation and fair presentation of financial statements that are free from material

misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies and

making accounting estimates that are reasonable in the circumstances.

Auditors Responsibility

Our 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 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 auditor s 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 entity 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 entity s internal

control . An audit also includes evaluating the appropriateness of accounting policies used and the

reasonableness of accounting estimates made by management, 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.

Opinion:

In our opinion, the Financial Statements prepared in accordance with Bangladesh Financial Reporting

Standards (BFRS), give a true and fair view of the state of the statement of the company s Affairs as at 31st

December 2012 and of the results of its operations, its cash flows and statement of changes in equity for the

year then ended and comply with the Companies Act 1994, the Insurance Rules 1958, Insurance Act 2010,

the Securities and Exchanges Rules 1987 and other applicable laws and regulations

Further to our opinion in the above paragraph, we state that:

i

e 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;

5



i i

in our opinion, proper books of account as required by law have been kept by Delta Life Insurance

Company Limited, so far as it appeared from our examination of those books;

iii

the company's Statement of Balance Sheet, Life Revenue Accounts, Statement of Cash Flows and

its Statement of Changes in Equity dealt with by the report are in agreement with the books of

account and returns;

iv

The expenditure incurred was for the purpose of the company's business.

v

As per section 62 (2) of the Insurance Act 1938 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 whenever incurred and whether incurred directly or indirectly, in respect of

insurance business of the Company transacted in Bangladesh during the period under report have

been duly debited to the related Revenue Account of the Company and,

v i

As per the Insurance Act 2010 as amended, we certify that to the best of our knowledge and as

shown by its books, the company during the period under report has not paid any person any

commission in any form outside Bangladesh in respect of any of its business re-insured abroad.

Hoda Vasi Chowdhury Co.


hartered Accountants

nnual R

I iii ia



inancial

tatements



As at December 31

2 2

Notes

012

11

Taka

ak a

SHARE CAPITAL AND LIABILITIES

SHAREHOLDERS CAPITAL

.00

Authorized

50 00 00 000 Ordinary Shares of Tk. 10 each

Issued

ubscri

hc1 uii u up

45 00 000 Ordinary Shares of Tk. 10 each

fully paid up in cash

Dividend Equalisation Reserve

life insurance

Fund

Estimated liabilities in respect of outstanding claims

whether due or intimated

Amount due to other persons or bodies carrying on

insurance business

Sundry Creditors

Provision for Doubtful Debts

Reserve for Unexpired Risk

Premium Deposits

[OTAL SHAKE CAPITAL AND LIABILITIES

000000000

00,000,000

45,000,000

5,000,000

1,000,000

,000,000

5.00 26 331 578 112

3 282 41 2 4

00

65,191,938

51,180,711

7.00

7 197 3 2

1,409,897

8.00

29 371 461

32,578,735

9.00

3,363,920

5,699,494

192,184,968

21,472,139

10.00

2,400,090

1,462,899

1 339 7 9 679

323 8 3 875

7717287791

4 651 845 79

The annex notes form an integral part of these financial statement

z la

^

M PVn_

Swapan Kumar Sarkar, FCA

d. Mujibur Rahman

ziz Ahmed FCA CISA Monzurur Rahman

Managing Director In-charge)

irector

irector

hairman

38



As at December 31, 2012

PROPERTY ND SSETS

LOAN

On Insurer's Policies within their surrender value

INVESTMENT (AT COST),

Notes

12

011

Taka

aka

100

09,955,906

44,369,078

12.00

Statutory Deposit with Bangladesh Bank (BGTB)

,000,000

Bangladesh Govt. Treasury Bond BGTB)

,385,482,195

Shares Listed on Stock Exchanges

,131,994,379

Debentures and Bonds

76,518,717

Mutual Fund

0,000,000

Central Depository Bangladesh Ltd.

138,890

DUG Securities Limited (Subsidiary)

2 05

20,200,000

Other Loans

1,154,267

14,440,488,448

Agents Balance

,461,053

Outstanding Premium

3.00

46,608,173

Interest, Dividends and Rents Accruing But Not Due

4.00

06,813,031

Advances And Deposits

5.00

85,420,077

Sundry Debtors

6.00

5,089,341

2,000,000

6,725,040,490

3,976,783,821

536,553,527

30,000,000

3,138,890

99,885,955

11,373,402,683

3,450,059

633,403,068

836,810,804

635,008,233

55,094,848

(\SI-1 ANT) BANK BALANCES

On Fixed Deposit with Banks

On Current Account with Banks

On STD Account with Banks

Cash in Hand

Cash in Transit

Collection in Hand

Branch Petty Cash

OTHER ACCOUNTS

Fixed Assets At Cost Less Depreciation)

Stamps, Printing and Stationery in Hand

I 0 1 \I PROPERTY

\NI) ASSETS

17.00

7,652,567,484

384,335,639

947,127,835

1,353,853

11,823,448

18.00

2,881,182

9,000,089,441

19.00

,456,667,484

12,694,837

27 717 287 791

8,025,465,759

431,078,770

731,324,450

1,727,297

22,731,360

284,257,854

94,712,691

9 591 298 181

1,069,301,728

9,706,397

24,651,845,079


Swapan Kumar arkar, FCA

d. Mujibur Rahman

ziz Ahmed, FCA, CISA Monzurur Rahman

Managing Director (In-charge)

irector

irector

hairman

Signed as per annex report on even date

c




39



7 1 -

T;fr

For the year ended December 31, 2012

BALANCE OF FUND AT THE BEGINNING

OF THE YEAR

ADJUSTMENTS MADE DURING TIlE YEAR

Notes

012

T aka

23 282 041 204

20.00

07,622,750

2011

T aka

20,130,605,300

172,130,517

21.00

REMIUM I F SS REINSURANCE

First Year Premium OL)

First Year Premium GN-GRB)

Renewal Premium OL)

Renewal Premium GN-GRB)

Group Life Insurance Premium


Gross Premium

Reinsurance Premium

Net Premium

371,198,513

439,48 1,594

810,680,107

2,100,825,850

1,761,099,104

3,861,924,954

253 61

1,545

160,575,350

4 14 1 8 6 89 5

5 08 6 7 9 1 9 5 6

57,365,054)

5,029,426,902

726,365,569

556,788,527

1,283,154,096

1,759,858,543

1,632,287,401

3 392 145 944

243,315,189

93,069,099

336 384 288

5 011 684 328

36,337,655)

4 9 75 34 6 6 73

INTEREST DIVIDENDS AND RENTS

2.00 2,327,639,110

,112,903,816

OTHER INCOME

3.00

7,682,381

8,734,217

TOTAL INCOME

First Year Premium where the maximum premium

paying period is;

Single

Four years

Five years

Six years

Seven years

Eight years

Nine years

Ten years

Eleven years

Twelve years or over including throughout life)

30 774 412 347

39,127,770

24,626

1,907,326

133,871

268,491

182,533

60,963

326,121,651

10,290,786

432,562,090

27,419,720,523

38,882,371

3,228,114

640,651

200,979

251,038

221,602

440,689,182

17,601,978

781,438,181

810,680,107

,283,154,096

40



198,712,875

1,584,915,505

507,657,519

69,301,485

3,555,305

82,607,186

617,740

376,596,797

2 823 964 412

18,902,430

2 842 866 842

175,958,447

1,191,638,516

532,815,046

73,383,977

2,981,406

61,605,953

561,189

243,535,362

8 479 896

14,253,491

96 733 387

506,653,0

123,821,179

630,474,261

413 390 239

10,798,099

26,383,926

7,050,083

1,048,000

1,000,000

2,150,635

6,507,451

9,395,437

9,406,597

16,624,741

84,390,181

43,383,914

5,610,590

27,383,272

5,336,752

515,950

15,080,772

1,734,769

4,598,268

2,714,139

2,190,938

3,362,088

791,284,363

189,857,335

981 14 1 698

418 643 494

6,752,911

761,150

2,320,826

12,784,639

14,515,600

8,326,463

17,151,096

71,461,193

41,311,807

6,046,978

24,631,447

5,549,060

535,455

11,325,752

2,158,705

4,188,722

2,005,658

2,775,316

3,363,474


Notes

01 2

011

Taka

ak a

CLAIMS UNDER POLICIES (INCLUDING

PROVISION FOR CLAIMS DUE OR

INTIMATED), LESS REINSURANCE

4.00

By Death

By Maturity

By Survival

By Hospitalisation

By Others

By Surrenders

Annuities

Bonus in Cash

Profit Commission

XP NS S

OF MANACFJ1ENT

Commission:

5.00

a)

Commission to Insurance Agents (Less that on reinsurance)

b)

Allowances and Commission [other than commission

including in sub-item (a) preceding]

Salaries etc. (other than to agents and those contained

n

i l i e

allowance and commission)

Development Salaries Allowances

Development Incentive

Traveling and Conveyance

Directors Fees

Auditors Fees

Medical Fees

Legal and P rofessional Fees

6.00

Insurance Policy Stamp

Advertisement and Publicity

7.00

Printing and Stationery

Office Rent

Bank Charges

Repairs and Maintenance

Car Fuel, Maintenance Repairs

Group Insurance

Papers and Periodicals

Telephone, Telex and Electricity etc.

Training Recruitment Expenses

Fees, Subscriptions and Donation

8.00

Entertainment

Insurance Premium (General)

Postage and Telegram

41




Uniform and Liveries

Development Expenses

Prizes and Awards

Conference

Company Registration (Renewal) Fees

Stamps

Staff Transport Expenses

EGM Expenses

Silver Jubilee

Corporate Social Responsibilities CSR)

Depreciation on Fixed Assets

CDBL Related Charges



Provision for Income Tax

B L NCE OF THE FUND T THE END OF

THE YEAR AS

SHOWN IN THE B L NCE SHEET

TOT L

Notes

01 2

k

841,774

13,199,916

1,137,964

8,180,779

18,474,420

2,147,778

2,004,020

537,125

2,582,442

232,900

26,342,547

1,519,002

777,257,508

1,407,731,769

50,656

192,184,968

29.00

26,33 1,578,112

30,774,412,347

2011

k

680,731

14,521,029

9,072,317

5,631,273

17,469,195

2,130,234

1,467,092

906,884

1,233,926

27,392,987

715,920

737,831,334

1,718,973,032

500,761

121,472,139

23,282,041,204

27,419,720,523


Swapan Kum ar Sarkar, FCA

d. Mujibur Rahman


Managing Director In-charge)

irector

irector

hairman

Signed as per annex report on even date




42



5,073,586,851

25,625,794

2,728,855,615)

1,588,289,324)

151,271,190)

63 796 516

[ 74 8 j

27,770,916

2,393,538,389)

1,589,780,318).

--__(89,1944)1

1,229,540,521

3,075,817,453)

453,442,559)

65,586,828)

8,731,688

2,361,900,087

2,209,809

1,222,005,256)

837,682,832)

393,282,511)

41,497,232)

3,174,725

1,790,169,702

1,343,042

522,224,894


2012

011

Taka

aka

Cash flows from Operating ctivities

Collection from Premium

Other Income received

Payment for Claims

Payments for Operating activities

Source Tax (Income Tax) deducted

Net cash from operating activities

Cash flows from Investing ctivities

Investment made

cquisition of Fixed ssets

Loan against Policies Paid

Other Loans realised

Interest, dividends rents received

Proceeds from sale of Fixed A ssets

Net Cash used in investing activities

Cash flows from Financing ctivities

Dividend Paid

Net cash used in financing activities

Net increase in Cash Cash equivalents

Cash and Cash equivalents at the beginning of the period

Cash and Cash equivalents at the end of the period

591,208,740)

,751,765,415

9,591,298,181

,839,532,766

9 000 089 441 -

591 298 181



d. Mujibur Rahman


Man aging Director In-charge)

irector

irector

hairman

43




Taka

AS1'1

Loan on Insurer's Policies within their surrender value

Investments

Agents' Balance

Outstanding Premium

Interest, Dividends Rents accruing but not due

Advances Deposits

Sundry Debtors

Cash Bank Balances

Fixed Assets (at cost less depreciation)


LESS: LIABILITIES

Estimated liabilities in respect of outstanding claims, whether due or intimated

Amount due to other persons or bodies carrying on insurance business

Sundry Creditors



Premium Deposits

Dividend Equalisation Reserve

Gross Fund (Assets - Liabilities)

Shareholders Capital (Paid-up Capital)

Life Insurance Fund

as

at ecember 31, 2012

509,955,906

14,440,488,448

3,461,053

646,608,173

802,549,827

785,420,077

55,089,341

9,000,089,441

1,456,667,484

12,694,837

27,713,024,587

665,191,938

67,197,302

325,108,257

73,363,920

192,184,968

12,400,090

1,000,000

1,336,446,475

26,376,578,112

(45,000,000)

26,331,578,112



d. Mujibur Rahman



irector

irector

hairman

44



For the year ended December

31 2012

Share

hare

eneral Retained Other

Particulars

otal

Capital r mium eserve Earnings Reserve

Balance as on

01 January 2012

5 000 000

5,000,000

Bonus Share

for the Year 2011

Balance as on

5000000

5,000,000

31 December 2 12

The annexed Notes 1 to 37 form an integral part of these financial statements. These financial statement

were approved by the Board of Directors on October 05 2013 and were signed on its behalf by:


j j j j j j j

^ 1 1 _


d Mujibur Rahman


Manag ing Director In-charge)

irector

irector

hairman

45




FIR W T̂

LOAN

On Insurers Policies within their surrender value

09,955,906

09,955,906 Realisable Value

INVESTMENT

Statutory Deposit with Bangladesh Bank BGTB)

,000,000

,000,000 At Cost


,385,482,195

,385,482,195 At Cost

Shares Listed on Stock Exchanges

,131,994,379

,934,139,559 Market Value

Debentures and Bonds

76,518,717

76,518,717 At Cost

Mutual Fund

0,000,000

0,000,000 At Cost

Central Depository Bangladesh Ltd.

,138,890

,138,890 Book Value

DLIC Securities Limited

20,200,000

20,200,000

Other Loans

1,154,267


C SH ND B NK B L NCES

On Fixed Deposit with Banks

,652,567,484

,652,567,484 Book Value

On Current Account with Banks

84,335,639

84,335,639 Book Value

On STD Account with Banks

47,127,835

47,127,835 Book Value

Cash in Hand

,353,853

,353,853 Book Value

Cash in Transit

1,823,448


Branch Petty Cash

,881,182

,881,182 Realisable Value

OTHER CCOUNTS

Agents Balance

,461,053

,461,053 Realisable Value

Outstanding Premium

46,608,173


Interest, Dividends and Rents Accruing But N ot Due

02,549,827


Advances And Deposits

85,420,077


Sundry Debtors

5,089,341


Fixed Assets At Cost Less Depreciation)

,456,667,484

,456,667,484 Carrying Value


2,694,837

2,694,837 At Cost



d. Mujibur Rahman



irector

irector

hairman

46



Notes to the

inancial Statements



Em


1 00

LEGAL STATUS AND NATURE OF BUSINESS

01

stablishment and status of the Company

Delta Life Insurance Company Ltd. was incorporated in Bangladesh in 10th November, 1986 as a

public Limited Company under the Companies Act. Its shares are quoted on the Dhaka Stock

Exchange and Chittagong Stock Exchange. The company started its business in December 1986.

1 .C2

ature of Business

The company is also registered with the Controller of Insurance / The Insurance Development and

Regulatory Authority (IDRA) in carrying on the business of life insurance. The company s life

insurance business comprises of Individual life for urban and suburban people, micro insurance in

the name of Gono-Grameen Bima (GN-GRB) for low income group with limited or no access to

financial instruments and Group business for conglomerates.

Most of the products are participating traditional while few products under individual life are

non-participating traditional. To enhance the benefits of the plans accidental and disability riders are

also offered.

2 00 BASIS OF PRESENTATION AND STATEMENT OF COMPLIANCE

01

tatement of Compliance

The following underlying assumptions, measurement base, laws, rules, regulations and accounting

pronouncements have been considered in preparing and presenting the financial statements:

•

oing Concern

•

ccrual unless stated otherwise except for Cash Flow Statement.

•

istorical cost convention

•

he Insurance Act / Rules 1958

•

rovisions of the Companies Act 1994

•

he Securities and Exchange SE) Rules

•

he Listing Regulations of Dhaka and Chittagong Stock Exchanges

•

ncome Tax Ordinance 1984

•

he Bangladesh Accounting Standards (BAS) 1, 2, 7, 8, 10, 12, 16, 19, 24, 34, 37 which

have been adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), and

•

ny other applicable laws, regulations, covenants and conventions etc.

In case requirements differ provision of Company s Act 1994, the Insurance Act/Rules and SE rules

1 987 shall take precedence.

These financial statements have been prepared on the format of financial statements prescribed in

the Insurance Act/ Rules 1958 and SE rules 1987.

48



2 02

The Functional and Presentation Currency

Items included in the financial statements are measured using the currency of the primary economic

environment in which the company operates.

The financial statements are presented in Bangladeshi Taka, which is the company s functional and

presentation currency.

Figures in these financial statements have been rounded to the nearest Taka.

2 3

se of Critical Accounting Estimates and Judgments

The preparation of financial statements in conformity with the accepted accounting principles and

standards require that the company s management make estimates and assumptions that affect the

reported amounts of income and expenses for the year and reported balances of assets and liabilities

The estimates and assumptions used in the accompanying financial statements are based upon

management s evaluation of the relevant facts and circumstances of the date of financial statements.

Actual results could differ from the estimates. Any revision to the accounting estimate is recognized

prospectively

2 4

eporting Period

The financial statements of the company cover one financial year from January 01 to December 31

of the calendar year and are followed consistently.

2 5

omponents of the Financial Statements

The financial statements include the following components:

• alance Sheet

•

ife Revenue Account

•

ash Flow Statement

•

tatement of Life Insurance Fund

•

tatement of changes in stockholders equity

•

lassified summary of the Assets (Form AA) and

•

ccounting Policies and Explanatory Notes.

3.00 SUMMARY

OF

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these financial statements are consistent with

those followed in the preparation of the company s financial statements for the year ended

December 31 2012.

3.01

evenue Recognitions

All business is written in Bangladesh

3.1.1

ndividual life policies

Individual life first year, renewal, and single premiums are recognized once the related policies are

issued /renewed against receipt and realization of premium.

49



However, Provision for outstanding premium for the accounting year is estimated on basis of

collection in the following three 3) months taking into consideration the nature and practice in life

insurance industry.

Uncollected premium from lapsed policies is not recognized as income until such policies are

revived

3.1.2 Group Life and Health Policies

The premiums of Group policies are recorded after receipt of the premiums and in certain

circumstances premiums falling due under the policies within the financial period are also

recognized if these premiums are subsequently received

3.1.3 Reserve for Unexpired Risk- Group Business

Gross premium proportionate to the unexpired duration of the period for which the respective

premiums have been billed and received are held as reserve for unexpired risk.

3 02

nterest, Dividends and Rents

Interest income is recognized on accrual basis except project loan) unless otherwise stated.

Accretion of discount and amortization of premium in respect of debt securities and other fixed

income securities is amortized over the remaining period to maturity of such instruments on

straight line basis

Realized gains and loses in respect of equity securities and units of mutual fund listed in the stock

exchange are calculated as the difference between the net sales proceeds and their costs using the

weighted average method

Policy loans are allowed to the policy holders to the extent of surrender values of their respective

policies provided the policies are in force for not less than two years. Interest on policy loan is

accounted on accrual basis subject to the provisions of the Insurance Act/Rules.

Profit or loss on sale of securities/equities is taken to revenue only in the year of sale.

Income on debentures is recognized at prescribed rates except recovery is considered doubtful in

which case the income is recognized on a receipt basis

Interest income on bank deposits FDRs) is recognized on accrual basis.

Dividend income is accounted for when the dividend is received.

Interest and dividend are accounted at gross value before deduction of Income Tax).

3 03

rovisions

A provision is recognized in the Balance Sheet date if, as a result of past events, the company has a

present legal or constructive obligation that can be estimated reliably, and it is probable that an

outflow of economic benefits will be required to settle the obligation.

50



Provision has been made against the loans and advances with small prospect of recovery. Provisions

have not been made against advance for which legal cases instituted but remained pending for

decision

3 4 ontingent Liabilities

Contingencies arising from claim, litigation, tax assessment, fines, penalties, etc. are recorded when

it is probable that the obligation has been incurred and the amount can reasonably be measured.

The Income Tax Department (DCT) has appealed to the High Court Division of Supreme Court in

December, 2007 against the orders (ITA 3145 of 2004-2005) (Assessment year 2003-2004) of

Appellate Tribunal dated 27/03/2005 and Commissioner of Taxes (CT) (Appeals) dated 26/12/2004

claiming that the Tribunal was not legally justified to uphold the order of the CT Appeals dated

26/12/2004 for deciding interest income (Tk. 1,70,000) on national investment bond (NIB) as

exempt income in the assessment of tax of the company for the assessment year 2003 2004.

The company has contended against the appeal of the DCT in that the Appellate Tribunal and CT

Appeals have allowed the income on NIB as exempt one in the assessment year 2003 2004 and such

income was also exempted from tax in previous years tax assessment of the company.

As the case has not yet been settled and their exists uncertainties or timing of deciding the tax

liability of the company, if any, and the experts have advised that the company s grounds of

reasoning against the appeal are well supported in law in view of which the company could not

expect any further liability. (please refer to note 16.04).

There are no any other liabilities.

3 05

Premium Deposit

Premium deposit represents premium received but risk has not yet been accepted because of

pending underwriting decision as on 31st December 2012.

3 6

e-Insurance

The company maintains risk premium Re-insurance with Munich-Re-insurance. Re-insurance

premium ceded is recognized on due basis in accordance and terms and conditions of re-insurance

treaties. A claim recovery from re-insurer is recognized at the same time as the claims are intimated

and recorded in the books of account of the company.

3 7

laims Costs

Claims costs consist of the policy benefit amount and claim settlement costs, where applicable.

Death and rider claims are accounted for on receipt of intimation.

Annuity benefits and Maturity benefits are accounted when due.

Surrenders are accounted for on the receipt of consent from the insured to the quote prescribed in

the policy deed provided by the company.

5



Maturity claims also include amounts payable on lapsed policies which are accounted for on the date

of maturity of policies.

Re-insurance claims receivable are accounted for in the period in which claims are settled.

3.08

nvestments

Investments are made in accordance with the provisions of the Insurance Act/Rules 1958 and the

circulars/notifications issued by the Controller of Insurance IDRA in this context from time to

time.

a)

Classification of investment

Investments with fixed or determinable payments and fixed maturity, where the company has

positive intent and ability to maturity, are classified as Held-to-Maturity. Investments which are

intended to be held for an indefinite period but may be sold in response to the need for liquidity

or change in mark up/ interest rates are classified as Available For Sale.

b)

Valuation of investments

(i)

Investment property

Investment property represents land or building held for investment purpose. Investment

property is valued at historical cost plus revaluation, if any.

Cost of investment property includes their acquisition cost and costs of various phases of

construction works including advance to contractors which have been completed at the

balance sheet date.

The construction works of office buildings on leasehold land at various places are in

progress, which has not been fully completed at Balance Sheet date and hence classified as

capital work in progress (CWIP) in the accounts.

(ii)

Debt Securities

Debt securities with fixed income {(Bangladesh Govt. Treasury Bond), Private and Public

Bonds and Debentures} are categorized by class and are accounted for "held to maturity"

and have been valued at cost. The discount in respect of the debt securities which is the

difference between the purchase price and the redemption amount is amortized and

recognized in the Revenue Account on straight line basis over the remaining period to

maturity of these securities. For fair presentation, premium, if any, premium on acquisition

of those bonds and debentures are however charged to Revenue in the year of acquisition.

(iii)

Shares listed in Stock Exchange

Listed equity shares and units of mutual fund are categorized as an asset class

Available-For-Sale and the asset is valued at the lower of their acquisition cost and the year

end (last) lowest quoted closing prices on the Stock Exchanges. Adequate provision is

however made for diminution if any, in the cost prices of such shares against such quoted

prices in the Stock Exchanges. If the quoted prices of this class of shares are higher than the

cost prices, no credit is taken to Revenue account.

52



3.09

De-listed and OTC shares are also included in the class and valued at cost being nominal

amount (0.25%) of total investment portfolios in listed shares.

The equity investments and units of mutual fund that are quoted in active market are not

presented at fair value. Abnormal ups and downs have been going on in the market of

quoted shares and if the shares are measured at the fair value, the results of the financial

performance may be seriously misleading for the objective of financial performance.

Considering the circumstances and to reflect fair financial position of the company, the

principle of presenting the quoted share in market value has been departed for the time

being.

(iv)

Loans are valued at historical cost (less repayments), subject to provision for impairment, if

any.

(v )

All other investments are recognized at cost including their acquisition charges, if any, less

impairment, if any.

Fixed Assets and Depreciation

Fixed assets are reported at cost less accumulated depreciation and impairment, if any. Cost includes

the purchase price and any cost directly attributable to bring the asset to its working condition for

its intended use. Fixed assets of small value and assets for which useful lives can not be estimated

properly are fully charged to the Revenue in the year of their purchases. Subsequent expenditures

incurred on existing fixed assets are expensed out except where such expe nditure increases the future

economic benefits from the existing assets. Any addition to the original fixed asset is depreciated

over the useful life of the asset. Depreciation is charged on pro-rata basis from the month of

purchase and up to the previous month of sale. Methods and rates of providing depreciation are

consistently applied in relation to the previous year.

Capital works in progress CWIP) is stated at cost less impairment, if any and consist of expenditure

incurred and advances made in respect of fixed assets in the course of their acquisition, erection,

construction and installation. The assets are transferred to relevant category of fixed asset when they

are available for use.

Gains Losses on disposal of fixed asset are taken to revenue account.

Tangible ssets

The company has adopted the straight line method of depreciation so as to depreciate 100% of the

cost of the assets at rates in the following manner:

Furniture and Fixtures

0

Renovation

0

Computer Hardware & Software

5

Electrical Equipments

0

Vehicles

0

In case of acquisition depreciation is calculated from purchasing month, and in case of disposal

depreciation is charged up to previous month of sale.

53



Intangible ssets

Intangible Assets are reported at acquisition value with deductions for impairment losses,

i any

Intangible Asset comprises system software which is stated at cost of acquisition including any cost

attributable for bringing the same to its working condition less accumulated amortization. This is

amortized over period of four (4) years. Any expenses on software for support and maintenance

payable annually are charged to Revenue Account.

Impairment of ssets

The carrying amounts of assets are reviewed at the Balance Sheet date if there is any indication of

impairment based on internal/external factors. An impairment loss, if any, is recognised wherever

carrying amount of an asset exceeds it s recoverable amounts.

ncumbrances

There were no encumbrances on assets of the company as at the Balance Sheet date (previous year

Tk. nil).

3 1

tamps, Printing, Stationar

y

in hand

Stock of stamps, printing and stationary in hand etc. are valued at cost determined on average basis.

3 11

olicy on Doubtful Debts

Provision for doubtful debts has been provided as determined by the management.

3 12 axation

urrent

Provision for taxation is based on taxable income determined under the Fourth Schedule of the

Income Tax Ordinance, 1984.

Charge for the current tax is calculated following the accepted method of income assessment and the

using tax rate enacted at the Balance Sheet date and includes adjustments, where considered

necessary, relating to prior years.

eferred tax

Deferred tax is recognized using the Balance Sheet liability method on all temporary difference

arising between the carrying amounts of assets and liabilities for financial reporting purposes and

amounts used for taxation purpose.

Deferred tax is the effect of timing difference.

As the current tax has been measured using the rate, prescribed method of income assessment

(annual average surplus) and tax laws that have been substantially enacted by the Balance Sheet

date as per Income Tax Ordinance there is no possibility for arising any timing difference and

thus creating of deferred tax asset/ liability at this stage does not arise.

Further, sufficient tax refund due has been admitted by Tax authority in the previous years which

is virtually certain to reduce the future tax liabilities, if any, of the company.

54



3.13

isk Minimization Strategies

3.13.01 Individual life business:

Insurance underwriting risk is the risk that the Company will suffer losses due to economic

situation or the rate of occurrence of an incident contrary to the forecast made at the time of setting

up of the premium rate.

The underwriting risk arises from death and sometimes due to permanent disability and critical

illness. The Company may get exposed to poor risk due to unexpected experience in terms of claim

severity or frequency. This can be a result of anti-selection fraudulent claims or poor persistency.

The Company may also face the risk of poor investment return inflation of business expenses and

liquidity issues on monies invested in the fund. The Company faces the risk of under pricing

particularly due to nature of long-term contract. In addition to this due to poor persistency the

Company would be unable to recover expenses of policy acquisition. The Company manages

these risks through its underwriting reinsurance claims handling policy and other related

control mechanisms. The Company has a well defined policy and avoids selling policies to high

risk individuals. Underwriting procedures have been enhanced and rules have been structured to

enable the Company to strike a balance between mitigating risk ensuring control and providing

better service. This puts a check on anti-selection.

The Company seeks to reduce its risk exposure by reinsuring certain levels of risks with renowned

re insurance Munich Re.

The Company provides quality service to the policyholders and checks to minimize miss-selling and

avoid poor persistency. A regular monitoring of lapsation rate is conducted. The Company has

procedures in place to ensure avoidance of payment of fraudulent claim. The Claim Committee

reviews high sum assured and early claims for verification and detailed investigation of all doubtful

and early claims are conducted. The Company maintains adequate liquidity to cater for potentially

sudden and high cash requirement.

3.13.02 Group Life:

The major risk underwritten by the company is death which depends on mortality. Other risks

underwritten include disability and major disease.

Risk increases as a result of catastrophic events business procurement without following

underwriting guidelines business procurement at low premium rate due to tough market

competition and fraudulent claims. Non-receipt of premium in due time is an additional factor.

The Company manages these risks through proper underwriting reinsurance effective claims

handling and other claim control mechanism. The company also avoids underwriting group

business with employees exposed to hazardous profession. Pricing is done in line with actuarial

guideline experience and the mortality exposure the concerned group faces. Moreover premium

rates of existing groups are also reviewed from time to time on the basis of claim experience.

Reinsurance arrangements are made by the company with renowned re-insurer to limit the risk at

affordable level. Beside the company avoids payment of fraudulent claims through claim

investigation. Strict monitoring is in place to keep the outstanding balances of premium at a

minimum.

55



3.13.03 Group Health:

The main risk underwritten by the company is morbidity that requires treatment as inpatient or

outpatient. Risks are increased as a result of increasing incidences of fatal diseases, accident &

catastrophic event, fraudulent practices, health over consciousness of insured etc. Consistent

increase in charges of various hospital services, lack of adequate claim control mechanism and

business procurement at low price in the competitive market are additional factors.

The Company manages these risks through proper underwriting and other related claim control

mechanism, premium rate review on claim experience and hospital agreements with discount

facility etc.

The Company has a well defined medical underwriting policy to avoid underwriting Group

Health business with potentially high health risk. Any pre-existing conditions are also screened at

this stage. Health plans are designed and terms-conditions are set in such a way that abuses of

benefit utilization are minimized. Pricing is done in consultation with actuarial department on

the basis of actual claim experience. Company has also pre-determined charges for certain illness

and investigations with its panel hospitals. Those are treated as Standard Rate which is applied

to restrict settlement of inflated bills. The company avoids settlement of any fraudulent claims

through claims investigations which is managed by experienced technical staff.

3.13.04 Liquidity Risk:

Liquidity risk is the risk that the Company will be unable to meet its funding requirements. To

guard against the risk the Company has diversified funding sources and assets are managed with

liquidity in mind, maintaining healthy balance of cash and cash equivalent and readily market

securities.

3.13.05 Interest Rate Risk

The Company invests in securities and has deposits that are subject to interest rate risk. Interest

rate risk to the Company is the risk of changes in market. Interest rate reducing the overall

returns on its interest basis securities. The Company limits interest risk by monitoring changes in

interest rates in the money market and by diversifying into various institutions (issuers' of

securities .

3 13 06 Market Risk investment pattern):

Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes

in market prices whether these changes are caused by factors specific to the individual security or

its issuer or factors affecting all securities traded in the market.

The Company is exposed to market risk with respect to its investment.

56



The Company continues to adopt a prudent policy in respect of investments. The fund of the

Company has been invested as per provision of the Insurance Act. The investments are mainly in

Govt. securities, Fixed Deposits Receipts (FDR s) with various commercial banks and financial

institutions having acceptable performance parameters and ratings and equity shares in listed

companies having good and positive fundamental and technical attributes.

The Company also limits market risk maintaining a diversified profile and by continuous

monitoring of developments in Govt. securities (bonds) equity and term finance certificates

markets. In addition, the Company actively monitors the key factors that affect the underlying

value of these securities

3.13.07

einsurance Risk:

The Company seeks to reduce its risk exposure by reinsuring certain levels of risk with

re-insurer. Re-insurer ceded does not relieve the Company from its obligation to policyholders

and as a result, the Company also remains liable for the portion of outstanding claims reinsured

to the extent that re-insurer does not meet the obligations ultimately under the reinsurance

agreements

In order to minimize the risk, the Company has obtained reinsurance cover from a renowned

re-insurer, Munich-Re with proven sound financial health.

3.13.08 Foreign Currency Risk:

As at the Balance Sheet Date there are no financial instruments denominated in foreign currency.

Therefore, the Company is not exposed to risk from any foreign currency exchange rate risk

fluctuation.

3 13 09

redit Risk:

Credit Risk is the risk, which arises with the possibility that one party to a financial instrument

will fail to discharge its obligation and cause the other party to incur a financial loss. Major credit

risk is in bank balance investments. The management monitors exposure to credit risk through

regular review of credit exposure and assessing credit worthiness of counter parties.

3 14

ommission:

Commission to Insurance Agents (Less that received on re-insurance) represents first year

commission, renewal commission and Group commission.

Allowances and Commission (Other than Commission to Insurance Agents less that on

Re-insurance represent Field Officers salary and allowances including bonuses.

57



ash

atciiicni

Cash Flow Statement is prepared in accordance with BAS 7 and Cash Flow from operating activities

has been presented under direct method as outlined in the Securities and Exchange Rules 1987. For

the purpose of cash flow statement, cash and cash equivalents include the following:

D

ash at bank in current and STD accounts

U

erm deposits (FDRs) with commercial banks

U

ash in hand and in transit

3 6

omparative In formation:

Relevant comparative information has been disclosed in respect of the year for all numerical

information in the financial statements.

3 7

)ivideiul to Sliare holders:

Dividends in cash and stock (bonus shares) to share holders are recognized in the period in which

they are approved.

3 8

eneral:

The previous year s figures have been regrouped, rearranged and reclassified wherever necessary.

Amounts and other disclosures for the preceding year are included as an integral part of the current

financial statements and are to be read in relation to the amounts and other disclosures relating to

the current year.

Amounts presented have been rounded to the nearest taka. Figures in brackets ( ) indicate

deduction/negative balances.

58



2012

011

Taka

aka

4 00

S H A R E H O L D E R S C A P I T A L

Authorised Capital

In the 8th EGM held on 20th September 201 2, the

Shareholders' of the Com pany approved the A uthorized

Capital Tk. 5,000 ,000,00 0.00 only, divided into 500 ,000,00 0

ordinary shares of Tk. 10 each.

50,00 ,00,000 Ordinary Shares of Tk. 10 each

(FY-20 11: 3,00 ,00,000 O rdinary Shares of Tk. 10 each)

Issued, subscribed and paid-up capital

45,00,00 0 O rdinary Shares of Tk. 10 each.

5,000,000,000

00,000,000

45,000,000

5,000,000

Category of Shareholders

Sponsor

General Public

Share holding

( )

36.76 6,540,050 6 54006

63.24

8,459,950J

8,459,950

45,000,000

5,000,000

Num ber of non-resident shareholders

Number of shares held by non-resident shareholders

,914

,914

Category of Share

o. of Share

Share Holding

o of Share Percentage of

Holders

olders

hare Holding

below 500

25

.0 1

500-5000

9

09,275

.43

Sponsor

001-10000

9,430

.32

10001- Above

,484,775

3.00

Sub-total

3

,654,005

6.76

below 500

,502

81,080

.0 2

500-5000

73

71,475

.2 6

General P ublic

001-10000

7

83,390

.0 8

10001-Above

9

,110,050

6.89

Sub-total

,831

,845,995

3.24

Tota l

,914

,500,000

00.00

5 00 LIFE INSURANCE FUND

k. 26 ,33 1 ,578 ,112

Balance at the beginning of the year

23 282 041 204 130 605 300

Add: Increase in Life Revenue Account during the year

,049,536,908

,151,435,904

Balance at the end of the year

6,331 ,578,112

3,282,041,204



6 00

ESTIMATE D LIABILITIES IN

RESPECT OF OUTSTANDING

CLAIMS WHETHER DUE OR

INTIM ATFI

k. 665 191 938

a

Ordinary Life

Death Claim

Maturity Claim

Claim on Survival

b

Gono Grameen Bima

Death Claim

Maturity Claim

Claim on Surrender

2012

011

Taka

ak a

-59,181,976

45,614,439

p5,265,171

74,575,101

430,655,296

76,232,580

12,844,674

,823,079

153,865,145

17,907,870

1,842,899

249,851

128,980,800

30,800,117

7,592,000

7 575 214

551,180,711

c

Group Insurance

d

W age Earners

e

Health Insurance

7 00

AMOUNT DUE TO OTHER PERSONS OR

BODIES CARRYING ON INSURANCE BUSINESS

Munich Reinsurance Company

8.00 SUNDRY CREDITORS

k. 329,371,461

Commission Payable Note-8.01)

Development Salary Note-8.02)

Agents' License Fees (Note-8.03)

Insurance Policy Stamps Note-8.04)

Tax and VAT Deducted at Source

Security Deposit Note-8.05)

Incentive Bonus (Note-8.06)

Salaries Allowances Payable (Staff)

Unpaid Dividend

Creditors for Expenses Note-8.07)

Provident Fund (Note-8.08)

Group Insurance Hospitalisation Insurance Premium

Provision for Income Tax (Note-8.09)

Interest Suspense Account Note-8.10)

Unidentified Deposit (Note-8.11)

LRK Securities Ltd. *

Auditors Fees

168,552,718

40,545,753

7,492,000

17,946,171

665, 19 1,938

67,197,302

118,208,917

24 71 253

7,771,815

750,403

160,405

63,663,156

33,967,847

12,896

880,547

5,072,640

1,456,990

9,324

38,563,596

26,056,421

8,124,045

(398,794)

1,000,000

31,409,897

318,013,172

33,084,188

6,837,150

4,970,305

47,172

54,993,588

34,029,100

9,302

880,547

10,966,479

1,465,186

18,745

38,563,596

21,793,217

7,305,782

(398,794)

329,371,461

32,578,735

* This represents current account balance with the brokerage house at the end of routine and normal

investment activities in listed shares.



54,720

2,013,793

4,000

210,100

51,169,377

393,625

4,657,541

5,048,835

11,165

63 663 156

1,085,251

4,000

210,100

44,623 ,247

393,625

4,442,041

4,114,714

65,890

54 993 588

2012

011

Taka

aka

8.01

ommissions payable

185208 917

18 013 172

This represents the provision of commissions payable to OL and GN-GRB's agents and different

level of development officers which were due in December 2012 against first year and renewal

business. These were subsequently paid.

8.02

evelopment Salary

4,071,253

3,084,188

This represents provision of salary, performance and production bonus payable to GN-GRB

development officers (other than agents). These were paid subsequently.

8.03

gents' License Fees

771 815

837 150

This represents amounts received from various development staff for agent's licenses fees which

were under process and deposited gradually to the IDRA.

8.04

nsurance Policy Stamps

50,403

,970,305

This represents provision for expenses relating to policy stamps required to be affixed on the

unissued policies.

8.05

ecurity Deposit

k.

63 663 156

Courier

Printing Materials

Stationery Suppliers

Car Repairs Garage)

Contractor's (Construction for office buildings)

Computer Hardware Software Suppliers

Staff Employment related)

Car Loan Scheme *

Others

* This represents deposits received from the employees and adjustable under the Company's Car

Scheme.

8.06

ncentive Bonus (Staff)

3 967 847

4 029 100

This represents provision of yearly incentive bonus payable to the employees' of the company on

the basis of the yearly operation results. This was paid subsequently.

61



2012

01 1

Taka

aka

8. 07

reditors for Expenses

Printing and stationery

Office Rent

Prize and awards

Telephone ill

Electricity Bill

Postage and Courier

Travelling and Conveyance

Car Fuel Maintenance

Photostat

Unit Office Expenses

ank Charges

Entertainment

Legal Expenses

Office Maintenance

Papers and Periodicals

Others

Tk. 5,072,640

61,250

375,451

56,204

432,960

50, 879

260,144

50 0

1,277,191

425,657

1,265

1,868,298

44,002

9

217,915

5,072,640

1,120,391

281,155

5,500,000

71,631

508, 476

47,648

70,122

536,620

2,500

1,415,371

452,498

1,834

67,420

1,188

889,625

1 966 479

This represents various expenses incurred by the Company in the ordinary course of business

exclusively for the purpose of its operation and have been paid subsequently.

8 .08

rovident Fund

456 99 465 186

This represents company's and employees' contribution to PF (Provident Fund Trust) for the

month of December 2012 which was subsequently paid.

8 .09

rovision for Income Tax

k. 38 563 596


8,563,596

8,563,596

Add: Provision for Income Tax - Current year


8 56 596

8 563 596

Provision for income tax has been made as required under the Income Tax Ordinance 1984.

Assessment of income tax of the company has been finalized up to Financial Year (FY) 2003 with

the exception of Financial Year (FY) 2001 for which assessment has become time barred (Note

no-3.04 .

62



Tk. 8,124,045

r

,3057821

4,376,139)

_

5,194,402

8,124,045

r

,958,021

2,539,568)

1,887,329

7,305,782

Tk. 73 363 920

5466,929

3,472,732

3,414,580

3,843,733

576,844

5,589,102

73 363 92

58,796,997

3,525,453

3,418,022

3,793,076

576,844

5,589,102

75 699 494

2012

01 1

Taka

aka

8.10

nterest Suspcnsc Accowit

k. 26 056 421

Overdue Interest on Home Loan Insurance Scheme

Debenture Interest Receivable from Beximco Denims Ltd.

25,608,631

44 7 7

90

_

26,056,421

21,345,427

447,790

2 793 2 7

Interest accrued and overdue from loanees under Home Loan insurance scheme related to the period

after legal actions were instituted against those loanees has been credited to Interest Suspense

Account.

Overdue debenture Interest receivable from the Beximco Denims Ltd. from FY 2003 but not yet

received has been also credited to this Account.

8.11

nidentified Deposits


Adjustments/ reconciled

Additions


These represent deposits to company's various bank accounts which could not be reconciled and

hence remained unidentified at year end due to lack of proper documents from banks. For fair

representation, the balance in the account aged more than three 3)

years are credited to the Revenue

Account but proper records are kept for audit-trail and any subsequent adjustment, if any.

9.00 PROVISION FOR DOUBTFUL DEBTS

Project loan

Motor car, cycle and bicycle Loan

Branch collection account

Other receivables

Advance Salary

dvance to agents

10.00 PREMIUM DEPOSITS

Ordinary Life - 1st year

Ordinary Life - Renewal

GN-GRB

Group Health Insurance

Tk. 12 400 090

1,118,860

5,164,544

5,344,259

772,427j

12,400,090

1,001,639

2,977,282

5,925,547

1,558,431

11 462 899

This represents payments made by policyholders awaiting adjustment against the policy premiums.

63



2012

011

Taka

aka

11.00 LOAN

k. 509,955,906

On Insurer s Policies w ithin their surrender value

Opening balance

Add: Loan disbursement during the Year (Note 11.01)

Less: Loan recovery of loan during the year (Note 11 .02)

Balance as at Decem ber 31

444,369,078

402 ,871 ,846

180,636,668

3,021,567

049

84 0

1,524,335)

509,955,906

44,369,078

11.01 Loan disbursement during the year

Ordinary Life (OL)

Gono-Grameen Bima (GN-GRB )

11.02 Loan recovery during the year

1k. 180,636,668

66925918

0,719,547

13,710,750

2,302,020

180,636,668

43,021,567

Tk. 115,049,840)

Ordinary Life (OL)

103,653,138)

89,366,832)

Gono-Grameen Bima (GN-GRB )

11,396,702) 12,157,503)

(115,049,840)

101,524,335)

12.00 INVESTMENT AT COST)

k. 14,440,488,448

Government Securities (Note-12.01)

Mutual Fund (Note-12.02 )

Shares Listed on Stock Exchanges (Note-12 .03)

Debentures and Bonds (Note-12.04 )

DL IC Securities Ltd. (Subsidiary C ompany N ote-12.05)

Other Investment (Note-12.06)

Other Loans Note-12.07)

8,387,482,195

30,000,000

5,131,994,379

476,518,717

320,200,000

3,138,890

91,154,267

14,440,488,448

6,727,040,490

30,000,000

3,976,783,821

536,553,527

,138,890

99,885,955

11,373,402,683

64



2 12

11

Taka

aka

12.01 Government Securities

k. 8,387,482,195

Statutory Deposit with Bangladesh Bank BGTB):

The amount represents investment made under statutory

requirements which is made up as follows:

o1

J

2

The above amount is invested in 10-year Bangladesh Govt. Treasury Bond BGTB) and deposited

with Bangladesh Bank as Statutory Deposit as per provisions of the Insurance Act 1938.


,385,482,13 L6,725,040,4

8 387 482 95

727 4 49

12.02 Mutual Fund

k. 30,000,000

Janata Bank Mutual Fund

Prime Financial First Unit Fund PFFUF)

1

3

65



2012

01 1

Taka

aka

12 03 Shares Listed on Stock Exchanges

,131,994,379 ,976,783,821

Name of the

Face

o of

verage

ook Value at

arket Value

SL

nit

alue

os t

ost Tak a) as

Taka) as at

Institution

er

er Unit

t 31.12.2012

1.12.2012

Bank

1 ABBANK

0.00

25 316

4.44

5 915 433

4 333 149

2 ALARABANK

0.00

93 493

4.45

0 110 741

366 674

3 BANKASIA

0.00

69 884

9.31

280 954

652 506

4 BRACBANK

0.00

17 856 1.03

657 521

101 389

5 DHAKABANK

0.00

95 507

0.14

937 649

848 574

6 DUTCHBANGL

0.00

9 000

59.99

4 239 186

0 413 000

7 EBL

0.00

68 760

5.11

258 811

1 689 692

8 FIRSTSBANK

0.00

59 913

3.79

402 715

958 391

9 ICBIBANK

00.00

084 000

0.01

0 851 052

5 630 000

10 IFIC

0.00

87 887

9.43

9 989 229

0 421 509

ISLAMIBANK

0.00

47 525

6.15

1 703 990

9 154 070

2 MTBL

0.00

04 990

5.78

706 993

299 281

13 PREMIERBAN

0.00

6 106

3.03

752 821

232 917

14 PRIMEBANK

0.00

55 358

6.37

2 556 368

1 648 246

15 PUBALIBANK

0.00 41 925 740

6.47

109 654 722

383 549 420

16 RUPALIBANK

0.00

4 784

7.23

271 486

937 850

17 SOUTHEASTB

0.00

11 144

3.13

105 829

222 880

18 TRUSTBANK

0.00

30 052

6.42

436 607

251 300

19

1

UCBL

0.00

166 947

7.93

5 930 879

7 539 949

20 UTTARABANK

0.00

15 901

6.10

184 161

415 828

Cement

21 ARAMITCEM

0.00

505

23 970

22 CONFIDCEM

0.00

21 444

1.01

623 626

2 739 476

23 HEIDELBCEM

0.00

8 740

28.93

2 730 794 6 136 478

24 LAFSURCEML

0.00 27 011 180

0.00

70 099 123

88 667 822

25 NILOYCEM

0.00

7 300

05.89

890 728

118 475

26 PADMACEM

0.00

03 500

9.84

053 866

167 100

Ceramics sector

27 BENGALFINE

00.00

600

10.20

86 514

69 000

28 RAKCERAMIC

0.00

53 035

44.82

4 570 595

7 092 388

29 SPCERAMICS

0.001

14 911

5.77

8 714 989

4 005 579

Corporate ond

30 ACIZCBOND

000.00

5 931

63.43

7 430 916

9 122 076

31 Brac Bank Con

y

Bonds 1 000.00

0 000

000.00

0 000 000

32 IBBLPBOND

000.00

1 825

65.58

1 417 984

1 739 269

66



Name of the

ace

o of

verage

ook Value at

arket Value

S[

nstitution

nit

alue

st

ost Taka) as

Taka) as at

er

er Unit

t 31.12.2012

1.12.2012

Engineering

33 ATLASBANG

0.00

17 841

43.98

7 546 083 1 394 890

34 BDTHAI

0.00

84 837

1.46

9 495 559

7 066 262

35 BSRMSTEEL

0.00

3 800

8.58

737 433

332 020

36 DESHBANDI-JU

0.00

4 500

7.92

998 300

93 550

37 ECABLES

0.00

4 850

7.46

04 737

66 260

38 MARKBD

00.00

48 7

9.33

19 574

27 279

39 NAVANACNG

0.00

94 344

56.83

6 163 064

3 488 651

40 NTLTUBES

0.00

9 592

0.22

376 501

490 946

41 RANFOUNDRY

10.00

42 000

22.51

4 148 289

7 492 400

42 SALAMCRST

0.001

00 030

0.09

011 648

911 473

Financial Institutions

43 DBH

0.00 20,125,000

.4 9

0 073 335

127 000 000

44 ICB

00.00

0 588

8.42

94 993

5 969 351

45 IDLC

0.00

8 375

6.66

05 714

445 663

46 IPDC

0.00

7 287

9.02

952 786

211 166

47 ISLAMICFIN

0.00

77 321

0.57

7 479 101

5 307 455

48 LANKABAFIN

0.00

30 345

03.50

3 8 4 0 1 1 7

3 590 355

49 MIDASFIN

0.00

5 011

1.54

184 780

805 561

5 PLFSL

0.00

3 301

8.19

040 001

30 952

51 PRIMEFIN

0.00

20 025

1.61 4 278 611

3 776 820

52 UNIONCAP

0.00

65 100 2.11

1 766 720 369 780

Food and Allied

53 AMCL PRAN)

0.00

55 430

27.89

9 878 642

8 962 460

54 BATBC

0.00

4 250

52.51

1 173 551

7 147 875

55 BIONICFOOD

0.00

000

.9 0

90 3

400

56 FUWANGFOOD

0.00

3 240

9.91

156 438

644 240

57 MEGHNAVEG

00.00

300

4.46

41 644

76 225

58 MONAFOOD

00.00

000

7.98

39 885

75 000

Fuel and Power

59 BDWELDING

0.00

63 746

1.01 2 191 088

438 907

60 DESCO

0.00

9 275

9.51

900 244

157 728

61 EASTRNLUB

0.00

7 500

06.88

4 895 615

3 409 000

62 JAMUNAOIL

0.00

70 644

57.76

72 864 110

19 709 954

63 KPCL

0.001

20 597

06.64

5 515 362

5 925 731

64 LINDEBD

0.00

9 237

37.98

337 724

1 545 037

65 MJLBD

0.00

3 221

6.96

888 800

647 714

66 MPETROLEUM

0.00

20 400

90.04

36 901 595

14 183 400

67 PADMAOIL

0.00

013 105

94.12

97 972 164

89 957 188

68 POWERGRID

0.00

06 070

9.66

328 522

897 492

69 SUMITPOWER

0.00

50 785

6.23

4 102 102

3 366 841

70

TITASGAS

0.00 52 000

0.36

9 353 903

2 575 600

67



Name of the

Face

o of

verage

ook Value at

arket Value

SL

nstitution

nit

alue

ost

ost Taka) as

Taka) as at

er

er Unit

t 3 1.12.2012

1.12.2012

Insurance

71 BGIC

0.00

050 431

3.70

5 903 661

3 823 878

72 CONTININS

0.00

0 500

1.41

272 138

320 300

73 EASTERNINS

0.00

2 510

1.48

177 978

932 368

74 EASTLAND

0.00

5 660

5.25

522 853

584 356

75 FAREASTLIF

0.00

67 282

75.49

2 001 672

9 625 348

76 GREENDELT

0.00

849 575

11.71

06 610 044

35 758 805

77 MEGHNALIFE

0.00

54 210

80.08

7 770 391

7 394 888

78 NATLIFEINS

0.00

8 490

2.16

16 331

623 923

79 PEOPLESINS

0.00

19 392

5.33

945 624

033 280

80 PIONEERINS

0.00

8 360

8.47

93 291

530 280

81 PRAGATIINS

0.00

32 308

3.27

2 339 850

256 019

82 PRAGATILIF

0.00

3 347

12.55

3 464 161

981 722

83 PRIMELIFE

0.00

9 207

67.13

4 908 857

0 348 012

84 RELIANCINS

0.00

7 868

5.60

060 149

485 886

85 jUNITEDINS

0.00

4 366

1.11

165 199

60 836

IT Sector

86 AGNISYSL

0.00

25 132

0.21

6 366 083

2 550 655

87 BDCOM

0.00

84 737

5.57

2 089 937

258 477

88 DAFODILCOM

0.00

59 752

8.63

7 761 561

310 057

89 INTECH

0.00

97 448

1.37

5 606 874

804 830

90 ISNLTD

0.00

99 803

6.16

4 456 162

556 769

Miscellaneous

91 ARAMIT

0.00

49 650

67.77

0 001 331

1 665 940

92 BERGERPBI

0.00

1 000

63.35

163 997

6 439 300

93 BEXIMCO

0.00

57 672

61.23

54 408 484

1 674 077

94 GQBALLPEN

0 00

8 172

73.82

634 884

935 746

95 MIRACLEIND

0.00

74 879

2.51

2 188 169

835 939

96 SINOBANGLA

0.00

00 000

6.76

4 702 555

0 600 000

Mutual Funds

97 1JANATAMF

0.00

03 000

1.52

641 527

821 000

98 1STPRIMFMF

0.00

18 000 4.64

8 660 965

1 954 800

99 AIMS STMF

0.00

36 250

0.59

6 677 634

1 269 125

100 DBH1STMF

0.00

120 000

0.31

3 084 706

3 452 000

101 EBL1STMF

0.00

74 000

9.57

145 178

548 600

102 EBLNRBMF

0.00

000 000

0.00

0 000 000

400 000

103 GRAMEEN1

0.00

63 250

9.78

1 716 477

9 2 5 925

4GRAMEENS21000

71 650

6.61

5 968 435

6 204 650

105 ICB1STNRB

0.00

56 500

8.66

615 353

225 500

68



Name of the

Face

o of

verage

ook Value at Market Value

SL

nstitution

nit

alue

os t

ost Taka ) as

Taka) as at

er

er Unit

t

31.12.2012

1.12.2012

106 ICB2NDNRB

0.00

37 000

3.11

7 030 051

212 500

107 ICB3RDNRB

0.00

80 000

2.61

578 037

692 000

108 ICBAMCL1ST

0.00

58 000

7.44

2 238 876

0 474 800

109 ICBAMCL2ND

0.00

464 000

6.57

4 254 183

0 687 200

110 ICBEPMF1S1

0.00

47 000

6.68

0 793 169

240 700

111 ICBISLAMIC

0.00

16 500

9.49

0 399 125

1 363 000

112 LRGLOBMF1

0.00

00 000

0.00

000 000

000 000

113 PHP MF1

0.00

000 000

0.00

0 000 000

9 000 000

114 POPULAR1MF

0.00

00 000

0.00

000 000

600 000

115 PRIME11CBA

0.00

10 500

4.33

450 929

173 500

116 TRUSTB1MF

10 001

50 000

0.00

500 000

305 000

Paper and printing

117 I-IAKKANIPUL

0.00]

61 500

7.54

_3 84 65

Pharmace uticals and Chemicals

118 ACI

0.00

71 700

78.36

03 467 630

2 484 040

119 ACIFORMULA

0.00

84 160

11.47

5 115 853

3 169 424

12 Activefine

0.00

46 280

4.53

2 364 604

0 634 556

121 BEACONPHAR

0.00

34 700

7.67

3 763 686

172 550

122 BXPHARMA

0.00

616 009

0.15

13 361 457

0 334 903

123 GLAXOSMITH

0.00

0 400

65 32

452 611

1 628 000

124 IBNSINA

0.00

0

205

125 IMAMBUTTON

0.00

0 850

3.47

23 941

83 820

126 MARICO

0.00

0 900

46.48

866 591

151 810

127 PHARMACO

00.00

00

4.43

0 885

4 250

128 RECKITTBEN

0.00

000

50.42

003 331

761 600

129 RENATA

0.00

2 725

59.51

029 763

410 138

130

SQURPI-IARMA

0.00

80 148

4.82

3 330 951

65 252 953

Service and Rea l Estate

131 CCL

0.00

68 585

31.53

1 634 596

4 010 692

132 SAPORTL

0.00

06 460

34.77

5 206 493

0 840 570

Tannery ndustries

133 BATASHOE

0.00

5 000

38.38

1 843 463

8 749 500

134 LEGACYFOOT

0.00

44 760

1.47

003 744

054 436

135 PARAGON

00.00

0 235

7.04

79 102

63 760

Telecommunication

36

G I

10.00 1 130 400

55.48 88 791 465 197 820 000

69



E

Name of the

ace

o.of

verage

ook Value at

arket Value

SL

nstitution

nit

Value

ost

ost Taka) as

Taka) as at

er

er Unit

t

31.12.2012

1.12.2012

Textile

137 APEXWEAV

0.00

0,120

0 29

05 337

,558,480

138 CMCKAMAL

0.00

510

4,085

139 DACCADYE

0.00

0,259

0.33

536 196

199 107

140 DYNAMICTEX

00.00

05,140

8 00

995 448

493 565

141 HRTEX

0.00

23,567

3 30

350 234

991 214

142 MAKSONSPIN

0.00

30 336

8 60

8 192 350

2,999,981

143 MALEKSPIN

0.00

24 950

3 67

8,821,323

646 245

144 METROSPIN

0.00

6 977

9.22

,842,504

03 307

145 MHOSSAIN

00.00

9,800

5 06

94,108

88 050

146 MITATEX

00.00

2 440

3 70

,204,939

,385,670

147 MONNOFABR

0.00

0 000

0.45

08 904

,550,000

148 PRIMETEX

0.00

0 000

3.62

353 433

,463,000

149 QSMSILK

0.00

00

.26

,279

,630

150 SQUARETEXT 10 001

3 964

5 90

131 530

659 499

Total :

131 994 379 5 934 139 559

2012

011

Taka

aka

476,518,717

36,553,527

Face

Si.

otal Book

Name of the Debentures and Bonds

alue Per

o. of Unit

No.

alue At Cost

Debenture

1.00 Beximco Fisheries

,000

00

1,937

2.00 Beximco Denims Ltd.

,500

,000

,466,780

3.00 Prime Bank Bond

/A

/A

00,000,000

4.00 Banglalink Bond

/A

/A

80,000,000

5.00 Mutual Trust Bond

/A

/A

0,000,000

6.00 National Bank Bond

/A /A

0,000,000

7.00 Trust Bank Bond

/A

/A

00,000,000

a

76,518,717

Si. No.

1.00: Procured in 1995. Defaulted in paym ent as per schedule and necessary legal action has been taken. Reched uled.

2.00: Procured in 1995. Defaulted in payment as per schedule and necessary legal action has been taken. Recheduled.

3.00: Private: 11.50 per annu m.





70



• • •

2012

01 1

Taka

ak a

I205 1)1Y' Secu ru s lid. (Subddiarv

O ipt i

20 200 000

The IDRA has given permission to the Company on 20th September 2012 for setting up one

subsidiary company for development and improvement of the life insurance fund as per section 42

of the Insurance Act 2010.

The Company has obtained the name clearance letter from Registrar of Joint Stock Companies

(RJSC) in the name of DUG Securities Limited being the name of the subsidiary company.

The Company has recived the allotment letter on 28th September 2012 for 1 (one) share

(membership) of Dhaka Stock Exchange Limited on payment of Tk. 320,200,000/- (Taka Thirty

Two Crore Two Lacs Only) to DSE being the advance against the paid up Capital of the subsidiary

company.

The DLIC Securites Limited could not commence its operation during the year ended 31st

December 2012 for non receipt of the consent letter of paid up Capital from SEC and registration

from the RJSC Firms (these were obtained later on in FY-2013).

12.06 Other I n v e s t n i n

k. 3 138 890

Share of Central Depository Bangladesh Ltd. (Private)

,138,890 ]

138 890

3 138 890 138 890

10,00 Other Loans

Home Loan Insurance Scheme HLIS)

Project Loan (GN-GRB)

Tk. 91,154,267

35 122 192

L,032,075

9 1

154 267

41 523 813

58 362 142

99 885 955

3.00 OUTSTANDING PREMIUM

k. 646,608,173

Ordinary Life (OL)

Group Insurance (GI)

Health Insurance (HI)

Gono-Grameen Bima (GN-GRB)

549 257 435

31 844 495

13 406 243

52 100 000

646 608 173

544 229 875

23 168 410

11 877 926

54 126 857

633 403 068

The

amount represents premium receivable as on December 3 1st, 2012 for which grace periods did

not expire as on the above date. Most of the outstanding premium amounts have been realized

subsequently.

71



240,618,647

429,796,996

37,048,696

23,569,093

22,354,436

53,353,153

72,010

181,632,227

542,325,165

32,953,743

31,750,369

6,508,120

41,569,170

72,010

15.00 ADVANCES AND DEPOSITS

Advance Office Rent

Advance Income Tax AlT) Note-15.01)

Security Deposit

Motor Cycle, Bicycles Loan

Other Advances Note-15.02)

15. . A Advance Income Ta\ (AlT)


Add: Addition during the year

Adjustment during the year


Tk.

785,420,077

11,535,628

1,589,204

767,601,405

16,330,215

4,554,437

,638,713

288,490

78,671

1,440,117

,171,430

785,420,077

35,008,233

Tk

767,601,405

616,330,215

27,136,090

151,271,190

9,194,125

767,601,405

16,330,215

767,601,405

16,330,215

2012

01 1

Taka

ak a

14.00

INTEREST, DIVIDENDS

R TS

ACCRUING BUT NOT DUE

k.

806,813,031


Fixed Deposit with Banks

Home Loan Insurance Scheme

Interest on Debentures Bonds

Dividend on Share

Interest on Policy and Project Loan.


8 6 813 31

36 81 8 4

15.02 Other Advances

,440,117

,171,430

Others Advances include advances a gainst staff salary and various expenses which ha ve been adjusted

subsequently.

I

16.00

SUNDRY DEBTORS

k

55,089,341

Motor Car Cycle Loan (Note-16.0l)

Bicycle Loan Note-16.02)

Project Loan

Branch Collection Account (Note-16,03)

Income Tax Refund due Note-16.04)

Other Receivables Note-16.05)

2,330,689

1,008,681

434,854

3,414,580

42,382,121

5,518,416

2,380,069

1,012,022

434,854

3,418,022

42,382,121

5,467,760

55,089,341

5,094,848

Adequate provision has been made against project loan (GN-GRB), branch collection account,

motor car motor cycle loan, bicycle loan and other receivables (Note 9).

72



2012

011

Taka

aka

16.01 Motor Car Cycle Loan

,330,689

,380,069

This represents the long outstanding of motor cycle and car loan lying with the development

personnel.

16.02 Bicycle Loan

,008,681

,012,022

This represents the long outstanding of bi cycle and car loan of the insurance agents of GN-GRB.

16.03 Branch Collection Account

,414,580

,418,022

This represents the money receivable from various insurance agents at unit level offices of GN-GRB.

16.04 Income Tax Refund Due

2,382,121

2,382,121

This represents net income tax refundable to the company for the assessment years from 1996-1997

to 2001-2002 2003-2004 to 2004-2005 as per tax assessment orders by the Income Tax Department.

The assessment of the income tax of the company for the assessment year 2004-05 has been

completed and the necessary adjustments have been effected in the accounts. The company filed tax

return for the year 2002-2003 FY 2001 with loss and the tax return has been barred by limitation of

time. Regarding tax assessment for year 2003-20 04, The Income Tax Department has assessed the tax

liability of the company giving tax refund which have been duly accounted for in the accounts. Later

on The Income Tax Department PCT) has appealed to the High Court Division of the Supreme

Court against the order of the Appellate Tribunal for allowing the interest income on national

investment bond (NIB) as exempt income in the tax assessment of the company for 2003-2004. The

case is still pending in court Please refer to note 3.04).

605

Other Receivables

k. 5,518,416

Sundry Advance

,674,683

,674,683

Others *

,843,733

,793,077

5,518,416

,467,760

* This represent money lying with development staff against advance allowances, abuse of

company's money for purchase of furniture and electrical equipments etc. of unit level offices of

GN-GRB and have been brought forward from the account of FY 1999. The amounts have been

fully provided in the accounts (Please refer to note 9).

73



2 12

11

Taka

ak a

17 00

B NK B L NCES

k. 8 984 030 958

On Fixed Deposit with Banks Note-17.01)

On Current Account with Banks Note-17.02)

On STD Account with Banks Note-17.03)

7 65 567 48

384,335,639 I

9 7Z]

8 ,984 ,030,958

8,025,465,759

43 1 ,078,770

731,324,450

9 187 868 979

17.01 On Fixed Deposit with Banks

Bank Asia Ltd.

DBH Finance Corp. Ltd

EXIM Bank Ltd

First Security Bank Ltd.

Mercantile Bank Ltd

Mutual Trust Bank Ltd.

National Bank of Pakistan

Premier Bank Ltd.

Southeast Bank Ltd

Standard Bank Ltd

Prime Bank Ltd.

Dhaka Bank Ltd.

Jamuna Bank Ltd.

NCC Bank Ltd.

One Bank Ltd.

Shahjalal Islami Bank Ltd.

State Bank of India

Eastern Bank Ltd.

IDLC of Bangladesh Ltd

IPDC of Bangladesh Ltd

Pheonix Leasing Co. Ltd.

Prime Finance Ltd.

United Leasing Company Ltd.

Midas Financing Ltd

AB Bank Ltd.

IFIC Bank Ltd.

National Bank Ltd.

Social Islami Bank Ltd.

Standard Chartered Bank

United Commercial Bank Ltd.

Bay Leasing Financial Ltd.

Lanka Bangla Finance Ltd.

Tk. 7 652 567 484

28,837,077

1,486,117,325

894,460,270

486,091,036

219,782,448

196,203,022

454,867,923

143,965,527

861,123,719

579,792,635

47,382,967

222,640,960

892,003,277

134,695,741

266,803,364

171,210,013

30,686,638

54,365,954

46,614,648

251,198,940

11,214,000

172,510,000

7 652 567 484

94,329,866

1,055,297,787

827,009,850

510,044,696

21,070,002

383,350,000

735,845,455

40,000,000

693,865,109

114,172,405

10,000,000

45,594,043

637,712,777

170,151,803

179,965,816

173,516,264

239,872,972

20,546,509

202,070,501

426,310,234

285,272,168

519,514,926

330,380,200

63,507,276

110,520,226

35,000,000

10,000,000

10,000,000

20,000,000

20,544,874

20,000,000

20,000,000

8 25 465 759

74



5,430,792

291,653,305

4,285,713

65,857,920

1,283,845

42,959

764,778

75 3

81,424

8,187,955

72,084

825,548

666,644

42,284

263,469

1,000

500

1,000

4,813,046

60.620

1,351,195

286,306,608

59,582,639

61,093,417

1,160,945)

42,959

1,282,642

753

5,305

22,558,297

6,900

1,500

2,000

1,000

2,000

1,000

50 0

1,000

318,067

564,653

27,530,336

482,596,555

128,866,065

236,986,827

65,245

1,384,096

65 5

17,742,628

2,949,422

8,979,572

12,323,876

1,924,259

8,279,719

30,388

6,824,099

460,594

6,355,155

321,928

2,623,696

947 127 835

480,695

337,804

25,028,131

468,170,423

137,966,027

37,071,285

65,245

35

655

13,947,366

4,672,960

9,512,063

13,603,281

5,864,259

5,853,915

29,180

4,094,169

2,318,683

1,827,274

481,000

731,324,450

2012

011

Taka

aka

17.02 ( )ii trrcit AL:ttJ t

oh Banks

k. 384 335 639

Hongkong Shanghai Banking Corporation

Bangladesh Krishi Bank

Pubali Bank Ltd.

Rajshahi Krishi Unnyan Bank

Uttara Bank Ltd.

National Bank Ltd.

Citibank N.A.

Sonali Bank Ltd.

Janata Bank Ltd.

Agrani Bank Ltd.

Rupali Bank Ltd.

Islami Bank Bangladesh Ltd.

Bank Asia Ltd.

Trust Bank Ltd.

Al Arafah Bank Ltd.

Social Islami Bank Ltd.

Southeast Bank Ltd.

Jamuna Bank Ltd.

Standard Chartered Bank

Brac Bank Ltd.

84 5 6 9

31 078 770

1k. 947 127 835

7.03 On Sf1) Account 6th Banks

Hongkong Shanghai Banking Corporation

Dutch Bangla Bank Limited

Bangladesh Krishi Bank

Pubali Bank Limited

Rajshahi Krishi Unnyan Bank

Uttara Bank Ltd.

The City Bank Ltd.

National Bank Ltd.

Premier Bank Ltd.

Agrani Bank Ltd.

Sonali Bank Ltd.

Janata Bank Ltd.

Rupali Bank Ltd.

Citibank N.A.

Islami Bank Bangladesh Ltd.

Dhaka Bank Ltd.

Mercantile Bank Ltd.

Southeast Bank Ltd.

Bank Asia Limited

Jamuna Bank Ltd.

Al Arafah Bank Ltd.

18.00 COLLECTION IN HAND

84 257 854

Collection in hand represents first year premium outstanding as at 31st December for which

proposals await for underwriting at different Service Centers. The premiums were received

subsequently in full and the policies were issued with commencement date prior to 31st December.

75



1k. 107,622,750

121,472,139

24,819,883

(1,239,097)

(35,181,046)

1,818,687

2,382,587

(6,450,403)

7,

142,768,513

35,878,178

(2,310,114)

4,331,689

1,239,616

(355,000)

960,000

2,056,108

(11,372,450)

(1,066,023)

172,130,517

19.00

FIXED ASSETS (Annexure-A)

k. 1,456,667,484

ost

Lan d

Capital Work In Progress (Building) (Note-19.01)

Furniture Fixture

Renovation

Computer Hardware Software

Electrical Equipment

Vehicles

Total Cost

Accumulated depreciation at the end of the year

Carrying Value at the end of the year

2012

Taka

128,191,043

1,269,122,484

76,532,182

3,178,710

47,802,987

46,381,681

150,333,305

1,721,542,392

(264,874,908)

1,456,667,484

2011

Taka

128,191,043

872,518,442

75,963,785

3,178,710

45,205,876

46,345,316

142,328,180

1,313,731,352

(244,429,624)

1.069.301.728

ork in Prutrcss (\\i

k. 1,269,122,484

Corporate

Khulna

articulars

Office

ffice

ogra Office

octor s

otal

Building

Building

uilding

ower

(Guishan)

Amount in Taka

A. Contractor s Bills- Balance

b/fwd 403,481,330 238,417,642

89,438,436

31,337,408

Add: Bills paid and adjusted 16,769,989

8,938,220

32,968,407

27,508,460

36,185,076

Sub Total (A) balance - c/fwd 420,251,319 2 97,355,862

22,406,843

27,508,460 1,267,522,484

B . A d v a n c e - O p e n i n g b a l a n c e b / fw d )

,576,216

,060,818

4,544,000

1,181,034

L ess: Adjusted during the year

9,776,216)

9,060,818)

24,544,000)

43,381,034)

Add: Paid during the year ,800,000

,800,000

Sub Total B)

balance - c/fwd 1,600,000

,600,000

Total (A+ B)

421,851,319 297,355,862

22,406,843

27,508,460 1,269,122,484

This represents expense incurred for office buildings under construction at various places. The break

up of the figure is as above

20 00

ADJUSTMENTS MADE DURING

THE YEAR

Reserve for unexpired risk

Claim provision

Premium

Commission

Incentive Bonus

Re-Insurance

Home Loan

Sundry expenses provision

Refund Premium

Prize Awards

This represents adjustments of over/under provisions of management expense, claims, and

correction of prior- period material errors if any against the opening balance of the Life Insurance

Fund. To give fair view and more appropriate presentation of financial position, the company has

adopted the accounting practice which is above consistently.



2012

01 1

Taka

ak a

21.00 PREMIUM LESS REINSURANCE

,029,426,902 4,975,346,673

Type of Premium

rossRI Premium Net Premium

r mium

First Year Premium-01,

71 198 513

622 920

66 575 593

First Year Premium- GN-GRB

39 481 594

39 481 594

Sub total

10 680 107

622 920

06 057 187

Renewal Premium-OL

100 825 850

644 765

096 181 085

Renewal Premium- GN-GRB

761 099 104

761 099 104

Sub total

861 924 954

644 765

857 280 189


53 611 545

4 255 856

09 355 689


60 575 350

841 513

56 733 837

Sub total

14 186 895

8 097 369

66 089 526

Total Tk. in 2012

086 791 956

7 365 054

029 426 902

Total Tk.

in 2011

5,011,684,328

6 337 655

975 346 673

OL, GN-GRB and RI represent Ordinary Life, Gono -Grameen Bima and Reinsurance respectively.

22 00

INTEREST DIVIDENDS AND RENTS Tk. 2 327 639 110

Interest on Fixed Deposit Receipts (FDRs)

Interest on Debentures and Bonds

Interest on Policy and Project Loan

Interest and Commission on Bangladesh Govt.

Treasury Bond BGTB)

Interest on Short Term Deposit (STD A/Cs)

Dividends on Shares

Interest on Home Loan

Profit/ Loss) on Sale of Shares

Interest on Motor Bi cycle Loans


1 118 258 534

65 559 096

48 383 297

867 672 413

16 737 504

102 599 315

1 137 658

107 096 873

18 020

176 400

894 417 157

74 322 329

33 122 044

686 324 309

11 351 827

94 307 272

2 943 212

316 115 666

2 327 639 110

,112,903,816

77



2012

01 1

Taka

aka

23.00

OTHER INCOME

k. 27 682 381

Service Charge others

4 084 921 5 382 196

Misc. Income

540 873 99 965

Profit/(Loss) on disposal of Fixed Assets

056 587

052 056

27.682.381

8 734 217

24.00 CLAIMS UNDER POLICIES

[INCLUDING PROVISION FOR CLAIMS DUE

OR INTIMATED], LESS REINSURANCE

842 866 842

296 733 387

Ordinary

roup

ealth

Particulars

N GR otal

Life

nsurance

nsurance

By Death

1 255 680

8 180 873

19 276 322

98 712 875

By Maturit

y

617,181,257 956,972,414

0 761 834

584 915 505

By Survival

46 548 565 161 108 954

07 657 519

By Hospitalisation

570 431

5 731 054

9 301 485

By Others

369 680

185 625

555 305

By Surrenders

2 258 314

002 379

346 493

2 607 186

Annuities

27 500 0 240

17 740

Bonus in Cash

76 596 797 76 596 797

Sub-total 469 308 224 1 153 264 620

35 660 514 5 731 054

823 964 412

Profit Commission

8 902 430

8 902 430

Total Tk. in 2012

469 308 224 1 153 264 620

54 562 944

5 731 054

842 866 842

Total Tk. in 2011

035 447 140 11 057 473 531

32 906 250

0 906 466

296 733 387

Tk. 630 474 261

66284726

74 858 375

360 298 152

03 018 903

3 226 064

533 059

665 319

31 361

630 474 261

81 141 698

25.00

COMMISSIONS

Ordinary Life

Gono-Grarneen Bima

Group Insurance

Health Insurance

78



26 00

LEGAL AND PROFESSIONAL FEES

k. 6 507 451

Legal advisers' fees for providing legal opinion

and vet legal document etc.

Law yers' fees and expenses in respect of legal

cases for condonation of delay in holding pending

AGMs of the company.

Legal R etainers' (in-house) fees and expenses for

perusal of different types office matters/files for

vetting and provide legal opinion and represents

company in judicial matters.

Other legal professional fees and expenses

(Mgt. Special Audit 2005-2012)

2012

Taka

429,375.00

1,176,607

1,401,469

3,500,000

2011

Taka

1,030,500.00

10,881,399

863,115

9

6 507 451 2 784 639

27 00 ADVERTISEMENT AND PUBLICITY Tk. 9 406 597

Corporate Social Responsibility (CSR) -

Contribution towards Women Handball

Tournament, Bishay Shahittoy Kendro, etc.

Publicity in various medias- Newspapers, Television,

Delta Barta, Calendar, Gift, Magazine etc.

Advertisement - Sign Boa rd, Bill Board, etc.

958,867

,136,906

7,846,090

,109,909

601,640

9,648

9 406 597

326 463

28.00 FEES SUBSCRIPTIONS AND

DONATION

Annual Subscription (BIA, DSE, CSE,

Trade License, RJSC Firms)

Various Committee Meeting Fees

Charity Donations

Tk. 4 598 268

,808,722

207,000

30,000

550,000

4 598 268

188 722

29.00 PROVISION FOR INCOME TAX

k

Pursuant to the judgment of the Appellate Division of the Hon'ble Supreme Court of Bangladesh

that the AGM for the year 2004 shall be held first and all subsequent AGMs up to the year 2012 shall

be held on the same day. Accordingly, provision for tax is to be made on surplus disclosed in the

Actuarial Valuation Report up to the year 2012.

79



2012

01 1

Taka

aka

30.00

CAPITAL EXPENDITURE COMMITMENT Tk. NIL

There was no capital expenditure commitment authorized by the Board as on December 31, 2012.

31.00 CREDIT FACILITY AVAILABLE TO THE

COMPANY

k. NIL

There was no credit facility available to the Company under any contract as on December 31st, 2012

other than trade credit available in the ordinary course of business.

32.00

EXPENSES INCURRED IN FOREIGN CURRENCY

During the year under review, following

payments were made in foreign currencies:

For Reinsurance operation

Tk. 57,365,054

7365054 3,637,074

57,365,054

,637,074

33.00 COMPANIES ACT 1994, SCHEDULE XI PART- 11 [NOTE 3 P)

VI) 5]

i)

Number of employees drawing salary above Tk. 3000 per m onth

,410

,403

ii)

Num ber of employees drawing salary below Tk. 3000 per month

65

25

34.00 PAYMENTS / PERQUISITES TO DIRECTORS

/

OFFICERS

34.01 The aggregate amounts paid/provided during the year in respect of directors and officers of the

company as defined in the Securities and Exchange Rules 1987 are disclosed below:

Particulars

i

01 2

rectors

fficers

irectors

2 11

Officers

Board Meeting Fee

,048,000

61 ,150

sicSaary

93,408,255

00,792,560

Provident Fund Contribution

7,195,885

7,286,589

HuseRn

8,420,572

8,110,323

Oher lowances

34 ,365,527

32,454,022

Total

,048,0001

13,390,239

61 15

18,643,494

34.02 Money was not spent by the company for compensating any member of the board for special

services rendered except as s tated above.

35 00

EMPLOYEES BENEFIT PLANS

The Company, for its permanent employees, operates the following benefit schemes:

i)

Contributory Provident Fund.

ii)

Gratuity Scheme

ill) Group Insurance

iv) Health Insurance

The Provident Fund is administered by a Board of Trustees and is funded by equal contributions

from the employees and the Company at predetermined rates. The amount is invested separately

from the company s fund.

80



The company has a gratuity scheme under which an employee is entitled to the benefits depending

on the length of service. Gratuity is accounted for in the year of payment.

36.00 EVENTS AFTER THE REPORTING PERIOD

i

Surplus for the years 2005-2006, 2007-2008, 2009-2010 and 2011 have been carried forward. Out of

the surplus emerged in 2012 together with accumulated surplus for the years 2005 to 2011, 21

twenty one) bonus shares stock dividend) for each share of Tk. 10 each has been proposed by

the Board of Directors in its meeting held on October 5, 2013 for approval of the members at the

27th Annual General Meeting to be held on November 16, 2013. As such the amount of dividend

through declaration of bonus shares stock dividend) would be Tk. 94.50 crore.

These financial statements do not reflect these appropriations as explained above please refer to

note no. 3.17).

ii

The company submitted return of income for the Assessment Year 2002-2003 FY 2001). No

Assessment Order has been passed by the Income Tax Department in time allowed by the

Income Tax Ordinance 1984 and hence the Assessment has been barred by limitation of time. As

a result the return submitted by the company has been deemed to have been accepted please refer

to note no 16.04)

37.00 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue on October 05, 2013 by the Board of Directors

of the Company.

81



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H



Delta Life Insurance Company Limited

Directors Responsibility

Statement

In terms of Section 62 of the Insurance Act 2010 the Board of Directors of the Company certify that:

1.

The value of investment in shares and debentures has been taken at cost;

2. The value of all assets as shown in the Balance Sheet and as classified on Form AA annexed have

been duly reviewed as at 31 December 2012;

3.

In our belief, the said assets have been set forth in the Balance Sheet at amounts not exceeding their

realizable carrying or market values under the several headings as enumerated and

4.

All expenses of management in respect of Life Insurance Business transacted by the Company in

Bangladesh have been fully debited to the Life Revenue Account as expenses.

4 ^

1


d. Mujibur Rahman


Man aging Director In-charge)

irector

irector

hairman

83



Certificate of CEO CFO

under Corporate Governance guidelines issued

by

angladesh

Securities and Exchange ommission

Condition no. 6 Notification 7 August 2012 no. SEC /CMRR CD/2006-158/Admn/44)

The Board of Directors

Delta Life Insurance Co. Ltd.

Uttara Bank Bhaban

90 Motij heel C/A

Motijheel C/A

Dhaka -1000.

We certify that

i) We have reviewed the Financial Statements for the year 2012 and to the best of our knowledge and

belief:

a)

These statements do not contain any materially untrue statement or omit any material fact or contain

any statement that might be misleading;

b)

These statements together present a true and fair view of the Company's affairs and are in compliance

with existing accounting standards and applicable laws.

ii) There are, to the best of our knowledge and belief, no transaction entered into by the Company during

the year 2012 which are fraudulent, illegal or violation of the Company's code of conduct.


Managing Director (In Charge) CFO

84



Important Offices of the ompany

Ordinary Life

Servi:t, Cell Centre (Address

Con 1ct No.)

Si No,

ddress

hone

(T T)

h a k a .

a u s e - A - P a k B i p o n i B i t a n B h a h a n 2 8 / G / 1 T o y a n a b e e C i r c u la r R o a d M o t ij h c e l C / A D h a k a .

2-9560407

2 Dhaka. Baitul View Tower

(111

Floor), 56/1 Purana Paltan, Dhaka-1000.

2-7124977

Dhaka.

Saleh Sadan

(2nd

Floor), 145, Motijheel C/A, Dhaka-1000

2-9568932

Chi t t agong . Ajmol Arcade

(3:

Floor) , 1806, Shiekh M ojub Road, Agrabad C/A , Chittagong.

31-713059

-

5 1- 6 2 6 2 5

Bogra

urnon Complex 2n1 Floor),Moftz Paglar Mor, Sherpur Road, Bogra

51-61507

6 Comilla Goni Bhuiya Mansion (2 Floor), Monoharpur, Comilla

81-68796

7 Feni

eni Super Market (3' Floor), Trank Road, Feni

331-61348

8 Khulna Jalil Tower

(3r5

Floor), 77, Lower Jessore Road, Khulna.

41-725636

9

unsh ig an j 607 , R az i a Hamid P laza (1' F loo r ) , Bagm amu da l i Pa r a , Hosp i t a l Road , M unsh ig an j . 02 -7620 559

10 Lakshamipur Poura Super Market

(3rd

Floor), Lakshamipur.

381-55605

ii Rajshahi CNB Mor, Kazihatta, Rajshahi.

721-770693

12 Barisal

hsan Plaza

(1st

Floor), Bottola, Nobograin Road,Barisal.

431-64306

13 Tangail Habib Super Market (2 Floor), Main Road, Tangail.

921-63299

0 8 2 1-7113 17

14 Symet

annan Super Market (2 Floor), Amborkhana, Syihet.

8 2 1 - 7 1 4 8 0 0

15 Natore Sadek Complex

(2nd

Floor), Nicha Bazar, Natore

771-61123

1 6 N o a kh a l i R up s h a S h o pp i n g C o m p l e x (2 F l o o r ), K a r im pu r R o a d , C h o w m u h o n y , N o a kh a l i.

321-54094

1 7 M a n i k g a n j R o j o n i S u p e r M a r k e t ( 1 F l o o r ) , 7 6 / 7 7 , S y e d R a f iq S a r a k , M a n i k g a n j .

2-7711210

18 Thakurgaon Bangobandhu Sarak, Thakurgaon Sadar, Thakurgaon.

561-61854

19 Jessore

3, M. K. Road, Jessore.

421-65113

20 Faridpur Shainsuddin Tower

(5h

F l o o r ) , Ja n a t a B a n k M o r , 8 6 / 8 9 , M u j ib s a ra k , F a r i d p u r . 0 6 3 1 - 6 57 9 9

21 Chandpur 1300/1165, Comilla Road, Biponibag, Chandpur.

841-63347

22 Cox'sBazar Greenvall

y

Complex (3 Floor), 1, Main Sarak, Cox'sBazar.

341-64141

23 Kishorganj Mirja Loz

(2nd

Floor), 43, Isha Kha Road, Kishorganj.

94161406

24 ShariatpurS.R. Plazza (1' Floor), Main Road, Shariatpur.

601-51321

o ile

01711664720

01713426867

01911975855

01716159569

01712177976

01716878859

01819460237

01711957050

01713426850

01776116886

01712084429

01712658808

01711310930

01712847773

01913120675

01713336245

01716469777

01713336267

01727225604

01727248343

01816305600

01718227707

01716977668

01614070731

85



Important Offices of the Company

Gono Grameen Bima Division

Center

111

act

haka Metropolitan

haka -1

haka-2

4

aridpur

5 Mymensingh

hittagong

7

omilla

Chandpur

arisal

10 Jhalakathi

11 Khulna

12 J essore

13 Kushtia

14 Moulvibazar

15 Sylhet

16 Pabna

17 Bogra

18 Naogaon

19 Rajshahi

20 Gaibandha

21 Rangpur

22 Thakurgoan

53, Purana Paltan Baitul Abed Bhaban 10th Floor) Dhaka-1000 02-9570324, 9570321.

132/B, A, Kazi Mokrna para

Bazar

Road, Savar, Dhaka. 02-7744916, 7744917

Fuizan To wer 2nd Floor), 80/c, Uttar Jatrabari , Bihir Bagicha, Gate No.1, Dhaka. 02-7540339 , 7540329

1/1, Jhiltuli, Chourangi Faridpur.

631-65909, 0631-62069

10 Swade sh i Baza r , Mymens i ng h

91-66829, 091-51936

Municipal Ho using E state, 119/120 Mirzarpool, Muradpur, Chittagong

31-656333 , 031-654939

114/127 Nazrul Avenue, Kandirpar, Comilla

81-64226 , 081-67200

Khan Villa, Biponibagh Chandpur. 841-66451, 0841-65803

Shahida Vi l la

(2r

f loo r ) Bog ra Road , Bar i sa l

431-62943 , 0431 -64291

60, Post Office Road Jhalakathi.

498-63149 , 0498-63148

Eden Plaza (3rd Floor), 18/A, KDA New Market Khulna.

41-730056 , 041 -731409

33 1

Rai l Road , J e ssor e

421-68565 , 042 1 -68516

Shatabdee Bhaban, 92, N. S. Road, Kushtia

71-62261, 071-7304 5

Noor Mahal, 120 Shantibag, Moulvibazar

861-53804 , 0861-62096

House 50, Road 2, Block E Shahjalal Upashahar Sylhet. 0821-2832772, 2832749.

Square Road , Than apara Sha lga r i a , Pabna .

731-64379 ,

7

1-51859

Judge Court Road, Jalcshwaritala, Bogra.

51-78319 , 051-63814, 051-61038

Par Naogaon (Adjacent to Hotel Abakash) Naogaon.

741-61757, 0 741-61163

Shaheb B azar , G horamara , Bo a l i a , Rajshah i

721-773854 , 0721 -770063

Eti Plaza (3rd Floor), D.B Road Gaibandha.

541-51276, 0541-61268

House No- 271, Road No- 05 Mulatol, Rangpur.

521-65942 , 052 1 -61830

Islam Plaza, Bangabandhu Sarak Thakurgaon.

561-52210, 0 561-61811

8 6



Delta Life Insurance Company Limited

Uttara Bank Bhaban

90, Motijheel C/A, Dhaka-1000, Bangladesh.

Proxy orm

W e...........................................................................................................................................of ....................................................

.................................................................................................being the shar ehold er(s) , Delta Life Insurance Company

Limited here by app oint Mr./Ms ...................................................................................................................................failing wh ich

Mr/Ms. ............................................................................................................... as my/our proxy to attend and vote for me/us and

on my/our behalf at the

275

Annual General Meeting of the Company to be held on Saturday, November 16. 2 013 at 3:00 P .M. at Delta

Life Tower, Plot No. 37, Road No. 45 (S outh) 90 (North), Gulshan Circle-2, Dhaka and at any adjournment thereof.

Signed this:

................................................... Day of ................................2013.

Signature of Proxy:

1

....................................................................

evenue

ignature of Shareholder s)

Folio/BO ID No.............................................

tamp

Tk 20 00

olio / BO ID No

N o. of S hares ....................................

2 )

....................................................................

Folio/BO ID N o

Note:

A m embe r entitled to attend and vote at the 27 ' Annual G eneral Meeting may ap point a proxy w ho mu st be a shareholder of

the Comp any to attend and vote in his/her stead. The proxy form , duly stamped, must he subm itted at the R egistered Office of

the Company not later than 48 hours before the time fixed for the AGM .

Signature Verified

Delta Life Insurance Company Ltd.



• Delta Life Insurance Company Ltd

Shareholders Attendance Slip

I /We hereby record m y at tendance at the

7 t h

Annual General Meeting being held on Saturday, November 16, 2013 at 3:00 P.M. at

Delta Life Tower, Plot No. 37, Road No. 45 (South) 90 (North), Gulshan Circle-2, Dhaka .

Nameof the Shareholder s)/Proxy .......................................................................................................................................

Folio/BO ID No . ................................................................................... Holding of.................................Ordinary Shares

of Delta Life Insurance ompany Limited

Signature of Proxy:

Signature of Shareholder(s)

) ............................................

2) ............................................

Notes:

I . Please note that the AGM can only be at tcndc cl by the honorab le shareholder or properly constituted proxy. Therefore any

f r iend or ch i ldren accompa nying honorable shareholder or proxy cannot be al lowed in to the me et ing.

2. Please present this slip at the Rec eption De sk.



n

Delta Life Insurance 2012

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Transcript of Delta Life Insurance 2012