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Annual Report 2012

A
!^t Delta Life Insurance Company Ltd.

KI

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

[s1

Notice of the 27111 Annual General Meeting......................................

05

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

06

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


Vision/Goal/Values .........................................................................

07

FinancialStatistics ............................................................................

09

Graphical Presentation of Business Performance ............................


From the Chairman's Desk .............................................................

10

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

15

Report of the Audit Committee ......................................................

26

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

27

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


BalanceSheet ....................................................................................

35

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

40

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


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

43

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

45

08

12

38

44

Form-AA ......................................................................................... 46
Notes to the Financial Statements .........................................................

48

Directors' Responsibility Statement ...................................................... 83


Certificate of CEO & CFO under Corporate Governance Guidelines.......... 84
Important Offices of the Company ......................................................... 85
Proxy Form & Attendance Slip ............................................................

87

Chronology
10 November 1986

Incorporation and
Commencement of Business

17 December 1986

Signing of First Policy

February

1988

Launching of Grameen Bima

8 October

1993

Launching of Gono Bima

7 February

1994

Inauguration of Delta Care


Hospitalisation Plan

13 September 1995

Listed in Dhaka Stock


Exchange Ltd.

6 December

1995

March

2001 Membership of Global Network


for Banking Innovation
in Microfinance (GNBI)

4 January

2003 Gono-Grameen Bima Merged

30 January

2012

Listed in Chittagong Stock


Exchange Ltd.

Silver 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 31st 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,

clet4

Abdullah Al-Mansur
Company Secretary

-Dort 2012:

aII

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
Agenda:
1. 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/(Abdullah 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
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
Company Secretary
Mr. Abdullah Al-Mansur

II

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

'I

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
HSBC Bank Ltd.
Bangladesh Krishi Bank Ltd.
Janata Bank Ltd.
Mercantile Bank Ltd.
City Bank Ltd.
Islami Bank Bangladesh Ltd.

Auditors
Hoda Vasi Chowdhury & Co.
Chartered Accountants

Pubali Bank Ltd.


Dutch Bangla Bank Ltd.
Rajshahi Krishi Unnuan Bank
Agrani Banak Ltd.
Rupali Bank Ltd.
Southeast Bank Ltd.
National Bank Ltd.

Premier Bank Ltd.


Sonali Bank Ltd.
Citibank N.A.
Dhaka Bank Ltd.
Bank Asia Limited
Jamuna Bank Ltd.
Al-Arafah Bank Ltd.

VijiOn
El We will be the premier life insurance Company in Bangladesh.
El We will serve our customers with respect and will provide the best solution for
their needs.
1 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.
El "Adding value' will he the operative words of our organization.

oat

El

Provide financial security to our customers with insurance policies that are most suitable
for them.

1 Make life insurance an easy saving instrument and a profitable one with attractive bonus
and improved customer service.
El Collect small savings from the people of our country and invest the accumulated savings
in profitable nation building enterprises.

Valuej -

TRUEST

Teamwork

El

Respect for all people

El

Unquestionable integrity

El

Excellence in everything we do

ci

Speed in servicing

[El

Truthfulness

Business Performance -2012


(Taka in Crore)
2012
81.07
386.19
25.36
16.06
508.68
232.76
284.29

2011
128.32
339.21
24.33
9.31
501.17
211.29
229.67

2010
120.45
327.13
21.27
14.43
483,28
300.79
220.95

2009
107.37
300.84
19.94
10.68
438.83
181.90
204.22

2008
95.32
266.79
16.17
5.23
383.51
127.64
243.40

63.05
77.73
2771.73
2633.16
55.89
27.68

98.11
73.78
2465.18
2328.20
45.83
34.30

94.69
68.45
2158.87
2013.06
45.72
33.76

82.43
58.35
1750.29
1613.59
46.54
32.08

70.71
53.24
1469.60
1342.47
63.47
32.32

2010
2009
%
Premium 4.42
1.50
3.70
1
10.13
Assets
12.44
14.19
23.34
19.10
Life Fund
13.10
15.65
24.76
20.20

2008

First 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

21 bonus shares
(Stock dividend)
for each share
of Tk.1O

Business Growth
2012

2011

(1/
I0

1)1
I(_)

(1!

12.40
11.23
12.00

09

Premium Income
(Taka in Crore)

II Grou p & Health

GN-GRB

Ordinary Life

400
350
300
250.52

250

248.63

---

243.97
21891

212.47

2
220.06

197.06

200
16423

'J1i iJI

150
100 -

30.62

331.64

2012

2011

2010

2009

2008

Premium & Life Fund


(Taka in Crore)
4Premium 0-- Life Fund

2700
2633.16
2400
2100
1800
1500
1200

..

900

---.---

... -

600

-4
51 .......

438.83

2008

10

508.68

2009

2010

2011

2012

Investment Income

Premium & Claim

(Taka in Crore)

(Tuka in Crore)

Premium

Claim
350

600
508.06

501.17

483.27

300

438.83

500

250

383.51

400

200
243.40

300

2 422

22095

220.67

284. 29

150
100

200

50

0
2008

2009

2010

2008

2011

2009

2010

2011

2012

2012

I Assets
(Taka in Crore)

2012

277173

2011

- 2465.18

2010

2158.87

2009

1700.29

2008

1469.60

400

800

1200

1600

2000

2400

2600

Analysis of Utilisation of Income (in %)


U Management Expenses Claims

Provision Life Fund

11

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 Company Ltd.(DLICL) on behalf of the Board of Directors of the company. We are delighted
and overwhelmed with your presence at the Annual 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 Company 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. We
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 commendable growth in renewal premium 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 payment, a noteworthy growth
has been observed in 2012 compared 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 comprehensive view that would enable you to assess
the financial position of the company. I assure you that we shall always stand beside you in securing your
best return on investment.
A brief result of the operational performance of the company 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 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.
Claims paid and provided 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 possible 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 Management, all members of
our staff for the constant support/effort they provided to the Company.

Dhaka, October 05, 2013

Monzurur Rahman

Chairman
Board of Directors

13

2)t peclopj k,epopt


0

13

.^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
'4

vidend)

Particulars

A. Income

Gross Premium Income
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)

(%) of
Premium
Income

100

for the Year- 2012 is furnished below:


2011

2012
Amount in Taka

(%) Increase over

Amount in Taka

2011

5,086,791,956
(57,365,054)
5,029,426,902

5,011,684,328
(36,337,655)
4,975,346,673

1.50

2,327,639,110

2,112,903,816

10.16

27,682,381
7,384,748,393

28,734,217
7,116,984,706

(3.48)
3.76

55.89

2,842,866,842

2,296,733,387

27.68
83.56

1,407,782,425
4,250,649,267

1,719,473,793
4,016,207,180

192,184,968

4,442,834,235

121,472,139
4,137,679,319

2,941,914,158

2,9 79,305,387

(1.26)

20,130,605,300

23,282,041,204
107,622,750

26,331,578,112

1.09

172,130,517

23,282,041,204

13.10

15

II
The operational results (before tax & dividend) of Delta Life Insurance Company Ltd. for the year ended
31 1t 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%.

11.

Total 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 2012 is 9.84% (10.23% FY 2011)

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/-.
Dividend:
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 & 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 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 Conference

I L)elta Life Insurance Cornpan Ltd.


ln,utanc* Company)
(L!9Ot B*oGIad
-

le

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 iincl Fi;ms been effectively implemented and monitored.

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
2004.
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

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
2011
2012
Life
- Premium Less Reinsurance

2,462,757

2,481,187

- Investment & other Income

1,691,616

1,563,982

2,200,581

2,189,076

660,526

575,793

366,089

305,084

Gono-Grameen Bima
- Premium Less Reinsurance
- Investment & other Income
Insurance Business
- Premium Less Reinsurance

1,837

- Other Income

1,165

7,383,406

7,116,287

(Excess of Revenue over Expenditure) before tax & interest



2,113,683
- Ordinary Life

1,035,282
- Gono - Grameen Bima
67,719
- Group Insurance Business
L

3,216,684
Total Segment Results

2,207,735
990,903
121,139
3,319,777

Total Segment Revenue

Segment Results

(167,147)
Add:/(Less): Un-allocable expenditure net of un-allocable Income

(168,341)

Total Revenue Surplus (Excess of Revenue over expenditure)


before tax & dividend

3,049,537

3,151,436

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

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

Total Capital Employed in Company

26,377,578

23,328,041

Notes on Segment information


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.

i)

20

Key Operating and Financial Statistics:

Amount in Crore Taka

2012

2011

2010

2009

2008

First Year Premium

81.07

128.32

120.45

107.37

95.32

Renewal Premium

386.19

339.21

327.13

300.84

266.79

Group Insurance Premium

25.36

24.33

21.27

19.94

16.17

Health Insurance Premium


Gross Premium
Investment Income

16.06
508.68

9.31
501.17

14.43
483.28

10.68
438.83

5.23
383.51

232.76

211.29

300.79

181.90

127.64

284.29

229.67

220.95

204.22

243.40

63.05

98.11

94.69

82.43

70.71

77.73

73.78

68.45

58.35

53.24

Assets

2771.73

2465.18

2158.87

1750.29

1469.60

Life Fund

2633.16

2328.20

2013.06

1613.59

1342.47

Claims to Premium (%)

55.89

45.83

45.72

46.54

63.47

Management Expenses to
premium (%)

27.68

34.30

33.76

32.08

32.32

Claims
Management Expenses
a) Commission
b) Admin. Expenses

Dividend on face value of


L
snare
Stock

21 bonus shares
(Stock dividend)
for each share
of Tk.1O

.c1fltcf T11.
/:\

: k

RI1*fTT,

1\2c?1

1!'>

NOW

cTfl

75i

I.
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 Responsibility:


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 2013:


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.

*
1r4r
r

TUT1

r.4 4

U.

The number of Board Meetings and attendance of Directors during the year - 2012 were as follows:
SI.
No.
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16

Name

Total
number of
meetings
held
ii
11
11
11
11
11

Total number
of meetings
attended

11

11
11
11
11
11
11
11

10
8
11
8
8
11
1

11

Director

11

Ceased as Director
and Chairman on
29/02/2012.
Ceased as
Director on
22/05/2012.
"
"
"
"
"
"
"
"
"
"

11

11

11
11
11
11
11
11
11
11
11
11

2
3
3
2
3
3
3
3
3
3

Designation

1'vU. M0n7,urur Rahman


Chairman
Mr. Aziz Ahmed, FCA, CISA (USA)
Director
Mr. Borhanuddin Ahmed
Director
Mr. Kazi Faziur Rahman
Director
Mr. Golam Sarwar
Director
Mr. Md. Mujibur Rahman
Director
Inducted as a Director on May 23, 2012)
Mr. Zeyad Rahman
Director
(Inducted as a Director on May 23, 2012)
Ms. Adeeba Rahman, ACII (UK)
Director
Ms. Anika Rahman
Director
Ms. Saika Rahman
Director
Mrs. Syeda Soyeli Ahmed
Director
Mr. Arif Ahmed
Director
Mr. Md. Abdul Wahab
Director
Mr. M. Anisul Haque, FCMA
Independent
(Inducted as a Director on November 14, 2012) Director
Mr. Joynul Abedin
Independent
Inducted as a Director on November 14, 2012) Director

17

Mr. Md. Nurul Islam


(Resigned on November 6, 2012)
Mr. Syed Moazzem Hussain

18

Dr. Syed Mukarram All

19
20
21
22
23
24
25
26
27
28

Dr. Muhammad Raushan All


Mr. Mohd. Syedul Islam
Mr. Nurul Huda
Mrs. Farida R. Ahmed
Mrs. Fahrnida R. Naser
Mrs. Farida Mostafa
Dr. Nasiruddin Ahmed
Dr. Sadigur Rahman Malik
Mr. Mahrnud Hasan
Mr. Habibur Rahman Khan

Ii
11
11
11
11
8

* 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.

Name of the Directors

No. of share
84,750

Mr. Monzurur Rahman

Mr. Aziz Ahmed, FCA, CISA (USA)

Mr. Borhanuddin Ahmed

16,810

Mr. Kazi Fazlur Rahman

1,200

Mr. Goiam Sarwar

20,000

Mr. Md. Mujibur Rahman

153,650

Mr. Zeyad Rahman

101,880

Mr. Arif Ahmed

20,000

Ms. Adeeba Rahman, ACII (UK)

10

Mrs. Syeda Soyeli Ahmed

11

Ms. Anika Rahman

102,630

12

Ms. Saika Rahman

101,900

13

Mr. Md. Abdul Wahab

14

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

Nil

15

Mr. Joynul Abedin (Independent Director)

Nil

1,000

102,260

3,200

1,000

Chief Executive Officer, Company Secretary, Chief


Financial Officer, Head of Internal Audit.

1.5 (xxi) (c) Shares held by Executives:

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

Nil
Nil
Nil
915tTT I9

1R 9T

itj'rT cifrW (T1)


trii

irr

Ii

Appreciation:
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,

Dhaka, October 05, 2013

Monzurur Rahman
Chairman
Board of Directors

25

Report of the Audit Committee


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

CIO)

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


Chairman

Mr. Rorl.iniiddin Ahmed


bleniber

Mr. Md. Mujibur Rahman



Member

Si. No Name
Mr. Aziz Ahmed, FCA, CISA
1
Mr. Borhanuddin Ahmed
2
Mr. Md. MujiburRahman
3
Mr. Zeyad Rahman
4

Mr. 7eyad Rahinan


Member

Status
Chairman
Member
Member
Member

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 2005 to 2012 in compliance with the verdict dated 20th June 2013 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.

49J
(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.
27

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.

28

Annexure - I

CORPORATE GOVERNANCE COMPLIANCE REPORT


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.
Title
Condition
No.______________

Board of Directors:
1.
Board's Size
1.1
1.2
Independent Directors:
At least t/5-of the total number of Directors of
1.2(i)
board shall be Independent Directors.
Who holds less than 1% shares of total paidup
shares of the company;
1.2(1) h)
Not 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)
Not have any other relationship with the company
its subsidiary/associated companies:
1.2(u) d)
Not a member, director or officer of any stock
exchange;
Not a shareholder, director or officer of any
1.2(1) e)
member of stock exchage or
Not or was not a partner or executive during the
1.2(u) 0
preceding 3 (three) years of the company's
statutory audit firm;
Not he an independent director in more than 3
1.2(1) g)
(three) listed companies;
1.2(u) Is)
Not been convied by a court of competent
jurisdiction;
Not been convicted for a criminal offence involving
1.2(u) i)
moral turpitude;
Appointed by the hoard of directors approved by
1.2 (iii)
the shareholders in the Annual General Meeting
(AGM);
1.2 (iv)
Independent director's post can't remain vacant. for
more than 90 days;
1.2 (v)
The board shall lay down a code of conduct of all
board members and annual compliance be
recorded;
The tenure of office for a period of 3 (three) years,
1.2 (vi)
which may be extended for 1 (one) termonly.
Qualification of Independent Director
1.3
1.3(i) A knowledgeable individual with integrity and able
to ensure compliance with financial regulatory and
corporate laws and can make meaningful;
Independent directors will he business leader
1.3(u)
corporate leader with economics or businesstudies
or law background and
In special cases the above qualification may be
1.3(iii)
relaxed subject to prior approval of the
commission;
Chairman of the Board and Chief Executive
1.4
Officer
The Director's Report to Shareholders
1.5
Industry outlook & possible future development in
1.5(1)
the industry.

Compliance Status
Not complied
Complied

Remarks
(If any)

Independent Direett,r, have been


appointedaeeordir,gly.

1.2(1) a)

'I

Will be complied when the


AGM for the year 2012 is held.

'I
'I

29

Condition
-No.
1.561)
1.5(iii)
1.5(1v)
1.5(v)
1.5(vi)
1.5(vii)
1.5(viii)

1.5(ix)
1.5(x)
1.5(xi)
1.5(xii)
1.5(xiii)

1.5(xiv)

1.5(xv)
1.5(xvi)
1.5(xvii)
1.5(xviii)
1.5(xix)
1.5(xx)
1.5(xxi) a)
1.5(xxi) b)

1.5(xxi) e)
1.5(xxi) d)
1.5(xxii) a)
1.5(xxii) b)
1.5(xxii) c)
2.
2.1

2.2

3.
3(i)
3(u)

30

Title

Compliance Status
Not complied
Complied

Segment wise performame or product wise


perfor
mance.
Risks and concerns.
Discussion on Cost of goods sold, Gross and Net
Profit Margin.
Discussion on continuity of any Extra-Ordinary
gain or loss.
Disclosure of related paity transaction in the
Annual report.
Utilization of proceeds from public issues, rights
issues and/or through any others instruments.
An explanation if the financial results deteriorate
after the company goes for IPO, RPO, Rights offer,
Direct listing etc.
Significant variance between quarterly Financial
Performance and Annual Financial Statement.
Remuneration to directors including independent
directors.
Fairness of state of the affairs.
Maintenance of proper hooks of accounts
Appropriateaccounting policies, consistency
applied in preparation of the financial statement on
prudent judgment.
Followed the rules of IAS/BAS/IFRS/BFRS in
preparing financial statements as applicable in
Bangladesh.
Sound and effective design of internal control has
been implemented & monitored.
Ability to continue as -a going concern.
Significant deviations from last year's operating
results shall he highlighted & reason be explained;
Presentation of key operation and financial data for
last 5 (five) years.
If dividend has not declared for the years, reason
should be given;
Number of Board Meeting held during the financial
year & attendance by each
Shareholding pattern disclosure
Disclosure of shareholding by Directors, CEO,
Company Secretary, CFO, Head of Internal Audit
& their Spouses and minor children.
Disclosure of shareholding by Executives.
Shareholders holding ten percent (10%) or more
Brief resume of the director
Nature of his /her expertise.
Other companies' directorship & membership of
committees of that Board.
Chief Financial Officer (CFO), Head of Internal
Audit and Company Secretary (CS);
Appoirtmeritof:
.
.
-
Chief Financial Officer (CFO)
-
Head of Internal Audit
-
Company Secretary (CS)
Requirement to attend Board Meetings;
-
Chief Financial Officer (CFO)
Company _Secretary _(CS)
Audit Committee
Sub-committee of the Board of Directors.
Assisting the Board of Directors for ensuring true
and fair view of the state of affairs;

Remarks
(If any)

N/A
N/A
N/A
N/A
N/A
N/A

11 meetings held with an


average of 92% attendance

1
N/A

Compliance Status
Condition
Title
No._________________ Complied
Not complied
3(iii)
Duties of the audit committee clearly set forth in
writing.
Constitution of the Audit Committee
3.1
3.1 (i)
Audit committee membes at least 3 (three)
members
3.1 (ii)
Audit committee members are appointed b y Board
of Directors and inclusion of at least 1 (one)
independent director.
3.1 (iii)
Financial literacy having at least 1 (one) member
with accounting or related financial management
experience.
3.1 (iv)
Fill up the vacancy immediately or not later than 1
(one) month from vacancy(ies)
3.1 (v)
Company Secretary will act as Secretary.
3.1 (vi)
Quorum of the Audit Committee with at least 1
(one) Independent Director

3.2
Chairman of Audit Committee
3.2 (i)
Selection of the Chairman of the Audit Committee
who shall be an Independent Director

3.2 (ii)
3.3
3.3 (i)
3.3 (ii)
3.3 (iii)
3.3 (iv)
3.3 (v)

3.3 (vi)

3.3 (vii)
3.3 (viii)
3.3 (ix)
3.3 (x)
3.4
3.4.1
3.4.1 (i)
3.4.1 (ii)
3.4.1 (ii) a)
3.4.1 (ii) b)
3.4.1 (ii) c)
3.4.1 (ii) d)
3.4.2
3.5
4.
4 (i)

Chairman of Audit Committee shall remain present


in AGM.
Role of the Audit Committee
Oversee the financial reporting process
Monitor choice of accounting policies and
principles
Monitor Internal Control Risk management
process.
Oversee hiring and performance of external
auditors.
Annual financial statements review along with the
management before sabmission to the Board for
approval.
Quarterly and half yearly financial statements
review along with the management before
submission to the Board for approval.
Review adequacy of internal audit function
Significant related party transaction review.
Statutory auditor's report review.
Disclose the use / application of funds raised
through IPO/RPO/Righi. Issue proceeds.
Reporting of the Audit Committee
Reporting to the Board of Directors
Reporting its activities to the Board of Directors.
Report to the Board by Audit Committee
Conflict of interest.
Suspected or presumed fraud or irregularity or
material defect in the internal control system;
Suspected infringement of laws, including
securities related laws, rules and regulations;
Any other matter;
Reporting to theAuthorities
Reporting to the Shareholders and General
Investors
External /Statutory Auditors should not engage;
Appraisal or valuation services or fairness
opinions.

Remarks
(If any)

Already complied on
May 4, 2013.

Already complied on
August 29 , 2013.
Will be compliedin
accordance vrith judgment
of the Appellate Division
of the Supreme Court on
20/06/2013

J
N/A

N/A

N/A

31

Compliance Status
Remarks
Title
Condition
(If any)
No._________________________ Complied [ Not complied
Financial information systems design and
4 (ii)
implementation.
Book-keeping or accounting records or financial
4 (iii)
statements.
Broker-dealer services.
4 (iv)
Actuarial services
4 (v)
Internal audit services.
4 (vi)
Any other service determined by the audit
4 (vii)
committee.
Possess any share by the partneior employees of
4 (viii)
the firm at least during the tenure of their audit
assignment.
Subsidiary Company;
5.
N/A
Composition of Board of Directors.
5. (i)
At least 1 (one) Independent Director from holding
5. (ii)
As disclosed in the
N/A
company.
notes to the Accounts
N/A
No. 12.05
Confirmation of minutes by holding company.
5. (iii)
Confirmation of minutes of subsidiary company
5. (iv)
at Page No. 71
N/A
shown in holding company's minutes.
Review the financial statements by holding
5. (v)
N/A
company's audit committee.
Duties of Chief Executive Offiae(CEO) and
6.
Chief Financial Officer (CFO):
Reviewing financial statements
6.(1)
No misleading statements
6.(1) a)
Present a true and fair view in compliance with
6(1) b)
existing accounting standards and applicable laws.
Declaration about/regarding authentication
6 (ii)
Reporting and Compliance of Corporate
7.
Governance:
Compliance certificate from a Professional
7.(1)
Accountant /Secretary.
Statement of Directors in accordance with the
7. (ii)
annexure attached whether the company has
complied with.

32

Hoda Vasi Chowdhury & Co.


Chartered Accountants
Independent Correspondent Firm to Deloitte Touche Tohmatsu

CERTIFICATE OF COMPLIENCE
TO THE SHAREHOLDERS
OF
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

Hoda Vasi Chowdhury & Co.


Chartered Accountants

33

Auditors'
Report
V

Ed
V.'
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Auditors' Report
to the Shareholders
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:
We have obtained all the information and explanations which to the best of our knowledge and
(i)
belief were necessary for the purpose of our audit and made due verification thereof;
35

(ii)

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,

(vi)

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.

Dhaka, October 05, 2013

Hoda Vasi Chowdhury & Co.


Chartered Accountants

Annual R
I

iii
-lia
-

Financial
Statements


rM

As at December 31, 2012


Notes

SHARE CAPITAL AND LIABILITIES



SHAREHOLDERS' CAPITAL


2012

Taka

2011
Taka

4.00

Authorized

5,000,000,000
50,00,00,000 Ordinary Shares of Tk. 10 each

300,000,000

Issued, ubscri hc1 uiiJ 1 > uJ up


45,00,000 Ordinary Shares of Tk. 10 each

45,000,000

45,000,000

fully paid up in cash

1,000,000

Dividend Equalisation Reserve

23,282,041,204

5.00 26,331,578,112

life insurance Fund

Estimated liabilities in respect of outstanding claims,



6
.00
whether due
or intimated
Amount due to other persons or bodies carrying on

7.00
insurance business

8.00
Sundry Creditors
9.00
Provision for Doubtful Debts
Reserve for Unexpired Risk

10.00
Premium Deposits

1,000,000

665,191,938

551,180,711


67,197,302

329,371,461

73,363,920

192,184,968
12,400,090
1,339,709,679

27,717,287,791
[OTAL SHAKE CAPITAL AND LIABILITIES

31,409,897
532,578,735
75,699,494
121,472,139
11,462,899
1,323,803,875
24,651,845,079

The annex notes form an integral part of these financial statement

A4z4la
4M2PVn_

Swapan Kumar Sarkar, FCA


Managing Director (In-charge)

38

Md. Mujibur Rahman


Director

V. CL^

Aziz Ahmed, FCA, CISA Monzurur Rahman


Director
Chairman

As at December 31, 2012



2012

Taka

Notes
PROPERTY AND ASSETS

509,955,906

1
LOAN
1.00
On Insurer's Policies within their surrender value
12.00
INVESTMENT (AT COST),
Statutory Deposit with Bangladesh Bank (BGTB)

Bangladesh Govt. Treasury Bond (BGTB)

Shares Listed on Stock Exchanges

Debentures and
Bonds
Mutual Fund
Central Depository Bangladesh Ltd.
DUG Securities Limited (Subsidiary)

Other Loans

12.05

Agents' Balance
Outstanding Premium
Interest, Dividends and Rents Accruing But Not Due
Advances And Deposits
Sundry Debtors

13.00
14.00
15.00
16.00

(\SI-1 ANT) BANK BALANCES

17.00

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

18.00

2011
Taka

444,369,078

2,000,000
8,385,482,195
5,131,994,379
476,518,717
30,000,000
3, 138,890
320,200,000
91,154,267

2,000,000
6,725,040,490
3,976,783,821
536,553,527
30,000,000
3,138,890

14,440,488,448

11,373,402,683

3,461,053
646,608,173
806,813,031
785,420,077
55,089,341

3,450,059
633,403,068
836,810,804
635,008,233
55,094,848

7,652,567,484
384,335,639
947,127,835
1,353,853
11,823,448
2,881,182
9,000,089,441

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

1,456,667,484
12,694,837
27,717,287,791

1,069,301,728
9,706,397
24,651,845,079

99,885,955

OTHER ACCOUNTS
Fixed Assets (At Cost Less Depreciation)
Stamps, Printing and Stationery in Hand
I 0 1 \I PROPERTY\ \NI) ASSETS

19.00

The annex notes form an integral part of these financial statement

Swapan Kumar arkar, FCA


Managing Director (In-charge)

Md. Mujibur Rahman


Director

Aziz Ahmed, FCA, CISA Monzurur Rahman



Chairman
Director

Signed as per annex report on even date


WcL

Dhaka, October 05, 2013

Hoda Vasi Chowdhury & Co.


Chartered Accountants
39

71-

T;fr

For the year ended December 31, 2012


Notes
BALANCE OF FUND AT THE BEGINNING
OF THE YEAR
ADJUSTMENTS MADE DURING TIlE YEAR

20.00

PREMIUM I,F,SS REINSURANCE


First Year Premium (OL)
First Year Premium (GN-GRB)

21.00

Group Life Insurance Premium


Health Insurance Premium
Gross Premium
Reinsurance Premium
Net Premium

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)

40

2011
Taka

2012
Taka
23,282,041,204

20,130,605,300

107,622,750

172,130,517

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
414,186,895
5,086,791,956
(57,365,054)
5,029,426,902

Renewal Premium (OL)


Renewal Premium (GN-GRB)

INTEREST, DIVIDENDS
AND RENTS

OTHER INCOME

22.00 2,327,639,110


23.00
27,682,381

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
810,680,107

726,365,569
556,788,527
L
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)
4,975,346,673
2,112,903,816
28,734,217
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
1,283,154,096

For the year ended December 31, 2012


Notes
CLAIMS UNDER POLICIES (INCLUDING
PROVISION FOR CLAIMS DUE OR

INTIMATED), LESS REINSURANCE


2012

Taka

2011
Taka

24.00

By Death
By Maturity
By Survival
By Hospitalisation
By Others
By Surrenders
Annuities
Bonus in Cash
Profit Commission

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
2,282,479,896
14,253,491
2,296,733,387

EXPENSES OF MANACFJ1ENT

Commission:
25.00
(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 in i. lie
allowance and commission)
Development Salaries & Allowances
Development Incentive
Traveling and Conveyance
Directors Fees
Auditors Fees
Medical Fees
Legal and Professional Fees
26.00
Insurance Policy Stamp
Advertisement and Publicity
27.00
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
28.00
Entertainment
Insurance Premium (General)
Postage and Telegram

506,653,0

791,284,363

123,821,179
630,474,261

189,857,335
981,14 1,698

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

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
41

For the year ended December 31, 2012


2012
Taka

Notes

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 Doubtful Debts


Reserve for Unexpired Risk
Provision for Income Tax

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

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

27,392,987
715,920
737,831,334

1,407,731,769

1,718,973,032

50,656
192,184,968
-

500,761
121,472,139

26,33 1,578,112
30,774,412,347

23,282,041,204
27,419,720,523

29.00

BALANCE OF THE FUND AT THE END OF


THE YEAR AS SHOWN IN THE BALANCE SHEET
TOTAL

2011
Taka

The annex notes form an integral part of these financial statement

Swapan Kumar Sarkar, FCA


Managing Director (In-charge)

Md. Mujibur Rahman


Director

Aziz Ahmed, FCA, CISA Monzurur Rahman


Chairman
Director

Signed as per annex report on even date

Dhaka, October 05, 2013

42

Hoda Vasi Chowdhury & Co.


Chartered Accountants

For the year ended December 31, 2012



2012

Taka
Cash flows from Operating Activities
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 Activities
Investment made
Acquisition of Fixed Assets
Loan against Policies Paid
Other Loans realised
Interest, dividends & rents received
Proceeds from sale of Fixed Assets
Net Cash used in investing activities
Cash flows from Financing Activities
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

2011
Taka

5,073,586,851
25,625,794
(2,728,855,615)
(1,588,289,324)
(151,271,190)
630,796,516

[274,282j
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

L
(591,208,740)
9,591,298,181
9,000,089,441 -

1,751,765,415
7,839,532,766
9,591,298,181

The annex notes form an integral part of these financial statement


Swapan Kumar Sarkar, FCA
Managing Director (In-charge)

Md. Mujibur Rahman



Director

Aziz Ahmed, FCA, CISA Monzurur Rahman



Director
Chairman

43

As at December 31, 2012


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)
Stamps, Printing and Stationery in Hand

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

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
Provision for Doubtful Debts
Reserve for Unexpired Risk
Premium Deposits
Dividend Equalisation Reserve

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

Gross Fund (Assets - Liabilities)


Shareholders' Capital (Paid-up Capital)
Life Insurance Fund as at December 31, 2012

The annex notes form an integral part of these financial statement

wi

Swapan Kumar Sarkar, FCA
Managing Director (In-charge)

44

Md. Mujibur Rahman



Director

Aziz Ahmed, FCA, CISA Monzurur Rahman



Chairman
Director

For the year ended December 31, 2012

Particulars
Balance as on
01 January 2012
Bonus Share
for the Year 2011

Share
Capital

Share
Premium

General Retained Other


Reserve Earnings Reserve

45,000,000

45,000,000

Balance as on

31 December 2012

Total

45,000,000

45,000,000

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:

The annex notes form an integral part of these financial statement

^^ijjjjjjjiii

Swapan Kumar Sarkar, FCA


Managing Director (In-charge)

Md. Mujibur Rahman



Director

^011/_/

Aziz Ahmed, FCA, CISA Monzurur Rahman



Director
Chairman

45

As at December 31, 2012


FIR, WFIT^

LOAN
On Insurers Policies within their surrender value

509,955,906

509,955,906 Realisable Value

INVESTMENT
Statutory Deposit with Bangladesh Bank (BGTB)
Bangladesh Govt. Treasury Bond (BGTB)
Shares Listed on Stock Exchanges
Debentures and Bonds
Mutual Fund
Central Depository Bangladesh Ltd.
DLIC Securities Limited
Other Loans

2,000,000
8,385,482,195
5,131,994,379
476,518,717
30,000,000
3,138,890
320,200,000
91,154,267

2,000,000 At Cost
8,385,482,195 At Cost
5,934,139,559 Market Value
476,518,717 At Cost
30,000,000 At Cost
3,138,890 Book Value
320,200,000
91,154,267 Realisable Value

CASH AND BANK BALANCES


On Fixed Deposit with Banks
On Current Account with Banks
On STD Account with Banks
Cash in Hand
Cash in Transit
Branch Petty Cash

7,652,567,484
384,335,639
947,127,835
1,353,853
11,823,448
2,881,182

7,652,567,484 Book Value


384,335,639 Book Value
947,127,835 Book Value
1,353,853 Book Value
11,823,448 Realisable Value
2,881,182 Realisable Value

OTHER ACCOUNTS
Agents' Balance
Outstanding Premium
Interest, Dividends and Rents Accruing But Not Due
Advances And Deposits
Sundry Debtors
Fixed Assets (At Cost Less Depreciation)
Stamps, Printing and Stationery in Hand

3,461,053
646,608,173
802,549,827
785,420,077
55,089,341
1,456,667,484
12,694,837

3,461,053 Realisable Value


646,608,173 Realisable Value
802,549,827 Realisable Value
785,420,077 Realisable Value
55,089,341 Realisable Value
1,456,667,484 Carrying Value
12,694,837 At Cost

The annex notes form an integral part of these financial statement

Swapan Kumar Sarkar, FCA


Managing Director (In-charge)

46

wz
Md. Mujibur Rahman

Director

Aziz Ahmed, FCA, CISA Monzurur Rahman



Chairman
Director

Notes to the
Financial Statements

Em

For the year ended December 31, 2012


1.00 LEGAL STATUS AND NATURE OF BUSINESS
1.01

Establishment 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

Nature 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


2.01

Statement of Compliance
The following underlying assumptions, measurement base, laws, rules, regulations and accounting
pronouncements have been considered in preparing and presenting the financial statements:
Going Concern

Accrual unless stated otherwise except for Cash Flow Statement.


Historical cost convention
The Insurance Act / Rules 1958

Provisions of the Companies Act 1994

The Securities and Exchange (SE) Rules

The Listing Regulations of Dhaka and Chittagong Stock Exchanges

Income Tax Ordinance 1984

The 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
Any 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
1987 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.

2.03

Use 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.

2.04

Reporting 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.

2.05

Components of the Financial Statements


The financial statements include the following components:






Balance Sheet
Life Revenue Account
Cash Flow Statement
Statement of Life Insurance Fund
Statement of changes in stockholders equity
Classified summary of the Assets (Form AA) and
Accounting 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

Revenue Recognitions
All business is written in Bangladesh.

3.1.1

Individual 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

Interest, 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

50

Provisions
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.

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.
3.04

Contingent 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.
3.06

Re-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.

3.07

Claims 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.

51

_

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

Investments
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

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.

3.09

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 expenditure 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 Assets
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:

10%
Furniture and Fixtures

20%
Renovation

25%
Computer Hardware & Software

20%
Electrical Equipments

20%
Vehicles
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 Assets
Intangible Assets are reported at acquisition value with deductions for impairment losses, if 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 Assets
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.
Encumbrances
There were no encumbrances on assets of the company as at the Balance Sheet date (previous year
Tk. nil).
3.10

Stamps, Printing, Stationary in hand


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

3.11

Policy on Doubtful Debts


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

3.12

Taxation
Current
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.
Deferred 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

Risk 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

Reinsurance 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

Credit 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

Commission:
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

Lash

,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
U
U

3.16

Cash at bank in current and STD accounts


Term deposits (FDRs) with commercial banks
Cash in hand and in transit

Comparative In formation:
Relevant comparative information has been disclosed in respect of the year for all numerical
information in the financial statements.

3.17

[)ivideiul to Sliare holders:


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

3.18

General:
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

Taka

2011
Taka

4.00 SHAREHOLDERS' CAPITAL


Authorised Capital
In the 8th EGM held on 20th September 2012, the
Shareholders' of the Company approved the Authorized
Capital Tk. 5,000,000,000.00 only, divided into 500,000,000
ordinary shares of Tk. 10 each.
50,00,00,000 Ordinary Shares of Tk. 10 each
(FY-2011: 3,00,00,000 Ordinary Shares of Tk. 10 each)
Issued, subscribed and paid-up capital
45,00,000 Ordinary Shares of Tk. 10 each.
Category of Shareholders
Sponsor
General Public

Share holding (%)


36.76
63.24

Number of non-resident shareholders



Number of shares held by non-resident shareholders

Category of Share
Holders

Sponsor

General Public

below 500
500-5000
5001-10000
10001- Above
Sub-total
below 500
500-5000
5001-10000
10001-Above
Sub-total
Total

1,502
273
27
29
1,831
1,914

5.00 LIFE INSURANCE FUND


Balance at the beginning of the year
Add: Increase in Life Revenue Account during the year
Balance at the end of the year

300,000,000

45,000,000

45,000,000

16,540,050
28,459,950J
45,000,000

16,54006
28,459,950
45,000,000
1,914

1,914

No. of Share
Holders
3
39
8
33
83

Share Holding

5,000,000,000

No. of Share Percentage of


Share Holding
525
0.01
2.43
109,275
59,430
1.32
1,484,775
33.00
1,654,005
36.76
181,080
371,475
183,390
2,110,050
2,845,995
4,500,000

4.02
8.26
4.08
46.89
63.24
100.00

Tk. 26,331,578,112
r23,282,041,204,130,605,300
3,049,536,908
3,151,435,904
23,282,041,204
26,331,578,112

59

6.00 ESTIMATED LIABILITIES IN


RESPECT OF OUTSTANDING
CLAIMS, WHETHER DUE OR
INTIM ATFI)
a) Ordinary Life
Death Claim
Maturity Claim
Claim on Survival

2011
Taka

2012
Taka

Tk. 665,191,938

b) Gono Grameen Bima


Death Claim
Maturity Claim
Claim on Surrender
c) Group Insurance
d) Wage Earners
e) Health Insurance

-59,181,976
Lp5,265,171
430,655,296

145,614,439
174,575,101
376,232,580

12,844,674
153,865,145
1,842,899
168,552,718
40,545,753
7,492,000
17,946,171
665, 19 1,938

9,823,079
117,907,870
L249,851
128,980,800
30,800,117
7,592,000
7,575,214
551,180,711

7.00 AMOUNT DUE TO OTHER PERSONS OR


BODIES CARRYING ON INSURANCE BUSINESS
Munich Reinsurance Company

Tk. 329,371,461
8.00 SUNDRY CREDITORS
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

67,197,302

31,409,897

118,208,917
24,071,253
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
329,371,461

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)
532,578,735

* This represents current account balance with the brokerage house at the end of routine and normal
investment activities in listed shares.

2012
Taka
8.01

Commissions payable

1185208,917

2011
Taka
318,013,172

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

24,071,253

Development Salary

33,084,188

This represents provision of salary, performance and production bonus payable to GN-GRB
development officers (other than agents). These were paid subsequently.

8.03

7,771,815

Agents' License Fees

6,837,150

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

750,403

Insurance Policy Stamps

4,970,305

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

8.05

It

Tk. 63,663,156
Security Deposit
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

54,720
2,013,793
4,000
210,100
51,169,377
393,625
4,657,541
5,048,835
111,165
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

* This represents deposits received from the employees and adjustable under the Company's Car
Scheme.
8.06

Incentive Bonus (Staff)

33,967,847

34,029,100

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

Taka
8. 07

Creditors for Expenses

2011
Taka

Tk. 5,072,640

Printing and stationery


Office Rent
Prize and awards
Telephone Bill
Electricity Bill
Postage and Courier
Travelling and Conveyance
Car Fuel & Maintenance
Photostat
Unit Office Expenses
Bank Charges
Entertainment
Legal Expenses
Office Maintenance
Papers and Periodicals
Others

61,250
375,451
56,204
432,960
50,879
260,144
500
1,277,191
425,657
1,265
1,868,298
44,002
924
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
10,966,479

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

Provident Fund

1,456,990

1,465,186

This represents company's and employees' contribution to PF (Provident Fund Trust) for the
month of December 2012 which was subsequently paid.

8.09

Provision for Income Tax

Balance at the beginning of the year


Add: Provision for Income Tax - Current year
Balance at the end of the year

Tk. 38,563,596
UN

38,563,596

38,563,596

38,563,596

38,563,596

-J

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


2012

Taka
8.10

interest Suspcnsc Accowit

2011
Taka

Tk. 26,056,421

Overdue Interest on Home Loan Insurance Scheme


Debenture Interest Receivable from Beximco Denims Ltd.

25,608,631
447 , 7 90 _
26,056,421

21,345,427
447,790
21,793,217

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

Jnidentified Deposits
Balance at the beginning of the year
Adjustments/ reconciled
Additions
Balance at the end of the year

Tk. 8,124,045
r

7,3057821
(4,376,139)
L_ 5,194,402
8,124,045

7,958,021
(2,539,568)
1,887,329
7,305,782

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 Tk. 73,363,920
Project loan
Motor car, cycle and bicycle Loan
Branch collection account
Other receivables
Advance Salary
Advance to agents

10.00 PREMIUM DEPOSITS


Ordinary Life - 1st year
Ordinary Life - Renewal
GN-GRB
Group & Health Insurance

5466,929
3,472,732
3,414,580
3,843,733
576,844
5,589,102
73,363,920

58,796,997
3,525,453
3,418,022
3,793,076
576,844
5,589,102
75,699,494

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

Tk. 12,400,090

This represents payments made by policyholders awaiting adjustment against the policy premiums.
63

2011
Taka

2012
Taka
11.00 LOAN

1k. 509,955,906

On Insurer's Policies within 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 December 31

444,369,078
180,636,668
5 ,049 , 840)
509,955,906

F402,871,846
43,021,567
01,524,335)
444,369,078

166,925,918
Ordinary Life (OL)
13,710,750
Gono-Grameen Bima (GN-GRB)
180,636,668

10,719,547
12,302,020
143,021,567

11.01 Loan disbursement during the year

11.02 Loan recovery during the year

1k. 180,636,668

Tk. (115,049,840)


Ordinary Life (OL)

Gono-Grameen Bima (GN-GRB)

12.00 INVESTMENT (AT COST)

(103,653,138)
(11,396,702)
(115,049,840)

(89,366,832)
(12,157,503)
(101,524,335)

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

Tk. 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)
DLIC Securities Ltd. (Subsidiary Company Note-12.05)
Other Investment (Note-12.06)
Other Loans Note-12.07)

64

3,138,890
99,885,955
11,373,402,683
I

2012
Taka

12.01 Government Securities

2011
Taka

Tk. 8,387,482,195

Statutory Deposit with Bangladesh Bank (BGTB):


The amount represents investment made under statutory

requirements which is made up as follows:

2,000,00o1
2,000,000

2,000,0J
2,000,000

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.

8,385,482,13 L6,725,040,4
8,387,482,195
6,727,040,490

Bangladesh Govt. Treasury Bond (BGTB)

12.02 Mutual Fund



Janata Bank Mutual Fund

Prime Financial First Unit Fund (PFFUF)

Tk. 30,000,000

20,000,000

L. 10,000,000
30,000,000
[

20,000,000
10,000,000
30,000,000

65

2012
Taka

2011
Taka

5,131,994,379

3,976,783,821

Book Value at
Cost (Taka) as
at 31.12.2012

Market Value
(Taka) as at
31.12.2012

84.44
34.45
19.31
31.03
20.14
159.99
25.11
33.79
10.01
69.43
26.15
25.78
23.03
26.37
26.47
97.23
43.13
26.42
47.93
36.10

35,915,433
10,110,741
3,280,954
3,657,521
3,937,649
14,239,186
9,258,811
5,402,715
20,851,052
19,989,229
11,703,990
2,706,993
1,752,821
22,556,368
1,109,654,722
7,271,486
9,105,829
3,436,607
55,930,879
4,184,161

14,333,149
7,366,674
3,652,506
4,101,389
4,848,574
10,413,000
11,689,692
2,958,391
15,630,000
10,421,509
19,154,070
2,299,281
1,232,917
31,648,246
1,383,549,420
5,937,850
4,222,880
3,251,300
27,539,949
4,415,828

-
71.01
128.93
10.00
105.89
19.84

-
8,623,626
12,730,794
270,099,123
2,890,728
2,053,866

223,970
12,739,476
26,136,478
888,667,822
7,118,475
3,167,100

110.20
144.82
55.77

286,514
94,570,595
28,714,989

169,000
37,092,388
14,005,579

763.43
1,000.00
965.58

27,430,916
20,000,000
11,417,984

29,122,076
11,739,269

12.03 Shares Listed on Stock Exchanges

SL

Name of the
Institution

Face
Value
Per

No.of
Unit

Average
Cost
Per Unit

Bank
425,316
1 ABBANK
10.00
10.00
293,493
2 ALARABANK
169,884
10.00
3 BANKASIA
117,856
10.00
4 BRACBANK
195,507
10.00
5 DHAKABANK
89,000
6 DUTCHBANGL
10.00
10.00
368,760
7 EBL
159,913
10.00
8 FIRSTSBANK
100.00
2,084,000
9 ICBIBANK
10.00
287,887
10 IFIC
447,525
11 ISLAMIBANK
10.00
104,990
10.00
12 MTBL
10.00
76,106
13 PREMIERBAN
10.00
855,358
14 PRIMEBANK
10.00 41,925,740
15 PUBALIBANK
74,784
16 RUPALIBANK
10.00
211,144
17 SOUTHEASTB
10.00
130,052
10.00
18 TRUSTBANK
10.00
1,166,947
19 1 UCBL
20 UTTARABANK
10.00
115,901
Cement
21 ARAMITCEM
10.00
3,505
10.00
121,444
22 CONFIDCEM
98,740
23 HEIDELBCEM
10.00
24 LAFSURCEML
10.00 27,011,180
25 NILOYCEM
10.00
27,300
103,500
26 PADMACEM
10.00
Ceramics sector
2,600
100.00
27 BENGALFINE
28 RAKCERAMIC
10.00
653,035
29 SPCERAMICS
10.001
514,911
Corporate Bond
30 ACIZCBOND
35,931
1,000.00
20,000
31 Brac Bank Cony Bonds 1,000.00
32 IBBLPBOND
1,000.00
11,825
66

S[

Name of the
Institution

Engineering
33 ATLASBANG
34 BDTHAI
35 BSRMSTEEL
36 DESHBANDI-JU
37 ECABLES
38 MARKBD
39 NAVANACNG
40 NTLTUBES
41 RANFOUNDRY
42 SALAMCRST
Financial Institutions
43 DBH
44 ICB
45 IDLC
46 IPDC
47 ISLAMICFIN
48 LANKABAFIN
49 MIDASFIN
50 PLFSL
51 PRIMEFIN
52 UNIONCAP
Food and Allied
53 AMCL(PRAN)
54 BATBC
55 BIONICFOOD
56 FUWANGFOOD
57 MEGHNAVEG
58 MONAFOOD
Fuel and Power
59 BDWELDING
60 DESCO
61 EASTRNLUB
62 JAMUNAOIL
63 KPCL
64 LINDEBD
65 MJLBD
66 MPETROLEUM
67 PADMAOIL
68 POWERGRID
69 SUMITPOWER
70 1 TITASGAS

Face
Value
Per

Average
Cost
Per Unit

Book Value at
Cost (Taka) as
at 31.12.2012

Market Value
(Taka) as at
31.12.2012

442,000
100,030

243.98
81.46
58.58
57.92
47.46
29.33
156.83
90.22
122.51
80.09

77,546,083
39,495,559
3,737,433
1,998,300
704,737
219,574
46,163,064
5,376,501
54,148,289
8,011,648

51,394,890
17,066,262
4,332,020
893,550
766,260
127,279
23,488,651
2,490,946
27,492,400
4,911,473

10.00 20,125,000
100.00
10,588
10.00
48,375
10.00
67,287
10.00
677,321
10.00
230,345
10.00
55,011
10.00
13,301
10.00
420,025
265,100
10.00

2.49
18.42
16.66
29.02
40.57
103.50
21.54
78.19
81.61
82.11

50,073,335
194,993
805,714
1,952,786
27,479,101
23,840,117
1,184,780
1,040,001
34,278,611
21,766,720

1,127,000,000
15,969,351
4,445,663
1,211,166
15,307,455
13,590,355
2,805,561
430,952
13,776,820
7,369,780

10.00
10.00
10.00
10.00
100.00
100.00

155,430
44,250
1,000
63,240
5,300
5,000

127.89
252.51
1.90
49.91
64.46
27.98

19,878,642
11,173,551
1,903
3,156,438
341,644
139,885

18,962,460
37,147,875
6,400
1,644,240
176,225
275,000

363,746
99,275
57,500
670,644
520,597
39,237
33,221
720,400
1,013,105
106,070
250,785
652,000

61.01
69.51
606.88
257.76
106.64
237.98
86.96
190.04
294.12
59.66
56.23
60.36

22,191,088
6,900,244
34,895,615
172,864,110
55,515,362
9,337,724
2,888,800
136,901,595
297,972,164
6,328,522
14,102,102
39,353,903

8,438,907
7,157,728
13,409,000
119,709,954
25,925,731
21,545,037
2,647,714
114,183,400
189,957,188
5,897,492
13,366,841
42,575,600

10.00
10.00
10.00
10.00
10.00
100.00
10.00
10.00
- 10.00
10.001

10.00
10.00
10.00
10.00
10.001
10.00
10.00
10.00
10.00
10.00
10.00
10.00

No.of
Unit
317,841
484,837
63,800
34,500
14,850
7,487
294,344
59,592

67

S
SL

Name of the
Institution

Face
Value
Per

Insurance
10.00
71 BGIC
10.00
72 CONTININS
10.00
73 EASTERNINS
10.00
74 EASTLAND
10.00
75 FAREASTLIF
10.00
76 GREENDELT
10.00
77 MEGHNALIFE
10.00
78 NATLIFEINS
10.00
79 PEOPLESINS
10.00
80 PIONEERINS
10.00
81 PRAGATIINS
10.00
82 PRAGATILIF
10.00
83 PRIMELIFE
10.00
84 RELIANCINS
10.00
85 jUNITEDINS
IT Sector
10.00
86 AGNISYSL
10.00
87 BDCOM
10.00
88 DAFODILCOM
10.00
89 INTECH
10.00
90 ISNLTD
Miscellaneous
10.00
91 ARAMIT
10.00
92 BERGERPBI.
10.00
93 BEXIMCO
10,00
94 GQBALLPEN
10.00
95 MIRACLEIND
10.00
96 SINOBANGLA
Mutual Funds
10.00
97 1JANATAMF
10.00
98 1STPRIMFMF
10.00
99 AIMS1STMF
10.00
100 DBH1STMF
101 EBL1STMF
10.00
10.00
102 EBLNRBMF
10.00
103 GRAMEEN1
04 GRAMEENS210.00
1
10.00
105 ICB1STNRB

68

No.of
Unit

Average
Cost
Per Unit

Book Value at
Cost (Taka) as
at 3 1.12.2012

Market Value
(Taka) as at
3 1.12.2012

1,050,431
40,500
52,510
45,660
467,282
1,849,575
154,210
28,490
219,392
48,360
132,308
63,347
89,207
57,868
14,366

43.70
31.41
41.48
55.25
175.49
111.71
180.08
32.16
45.33
18.47
93.27
212.55
167.13
35.60
81.11

45,903,661
1,272,138
2,177,978
2,522,853
82,001,672
206,610,044
27,770,391
916,331
9,945,624
893,291
12,339,850
13,464,161
14,908,857
2,060,149
1,165,199

33,823,878
1,320,300
1,932,368
2,584,356
49,625,348
135,758,805
17,394,888
8,623,923
6,033,280
3,530,280
8,256,019
7,981,722
10,348,012
5,485,886
660,836

525,132
484,737
459,752
497,448
399,803

50.21
45.57
38.63
31.37
36.16

26,366,083
22,089,937
17,761,561
15,606,874
14,456,162

12,550,655
9,258,477
7,310,057
8,804,830
6,556,769

149,650
31,000
957,672
38,172
374,879
400,000

467.77
263.35
161.23
173.82
32.51
36.76

70,001,331
8,163,997
154,408,484
6,634,884
12,188,169
14,702,555

31,665,940
16,439,300
61,674,077
5,935,746
4,835,939
10,600,000

403,000
418,000
236,250
6,120,000
174,000
1,000,000
363,250
771,650
156,500

11.52
44.64
70.59
10.31
29.57
10.00
59.78
46.61
48.66

4,641,527
18,660,965
16,677,634
63,084,706
5,145,178
10,000,000
21,716,477
35,968,435
7,615,353

2,821,000
11,954,800
11,269,125
43,452,000
1,548,600
9,400,000
19,215,925
16,204,650
4,225,500

SL

Average
Face
No.of
Cost
Value
Unit
Per
Per Unit
23.11
737,000
10.00

Name of the
Institution

106 ICB2NDNRB

Book Value at Market Value


(Taka) as at
Cost (Taka) as
31.12.2012
at 31.12.2012
9,212,500
17,030,051

107 ICB3RDNRB

10.00

680,000

12.61

8,578,037

4,692,000

108 ICBAMCL1ST

10.00

258,000

47.44

12,238,876

10,474,800

109 ICBAMCL2ND

10.00

1,464,000

16.57

24,254,183

10,687,200

110 ICBEPMF1S1

10.00

647,000

16.68

10,793,169

5,240,700

111 ICBISLAMIC

10.00

516,500

39.49

20,399,125

11,363,000

112 LRGLOBMF1

10.00

500,000

10.00

5,000,000

5,000,000

113 PHP MF1

10.00

2,000,000

10.00

20,000,000

19,000,000

114 POPULAR1MF

10.00

500,000

10.00

5,000,000

3,600,000

115 PRIME11CBA

10.00

310,500

14.33

4,450,929

2,173,500

10,001

150,000 1

10.00 1

1,500,000 1

1,305,000

10.00]

161,500

57.54

118 ACI

10.00

371,700

278.36

103,467,630

52,484,040

119 ACIFORMULA

10.00

584,160

111.47

65,115,853

43,169,424

120 Activefine

10.00

146,280

84.53

12,364,604

10,634,556

121 BEACONPHAR

10.00

434,700

77.67

33,763,686

7,172,550

122 BXPHARMA

10.00

1,616,009

70.15

113,361,457

90,334,903

123 GLAXOSMITH

10.00

20,400

365,32

7,452,611

11,628,000

124 IBNSINA

10.00

50

125 IMAMBUTTON

10.00

30,850

23.47

723,941

283,820

126 MARICO

10.00

10,900

446.48

4,866,591

4,151,810

127 PHARMACO

100.00

200

54.43

10,885

24,250

128 RECKITTBEN

10.00

8,000

250.42

2,003,331

5,761,600

129 RENATA

10.00

12,725

159.51

2,029,763

9,410,138

10.00

980,148

74.82

73,330,951

165,252,953

131 CCL

10.00

468,585

131.53

61,634,596

14,010,692

132 SAPORTL

10.00

706,460

134.77

95,206,493

20,840,570

133 BATASHOE

10.00

35,000

338.38

11,843,463

18,749,500

134 LEGACYFOOT

10.00

144,760

41.47

6,003,744

3,054,436

100.00

10,235

37.04

379,102

163,760

10.00 1,130,400

255.48

116 TRUSTB1MF

Paper and printing


117 I-IAKKANIPUL

]_3,084,650

Pharmaceuticals and Chemicals

130 1 SQURPI-IARMA

Service and Real Estate

Tannery Industries

1 GI

135 PARAGON

11 11

4,205

Telecommunication
136

288,791,465 197,820,000
69

E,
SL

Name of the
Institution

Textile
137 APEXWEAV
138 CMCKAMAL
139 DACCADYE
140 DYNAMICTEX
141 HRTEX
142 MAKSONSPIN
143 MALEKSPIN
144 METROSPIN
145 MHOSSAIN
146 MITATEX
147 MONNOFABR
148 PRIMETEX
149 QSMSILK
150 SQUARETEXT

Face
Value

Per
10.00
10.00
10.00
100.00
10.00
10.00
10.00
10.00
100.00
100.00
10.00
10.00
10.00
1 10.001

No.of
Unit

Average
Cost
Per Unit

Book Value at
Cost (Taka) as
at 31.12.2012

Market Value
(Taka) as at
31.12.2012

20.29
-
50.33
38.00
43.30
38.60
83.67
39.22
35.06
53.70
10.45
33.62
4.26
75.90

205,337
-
3,536,196
3,995,448
5,350,234
28,192,350
18,821,323
1,842,504
694,108
1,204,939
208,904
2,353,433
1,279
7,131,530

1,558,480
84,085
2,199,107
5,493,565
3,991,214
12,999,981
5,646,245
803,307
688,050
1,385,670
1,550,000
1,463,000
3,630
9,659,499

10,120
2,510
70,259
105,140
123,567
730,336
224,950
46,977
19,800
22,440
20,000
70,000
300
93,964

Total :

5,131,994,379 5,934,139,559
2012
Taka
476,518,717

2011
Taka

Si.
No.

Name of the Debentures and Bonds

Face
Value Per
Debenture

1.00 Beximco Fisheries


2.00 Beximco Denims Ltd.
3.00 Prime Bank Bond
4.00 Banglalink Bond
5.00 Mutual Trust Bond
6.00 National Bank Bond
7.00 Trust Bank Bond
Total

3,000
2,500
N/A
N/A
N/A
N/A
N/A

536,553,527

Total Book
Value At Cost

No. of Unit
100
4,000
N/A
N/A
N/A
N/A
N/A

51,937
6,466,780
100,000,000
180,000,000
40,000,000
50,000,000
100,000,000
476,518,717

Si. No.
1.00: Procured in 1995. Defaulted in payment as per schedule and necessary legal action has been taken. Recheduled.
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 annum.
4.00: Private: 13.50% per annum.
5.00: Private: 12.00% per annum.
6.00: Private: 11.50% per annum.
7.00: Private: 12.50% per annum.
70

L..
2012
Taka
I205 1)1Y' Secu ru s lid. (Subddiarv (OIiptIi

320,200,000

2011
Taka
-

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 Inve.stni'n

Tk. 3,138,890

Share of Central Depository Bangladesh Ltd. (Private)

10,00 Other Loans

13.00 OUTSTANDING PREMIUM

3,138,890
3,138,890

Tk. 91,154,267

Home Loan Insurance Scheme (HLIS)


Project Loan (GN-GRB)

3,138,890 ]
3,138,890

Ordinary Life (OL)


Group Insurance (GI)
Health Insurance (HI)
Gono-Grameen Bima (GN-GRB)

35,122,192
L,032,075
L
91 , 154,267

41,523,813
58,362,142
99,885,955

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

Tk. 646,608,173

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

2012

Taka
14.00 INTEREST, DIVIDENDS & RENTS
Tk. 806,813,031
ACCRUING BUT NOT DUE
Bangladesh Govt. Treasury Bond (BGTB)
Fixed Deposit with Banks
Home Loan Insurance Scheme
Interest on Debentures & Bonds
Dividend on Share
Interest on Policy and Project Loan.
Statutory Deposit with Bangladesh Bank (BGTB)

15.00 ADVANCES AND DEPOSITS

Adjustment during the year


Balance at the end of the year

15.02 Other Advances

Taka

240,618,647
429,796,996
37,048,696
23,569,093
22,354,436
53,353,153
72,010
806,813,031

181,632,227
542,325,165
32,953,743
31,750,369
6,508,120
41,569,170
72,010
836,810,804

11,535,628
767,601,405
4,554,437
288,490
1,440,117
785,420,077

11,589,204
616,330,215
4,638,713
278,671
2,171,430
635,008,233

616,330,215
151,271,190
767,601,405

527,136,090
89,194,125
616,330,215

767,601,405

616,330,215

1,440,117

2,171,430

Tk. 767,601,405

Balance at the beginning of the year


Add: Addition during the year

2011

Tk. 785,420,077

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)

Others Advances include advances against staff salary and various expenses which have been adjusted
subsequently.

16.00 SUNDRY DEBTORS

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)

I
Tk. 55,089,341
2,330,689
1,008,681
434,854
3,414,580
42,382,121
5,518,416
55,089,341

2,380,069
1,012,022
434,854
3,418,022
42,382,121
5,467,760
55,094,848

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
Taka
16.01 Motor Car & Cycle Loan

2,330,689

2011
Taka
2,380,069

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

16.02 Bicycle Loan

1,008,681

1,012,022

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

16.03 Branch Collection Account

3,414,580

3,418,022

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

16.04 Income Tax Refund Due

42,382,121

42,382,121

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 2003-2004, 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).


mlrD

16.05

Other Receivables
Sundry Advance
Others *

Tk. 5,518,416
1,674,683
3,843,733
5,518,416

1,674,683
3,793,077
5,467,760

* 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


2012

Taka
17.00 BANK BALANCES

Tk. 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)

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.

74

2011
Taka

7,652,567,48
384,335,639 I
947'Z']
8,984,030,958

8,025,465,759
43 1,078,770
731,324,450
9,187,868,979

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
8,025,465,759


2012

Taka

17.02 ( ) ii ( trrcit AL:ttJ1t oh Banks
Tk. 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.
17.03 On Sf1) Account 6th Banks
1k. 947,127,835
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

5,430,792
291,653,305
4,285,713
65,857,920
1,283,845
42,959
764,778
753
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
384,335,639

318,067
564,653
27,530,336
482,596,555
128,866,065
236,986,827
65,245
1,384,096
655
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

2011
Taka
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
500
1,000
431,078,770

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
284,257,854

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

Tk. 1,456,667,484
19.00 FIXED ASSETS (Annexure-A)
Cost
Land
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

1k. 1,269,122,484
ork in Prutrcss (\\i
Corporate
Khulna
Doctor's
Bogra Office
Office
Total
Office
Particulars
Building
Tower
Building
Building
(Guishan)
Amount in Taka
-
831,337,408
189,438,436
A. Contractor's Bills- Balance b/fwd 403,481,330 238,417,642
436,185,076
227,508,460
132,968,407
Add: Bills paid and adjusted 16,769,989 58,938,220
227,508,460
1,267,522,484
322,406,843
Sub Total (A) balance - c/fwd 420,251,319 297,355,862
-
41,181,034
24,544,000
9,060,818
B.Advance- Opening balance (b/fwd)
7,576,216
-
(43,381,034)
(24,544,000)
Less: Adjusted during the year (9,776,216) (9,060,818)
-
3,800,000
Add: Paid during the year
3,800,000
-
-
-
1,600,000
-
-
Sub Total (B) balance - c/fwd 1,600,000
227,508,460 1,269,122,484
322,406,843
1421,851,319
297,355,862

Total (A+ B)
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

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

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.

2011
Taka

2012
Taka

21.00 PREMIUM LESS REINSURANCE

5,029,426,902 4,975,346,673

GrossRI Premium Net Premium


Premium
366,575,593
4,622,920
371,198,513
-
439,481,594
439,481,594
806,057,187
4,622,920
810,680,107
2,096,181,085
4,644,765
2,100,825,850
-
1,761,099,104
1,761,099,104
4,644,765 3,857,280,189
3,861,924,954
209,355,689
44,255,856
253,611,545
156,733,837
3,841,513
160,575,350
366,089,526
48,097,369
414,186,895
57,365,054
5,029,426,902
5,086,791,956

Type of Premium

-I

First Year Premium-01,


First Year Premium- GN-GRB
Sub-total
Renewal Premium-OL
Renewal Premium- GN-GRB
Sub-total
Group Insurance Premium
Health Insurance Premium
Sub-total
Total Tk. in 2012
Total Tk. in 2011

5,011,684,328 1

36,337,655

4,975,346,673

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
Statutory Deposit with Bangladesh Bank (BGTB)

1,118,258,534
65,559,096
48,383,297

894,417,157
74,322,329
33, 122,044

867,672,413
16,737,504
102,599,315
1,137,658
107,096,873
18,020
176,400
2,327,639,110

686,324,309
11,351,827
94,307,272
2,943,212
316,115,666

2,112,903,816

77

23.00 OTHER INCOME

2012
Taka

Tk. 27,682,381


Service Charge & others

Misc. Income

Profit/(Loss) on disposal of Fixed Assets

24,084,921
1,540,873
2,056,587

27.682.381

24.00 CLAIMS UNDER POLICIES


[INCLUDING PROVISION FOR CLAIMS DUE

OR INTIMATED], LESS REINSURANCE

Ordinary
GN-GRB
Life
By Death
51,255,680 28,180,873
6
17,181,257
956,972,414
By Maturit y
By Survival
346,548,565 161,108,954
By Hospitalisation
3,570,431
-
By Others
1,369,680
-
By Surrenders
72,258,314
7,002,379
Annuities
527,500
-
Bonus in Cash
376,596,797
-
Sub-total
1,469,308,224 1,153,264,620
Profit Commission
-
-
Total Tk. in 2012
1,469,308,224 1,153,264,620
Particulars

(Total Tk. in 2011

25.00 COMMISSIONS

2011
Taka

1,035,447,140 11,057,473,531

2,842,866,842

Group
Insurance
119,276,322
10,761,834
-
-
2,185,625
3,346,493
90,240

Health
Insurance

2,296,733,387
V

Total

135,660,514
18,902,430
154,562,944

-
198,712,875
-
1,584,915,505
507,657,519
-
65,731,054
69,301,485
3,555,305
-
-
82,607,186
-
617,740
-
376,596,797
65,731,054 2,823,964,412
18,902,430
-
65,731,054 1 2,842,866,842

132,906,250

70,906,466 1 2,296,733,387

Tk. 630,474,261

Ordinary Life
266,284,726
Gono-Grarneen Bima
360,298,152
Group Insurance
3,226,064
Health Insurance
665,319
630,474,261

78

25,382,196
2,299,965
1,052,056
28,734,217

574,858,375
403,018,903
2,533,059
731,361
981,141,698

2012
Taka
26.00 LEGAL AND PROFESSIONAL FEES

Ea

2011
Taka

Tk. 6,507,451

Legal advisers' fees for providing legal opinion


and vet legal document etc.
Lawyers' fees and expenses in respect of legal
cases for condonation of delay in holding pending
AGMs of the company.
Legal Retainers' (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)

429,375.00

1,030,500.00

1,176,607

10,881,399

1,401,469

863,115

3,500,000
6,507,451

9
12,784,639

27.00 ADVERTISEMENT AND PUBLICITY Tk. 9,406,597


Corporate Social Responsibility (CSR) Contribution towards Women Handball
Tournament, Bishay Shahittoy Kendro, etc.

958,867

Publicity in various medias- Newspapers, Television,


Delta Barta, Calendar, Gift, Magazine etc.
Advertisement - Sign Board, Bill Board, etc.

1,136,906

7,846,090

601,640
9,406,597

7,109,909
79,648
8,326,463

28.00 FEES, SUBSCRIPTIONS AND


DONATION
Tk. 4,598,268
Annual Subscription (BIA, DSE, CSE,

Trade License, RJSC & Firms)
4,391,268

Various Committee Meeting Fees
207,000
Charity & Donations

4,598,268

2,808,722
830,000
550,000
4,188,722

29.00 PROVISION FOR INCOME TAX

Tk.

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

2011
Taka

2012
Taka
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

Tk. 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

Tk. 57,365,054

During the year under review, following


payments were made in foreign currencies:
57,365,054
For Reinsurance operation
57,365,054

3,637,074
3,637,074

33.00 COMPANIES ACT 1994, SCHEDULE XI PART- 11 [NOTE 3(P) (VI) 5]


2,410
i) Number of employees drawing salary above Tk. 3000 per month
465
ii) Number of employees drawing salary below Tk. 3000 per month 1

2,403
525

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
Board Meeting Fee
Basic Salary
Provident Fund Contribution
House Rent
Other Allowances
Total

2012
Di rectors
1,048,000




1,048,0001

Officers
-
193,408,255
17,195,885
68,420,572
134,365,527
413,390,239

2011
Officers
Directors
761,150
-
100,792,560
-
17,286,589
-
68,110,323
-
232,454,022
418,643,494
761,150

34.02 Money was not spent by the company for compensating any member of the board for special
services rendered except as stated 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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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.
2.
3.
4.

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


Swapan Kumar Sarkar, FCA
Managing Director (In-charge)

Md. Mujibur Rahman



Director

4^"

-0-1

Aziz Ahmed, FCA, CISA Monzurur Rahman



Chairman
Director

83

Certificate of CEO & CFO under Corporate Governance guidelines issued by Bangladesh
Securities and Exchange Commission
(Condition no. 6 Notification 7 August 2012 no. SEC /CMRRCD/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.

Swapan Kumar Sarkar, FCA


Managing Director (In Charge) & CFO

84

Important Offices of the Company


Ordinary Life
Servi:t, Cell & Centre (Address & Con 1ct
Si No,
1

Address

No.)

Phone (T&T)

Mobile

02-9560407

01711664720

2 Dhaka. Baitul View Tower (111 Floor), 56/1 Purana Paltan, Dhaka-1000.

02-7124977

01713426867

3 Dhaka. Saleh Sadan (2nd Floor), 145, Motijheel C/A, Dhaka-1000


Chittagong. Ajmol Arcade (3: Floor), 1806, Shiekh Mojub Road, Agrabad C/A, Chittagong.

02-9568932

01911975855

031-713059
05 1-62625
051-61507

01716159569

081-68796

01716878859

0331-61348

01819460237

041-725636

01711957050

Munshiganj 607, Razia Hamid Plaza (1' Floor), Bagmamudali Para, Hospital Road, Munshiganj. 02-7620559

01713426850

Dhaka.

-
' Bogra

Gause-A-Pak Biponi Bitan Bhahan,28/G/1, Toyanabee Circular Road, Motijhcel C/A, Dhaka.

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

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


7 Feni

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

8 Khulna Jalil Tower (3r5 Floor), 77, Lower Jessore Road, Khulna.
9

01712177976

10 Lakshamipur Poura Super Market (3rd Floor), Lakshamipur.

0381-55605

01776116886

ii Rajshahi CNB Mor, Kazihatta, Rajshahi.

0721-770693

01712084429

0431-64306

01712658808

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

0921-63299

01711310930

14 Symet

0 82 1-7113 17
C821-714800

01712847773

15 Natore Sadek Complex (2nd Floor), Nicha Bazar, Natore

0771-61123

01913120675

16 Noakhali Rupsha Shopping Complex (2 Floor), Karimpur Road, Chowmuhony, Noakhali.

0321-54094

01713336245

17 Manikganj Rojoni Super Market (1" Floor), 76/77, Syed Rafiq Sarak, Manikganj.

02-7711210

01716469777

18 Thakurgaon Bangobandhu Sarak, Thakurgaon Sadar, Thakurgaon.

0561-61854

01713336267

19 Jessore

0421-65113

01727225604

20 Faridpur Shainsuddin Tower (5h Floor), Janata Bank Mor, 86/89, Mujib sarak, Faridpur. 0631-65799

01727248343

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

0841-63347

01816305600

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

0341-64141

01718227707

23 Kishorganj Mirja Loz (2nd Floor), 43, Isha Kha Road, Kishorganj.

094161406

01716977668

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

0601-51321

01614070731

12 Barisal

Ahsan Plaza (1st Floor), Bottola, Nobograin Road,Barisal.

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

43, M. K. Road, Jessore.

85

Important Offices of the Company


Gono-Grameen Bima Division
ii

Center (

0111 act

Dhaka Metropolitan

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

Dhaka -1

132/B, A, Kazi Mokrna para Bazar Road, Savar, Dhaka. 02-7744916, 7744917

Dhaka-2

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

Faridpur

1/1, Jhiltuli, Chourangi Faridpur.

5 Mymensingh

Chittagong
6

7
Comilla

10 Swadeshi Bazar, Mymensingh

86

0631-65909, 0631-62069
091-66829, 091-51936

Municipal Housing Estate, 119/120 Mirzarpool, Muradpur, Chittagong


114/127 Nazrul Avenue, Kandirpar, Comilla

031-656333, 031-654939
081-64226, 081-67200

8 Chandpur

9
Barisal

Khan Villa, Biponibagh Chandpur.

0841-66451, 0841-65803

Shahida Villa (2r floor) Bogra Road, Barisal

0431-62943, 0431-64291

10 Jhalakathi

60, Post Office Road Jhalakathi.

0498-63149, 0498-63148

11 Khulna

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

041-730056, 041-731409

12 J essore

33/1 Rail Road, Jessore

0421-68565, 0421-68516

13 Kushtia

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

14 Moulvibazar

Noor Mahal, 120 Shantibag, Moulvibazar

15 Sylhet

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

16 Pabna

Square Road, Thanapara Shalgaria, Pabna.

17 Bogra

Judge Court Road, Jalcshwaritala, Bogra.

18 Naogaon

Par Naogaon (Adjacent to Hotel Abakash) Naogaon.

19 Rajshahi

Shaheb Bazar, Ghoramara, Boalia, Rajshahi

0721-773854, 0721-770063

20 Gaibandha

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

0541-51276, 0541-61268

21 Rangpur

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

0521-65942, 0521-61830

22 Thakurgoan

Islam Plaza, Bangabandhu Sarak Thakurgaon.

0561-52210, 0561-61811

071-62261, 071-73045
0861-53804, 0861-62096

0731-64379, 073 1-51859


051-78319, 051-63814, 051-61038
0741-61757, 0741-61163

Delta Life Insurance Company Limited


Uttara Bank Bhaban
90, Motijheel C/A, Dhaka-1000, Bangladesh.

Proxy Form
We...........................................................................................................................................of ....................................................
.................................................................................................being the shareholder(s), Delta Life Insurance Company
Limited hereby appoint Mr./Ms...................................................................................................................................failing which
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. 2013 at 3:00 P.M. at Delta
Life Tower, Plot No. 37, Road No. 45 (South) & 90 (North), Gulshan Circle-2, Dhaka and at any adjournment thereof.
Signed this: .................................................... Day of ................................2013.
Signature of Proxy:

1) ....................................................................
Folio/BO ID No.............................................


Revenue
stamp
Tk. 20.00

Signature of Shareholder(s)
Folio / BO ID No................................
No. of Shares ....................................

2) ....................................................................
Folio/BO ID No .............................................
Note:
A member entitled to attend and vote at the 27' Annual General Meeting may appoint a proxy who must be a shareholder of
the Company to attend and vote in his/her stead. The proxy form, duly stamped, must he submitted at the Registered 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 my attendance at the 27th 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 Company Limited
Signature of Proxy:

Signature of Shareholder(s)

1) ............................................
2) ............................................

Notes:
I. Please note that the AGM can only be attcndccl by the honorable shareholder or properly constituted proxy. Therefore any
friend or children accompanying honorable shareholder or proxy cannot be allowed into the meeting.
2. Please present this slip at the Reception Desk.

US

nag

I
S
S


A!^h

Delta Life Insurance Company Ltd.


Registered Office
Utara Bank Bhahan, 9() Mot i heel Commercial Area, Dhaka -1000, Bangladesh
Phone : 956 5033 (PABX), FAX : 88-02-9562219
Web-ire : www.dcltalife.com