& Delta Life Annual Report 2011Annual Report 2011 Delta Life Insurance Company Ltd. Registered Office Uttara Bank Bhaban, 90 Motijheel Commercial Area, Dhaka-1000, Bangladesh Phone : 9565033 (PABX), FAX : 88-02-9562219 Website : www-deltalife.comChronology 10 November 17 December February 8 October 7 February: 13 September 6 December March 4 January 1986 1986 1988 1993 1994 1995 1995 2003 Incorporation and Commencement of Business Signing of First Policy Launching of Grameen Bima Launching of Gono Bima Inauguration of Delta Care “Hospitalisation Plan Listed in Dhaka Stock Exchange Led, Listed in Chittagong Stock Exchange ed ‘Membership of Global Network for Banking Innovation in Microfinance (GNBI) Gono-Grameen Bima MergedAnna Rep 201 Delta Life Delta Life Insurance Company Ltd. 90 Motijheel Commercial Area, Dhaka-1000, Bangladesh Notice of the Twenty Sixth Annual General Meeting Notice is hereby given to all the shareholders of Delta Life Insurance Co. Ltd. that the 26" Annual General Meeting of the Company will be held on Saturday, the 16" November, 2013 at 2:30 PM. at Delta Life Tower, Plot No. 37, Road No. 45 (South ) & 90 (North), Gulshan Cisele -2, Dhaka to transaé ¢ following business Agenda: 1. To receive, consider and adopt the Directors’ and Auditors’ Report and the Audited Accounts for the year ended December 31, 2011 Dated, Dhaka October 21, 2013 By order of the Board of Directors sa (Abdullah Al-Mansur) Company Secretary Notes : a, The Record Date has heen fixed on 30" October, 2013, The shareholders whose name appears in the Register of Members of the Company or in the Depository (CDBL) on the Record Date ive. 30" October 2013 shall be entitled to attend the meeting. b. A Sharcholder entitled to attend and vote at the Annual General Meeting (AGM) may appoint a proxy who must be a sharchoider 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, Admission to the Meeting will be on production of the attendance slip sent with the Annual Report. NB. As per the Judgement delivered on 20/06/2013 by the Appellate Division of the Hon'ble Supreme Court of Bangladesh, election of Directors and appointment of Auditors will not be required in this AGM and hence not included in the agenda, 03Annual Report 2011 Poteet sie tected Business Performance -2011 Delis Life 201 2010 2009 First Year Premium 128.32 120.45 107.3 95.32 82.30 Renewal Premium 339.21 327.13 300.84 | __266.79 245.00 Group Insurance Premium 24.33 21.27 19.94 16.17 10.60 Health Insurance Premium 931 1443 10.68 5.23 3.29 Gross Premium S017 493.28 [438.83 | _383.51 341.19 Investment Income 211.29 300.79 181.90 127.64 112.05 Chiims 229.67 | 220.95 204.22 [243.40 175.80 Management Expenses 2) Commission 98.1 94.69 82.43 70.71 64.03 b) Admin, Expen 73.78 68.45 58.35 53.24 4851 Assets 246518 | 215887 | 1750.29 [1469.60 [1521.25 fe Fund 2328.20 1613.59 [1342.47 [1198.66 ims to Premium (9) 45.83 46.54 GAT 51.53 Management Expenses to 34331 32.08 32.32 32.98 premium (%) Dividend on face value of share a) Cash b) Stock : : = = 5 Business Growth 2011 2010 2009 2008 2007 % % % % % Premium 3.70 1013 1442, 12.40 1244 ‘Assets 1419 23.34 19.10 11.23 1743 Life Fund 15.65) 24.76 20.20 12.00 16.05, 04nl Repo 201 & Dales Lite Directors’ Report Bismillahir Rahmanis Rahim Respected Sharcholders, Assalamualaikum, ‘The Board of Directors welcome you all to the 26" Annual General Meeting of Delta Life Insurance Company Limited and present before you the Annual Report together with Audited Accounts for the year 2011 and the Auditors’ Report thereon, ‘The Board of Directors continued to focus on mainly two key priorities in 2011; 2) to sustain growth of business and to improve our financial strength and b) to invest in the future. Delta Life made steady progress rowards these two areas in 2011, Growth of Business & Financial Strength: Delta Life Insurance Company Ld. completed another successful year in 2011. ‘The premium income of the company consists of premium from OL (Ordinary Life), GN-GRB (Gono Grameen Bima), and Group Insurance business’The gross premium income of the company inereased to TK. $01.17 erore in 2011 from TK 483.27 erore in 2010 achieving 3.70 % rate of growth. The combined efforts of the sales team and prudent guideline of the board & management have made it possible to register such a progsess. Investment and other income have registered a negative growth of around 29.75 % in 2011 as such the income has decreased to TK. 214.16 crore in 2011 fom TK. 304.90 crore in 2010, ‘This has mainly due to the collapse in the capital market Total income of the company has decreased to TK. 711.70 crore in 2011 from Tk, 784.97 crore in the year 2010 registering 2 decrease of 9.33%, It is mainly because of lower investment income (profit on sale of shares) due to slump in the share market. Your company has paid and provided claims of TK, 229.67 crore during the year 2011 as against ‘TK, 220.95 crore in 2010, Average rate of interest yield on investment in the year 2011 stands at 10.23%. A slight increase has been observed in the management expenses of the company for the year. The management expenses to premium ratio for the year 2011 stands at 34.31% as compared to 33.77% in 2010. Life fund of the company as at December 31, 2011 stands at TK. 2328.20 crore as against TK. 2013.06 crore in 2010 registering a growth of 15.65%. Am increase in life insurance fund is a clear indication of progressive business. Cash provided by operating activities stands at TK.122.95 crore in 2011, which represents 24.71% of net premium income.Net operating cash flow per share is TK. 273. Investment for the Future: We put wholehearted efforts to ensure responsible and quality Corporate Governance with the highest level of integrity. We tried our best 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 dynamic and enlightened young professionals, ‘who would provide leadership in future and contribute accordingly to the growth of the company,Annual Repost 2011 Delta Life 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 our financial strength in the time to come by way of providing value added services to our clients. Dividend: Bonus to the policyholders and sharcholders are given from the surplus available for distribution as per the actuarial valuation report. Following the verdiet/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 t0 2011, 21 bonus shares (tock 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 27° Annual General Meeting to be held on November 16, 2013. Corporate Social Responsibility: ‘The company has always played its part in carrying out corporate social responsibilities 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. We have also sponsored women’s school/college handball tournament to encourage female participation in sports, Outlook for the year 2012: Your company is poised to further consolidate its activities in a bid to maintain its leading position by relishing a healthy growth in all relevant spheres in the year 2012, The operational results achieved so far in 2012 shows a healthy growth over that of the year 2011. Our activities will gain further momentum in the coming days of 2012. Appreciation: On behalf of the Board of Directors, I wish to extend my heartfelt gratitude to our valued polieyholders, honourable shareholders, the Office of the Insurance Development and Regulatory Authority (IDRA), our bankers, Securities and Exchange Commission (SEQ), Dhaka and Chittagong Stock Exchanges and 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 Ra ‘Monzurur Rahman Chairman Board of Directors 06Annual Repott 2011 Corporate Governance Report: ‘The Company implements 200 & Deke Life oxporate governance policies and strongly believes that through fostering sound corporate governance, further enhancing its transparency and establishing effective system of accountability, the confidence of policy holders, share holders and other stakeholders, ‘Summary of corporate governance Sharcholdes General Meeting ‘ay can operate in a more systematic manner, make decisions in a more scientific way, and boost the Board Executive Audit Building & Training Chims Board Committee Committee Business Dev. & HRD | | Commitee | | Secretariat/Compaay Commitiee Committee seretary (Corporate Governance Structure Chast) ‘Company corporate governance philosophy is based on the following principles: Be transparent and maintain a high degree of disclosure levels 2. Comply with all the applicable laws, rules and regulations. 3, Fair and equitable treatment of all its stakeholders is 4, Bnsuti timely flow of information to the Be functions effectively. 5. A sound system of risk management and internal control 6, Independent vetification of the Company's Snancial reposting, Juding employees, policyholders and sharehold d and its Committees to enable them to discharge their oAvo Repu 2 Deh ‘The Directors attended and actively participated in Board Meetings, and meetings of the Committees, in which they ‘The number of Board meetings and the attendance of Directors during the year 2011 were as follows: SI Name Designation bial Total number of No. Number of meetings meetings auended held o Mz, Syed Moazzem Hussain (Ghaimman 7 7 02 Mz, Monzurur Rahman Director 7 7 03.__| Dr. Syed Mukatram Al Director 7 7 04. | Dr. Mu hammad Raushan Al Director 7 7 05. | Mr. Mohd, Syedul Islam Director 7 7 06. [ Mr. Nurul Huda Director 7 OF. Mrs. Farida R_Anmed Director 7 2 08. | Mrs. Fahmida R Naser Director 7 7 09. Mrs. Farida Mostafa Director 7 7 10. Dr, Nasiruddin Ahmed Directo F 7 7 in ‘Dr. Sadique Rahman Malik Director 7 5 12, Mz, Mahmud Hasan Director 7 7 13, Mr. Habibur Rahman Khan Director 7 7 1, Mr, Bothanuddin Ahmed Director 7 7 15. Mr, Af Ahmed) Director 7 16. Mr, Md. Nurul Islam Director 7 7 17. | Mr. Kazi Fazd_ur Rahm: Director 7 T 18. | Ms. Golam Sanw. Director 7 T 19. | Ms, Adecba Rahman, ACI Director 7 7 20.__| Mis. Syeda Soyeli Ahmed Director 7 7 21 Ms. Anika Rahman Director 7 7 22. Ms. Saikea Rabman’ Director 7 7 23, Mr. Aziz Ahmed _, FCA, CISA (USA)_| Director 7 6 24 Mr, Md, Abdul Wahab Director 7 6 Directors not being present in any particular Meeting of the Board of Directors were granted Leave of Absence. INGS COMPOSITION OF COMMITTEES OF THE BOARD AND ATTENDANCE AT THE ME ‘The Board in the course of carrying out its duties has set up Board Committees delegated with specific authority and operating on the terms of reference as approved by the Board, to assist che Board in the execution of its responsibilities. These Committees shall have the authority to examine particular issues and report back to the Board with their recommendations. The ultimate responsibility for the final decision on all matters, however, lies with the entire Board, ‘The Board Committees set up to assist the Board on specific areas of responsibilities are set out below: a) Executive Committee SE Name Designation Total numberof | ‘Total number No. meetings held of meetings atvended Oi _|[ Dr. Syed Mukarram Al (Ghaiman, 10 10 (02_[ Mr. Nurul Huda ‘Member 10 10 03_[ Mr. Syed Moazzem Hussain Member 10 10 04 _[Dr. Muhammad Raushan Al Member 10 9 (05 _[ Mr. Mohd Syedul Islam ‘Member 10 0 06 _[ Mrs. Farida R, Ahmed Member 10 5 07 _[Ms, Me. Nurul Islam Member 10 10 08Ava Reps 2 Delta Life b) Audit Committee SI Ni Designation “Total number of | ‘Total number No. meetings held ‘of meetings attended 01, [Mr Mohd, Syedul lam Ghaiman 3 3 02._ | Mr, Syed Moazzem Hussain Mem 3 5 03._[ Dr. Syed Mukarram Al Member 5 5 04. [ Dr. Muhammad Raushan All Member 5 3 05._[ Me. Nurul Huda ‘Member 5 5 06._| Dr. Sadique Rahman Malik Member 5 4 07. | Mrs. Syeda Soyeli Ahmed Member 5 5 (08 _| Mrs. Fahmida R, Naser Member 5 4 ©) Building & Business Development Committee SI Name Designation | Total number of “Total number No. meetings held of meetings attended Oi _| Mr, Neral Huda Chairman 3 3 02_[Dr. Syed Mukarram Al Member 3 5 03_| Mr. Syed Moazzem Hussain Member 5 5 04_[Ds. Muhammad Raushan Ali Member 5 5 05 | Mr. Mohd Syedul Islam’ Member 5 5 06_| Dr. Nasinuddin Ahmed Member 5 5 07_[ Mr, Habibur Rahman Khan Member 5 08_[ Mrs. Farida Mostafa Member 5 ) Training & Human Resources Development Committee Sr Name Designation | ‘Total number Total number of No. of meetings meetings held attended 1 [Dr Muhammad Rasshan Al Chairman 7 T 02_[Ds. Syed Mukarram Alb Member 1 1 03_[ Mr. Syed Moazzem Hussain ‘Member 1 1 04_[Mr. Mohd, Syedu I Islam Member i 1 05_[ Ms, Nurul Hada Member 1 1 (06 _[Mr. Mahmud Hasan Member 1 1 07_[Mr. Golam Sarwar Member 1 1 e) Gaims Committee SL. Name Designation Total number oF No. meetings attended, O1_[ Mr, Monzurur Rahman Chaimman 2 2 (02_[Dr. Muhammad Raushaa All Member 2 2 03_[ Dz. Syed Mukarram Alb Member 2 2 (04__[ Mr. Syed Moazzem Hussain Member 2 2 (05_[ Mr. Mohd, Syed ul Islam Member 2 2 06_[ Mr. Nurul Hada Member 2 2 09AnmutRepoe 2011 Delta Life SHAREHOLDING INFORMATION As on December 31, 2011, the following shareholders were holding the company’s issued ordinary share capital: @ _ Parent/Subsidiaries/ Associate companies and other related parties — Nil. @ Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audis and, their Spouse and minor Children. Share Holding of Directors: 8. No._| Name ofthe Directors No. of s 1__| Me. Syed Moazzem Hussain 68,050 2 _| Mr. Monzurur Rahman 84,750 3 | De. Syed Mukarram Al 30,000 4 _| De. Muhammad Raushan Ali 20,000 5 | Me. Nurul Huda 50,000 6 _| Mrs, Farida R.Amed 50,000 7__| Mrs, Fahmida R.Naser 50,000 &___| Mes, Farida Mostafa 28,000 9 _| De. Nasir Uddin Anmed 30,000 10 __| Dr. Sadigur Rahman Malik 49,000 t1__| Me. Mahmud Hasan 50,000 12__| Me. Habibur Rayman Khan 20,000 13 _ | Me. Mond. Syedul Islam 45,000 14 _| Mr, Aziz Ahmed, FCA, CISA (USA) 1,000 15 | Me, Kazi Favlur Rahman 1,200 16 | Me. Borhanuddin Ahmed 16,810 17__| Me. Ma. Nural Islam 5,000 18 | Me. Md. Abdul Wahab 1,000 19 __| Me. Avif Ahmed 20,000 20 | Mr. Golam Sarwar 20,000 21 | Ms. Adcebs Rahman, ACI 1,02,260 22 s. Syeda Soyeli Ahmed 3,200 23 | Ms. Anika Rahman 1,02,650 24 _| Ms. Saika Rahman 101,900, ief Executive Officer, Company Secretary, Audie (i) Share held by Executives: Nil Gv) Shascholders holding 10% or more voting tig Nil 10Ama Rep 20 Delis Life ‘CORPORATE GOVERNANCE COMPLIANCE REPORT Status of the compliance with the condition imposed by the commission’s Notification No. SEC/CMRRCD/2003-158/Admin 02 and Exchange Ordinance, 1969: dated 20th February, 2006 issued under the section 2CC of the Securities, Condition ‘Tide Compliance status Explanation for non No. compliance with the condition Complied 1 Boards Size ¥ Due to litigation Bosed size could not be brought down. 12 Independent Directors @__ | fndependent Directors Y ‘Under consideration f Independent Directo y . “ Appointment 13 Chairman of the Board and y Chief Executive Officer Ls ‘The Directors? Report to Shareholders ()__| Faimess of state of the affairs ¥ ©) | Keeping proper books of v (© __| Consistent application of Y Accounting polices in prepaation ‘of Financial Statements. (@ | Observance of Bangladesh Accounting Standard (BAS (© | Soundness and efficiency of Internal Control 6 Ability ro continue as going Significance deviations fom last year in operating result () | Presentation of Key operating and financial data for last three @ Declaration of Dividend v Due to non-holding of AGM, as a result of Civil Petition Nos. 2006 and 2007 of 2011 ulAnaual Report 2011 Dela Lite Condition Title Compliance status, Explanation for No. noncompliance with the condition Complied Not compli @ | Number of Board Meetings held v during the year and attendance by each director, ©_|_ Patera of Sharcholding y 24 “Appointment of = Chief Financial Officer v (CFO) , = Head of Internal Audit = _ Company Secretary J 22 Requirements to attend (CFO) = Company Secretary y 3.00 AUDIT COMMITTEE 3 Constitution of Audit Committee @ | Composition of Audit y Committee Audit Committee Members qv No Independent Appointment Directors had been appointed by the Board Gi) | Terms of Service of Audit y Committee 32 Chairman of the Audit Committe @ | Sclection of the Chairman of v Audit Committee G_— | Qualification of the Chairman v of Audit Committee 33 Reporting of the Audit Committee 3.3.1] @ | Reporting its activities to ¢ v Board of Directors 3.3.1 | Gi) | Report to the Board by Audit y Committee 3.3.1 | @(@) | Report on conflicts of interests N/Awal Report 2011 Delta Life Condition Tide Compliance status Explanation for No. noncompliance ith the condi Complied Not complied 3.3.1 | ith) | Suspected or presumed fraud or v irregulatity or material defect in the internal control system, 3.3:1 | Gi) | Suspected Infringements of N/A laws, including securities sclated laws, rules and segulations 3.3.1 | Giy(@) | Any other matter which v should be disclosed to the Board of Directors immediately 3.3.2 Reporting to the Authorities N/A j w nonholdiag of 34 Reporting to the Y 5 Sencana AGM, as a result of Civil Sharcholders and General Pesitioa Nos. 2006 and Investors 2007 of 2011 4.00 EXTERNAL/STATUTORY AUDITORS @ | Appraisal or Valuation v Services G)__| Financial Information Systems v design and implementation Gii) | Book-keeping or other services y sclated to financial statements Gv) _| Broker-Dealer Services v () | Actuasial Services v (i) _| Internal Audit Services v (wii) | Any Other Services that the v audit committee determines 13Auditors' Reportanual Repo 201 & eit 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, 2011 and the Life Revenue Accounts and Cash Flows Statement of Changes in Equity for the year ended, and a summa stement, y 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 (BERS), the Companies Act 1994, the Insurance Rules 1958, Insurance Act 1938, The Securities and Exchange Rules 1987 and other applicable laws and regulations. This responsibilty includes: designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstarement, whether due to fraud of 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 10 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’ 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, Opinio: In our opinion, the Financial Statements prepared in accordance with Bangladesh Financial Reporting Standards (BERS), give a true and fair view of the state of the statement of the company’s Affairs as at 31st December 2011 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 1938, 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 belief were necessary for the purpose of our audit and made due verification thereof; 16Aaa Report 2941 & bike (in our opinion, proper books of account as regied by law hae been kept by Delta Life Insurance Company Limited o fara it appeared fom our examination of those books; (ii) the company’s Balance Sheet, Life Revenue Accounts, Cash Flows Statement and its Statement of ‘Changes in Lquity dealt with by the report are in agreement with the books of account and returns; (iv) ‘The expendicure incurred was for the purpose of che company’s business. (®) As per seetion 40-b (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 indisectly; 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, (i) As per regulation 11 of part 1 of the third schedule of the Insurance Act 1938 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. ane Dhaka, October 05, 2013, M,N. Islam & Co, Chartered Accountants 7Financial StatementsBALANCE SHE ‘at December 31, 2011 Notes SHARE CAPITAL AND LIABILITIES SHAREHOLDERS’ CAPITAL 4.00 Authorized 10,00,000 Ordinary Shares of Tk. 10 cach Issued, Subscribed and Paid - up 45,00,000 Ordinary Shares of Tk. 10 each fully paid up in cash Dividend Equalisation Reserve Life Insurance Fund 5.00 Estimated liabilities in respect of outstanding claims, whether ue or intimated 6.00 Amount due to other persons or bodies carrying on insurance business 7.00 Sundey Creditors 8.00 Provision for Doubrful Debes, 9.00 Reserve for Unexpired Risk Premium Deposits 10.00 ‘TOTAL SHARE CAPITAL AND LIABILITIES 2011 2010 Taka Taka 300,000,000 300,000,000 45,000,000 45,000,000 1,000,000 1,000,000 23,282,041,204 20,130,605,300 551,180,711 647,985,713 31,409,897 14,583,305 532,578,735 512,967,009 75,699,494 85,207,721 121,472,139 142,768,513 11,462,899 8,547,895 7,323,803,875 T,412,060,156 TA GST,BA5,079 21,588, 005,456_ ‘The annex notes form an integral part of these financial statement Managing Director (Ia-charge) Director Director Swapan Kumar Sarkar, FCA Md, Mujibur Rahman Aziz Anmed, FCA, CISA Monaurur Rahmananal Rep 2011 Delta Lite BALANCE SHE] As at Decemper 31, 2011 2011 2010 PROPERTY AND ASSETS Taka Taka LOAN 11.00 444,369,078 402,871,846 ‘On Insures's Policies within their surrender value INVESTMENT (AT COST) 12.00 Statutory Deposit with Bangladesh Bank (BGTB) 2,000,000 2,000,000 Bangladesh Govt. Treasury Bond (8GTB) 6,725,040,490 5,958,535,291 Shares Listed on Stock Exchanges 3,976,783,821 3,853,207,198 Debentures and Bonds 536,553,527 518,258,067 Shareholding in DBH Finance Corp. Ltd - 50,000,000 Mutual Fund 30,000,000 45,000,000 Central Depository Bangladesh Ltd. 3,138,890 8,833,340 Other Loans, 99,885,955 103,060,680 “T1,375,402,683 Agents’ Balance 450,059 3,423,919 Outstanding Premium 15.00 633,403,068 896,001,177 Interest, Dividends and Rents Accruing But Not Due 14.00 836,810,804 514,076,690 Advances And Deposits 15.00 635,008,233 547,391,833 Sundry Debtors 16.00 55,094,848, 55,046,217 CASH AND BANK BALANCES On Fixed Deposit with Banks ator | 8,025,465,759 (6,311,108,098 ‘On Current Account with Banks 17.02 | 431,078,774 415,528,972 ‘On STD Account with Banks y703 | 731,324,450 649,487,927 Cash in Hand 1,727,297 306,267 Cash in Transit 22,731,360 24,029,759 Collection in Hand 18.00 | 284,257,854 390,124,184 Branch Petty Cash 94,712,691 48,947,559 9,591,298, 181 7,839,532,766 OTHER ACCOUNTS Fixed Assets (At Cost Less Depreciation) 19.00 1,069,301,728 779,562,770 Stamps, Printing and Stationery in Hand 9,706,397 11,863,662, ‘TOTAL PROPERTY AND ASSETS ZASSIB45,079 21, 588,665,456 ‘The annex notes form an integral part of these financial statement g Betis woe AH ‘Swapan Kumar Sarkar, FCA Md. Mefour Rahman Aziz Ahmed, FCA, CISA Monzurar Kahnan Managing Director (In-charge) Director Director Chairman ‘Signed as per annex report on even date aon Dhaka, October 05, 2013, ‘MN. Islam & Co, Chartered Accountants 20Annual Reps 201 Delta Life [LIFE REVENUE ACCOUN’ 7 rended December 3] Notes 2ott 2010 Taka Taka BALANCE OF FUND AT THE BEGINNING OF THE YEAR 20,130,605, 300 16,135,913,971 ADJUSTMENTS MADE DURING THE YEAR 2000 172,130,517 129,284,532 PREMIUM LESS REINSURANCE 21.00 First Year Premium (OL) THESES SOD ‘71050574 First Year Premium (GN-GRB) 556,788,527 513/444273 1,283,154,096 1,204,495,247 Renewal Premium (OL) 1,759, 858,545 1.814,077.985 Renewal Premium (GN-GRB) 13632,287,401 11437,229,489 3,392,145,944 3,271,307,474 Group Life Insurance Premium 243,315,189 212,654611 Health Insurance Premium 93,069,099 144281,131 336,384,288 356,935,742, Gross Premium —5011,684,328 «=~ 4,832,738,403° Reinsurance Premium eee) aie Net Premium THB 346,673 800,691,357 INTEREST, DIVIDENDS AND RENTS 22.00 2,112,903,816 3,007 898,838 OTHER INCOME 23.00 28,734,217 41,068,620 ‘TOTAL INCOME 27,419,720,523 24,114,807,318 First Year Premium, where the maximum premium paying period is; Single 38,882,371 37,033,984 Five years 3,228,114 1,645,190 Six years 640,651 221,864 Seven years 200,979 427,055 Eight years 251,038 414,296 Nine years 221,602 213,757 Ten years 440,689,182 445,634,522 Eleven years 17,601,978 14,733,851 Twelve years or over (including throughout life) 781,438,181 704,170,728 1,283,154,096 1,204,495,247 a1Annual Report 2011 PSOE PONT POCO ONS For the year ended December 31, 2011 Notes CLAIMS UNDER POLICIES (INCLUDING PROVISION FOR CLAIMS DUE OR INTIMATED), LESS REINSURANCE 24.00 By Death By Maturity By Survival By Hospitalisation By Others Bonus in Profit Commission EXPENSES OF MANAGEMENT Commission: 25.00 @) Commission to Insurance Agents (Less that on reinsurance) {) Allowances and Commission [other than commission including in sub iter (a) preceding] Salaries etc. (other than to agents and those contained in the allowance and commission) Traveling and Conveyance Directors’ 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 ete. ‘Training & Recruitment Expenses Fees, Subsetiptions and Donation 28.00 Entertainment Insurance Premium (General) Postage and Telegram Uniform and Liveries, Development Expenses 22 Delia Lite 2011 2010 Taka Taka 175 958447 167,528,950 1,191,638,516 1,175,596,566 532,815,046 512,329,090 73,383,977 102,368,032 2,981,406 2,735,736 61,605,953 59,409,115 561,189 458,383 243,535,362 175,364,641 2,282,479,896 2,198,790,513 14,253,491 147,291 2,296,733,387 2,209,537,804 791,284,363 748,607,5 189,857,335, 198,272,625, 981,141,698 946,879,942 418,643,494 404,049,168 6,752,911 7,681,923 761,150 209,300 2,320,826 2,240,248 12,784,639 2,522,101 14,515,600 14,759,770 8,326,463 8,008,601 17,151,096 14,737,634) 71,461,193 69,166,643 41,311,807 41,698,433 6,046,978 5,838,216 24,631,447 20,771,573 5,549,060 4,296,594 535,455 547,832 11,325,752, 11,013,762, 2,158,705 1,697,922 4,188,722 2,511,125 2,005,658 2,673,953 2,778,316 1,463,028 3,363,474 3,188,544 680,731 367,917 14,521,029) 12,863,772,aml Rao 201 Delta Life iy For the year ended December 31, 2011 Notes | 2011 2010 Taka Taka Prizes and Awards 9,072,317 5,538,291 Conference 5,631,273 858,865, Company Registration (Renewal) Fees 17,469,195, 15,429,893, Stamps 2,130,234 41,795,371 (‘Transport Expenses 1,467,092 1,356,803 EGM Expenses 906,884 - Silver Jubilee 1,233,926 Depreciation on Fixed Assets 27,392,987 CDBL Related Charges 25,953,943 1,300,117 631,391,284 Provision for Doubeful Debts 300,761 504,417 Reserve for Unexpired Risk 121,472,139 142,768,513 Provision for Income Tax 29.00 : 7 BALANCE OF THE FUND AT THE END OF THE YEAR AS SHOWN IN THE BALANCE SHEET 23,282,041,204 20,130,605,300 ‘TOTAL 27,419,720,523 24,114, 807,518 ‘The annex notes form an integral part of these financial statement ‘Swapan Kumar Sarkar, CA Md. Mujibur Rahman Aziz Amed, FCA, CISA Monzarur Rahman ‘Managing Director (In-charge) Director Director Chairman Signed as pet annex report on even date Dhaka, October 05, 2013, 23‘Annual Report 2011 Delis Lite SH FLOW STATEMEN’ For the year ended December 31, 2011 2011 2010 Taka Taka Cash flows from Operating Acti Collection from Premium 5,274,282,437 4,855,308,552 Other Income received 27,770,916 40,076,658 Payment for Claims (2,393,538,389) (2,165,396,666) Payments for Operating activities (1,589,780,318) (1,636,945,123) Source Tax (Income Tax) deducted (89,194,125) (81,146,545) Net cash from operating activities 1,29,540,521 1,011, 896,876 Cash flows from Investing Activities Investment made (837,682,832) (2.997,699,821) Acquisition of Fixed Assets (393,282,511) (197,648,075) Loan against Policies Paid (41,497,232) (38,955,983) Other Loans realised 3,174,725 194,519 Interest, dividends & rents received 1,790,169,702 3,010,963,215, Proceeds from sale of Fixed Assets 1,343,042 992,696 Net Cash used in investing activities ‘522,224,894 (215,253,449) Cash flows from Financing Activities Dividend Paid : (086) Net cash used in financing activities : (086) Net increase in Cash & Cash equivalents 1,751,765,415 796,642,441 Cash and Cash equivalents at the beginning of the period 7,839,532,766 7,042,890,325 Cash and Cash equivalents at the end of the period 9,591,298,181 77,839,532, 766 ‘The anaes notes form an integral part of these financial statement Yor mat Sarkar, FCA Md. Mujibur Rahman ‘Swapan ‘Managing Director (In-chatge) Director 24 Qi llk Lomb Aziz, Ahmed, FCA, CISA Moazurur Rahman Director ChairmanAna Repu 2 & Delite LIFE INSURANCE FUND ‘Taka ASSETS Loan on Insurer's Policies within their surrender value 444,369,078 Investments 11,573,402,683 Agents’ Balance 3,450,059 Outstanding Premium 633,403,068 Interest, Dividends & Rents accruing but not due 836,810,804 Advances & Deposits 635,008,233 Sundry Debtors 55,094,848) Cash & Bank Balances 9,591,298,181 Fixed Assets (at cost less depreciation) 1,069,301,728 Stamps, Printing and Stationery in Hand, 9,706,397, 7A651,845,079 ‘LESS: LIABILITIES Estimated liabilities in respect of outstanding claims, whether duc or intimated. 551,180,711 Amount due to other persons or bodies carrying on insurance business 31,409,897 Sundry Creditors 532,578,735 Provision for Doubtful Debts 75,699,494] Reserve for Unexpired Risk 121,472,139 Premium Deposits 11,462,899] Dividend Equalisation Reserve 1,000,000] 7,324,803,875 Gross Fund (Assets - Liabilities) 23,327,041,204 Shareholders’ Capital (Paid-up Capital) (45,000,000) Life Insurance Fund as at December 31, 2011 725,282,041, 204 ‘The annex notes form an integral part of these financial statement Gillet Co Swapan Kumar Sarkar, FCA Md, Mujibur Rahman Aziz Ahmed, FCA, CISA Monzurur Rahman ‘Managing Director (In-charge) Director Director (Chairman 25‘Annual Report 2011 STATEMENT OF CHANG. For the year enced December 31, 2011 Fore N & Deka Lite Share share | General | Retained | Other Particulars Total Capita | Premium | Reserve | Earnings | Reserve Bal 45,000,000 - - - - 45,000,000 ot January 2001 Bonus Share forthe Year 2000 [Batance as on 5,000, - - - - 000, |31st December 2011 45,000,000 45,000,000 The annexed Notes 1 co 37 form an integral part of these financial statements. These financial statements were approved by the Board of Directors on October 05, 2013 and were signed on its behalf by: n Aire ‘Swapan Kumar Sarkas, FCA ‘The annex notes form an integral part of these financial statement ‘Managing Direetor (In-charge) 26 Director Aziz Ahmed, FCA, CISA do Gp eed Gooden Md. Myjibur Rahman Monwurur Rabman Director ChairmanAno! Repow 201 Dea Lite ‘As at December 31, 2011 er LOAN [On Insurer's Policies within their surrender value 444,369,078 | 444,369,078 | Realisable Value INVESTMENT Statutory Deposit with Bangladesh Bank (BGTB) 2,000,000 2,000,000 | Ar Cost Bangladesh Govt. Treasury Bond (GTB) 6,725,040,490 | 6,725,040,490 | Ac Cost Shares Listed on Stock Exchanges 3,976,783,821 | 5,834,963,285 | Market Value [Debentures and Bonds 536,553,527 | 536,553,527 | Ac Cost /Mutual Fund 30,000,000 30,000,000 | Ac Cose [Central Depository Bangladesh Lid. 3,138,890 3,138,890 | Book Value JOther Loans 99,885,955 99,885,955 | Realisable Value |CASH AND BANK BALANCES ]On Fixed Deposit with Banks 8,025,465,759 | 8,025,465,759 | Book Value ]On Current Account with Banks 431,078,770 | 431,078,770 | Book Value JOn STD Account with Banks 731,324,450 | 751,324,450 | Book Value JCash in Hand 1,727,297 1,727,297 | Book Value [Cash in ‘Transit 22,731,360 2,731,360 | Realisable Value [Collection in Hand 284,257.85: Realisable Value Branch Petty Cash 94,712,691 94,712,691 | Realisable Value JOTHER ACCOUNTS Agents’ Balance 3,450,059 3,450,059. | Realisable Value [Outstanding Premium 633,403,068 | 633,403,068 | Realisable Valne Interest, Dividends and Rents Accraing But Not Due 836,810,804 | 836,810,804 | Realisable Value Advances And Deposits 635,008,233 | 635,008,233 | Realisable Value [Sundry Debtors 55,094,848 55,094,848. | Realisable Valne Fixed Assets (At Cost Less Depreciation) 1,069,301,728 | 1,069,301,728. | Carrying Value Stamps, Printing and Seationery in Hand 9,706,397 9,706,397 | Ae Cose Total ZA,65I,845,079 | 26,510,028,543 ‘The annex notes form an integral part of these financial statement Swapan Kumar Sarkar, FCA Md, Mujibur Rahman Aziz Ahmed, FCA, CISA Monzurur Rahman Managing Director (In-charge) Director Director ChairmanNotes to the Financial StatementsAnnual Repor 201 eles Lite Serbirescn ences For the year ended December 31, 2011 1.00 101 1.02 2.00 2.01 LEGAL STATUS AND NATURE OF BUSINESS. Establishment and status of the Company Delta Life Insurance Compat y Ltd. was incorporated in Bangladesh in 10th November, 1986 as @ public Limited Company under the Companies Act. Its shares are quoted on the Dhaka Stock Exchange and Chittagong Stock Lixchange. The company started its business in December 1986. ‘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. BASIS OF PRESENTATION AND STATEMENT OF COMPLIANCE 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 eost convention +The Insurance Act / Rules 1958 + Provisions of the Companies Act 1994 + The Securities and Exchange (S13) 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 ete. ‘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 Aet/ Rules 1958 and SE rules 1987, 29anal Repo 201 2.02 2.03 2.04 2.05 3.00 3.01 Del ‘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 presentation currency. ska, which is the company’s functional and Figures in these financial statements have been rounded to the nearest Taka, 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 affeet 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’ valuation 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 Reporting period The financial statements of the company covers one financial year from January 01 to December 31 of the calendar year and is followed consistently. 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. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ‘The accounting policies adopted in the preparation of these financi statements are consistent with those followed in the preparation of the company’s financial statements for the year ended December 31 2011 Revenue Recognitions Al business is written in Bangladesh, 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,Annual Report 2011 3.1.2 BAB 3.03 Delta Lite However, Provision for ourstanding 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. Group Life and Health Policies “The premiums of Group polices are recorded after receipt of the premiums and in eertain cireumstances premiums falling due under the policies within the financial period are also recognized if these premiums are subsequently received. Reserve for Unexpired Risk- Group Business Gross promium proportionate to the unexpired duration of the period for which the respective premiums hhave been billed and received are held as reserve for unexpired risk. 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 sccuritics 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 iess 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 preseribed rates except recovery is considered doubrful 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 aecounted for when the dividend is received. Interest and dividend are accounted at gross value (before deduction of Income Ta). Provisions ‘A provision is recognized in the Balance Sheet date if, asa result of past events, the company has a present legal o constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. 31anal Repo 201 & 3.04 3.05 3.06 3.07 32, Delta Life 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, Contingent Liabilities Contingencies arising from claim, litigation, tax assessment, fines, penalties, etc. are recorded when itis 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 (TTA 3145 of 2004-2005) (Assessment year 2003-2004) of Appellate ‘Tribunal dated 27/03/2005 and Commissioner of Taxes (C1) (Appeals) dated 26/12/2004 claiming that the Tribunal was not legally justified co 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. Premium deposit Premium deposit represents premium received but risk has not yet been accepted because of pending underwriting decision as on 31st December 2011 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 r insurer is recognized at the same time as the claims are intimated and recorded in the books of account of the company. 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 preseribed in the policy deed provided by the company.