Annual Report 2012: A ! T Delta Life Insurance Company LTD

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 .................................................................... 07
Vision/Goal/Values ......................................................................... 08
FinancialStatistics ............................................................................ 09
Graphical Presentation of Business Performance ............................ 10
From the Chairman's Desk ............................................................. 12
Directors' Report ............................................................................. 15
Report of the Audit Committee ...................................................... 26
Report on Corporate Governance .................................................. 27
Auditors' Report .............................................................................. 35
BalanceSheet .................................................................................... 38
Life Revenue Account ...................................................................... 40
Cash Flow Statement ....................................................................... 43
Statement of Life Insurance Fund ................................................... 44
Statement of Changes in Stockholders Equity................................ 45
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 Listed in Chittagong Stock

Exchange Ltd.
March 2001 Membership of Global Network

for Banking Innovation
in Microfinance (GNBI)
4 January 2003 Gono-Grameen Bima Merged
30 January 2012 Silver Jubilee of the Company

I
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
aII
-Dort 2012:
Delta Life Insurance Company Ltd.
90 Motij heel Commercial Area, Dhaka-i000, Bangladesh.
Notice of the Twenty-seventh Annual General Meeting

Notice is hereby given to all the shareholders of Delta Life Insurance Co. Ltd. that the 27' Annual
General Meeting of the Company will he held on Saturday, the 16th November , 2013 at 3:00 P.M. at
Delta Life Tower, Plot No. 37, Road No. 45 (South) & 90 (North), Gulshan Circle -2 , Dhaka to
transact the following business
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 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
I Ms. Syeda Soyeli Ahmed
Mr. Md. Abdul Wahab
Mr. M. Anisul Haque, FCMA
Mr. Joynul Abedin
I Managing Director (In-Charge)

Mr. Swapan Kumar Sarkar, FCA
Consulting Actuary
Mohammad Sohrab Uddin, PhD, AlA
Company Secretary
Mr. Abdullah Al-Mansur
II
S
Corporate Management
Managing Director (In-Charge)
Mr. Swapan Kumar Sarkar, FCA
Consultant
Mrs. Adeeba Rahman, ACII, Chartered Insurer (UK)
Executive Director
4
Brigadier General M. Mosharraf Hossain (Retd.)
Dr. Ashraf Uddin
Senior Executive Vice President
Mr. Anwarul Haque
Executive Vice President
Mr. Md. Abdul Hai
Mr. M. Abdullah Saadi
Mr. Md. Ahsan Habib
'I 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 Pubali Bank Ltd. Premier Bank Ltd.
HSBC Bank Ltd. Dutch Bangla Bank Ltd. Sonali Bank Ltd.
Bangladesh Krishi Bank Ltd. Rajshahi Krishi Unnuan Bank Citibank N.A.
Janata Bank Ltd. Agrani Banak Ltd. Dhaka Bank Ltd.
Mercantile Bank Ltd. Rupali Bank Ltd. Bank Asia Limited
City Bank Ltd. Southeast Bank Ltd. Jamuna Bank Ltd.
Islami Bank Bangladesh Ltd. National Bank Ltd. Al-Arafah Bank Ltd.
Auditors
Hoda Vasi Chowdhury & Co.
Chartered Accountants
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
I 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 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 16.06 9.31 14.43 10.68 5.23
Gross Premium 508.68 501.17 483,28 438.83 383.51
Investment Income 232.76 211.29 300.79 181.90 127.64
Claims 284.29 229.67 220.95 204.22 243.40
Management Expenses
a) Commission 63.05 98.11 94.69 82.43 70.71
b) Admin. Expenses 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 27.68 34.30 33.76 32.08 32.32
premium (%)
Dividend on face value of share 21 bonus shares
(Stock dividend) - -
Stock for each share
of Tk.1O
Business Growth
2010 2009 2012 2011 2008
% (1/
I0
1)1
I(_)
(1!
1Premium 4.42
1.50 3.70 10.13 12.40
Assets 12.44 14.19 23.34 19.10 11.23
Life Fund 13.10 15.65 24.76 20.20 12.00
09
Premium Income
(Taka in Crore)

II Grou p & Health GN-GRB Ordinary Life
400
350
300
250.52 248.63
250 --- 2
- 243.97
21891 220.06
212.47
197.06
200
16423
'J1i iJI
150
100 -
30.62 331.64
1°
2008 2009 2010 2011 2012
Premium & Life Fund

(Taka in Crore)
—4—Premium —0-- Life Fund
2700
2633.16
2400
2100
1800
1500
1200 .. ... -
900 ---.---
600
-4 508.68
51 ....... 438.83
0
2008 2009 2010 2011 2012
10
Premium & Claim Investment Income
(Tuka in Crore) (Taka in Crore)
Premium Claim
350
600
501.17 508.06 300
483.27
500 438.83
250
383.51
400 200
243.40 284. 29 150

300 2 422 22095 220.67
100
200
50
0
2008
2009 2010
2008 2009 2010 2011 2012
2011
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
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) for the Year- 2012 is furnished below:

(%) of 2012 2011 (%) Increase over
Particulars Premium Amount in Taka Amount in Taka
2011
Income
A. Income

Gross Premium Income 100 5,086,791,956 5,011,684,328 1.50
Re-insurance (57,365,054) (36,337,655)
Net Premium 5,029,426,902 4,975,346,673 1.09
Investment Income (Interest,
2,327,639,110 2,112,903,816 10.16
Dividends)
Other Income 27,682,381 28,734,217 (3.48)
Total Income (Subtotal-A) 7,384,748,393 7,116,984,706 3.76
B. Expenses
i) Claims 55.89 2,842,866,842 2,296,733,387
ii) Management Exps. 27.68 1,407,782,425 1,719,473,793
Total Outgo (i+ii) 83.56 4,250,649,267 4,016,207,180
Ili) Reserve for unexpired risk 192,184,968 121,472,139
Total Expenditure (B) 4,442,834,235 4,137,679,319
C. Excess of Income Over
2,941,914,158 2,9 79,305,387 (1.26)
Expenditure (A-B)
D. Life Fund b/fwd 23,282,041,204 20,130,605,300
4 E. Adjustment made during
107,622,750 172,130,517
the year

F. Life C/fwd (C + D + E) 26,331,578,112 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.

- (L!9Ot B*oGIad ln,utanc* Company)
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.
e
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
2012 2011
Life
- Premium Less Reinsurance 2,462,757 2,481,187
- Investment & other Income 1,691,616 1,563,982
Gono-Grameen Bima
- Premium Less Reinsurance 2,200,581 2,189,076
- Investment & other Income 660,526 575,793
Insurance Business
- Premium Less Reinsurance 366,089 305,084
- Other Income 1,837 - 1,165
Total Segment Revenue 7,383,406 7,116,287
Segment Results
(Excess of Revenue over Expenditure) before tax & interest
2,113,683
- Ordinary Life 2,207,735

- Gono - Grameen Bima 1,035,282 990,903
- Group Insurance Business L 67,719 121,139

Total Segment Results 3,216,684 3,319,777

(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 18,451,901 16,409,630
- Gono - Grameen Birna 7,493,708 6,526,650
- Group Insurance Business 385,969 345,761
Total Capital Employed in Segments 26,3 3 1,578 23,282,041
Add: Unallocated Corporate Assets Less Corporate Liabilities 46,000 46,000
*
Total Capital Employed in Company 26,377,578 23,328,041
Notes on Segment information
i) Instead of reporting separately Segment Assets and Liabilities, Capital Employed figures have been
disclosed for an overall understanding of the Company's financial position.
ii) Un-allocable expenditure, revenue, assets and liabilities are related to common service (not directly
identifiable to the individual segments)
iii) Un-allocable Corporate Assets Less Corporate Liabilities represents paid-up capital and dividend
equalization reserve.
20

Key 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 16.06 9.31 14.43 10.68 5.23
Gross Premium 508.68 501.17 483.28 438.83 383.51
Investment Income 232.76 211.29 300.79 181.90 127.64
Claims 284.29 229.67 220.95 204.22 243.40
Management Expenses
a) Commission 63.05 98.11 94.69 82.43 70.71
b) Admin. Expenses 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 27.68 34.30 33.76 32.08 32.32

premium (%)
Dividend on face value of
L 21 bonus shares
snare (Stock dividend) - - - -
Stock for each share
of Tk.1O
75i
.c1fltcf T11.
/:\
I.
: k RI1*fTT,
1\2c?1 cTfl
1!'>
NOW

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
U.
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.
I *1r4r
r k TUT1
r.4 4
The number of Board Meetings and attendance of Directors during the year - 2012 were as follows:
SI. Name Designation Total Total number
No. number of of meetings
meetings attended
held
01 1'vU. M0n7,urur Rahman Chairman ii Ii
02 Mr. Aziz Ahmed, FCA, CISA (USA) Director 11 11
03 Mr. Borhanuddin Ahmed Director 11 11
04 Mr. Kazi Faziur Rahman Director 11 11
05 Mr. Golam Sarwar Director 11 11
06 Mr. Md. Mujibur Rahman Director 11 8
Inducted as a Director on May 23, 2012)
07 Mr. Zeyad Rahman Director 11 8
(Inducted as a Director on May 23, 2012)
08 Ms. Adeeba Rahman, ACII (UK) Director 11 10
09 Ms. Anika Rahman Director 11 8
10 Ms. Saika Rahman Director 11 11
11 Mrs. Syeda Soyeli Ahmed Director 11 8
12 Mr. Arif Ahmed Director 11 8
13 Mr. Md. Abdul Wahab Director 11 11
14 Mr. M. Anisul Haque, FCMA Independent 11 1
(Inducted as a Director on November 14, 2012) Director
15 Mr. Joynul Abedin Independent 11 1
Inducted as a Director on November 14, 2012) Director
16 Mr. Md. Nurul Islam Director 11 7

(Resigned on November 6, 2012)
17 Mr. Syed Moazzem Hussain Ceased as Director 11 3
and Chairman on
29/02/2012.
18 Dr. Syed Mukarram All Ceased as 11 3
Director on
22/05/2012.
19 Dr. Muhammad Raushan All " 11 2
20 Mr. Mohd. Syedul Islam " 11 3
21 Mr. Nurul Huda " 11 3
22 Mrs. Farida R. Ahmed " 11 2
23 Mrs. Fahrnida R. Naser " 11 3
24 Mrs. Farida Mostafa " 11 3
25 Dr. Nasiruddin Ahmed " 11 3
26 Dr. Sadigur Rahman Malik " 11 3
27 Mr. Mahrnud Hasan " 11 3
28 Mr. Habibur Rahman Khan " 11 3
* 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
1 Mr. Monzurur Rahman 84,750
2 Mr. Aziz Ahmed, FCA, CISA (USA) 1,000
3 Mr. Borhanuddin Ahmed 16,810
4 Mr. Kazi Fazlur Rahman 1,200
5 Mr. Goiam Sarwar 20,000

6 Mr. Md. Mujibur Rahman 153,650
7 Mr. Zeyad Rahman 101,880
8 Mr. Arif Ahmed 20,000

9 Ms. Adeeba Rahman, ACII (UK) 102,260
10 Mrs. Syeda Soyeli Ahmed 3,200

11 Ms. Anika Rahman 102,630
12 Ms. Saika Rahman 101,900

13 Mr. Md. Abdul Wahab 1,000
14 Mr. M. Anisui Haque, FCMA (Independent Director) Nil
15 Mr. Joynul Abedin (Independent Director) Nil
Chief Executive Officer, Company Secretary, Chief
Financial Officer, Head of Internal Audit. Nil

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

1.5 (xxi) (d) Shareholders holding 10% or more voting rights: Nil
915tTT I9
1R 9T
, itj'rT cifrW (T1)
g
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) Mr. Rorl.iniiddin Ahmed Mr. Md. Mujibur Rahman Mr. 7eyad Rahinan

Chairman bleniber Member Member
Si. No Name Status

1 Mr. Aziz Ahmed, FCA, CISA Chairman
2 Mr. Borhanuddin Ahmed Member
3 Mr. Md. MujiburRahman Member
4 Mr. Zeyad Rahman 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.
4ø9J
(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
CORPORATE GOVERNANCE COMPLIANCE REPORT Annexure - I
Status of compliance with the conditions imposed by
the Commission's Notification No. SEC/CMRRCD/
2006-158/134/Admin/44 dated 07th August, 2012
issued under section 2CC of the Bangladesh
Securities and Exchange Ordinance , 1969.
Report under condition No.- 7.00.
Condition Title Compliance Status - Remarks

No.______________ Complied Not complied (If any)
1. Board of Directors:
1.1 Board's Size
1.2 Independent Directors:
1.2(i) At least t/5-of the total number of Directors of .
board shall be Independent Directors. Independent Direett,r, have been
appointedaeeordir,gly.
1.2(1) a) 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;
1.2(1) e) Not a shareholder, director or officer of any
member of stock exchage or
1.2(u) 0 Not or was not a partner or executive during the
preceding 3 (three) years of the company's 'I
statutory audit firm;
1.2(1) g) Not he an independent director in more than 3
(three) listed companies;
1.2(u) Is) Not been convied by a court of competent
jurisdiction;
1.2(u) i) Not been convicted for a criminal offence involving
moral turpitude;
1.2 (iii) Appointed by the hoard of directors approved by Will be complied when the
the shareholders in the Annual General Meeting AGM for the year 2012 is held.
(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;
1.2 (vi) The tenure of office for a period of 3 (three) years,
which may be extended for 1 (one) termonly.
1.3 Qualification of Independent Director
1.3(i) A knowledgeable individual with integrity and able
to ensure compliance with financial regulatory and
corporate laws and can make meaningful;
1.3(u) Independent directors will he business leader
corporate leader with economics or businesstudies 'I
or law background and
1.3(iii) In special cases the above qualification may be
relaxed subject to prior approval of the 'I
commission;
1.4 Chairman of the Board and Chief Executive
Officer
1.5 The Director's Report to Shareholders
1.5(1) Industry outlook & possible future development in
the industry.
29
Condition Title Compliance Status Remarks
-No. Complied Not complied (If any)
1.561) Segment wise performame or product wise
perfor
mance.
1.5(iii) Risks and concerns.
1.5(1v) Discussion on Cost of goods sold, Gross and Net N/A
Profit Margin.
1.5(v) Discussion on continuity of any Extra-Ordinary N/A
gain or loss.
1.5(vi) Disclosure of related paity transaction in the N/A
Annual report.
1.5(vii) Utilization of proceeds from public issues, rights N/A
issues and/or through any others instruments.
1.5(viii) An explanation if the financial results deteriorate
after the company goes for IPO, RPO, Rights offer, N/A
Direct listing etc.
1.5(ix) Significant variance between quarterly Financial
N/A
Performance and Annual Financial Statement.
1.5(x) Remuneration to directors including independent
directors.
1.5(xi) Fairness of state of the affairs.
1.5(xii) Maintenance of proper hooks of accounts
1.5(xiii) Appropriateaccounting policies, consistency
applied in preparation of the financial statement on
prudent judgment.
1.5(xiv) Followed the rules of IAS/BAS/IFRS/BFRS in
preparing financial statements as applicable in
Bangladesh.
1.5(xv) Sound and effective design of internal control has
been implemented & monitored.
1.5(xvi) Ability to continue as -a going concern.
1.5(xvii) Significant deviations from last year's operating
results shall he highlighted & reason be explained;
1.5(xviii) Presentation of key operation and financial data for
last 5 (five) years.
1.5(xix) If dividend has not declared for the years, reason
should be given;
1.5(xx) Number of Board Meeting held during the financial 11 meetings held with an
year & attendance by each average of 92% attendance
1.5(xxi) a) Shareholding pattern disclosure
1.5(xxi) b) Disclosure of shareholding by Directors, CEO,
Company Secretary, CFO, Head of Internal Audit
& their Spouses and minor children.
1
1.5(xxi) e) Disclosure of shareholding by Executives.
1.5(xxi) d) Shareholders holding ten percent (10%) or more N/A
1.5(xxii) a) Brief resume of the director
1.5(xxii) b) Nature of his /her expertise.
1.5(xxii) c) Other companies' directorship & membership of
committees of that Board.
2. Chief Financial Officer (CFO), Head of Internal
Audit and Company Secretary (CS);
2.1 Appoirtmeritof: . .
- Chief Financial Officer (CFO)
- Head of Internal Audit
- Company Secretary (CS)
2.2 Requirement to attend Board Meetings;
- Chief Financial Officer (CFO)
- Company _Secretary _(CS)
3. Audit Committee
3(i) Sub-committee of the Board of Directors.
3(u) Assisting the Board of Directors for ensuring true
and fair view of the state of affairs;
30
No._________________ Complied Not complied (If any)
3(iii) Duties of the audit committee clearly set forth in
writing.
3.1 Constitution of the Audit Committee
3.1 (i) Audit committee membes at least 3 (three)
members
3.1 (ii) Audit committee members are appointed b y Board
Already complied on
of Directors and inclusion of at least 1 (one)
May 4, 2013.
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 Already complied on
(one) Independent Director August 29 , 2013.
3.2 Chairman of Audit Committee
3.2 (i) Selection of the Chairman of the Audit Committee Will be compliedin
who shall be an Independent Director accordance vrith judgment
of the Appellate Division
of the Supreme Court on
20/06/2013
3.2 (ii) Chairman of Audit Committee shall remain present
in AGM.
3.3 Role of the Audit Committee
3.3 (i) Oversee the financial reporting process
3.3 (ii) Monitor choice of accounting policies and
principles
3.3 (iii) Monitor Internal Control Risk management
process.
3.3 (iv) Oversee hiring and performance of external
auditors.
3.3 (v) Annual financial statements review along with the
management before sabmission to the Board for
approval.
3.3 (vi) Quarterly and half yearly financial statements
review along with the management before
submission to the Board for approval.
3.3 (vii) Review adequacy of internal audit function
3.3 (viii) Significant related party transaction review.
3.3 (ix) Statutory auditor's report review. J
3.3 (x) Disclose the use / application of funds raised
N/A
through IPO/RPO/Righi. Issue proceeds.
3.4 Reporting of the Audit Committee
3.4.1 Reporting to the Board of Directors
3.4.1 (i) Reporting its activities to the Board of Directors.
3.4.1 (ii) Report to the Board by Audit Committee
3.4.1 (ii) a) Conflict of interest. N/A
3.4.1 (ii) b) Suspected or presumed fraud or irregularity or
—material defect in the internal control system;
3.4.1 (ii) c) Suspected infringement of laws, including
securities related laws, rules and regulations; N/A
3.4.1 (ii) d) Any other matter;
3.4.2 Reporting to theAuthorities
3.5 Reporting to the Shareholders and General
Investors
4. External /Statutory Auditors should not engage;
4 (i) Appraisal or valuation services or fairness
opinions.
31
No._________________________ Complied [ Not complied (If any)
4 (ii) Financial information systems design and
implementation.
4 (iii) Book-keeping or accounting records or financial
statements.
4 (iv) Broker-dealer services.
4 (v) Actuarial services
4 (vi) Internal audit services.
4 (vii) Any other service determined by the audit
committee.
4 (viii) Possess any share by the partneior employees of
the firm at least during the tenure of their audit
assignment.
5. Subsidiary Company;
5. (i) Composition of Board of Directors. N/A
5. (ii) At least 1 (one) Independent Director from holding N/A As disclosed in the
company. notes to the Accounts
5. (iii) Confirmation of minutes by holding company. N/A No. 12.05
5. (iv) Confirmation of minutes of subsidiary company N/A at Page No. 71
shown in holding company's minutes.
5. (v) Review the financial statements by holding N/A
company's audit committee.
6. Duties of Chief Executive Offiae(CEO) and
Chief Financial Officer (CFO):
6.(1) Reviewing financial statements
6.(1) a) No misleading statements
6(1) b) Present a true and fair view in compliance with
existing accounting standards and applicable laws.
6 (ii) Declaration about/regarding authentication
7. Reporting and Compliance of Corporate
Governance:
7.(1) Compliance certificate from a Professional
Accountant /Secretary.
7. (ii) Statement of Directors in accordance with the
annexure attached whether the company has
complied with.
32
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.
33
Auditors'
Report

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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:

(i) 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;
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 Chartered Accountants
Annual R I - iii
-lia
-
Financial
Statements
rM

As at December 31, 2012

Notes 2012 2011

Taka Taka
SHARE CAPITAL AND LIABILITIES

SHAREHOLDERS' CAPITAL 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

fully paid up in cash 45,000,000 45,000,000 -

Dividend Equalisation Reserve 1,000,000 1,000,000

life insurance Fund 5.00 26,331,578,112 23,282,041,204
Estimated liabilities in respect of outstanding claims,

6 .00
whether due or intimated 665,191,938 551,180,711
Amount due to other persons or bodies carrying on
insurance business 7.00 67,197,302 31,409,897

Sundry Creditors 8.00 329,371,461 532,578,735

Provision for Doubtful Debts 9.00 73,363,920 75,699,494

Reserve for Unexpired Risk 192,184,968 121,472,139

Premium Deposits 10.00 12,400,090 11,462,899

1,339,709,679 1,323,803,875

27,717,287,791
[OTAL SHAKE CAPITAL AND LIABILITIES 24,651,845,079
The annex notes form an integral part of these financial statement
V. CL^
A4z4la
4M2PVn_
Swapan Kumar Sarkar, FCA Md. Mujibur Rahman Aziz Ahmed, FCA, CISA Monzurur Rahman
Managing Director (In-charge) Director Director Chairman
38


Notes 2012 2011

Taka Taka
PROPERTY AND ASSETS

1LOAN1.00 509,955,906 444,369,078
On Insurer'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 (BGTB) 8,385,482,195 6,725,040,490

Shares Listed on Stock Exchanges 5,131,994,379 3,976,783,821

Debentures and 476,518,717 536,553,527
Bonds
Mutual Fund 30,000,000 30,000,000
Central Depository Bangladesh Ltd. 3, 138,890 3,138,890

DUG Securities Limited (Subsidiary) 12.05 320,200,000

Other Loans 91,154,267 99,885,955
14,440,488,448 11,373,402,683
Agents' Balance 3,461,053 3,450,059
Outstanding Premium 13.00 646,608,173 633,403,068
Interest, Dividends and Rents Accruing But Not Due 14.00 806,813,031 836,810,804
Advances And Deposits 15.00 785,420,077 635,008,233
Sundry Debtors 16.00 55,089,341 55,094,848
(\SI-1 ANT) BANK BALANCES 17.00
On Fixed Deposit with Banks 7,652,567,484 8,025,465,759
On Current Account with Banks 384,335,639 431,078,770
On STD Account with Banks 947,127,835 731,324,450
Cash in Hand 1,353,853 1,727,297
Cash in Transit 11,823,448 22,731,360
Collection in Hand 18.00 - 284,257,854
Branch Petty Cash 2,881,182 94,712,691
9,000,089,441 9,591,298,181
OTHER ACCOUNTS
Fixed Assets (At Cost Less Depreciation) 19.00 1,456,667,484 1,069,301,728

Stamps, Printing and Stationery in Hand 12,694,837 9,706,397
I 0 1 \I PROPERTY\ \NI) ASSETS 27,717,287,791 24,651,845,079
Swapan Kumar arkar, FCA Md. Mujibur Rahman Aziz Ahmed, FCA, CISA Monzurur Rahman

Signed as per annex report on even date

WcL

Dhaka, October 05, 2013 Hoda Vasi Chowdhury & Co.
39
71- T;fr
For the year ended December 31, 2012
2012 2011
Notes
Taka Taka
BALANCE OF FUND AT THE BEGINNING
OF THE YEAR 23,282,041,204 20,130,605,300

ADJUSTMENTS MADE DURING TIlE YEAR 20.00 107,622,750 172,130,517
PREMIUM I,F,SS REINSURANCE 21.00

First Year Premium (OL) 371,198,513 726,365,569
First Year Premium (GN-GRB) 439,48 1,594 L 556,788,527
810,680,107 1,283,154,096
Renewal Premium (OL) 2,100,825,850 1,759,858,543
Renewal Premium (GN-GRB) 1,761,099,104 1,632,287,401
3,861,924,954 3,392,145,944
Group Life Insurance Premium 253,61 1,545 243,315,189
Health Insurance Premium 160,575,350 93,069,099
414,186,895 336,384,288
Gross Premium 5,086,791,956 5,011,684,328
Reinsurance Premium (57,365,054) (36,337,655)
Net Premium 5,029,426,902 4,975,346,673

INTEREST, DIVIDENDS AND RENTS 22.00 2,327,639,110 2,112,903,816

OTHER INCOME 23.00 27,682,381 28,734,217
TOTAL INCOME 30,774,412,347 27,419,720,523
First Year Premium, where the maximum premium

paying period is;
Single 39,127,770 38,882,371
Four years 24,626
Five years 1,907,326 3,228,114
Six years 133,871 640,651
Seven years 268,491 200,979
Eight years 182,533 251,038
Nine years 60,963 221,602
Ten years 326,121,651 440,689,182
Eleven years 10,290,786 17,601,978
Twelve years or over (including throughout life) 432,562,090 781,438,181
810,680,107 1,283,154,096
40

Notes 2012 2011

Taka Taka
CLAIMS UNDER POLICIES (INCLUDING

PROVISION FOR CLAIMS DUE OR

INTIMATED), LESS REINSURANCE 24.00
By Death 198,712,875 175,958,447

By Maturity 1,584,915,505 1,191,638,516
By Survival 507,657,519 532,815,046
By Hospitalisation 69,301,485 73,383,977
By Others 3,555,305 2,981,406
By Surrenders 82,607,186 61,605,953
Annuities 617,740 561,189
Bonus in Cash 376,596,797 243,535,362
2,823,964,412 2,282,479,896
Profit Commission 18,902,430 14,253,491
2,842,866,842 2,296,733,387
EXPENSES OF MANACFJ1ENT
Commission: 25.00
(a) Commission to Insurance Agents (Less that on reinsurance) 506,653,0 791,284,363
(b) Allowances and Commission [other than commission
including in sub-item (a) preceding] 123,821,179 189,857,335
630,474,261 981,14 1,698
Salaries etc. (other than to agents and those contained in i. lie
allowance and commission) 413,390,239 418,643,494
Development Salaries & Allowances 10,798,099
Development Incentive 26,383,926
Traveling and Conveyance 7,050,083 6,752,911
Directors Fees 1,048,000 761,150
Auditors Fees 1,000,000
Medical Fees 2,150,635 2,320,826
Legal and Professional Fees 26.00 6,507,451 12,784,639
Insurance Policy Stamp 9,395,437 14,515,600
Advertisement and Publicity 27.00 9,406,597 8,326,463
Printing and Stationery 16,624,741 17,151,096
Office Rent 84,390,181 71,461,193
Bank Charges 43,383,914 41,311,807
Repairs and Maintenance 5,610,590 6,046,978
Car Fuel, Maintenance & Repairs 27,383,272 24,631,447
Group Insurance 5,336,752 5,549,060
Papers and Periodicals 515,950 535,455
Telephone, Telex and Electricity etc. 15,080,772 11,325,752
Training & Recruitment Expenses 1,734,769 2,158,705
Fees, Subscriptions and Donation 28.00 4,598,268 4,188,722
Entertainment 2,714,139 2,005,658
Insurance Premium (General) 2,190,938 2,775,316
Postage and Telegram 3,362,088 3,363,474
41
Notes 2012 2011

Taka Taka
Uniform and Liveries 841,774 680,731

Development Expenses 13,199,916 14,521,029
Prizes and Awards 1,137,964 9,072,317
Conference 8,180,779 5,631,273
Company Registration (Renewal) Fees 18,474,420 17,469,195
Stamps 2,147,778 2,130,234
Staff Transport Expenses 2,004,020 1,467,092
EGM Expenses 537,125 906,884
Silver Jubilee 2,582,442 1,233,926
Corporate Social Responsibilities (CSR) 232,900
Depreciation on Fixed Assets 26,342,547 27,392,987
CDBL Related Charges 1,519,002 715,920
777,257,508 737,831,334
1,407,731,769 1,718,973,032
Provision for Doubtful Debts 50,656 500,761

Reserve for Unexpired Risk 192,184,968 121,472,139
Provision for Income Tax 29.00 -
BALANCE OF THE FUND AT THE END OF

THE YEAR AS SHOWN IN THE BALANCE SHEET 26,33 1,578,112 23,282,041,204
TOTAL 30,774,412,347 27,419,720,523
Signed as per annex report on even date

Dhaka, October 05, 2013 Hoda Vasi Chowdhury & Co.
42


2012 2011

Taka Taka
Cash flows from Operating Activities

Collection from Premium 5,073,586,851 [274,282j
Other Income received 25,625,794 27,770,916
Payment for Claims (2,728,855,615) (2,393,538,389)
Payments for Operating activities (1,588,289,324) (1,589,780,318).
Source Tax (Income Tax) deducted (151,271,190) --__(89,1944)1
Net cash from operating activities 630,796,516 1,229,540,521
Cash flows from Investing Activities

Investment made (3,075,817,453) (837,682,832)
Acquisition of Fixed Assets (453,442,559) (393,282,511)
Loan against Policies Paid (65,586,828) (41,497,232)
Other Loans realised 8,731,688 3,174,725
Interest, dividends & rents received 2,361,900,087 1,790,169,702
Proceeds from sale of Fixed Assets 2,209,809 1,343,042
Net Cash used in investing activities (1,222,005,256) 522,224,894
Cash flows from Financing Activities

Dividend Paid L
Net cash used in financing activities
Net increase in Cash & Cash equivalents (591,208,740) 1,751,765,415
Cash and Cash equivalents at the beginning of the period 9,591,298,181 7,839,532,766
Cash and Cash equivalents at the end of the period 9,000,089,441 - 9,591,298,181


43
Taka
AS1'1
Loan on Insurer's Policies within their surrender value 509,955,906
Investments 14,440,488,448
Agents' Balance 3,461,053
Outstanding Premium 646,608,173
Interest, Dividends & Rents accruing but not due 802,549,827
Advances & Deposits 785,420,077
Sundry Debtors 55,089,341
Cash & Bank Balances 9,000,089,441
Fixed Assets (at cost less depreciation) 1,456,667,484
Stamps, Printing and Stationery in Hand 12,694,837
27,713,024,587
LESS: LIABILITIES
Estimated liabilities in respect of outstanding claims, whether due or intimated 665,191,938
Amount due to other persons or bodies carrying on insurance business 67,197,302
Sundry Creditors 325,108,257
Provision for Doubtful Debts 73,363,920
Reserve for Unexpired Risk 192,184,968
Premium Deposits 12,400,090
Dividend Equalisation Reserve 1,000,000
1,336,446,475
Gross Fund (Assets - Liabilities) 26,376,578,112

Shareholders' Capital (Paid-up Capital) (45,000,000)
Life Insurance Fund as at December 31, 2012 26,331,578,112
wi


44
Share Share General Retained Other

Particulars Total
Capital Premium Reserve Earnings Reserve
Balance as on
45,000,000 - - - - 45,000,000
01 January 2012
Bonus Share
for the Year 2011 - - - - -
Balance as on
45,000,000 - - - - 45,000,000
31 December 2012
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:
^^ijjjjjjjiii
W ^011/_/


45
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) 2,000,000 2,000,000 At Cost
Bangladesh Govt. Treasury Bond (BGTB) 8,385,482,195 8,385,482,195 At Cost
Shares Listed on Stock Exchanges 5,131,994,379 5,934,139,559 Market Value
Debentures and Bonds 476,518,717 476,518,717 At Cost
Mutual Fund 30,000,000 30,000,000 At Cost
Central Depository Bangladesh Ltd. 3,138,890 3,138,890 Book Value
DLIC Securities Limited 320,200,000 320,200,000
Other Loans 91,154,267 91,154,267 Realisable Value
CASH AND BANK BALANCES

On Fixed Deposit with Banks 7,652,567,484 7,652,567,484 Book Value
On Current Account with Banks 384,335,639 384,335,639 Book Value
On STD Account with Banks 947,127,835 947,127,835 Book Value
Cash in Hand 1,353,853 1,353,853 Book Value
Cash in Transit 11,823,448 11,823,448 Realisable Value
Branch Petty Cash 2,881,182 2,881,182 Realisable Value
OTHER ACCOUNTS
Agents' Balance 3,461,053 3,461,053 Realisable Value
Outstanding Premium 646,608,173 646,608,173 Realisable Value
Interest, Dividends and Rents Accruing But Not Due 802,549,827 802,549,827 Realisable Value
Advances And Deposits 785,420,077 785,420,077 Realisable Value
Sundry Debtors 55,089,341 55,089,341 Realisable Value
Fixed Assets (At Cost Less Depreciation) 1,456,667,484 1,456,667,484 Carrying Value
Stamps, Printing and Stationery in Hand 12,694,837 12,694,837 At Cost

wz


46
Notes to the
Financial Statements

Em
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 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.
50

Provision has been made against the loans and advances with small prospect of recovery. Provisions
have not been made against advance for which legal cases instituted but remained pending for
decision.
3.04 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
I
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:

Furniture and Fixtures 10%

Renovation 20%

Computer Hardware & Software 25%

Electrical Equipments 20%
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
I
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
1
A
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 Cash at bank in current and STD accounts

U Term deposits (FDRs) with commercial banks
U Cash in hand and in transit
3.16 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 2011

Taka 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)
5,000,000,000 300,000,000
Issued, subscribed and paid-up capital
45,00,000 Ordinary Shares of Tk. 10 each. 45,000,000 45,000,000
Category of Shareholders Share holding (%)

Sponsor 36.76 16,540,050 16,54006
General Public 63.24 28,459,950J 28,459,950
45,000,000 45,000,000
Number of non-resident shareholders -

Number of shares held by non-resident shareholders 1,914 1,914
Category of Share No. of Share

Share Holding No. of Share Percentage of
Holders Holders Share Holding
below 500 3 525 0.01
500-5000 39 109,275 2.43
Sponsor 5001-10000 8 59,430 1.32
10001- Above 33 1,484,775 33.00
Sub-total 83 1,654,005 36.76
below 500 1,502 181,080 4.02
500-5000 273 371,475 8.26
General Public 5001-10000 27 183,390 4.08
10001-Above 29 2,110,050 46.89
Sub-total 1,831 2,845,995 63.24
Total 1,914 4,500,000 100.00
5.00 LIFE INSURANCE FUND Tk. 26,331,578,112
Balance at the beginning of the year r23,282,041,204,130,605,300

Add: Increase in Life Revenue Account during the year 3,049,536,908 3,151,435,904
Balance at the end of the year 26,331,578,112 23,282,041,204
59

2012 2011
Taka Taka
6.00 ESTIMATED LIABILITIES IN
RESPECT OF OUTSTANDING
CLAIMS, WHETHER DUE OR
INTIM ATFI) Tk. 665,191,938
a) Ordinary Life
Death Claim
Maturity Claim -59,181,976 145,614,439
Claim on Survival Lp5,265,171 174,575,101
430,655,296 376,232,580
b) Gono Grameen Bima
Death Claim 12,844,674 9,823,079
Maturity Claim 153,865,145 i 117,907,870
Claim on Surrender 1,842,899 L249,851
168,552,718 128,980,800
c) Group Insurance 40,545,753 30,800,117
d) Wage Earners 7,492,000 7,592,000
e) Health Insurance 17,946,171 7,575,214
665, 19 1,938 551,180,711
7.00 AMOUNT DUE TO OTHER PERSONS OR

BODIES CARRYING ON INSURANCE BUSINESS
Munich Reinsurance Company 67,197,302 31,409,897
8.00 SUNDRY CREDITORS Tk. 329,371,461

Commission Payable (Note-8.01) 118,208,917 318,013,172
Development Salary (Note-8.02) 24,071,253 33,084,188
Agents' License Fees (Note-8.03) 7,771,815 6,837,150
Insurance Policy Stamps (Note-8.04) 750,403 4,970,305
Tax and VAT Deducted at Source 160,405 47,172
Security Deposit (Note-8.05) 63,663,156 54,993,588
Incentive Bonus (Note-8.06) 33,967,847 34,029,100
Salaries & Allowances Payable (Staff) 12,896 9,302
Unpaid Dividend 880,547 880,547
Creditors for Expenses (Note-8.07) 5,072,640 10,966,479
Provident Fund (Note-8.08) 1,456,990 1,465,186
Group Insurance & Hospitalisation Insurance Premium 9,324 18,745
Provision for Income Tax (Note-8.09) 38,563,596 38,563,596
Interest Suspense Account (Note-8.10) 26,056,421 21,793,217
Unidentified Deposit (Note-8.11) 8,124,045 7,305,782
LRK Securities Ltd. * (398,794) (398,794)
Auditors Fees 1,000,000
329,371,461 532,578,735
* This represents current account balance with the brokerage house at the end of routine and normal
investment activities in listed shares.

2012 2011
Taka Taka

8.01 Commissions payable 1185208,917 318,013,172
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 Development Salary 24,071,253 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 Agents' License Fees 7,771,815 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 Insurance Policy Stamps 750,403 4,970,305
This represents provision for expenses relating to policy stamps required to be affixed on the
unissued policies.
8.05 Security Deposit Tk. 63,663,156

Courier 54,720
Printing Materials 2,013,793 1,085,251
Stationery Suppliers 4,000 4,000
Car Repairs (Garage) 210,100 210,100
Contractor's (Construction for office buildings) 51,169,377 44,623 ,247
It Computer Hardware & Software Suppliers 393,625 393,625
Staff (Employment related) 4,657,541 4,442,041
Car Loan Scheme * 5,048,835 4,114,714
Others L 111,165
63,663, 156
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 2011

Taka Taka
8. 07 Creditors for Expenses Tk. 5,072,640
Printing and stationery 61,250 1,120,391

Office Rent 375,451 281,155
Prize and awards 5,500,000
Telephone Bill 56,204 71,631
Electricity Bill 432,960 508,476
Postage and Courier 47,648
Travelling and Conveyance 50,879 70,122
Car Fuel & Maintenance 260,144 536,620
Photostat 500 2,500
Unit Office Expenses 1,277,191 1,415,371
Bank Charges 425,657 452,498
Entertainment 1,265
Legal Expenses 1,868,298 1,834
Office Maintenance 44,002 67,420
Papers and Periodicals 924 1,188
Others 217,915 889,625
5,072,640 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 Tk. 38,563,596
UN
Balance at the beginning of the year 38,563,596 38,563,596
Add: Provision for Income Tax - Current year
Balance at the end of the year 38,563,596
-J -
38,563,596
Provision for income tax has been made as required under the Income Tax Ordinance 1984.
Assessment of income tax of the company has been finalized up to Financial Year (FY) 2003 with
the exception of Financial Year (FY) 2001 for which assessment has become time barred (Note
no-3.04).
62

2012 2011

Taka Taka

8.10 interest Suspcnsc Accowit Tk. 26,056,421
Overdue Interest on Home Loan Insurance Scheme 25,608,631 21,345,427

Debenture Interest Receivable from Beximco Denims Ltd. L 447 , 7 90 _ 447,790
26,056,421 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 Tk. 8,124,045

Balance at the beginning of the year r 7,3057821 r 7,958,021
Adjustments/ reconciled (4,376,139) (2,539,568)
Additions L_ 5,194,402 1,887,329
Balance at the end of the year 8,124,045 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 5466,929 58,796,997
Motor car, cycle and bicycle Loan 3,472,732 3,525,453
Branch collection account 3,414,580 3,418,022
Other receivables 3,843,733 3,793,076
Advance Salary 576,844 576,844
Advance to agents 5,589,102 5,589,102
73,363,920 75,699,494
10.00 PREMIUM DEPOSITS Tk. 12,400,090
Ordinary Life - 1st year 1,118,860 1,001,639

Ordinary Life - Renewal 5,164,544 2,977,282
GN-GRB 5,344,259 5,925,547
Group & Health Insurance 772,427j 1,558,431
12,400,090 11,462,899
This represents payments made by policyholders awaiting adjustment against the policy premiums.
63

2012 2011
Taka Taka

11.00 LOAN 1k. 509,955,906
On Insurer's Policies within their surrender value

Opening balance 444,369,078 F402,871,846
Add: Loan disbursement during the Year (Note 11.01) 180,636,668 43,021,567
Less: Loan recovery of loan during the year (Note 11.02) 5 ,049 , 840) 01,524,335)
Balance as at December 31 509,955,906 444,369,078
11.01 Loan disbursement during the year 1k. 180,636,668
166,925,918
Ordinary Life (OL) 10,719,547
Gono-Grameen Bima (GN-GRB) 13,710,750 12,302,020
180,636,668 143,021,567
11.02 Loan recovery during the year Tk. (115,049,840)

Ordinary Life (OL) (103,653,138) (89,366,832)
Gono-Grameen Bima (GN-GRB) (11,396,702) (12,157,503)
(115,049,840) (101,524,335)

12.00 INVESTMENT (AT COST) Tk. 14,440,488,448
Government Securities (Note-12.01) 8,387,482,195 6,727,040,490

Mutual Fund (Note-12.02) 30,000,000 30,000,000
Shares Listed on Stock Exchanges (Note-12.03) 5,131,994,379 3,976,783,821
Debentures and Bonds (Note-12.04) 476,518,717 536,553,527
DLIC Securities Ltd. (Subsidiary Company Note-12.05) 320,200,000
Other Investment (Note-12.06) 3,138,890 I 3,138,890
Other Loans Note-12.07) 91,154,267 99,885,955
14,440,488,448 11,373,402,683
64
2012 2011
Taka Taka

12.01 Government Securities 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 2,000,0J
2,000,000 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.
Bangladesh Govt. Treasury Bond (BGTB) 8,385,482,13 L6,725,040,4

8,387,482,195 6,727,040,490
12.02 Mutual Fund Tk. 30,000,000

Janata Bank Mutual Fund [ 20,000,000 20,000,000

Prime Financial First Unit Fund (PFFUF) L. 10,000,000 10,000,000
30,000,000 30,000,000
65

2012 2011
Taka Taka
12.03 Shares Listed on Stock Exchanges 5,131,994,379 3,976,783,821
Face Average Book Value at Market Value

Name of the No.of
SL Value Cost Cost (Taka) as (Taka) as at
Institution Unit
Per Per Unit at 31.12.2012 31.12.2012
Bank
1 ABBANK 10.00 425,316 84.44 35,915,433 14,333,149
2 ALARABANK 10.00 293,493 34.45 10,110,741 7,366,674
3 BANKASIA 10.00 169,884 19.31 3,280,954 3,652,506
4 BRACBANK 10.00 117,856 31.03 3,657,521 4,101,389
5 DHAKABANK 10.00 195,507 20.14 3,937,649 4,848,574
6 DUTCHBANGL 10.00 89,000 159.99 14,239,186 10,413,000
7 EBL 10.00 368,760 25.11 9,258,811 11,689,692
8 FIRSTSBANK 10.00 159,913 33.79 5,402,715 2,958,391
9 ICBIBANK 100.00 2,084,000 10.01 20,851,052 15,630,000
10 IFIC 10.00 287,887 69.43 19,989,229 10,421,509
11 ISLAMIBANK 10.00 447,525 26.15 11,703,990 19,154,070
12 MTBL 10.00 104,990 25.78 2,706,993 2,299,281
13 PREMIERBAN 10.00 76,106 23.03 1,752,821 1,232,917
14 PRIMEBANK 10.00 855,358 26.37 22,556,368 31,648,246
15 PUBALIBANK 10.00 41,925,740 26.47 1,109,654,722 1,383,549,420
16 RUPALIBANK 10.00 74,784 97.23 7,271,486 5,937,850
17 SOUTHEASTB 10.00 211,144 43.13 9,105,829 4,222,880
18 TRUSTBANK 10.00 130,052 26.42 3,436,607 3,251,300
19 1 UCBL 10.00 1,166,947 47.93 55,930,879 27,539,949
20 UTTARABANK 10.00 115,901 36.10 4,184,161 4,415,828
Cement
21 ARAMITCEM 10.00 3,505 - - 223,970
22 CONFIDCEM 10.00 121,444 71.01 8,623,626 12,739,476
23 HEIDELBCEM 10.00 98,740 128.93 12,730,794 26,136,478
24 LAFSURCEML 10.00 27,011,180 10.00 270,099,123 888,667,822
25 NILOYCEM 10.00 27,300 105.89 2,890,728 7,118,475
26 PADMACEM 10.00 103,500 19.84 2,053,866 3,167,100
Ceramics sector
27 BENGALFINE 100.00 2,600 110.20 286,514 169,000
28 RAKCERAMIC 10.00 653,035 144.82 94,570,595 37,092,388
29 SPCERAMICS 10.001 514,911 55.77 28,714,989 14,005,579
Corporate Bond
30 ACIZCBOND 1,000.00 35,931 763.43 27,430,916 29,122,076
31 Brac Bank Cony Bonds 1,000.00 20,000 1,000.00 20,000,000 -
32 IBBLPBOND 1,000.00 11,825 965.58 11,417,984 11,739,269
66
Name of the No.of
S[ Value Cost Cost (Taka) as (Taka) as at
Institution Unit
Per Per Unit at 31.12.2012 31.12.2012
Engineering
33 ATLASBANG 10.00 317,841 243.98 77,546,083 51,394,890
34 BDTHAI 10.00 484,837 81.46 39,495,559 17,066,262
35 BSRMSTEEL 10.00 63,800 58.58 3,737,433 4,332,020
36 DESHBANDI-JU 10.00 34,500 57.92 1,998,300 893,550
37 ECABLES 10.00 14,850 47.46 704,737 766,260
38 MARKBD 100.00 7,487 29.33 219,574 127,279
39 NAVANACNG 10.00 294,344 156.83 46,163,064 23,488,651
40 NTLTUBES 10.00 59,592 90.22 5,376,501 2,490,946
41 RANFOUNDRY - 10.00 442,000 122.51 54,148,289 27,492,400
42 SALAMCRST 10.001 100,030 80.09 8,011,648 4,911,473
Financial Institutions
43 DBH 10.00 20,125,000 2.49 50,073,335 1,127,000,000
44 ICB 100.00 10,588 18.42 194,993 15,969,351
45 IDLC 10.00 48,375 16.66 805,714 4,445,663
46 IPDC 10.00 67,287 29.02 1,952,786 1,211,166
47 ISLAMICFIN 10.00 677,321 40.57 27,479,101 15,307,455
48 LANKABAFIN 10.00 230,345 103.50 23,840,117 13,590,355
49 MIDASFIN 10.00 55,011 21.54 1,184,780 2,805,561
50 PLFSL 10.00 13,301 78.19 1,040,001 430,952
51 PRIMEFIN 10.00 420,025 81.61 34,278,611 13,776,820
52 UNIONCAP 10.00 265,100 82.11 21,766,720 7,369,780
Food and Allied
53 AMCL(PRAN) 10.00 155,430 127.89 19,878,642 18,962,460
54 BATBC 10.00 44,250 252.51 11,173,551 37,147,875
55 BIONICFOOD 10.00 1,000 1.90 1,903 6,400
56 FUWANGFOOD 10.00 63,240 49.91 3,156,438 1,644,240
57 MEGHNAVEG 100.00 5,300 64.46 341,644 176,225
58 MONAFOOD 100.00 5,000 27.98 139,885 275,000
Fuel and Power
59 BDWELDING 10.00 363,746 61.01 22,191,088 8,438,907
60 DESCO 10.00 99,275 69.51 6,900,244 7,157,728
61 EASTRNLUB 10.00 57,500 606.88 34,895,615 13,409,000
62 JAMUNAOIL 10.00 670,644 257.76 172,864,110 119,709,954
63 KPCL 10.001 520,597 106.64 55,515,362 25,925,731
64 LINDEBD 10.00 39,237 237.98 9,337,724 21,545,037
65 MJLBD 10.00 33,221 86.96 2,888,800 2,647,714
66 MPETROLEUM 10.00 720,400 190.04 136,901,595 114,183,400
67 PADMAOIL 10.00 1,013,105 294.12 297,972,164 189,957,188
68 POWERGRID 10.00 106,070 59.66 6,328,522 5,897,492
69 SUMITPOWER 10.00 250,785 56.23 14,102,102 13,366,841
70 1 TITASGAS 10.00 652,000 60.36 39,353,903 42,575,600
67
S
Name of the No.of
Institution Unit
Per Per Unit at 3 1.12.2012 3 1.12.2012
Insurance
71 BGIC 10.00 1,050,431 43.70 45,903,661 33,823,878
72 CONTININS 10.00 40,500 31.41 1,272,138 1,320,300
73 EASTERNINS 10.00 52,510 41.48 2,177,978 1,932,368
74 EASTLAND 10.00 45,660 55.25 2,522,853 2,584,356
75 FAREASTLIF 10.00 467,282 175.49 82,001,672 49,625,348
76 GREENDELT 10.00 1,849,575 111.71 206,610,044 135,758,805
77 MEGHNALIFE 10.00 154,210 180.08 27,770,391 17,394,888
78 NATLIFEINS 10.00 28,490 32.16 916,331 8,623,923
79 PEOPLESINS 10.00 219,392 45.33 9,945,624 6,033,280
80 PIONEERINS 10.00 48,360 18.47 893,291 3,530,280
81 PRAGATIINS 10.00 132,308 93.27 12,339,850 8,256,019
82 PRAGATILIF 10.00 63,347 212.55 13,464,161 7,981,722
83 PRIMELIFE 10.00 89,207 167.13 14,908,857 10,348,012
84 RELIANCINS 10.00 57,868 35.60 2,060,149 5,485,886
85 jUNITEDINS 10.00 14,366 81.11 1,165,199 660,836
IT Sector
86 AGNISYSL 10.00 525,132 50.21 26,366,083 12,550,655
87 BDCOM 10.00 484,737 45.57 22,089,937 9,258,477
88 DAFODILCOM 10.00 459,752 38.63 17,761,561 7,310,057
89 INTECH 10.00 497,448 31.37 15,606,874 8,804,830
90 ISNLTD 10.00 399,803 36.16 14,456,162 6,556,769
Miscellaneous
91 ARAMIT 10.00 149,650 467.77 70,001,331 31,665,940
92 BERGERPBI. 10.00 31,000 263.35 8,163,997 16,439,300
93 BEXIMCO 10.00 957,672 161.23 154,408,484 61,674,077
94 GQBALLPEN 10,00 38,172 173.82 6,634,884 5,935,746
95 MIRACLEIND 10.00 374,879 32.51 12,188,169 4,835,939
96 SINOBANGLA 10.00 400,000 36.76 14,702,555 10,600,000
Mutual Funds
97 1JANATAMF 10.00 403,000 11.52 4,641,527 2,821,000
98 1STPRIMFMF 10.00 418,000 44.64 18,660,965 11,954,800
99 AIMS1STMF 10.00 236,250 70.59 16,677,634 11,269,125
100 DBH1STMF 10.00 6,120,000 10.31 63,084,706 43,452,000
101 EBL1STMF 10.00 174,000 29.57 5,145,178 1,548,600
102 EBLNRBMF 10.00 1,000,000 10.00 10,000,000 9,400,000
103 GRAMEEN1 10.00 363,250 59.78 21,716,477 19,215,925
04 GRAMEENS210.00
1 771,650 46.61 35,968,435 16,204,650
105 ICB1STNRB 10.00 156,500 48.66 7,615,353 4,225,500
68
Name of the No.of
Institution Unit
Per Per Unit at 31.12.2012 31.12.2012
106 ICB2NDNRB 10.00 737,000 23.11 17,030,051 9,212,500
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
116 TRUSTB1MF 10,001 150,000 1 10.00 1 1,500,000 1 1,305,000
1
Paper and printing
117 I-IAKKANIPUL 10.00] 161,500 57.54 ]_3,084,650
]
Pharmaceuticals and Chemicals
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 - - 4,205
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
159.51 2,029,763 9,410,138
11 11
129 RENATA 10.00 12,725
130 1 SQURPI-IARMA 1 10.00 980,148 74.82 73,330,951 165,252,953
Service and Real Estate
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
Tannery Industries
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
136 1 GI
135 PARAGON
Telecommunication
100.00 10,235
10.00 1,130,400
37.04
255.48
379,102
288,791,465 197,820,000
163,760
69

E,
Name of the No.of
Institution Unit
Per Per Unit at 31.12.2012 31.12.2012
Textile
137 APEXWEAV 10.00 10,120 20.29 205,337 1,558,480
138 CMCKAMAL 10.00 2,510 - - 84,085
139 DACCADYE 10.00 70,259 50.33 3,536,196 2,199,107
140 DYNAMICTEX 100.00 105,140 38.00 3,995,448 5,493,565
141 HRTEX 10.00 123,567 43.30 5,350,234 3,991,214
142 MAKSONSPIN 10.00 730,336 38.60 28,192,350 12,999,981
143 MALEKSPIN 10.00 224,950 83.67 18,821,323 5,646,245
144 METROSPIN 10.00 46,977 39.22 1,842,504 803,307
145 MHOSSAIN 100.00 19,800 35.06 694,108 688,050
146 MITATEX 100.00 22,440 53.70 1,204,939 1,385,670
147 MONNOFABR 10.00 20,000 10.45 208,904 1,550,000
148 PRIMETEX 10.00 70,000 33.62 2,353,433 1,463,000
149 QSMSILK 10.00 300 4.26 1,279 3,630
150 SQUARETEXT 1 10.001 93,964 75.90 7,131,530 9,659,499
Total : 5,131,994,379 5,934,139,559
2012 2011
Taka Taka
476,518,717 536,553,527
Face
Si. Total Book
Name of the Debentures and Bonds Value Per No. of Unit
No. Value At Cost
Debenture
1.00 Beximco Fisheries 3,000 100 51,937
2.00 Beximco Denims Ltd. 2,500 4,000 6,466,780
3.00 Prime Bank Bond N/A N/A 100,000,000
4.00 Banglalink Bond N/A N/A 180,000,000
5.00 Mutual Trust Bond N/A N/A 40,000,000
6.00 National Bank Bond N/A N/A 50,000,000
7.00 Trust Bank Bond N/A N/A 100,000,000
Total 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.
70
L•..••
2012 2011
Taka Taka

I205 1)1Y' Secu ru s lid. (Subddiarv (OIiptIi 320,200,000 -
The IDRA has given permission to the Company on 20th September 2012 for setting up one
subsidiary company for development and improvement of the life insurance fund as per section 42
of the Insurance Act 2010.
The Company has obtained the name clearance letter from Registrar of Joint Stock Companies
(RJSC) in the name of DUG Securities Limited being the name of the subsidiary company.
The Company has recived the allotment letter on 28th September 2012 for 1 (one) share
(membership) of Dhaka Stock Exchange Limited on payment of Tk. 320,200,000/- (Taka Thirty
Two Crore Two Lacs Only) to DSE being the advance against the paid up Capital of the subsidiary
company.
The DLIC Securites Limited could not commence its operation during the year ended 31st
December 2012 for non receipt of the consent letter of paid up Capital from SEC and registration
from the RJSC & Firms (these were obtained later on in FY-2013).
12.06 Other Inve.stni'n

Tk. 3,138,890
Share of Central Depository Bangladesh Ltd. (Private) 3,138,890 ] 3,138,890

3,138,890 3,138,890
10,00 Other Loans Tk. 91,154,267
Home Loan Insurance Scheme (HLIS) 35,122,192 41,523,813

Project Loan (GN-GRB) L,032,075
L 58,362,142
91 , 154,267 99,885,955
13.00 OUTSTANDING PREMIUM

Tk. 646,608,173
I Ordinary Life (OL) 549,257,435 544,229,875
Group Insurance (GI) 31,844,495 23,168,410
Health Insurance (HI) 13,406,243 11,877,926
Gono-Grameen Bima (GN-GRB) 52,100,000 54,126,857
646,608,173 633,403,068
The amount represents premium receivable as on December 3 1st, 2012 for which grace periods did
not expire as on the above date. Most of the outstanding premium amounts have been realized
subsequently.
71

2012 2011

Taka Taka
14.00 INTEREST, DIVIDENDS & RENTS
ACCRUING BUT NOT DUE Tk. 806,813,031
Bangladesh Govt. Treasury Bond (BGTB) 240,618,647 181,632,227
Fixed Deposit with Banks 429,796,996 542,325,165
Home Loan Insurance Scheme 37,048,696 32,953,743
Interest on Debentures & Bonds 23,569,093 31,750,369
Dividend on Share 22,354,436 6,508,120
Interest on Policy and Project Loan. 53,353,153 41,569,170
Statutory Deposit with Bangladesh Bank (BGTB) 72,010 72,010
806,813,031 836,810,804
15.00 ADVANCES AND DEPOSITS
Advance Office Rent

Advance Income Tax (AlT) (Note-15.01)
Security Deposit
Motor Cycle, Bicycles Loan
Other Advances Note-15.02)
15.'.'A Advance Income Ta\ (AlT)

Tk. 785,420,077
Tk. 767,601,405
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
I
Balance at the beginning of the year 616,330,215 527,136,090
Add: Addition during the year 151,271,190 89,194,125
767,601,405 616,330,215
Adjustment during the year
I Balance at the end of the year 767,601,405 616,330,215
2,171,430
15.02 Other Advances 1,440,117
Others Advances include advances against staff salary and various expenses which have been adjusted
subsequently.
16.00 SUNDRY DEBTORS

Tk. 55,089,341
I
Motor Car & Cycle Loan (Note-16.0l) 2,330,689 2,380,069
Bicycle Loan (Note-16.02) 1,008,681 1,012,022
Project Loan 434,854 434,854
Branch Collection Account (Note-16,03) 3,414,580 3,418,022
Income Tax Refund due (Note-16.04) 42,382,121 42,382,121
Other Receivables Note-16.05) 5,518,416 5,467,760
55,089,341 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 2011
Taka Taka

16.01 Motor Car & Cycle Loan 2,330,689 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 Tk. 5,518,416
Sundry Advance 1,674,683 1,674,683

Others * 3,843,733 3,793,077
5,518,416 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 2011

Taka Taka

17.00 BANK BALANCES Tk. 8,984,030,958
On Fixed Deposit with Banks Note-17.01) 7,652,567,48 8,025,465,759

On Current Account with Banks (Note-17.02) 384,335,639 I 43 1,078,770
On STD Account with Banks (Note-17.03) 947'Z']
8,984,030,958
L 731,324,450
9,187,868,979
17.01 On Fixed Deposit with Banks Tk. 7,652,567,484
Bank Asia Ltd. 28,837,077 94,329,866

DBH Finance Corp. Ltd 1,486,117,325 1,055,297,787
EXIM Bank Ltd. 894,460,270 827,009,850
First Security Bank Ltd. 486,091,036 510,044,696
Mercantile Bank Ltd. 21,070,002
Mutual Trust Bank Ltd. 219,782,448 383,350,000
National Bank of Pakistan 196,203,022 735,845,455
Premier Bank Ltd. 40,000,000
Southeast Bank Ltd. 454,867,923 693,865,109
Standard Bank Ltd. 143,965,527 114,172,405
Prime Bank Ltd. 10,000,000
Dhaka Bank Ltd. 861,123,719 45,594,043
Jamuna Bank Ltd. 579,792,635 637,712,777
NCC Bank Ltd. 47,382,967 170,151,803
One Bank Ltd. 222,640,960 179,965,816
Shahjalal Islami Bank Ltd. 892,003,277 173,516,264
State Bank of India 239,872,972
Eastern Bank Ltd. 20,546,509
IDLC of Bangladesh Ltd. 134,695,741 202,070,501
IPDC of Bangladesh Ltd. 426,310,234
Pheonix Leasing Co. Ltd. 266,803,364 285,272,168
Prime Finance Ltd. 171,210,013 519,514,926
United Leasing Company Ltd. 330,380,200
Midas Financing Ltd. 30,686,638 63,507,276
AB Bank Ltd. 54,365,954 110,520,226
IFIC Bank Ltd. 46,614,648 35,000,000
National Bank Ltd. 251,198,940 10,000,000
Social Islami Bank Ltd. 11,214,000 10,000,000
Standard Chartered Bank 20,000,000
United Commercial Bank Ltd. 20,544,874
Bay Leasing & Financial Ltd. 20,000,000
Lanka Bangla Finance Ltd. 172,510,000 20,000,000
7,652,567,484 8,025,465,759
74

2012 2011

Taka Taka

17.02 ( ) ii ( trrcit AL:ttJ1t oh Banks Tk. 384,335,639
Hongkong & Shanghai Banking Corporation 5,430,792 1,351,195
Bangladesh Krishi Bank 291,653,305 286,306,608
Pubali Bank Ltd. 4,285,713 59,582,639
Rajshahi Krishi Unnyan Bank 65,857,920 61,093,417
Uttara Bank Ltd. 1,283,845 (1,160,945)
National Bank Ltd. 42,959 42,959
Citibank N.A. 764,778 1,282,642
Sonali Bank Ltd. 753 753
Janata Bank Ltd. 81,424 5,305
Agrani Bank Ltd. 8,187,955 22,558,297
Rupali Bank Ltd. 72,084 6,900
Islami Bank Bangladesh Ltd. 825,548 1,500
Bank Asia Ltd. 666,644 2,000
Trust Bank Ltd. 42,284 1,000
Al-Arafah Bank Ltd. 263,469 2,000
Social Islami Bank Ltd. 1,000 1,000
Southeast Bank Ltd. 500 500
Jamuna Bank Ltd. 1,000 1,000
Standard Chartered Bank 4,813,046
Brac Bank Ltd. 60.620
384,335,639 431,078,770
17.03 On Sf1) Account 6th Banks 1k. 947,127,835

Hongkong & Shanghai Banking Corporation 318,067 480,695
Dutch Bangla Bank Limited 564,653 337,804
Bangladesh Krishi Bank 27,530,336 25,028,131
Pubali Bank Limited 482,596,555 468,170,423
Rajshahi Krishi Unnyan Bank 128,866,065 137,966,027
Uttara Bank Ltd. 236,986,827 37,071,285
The City Bank Ltd. 65,245 65,245
National Bank Ltd. 1,384,096 35
Premier Bank Ltd. 655 655
Agrani Bank Ltd. 17,742,628 13,947,366
Sonali Bank Ltd. 2,949,422 4,672,960
Janata Bank Ltd. 8,979,572 9,512,063
Rupali Bank Ltd. 12,323,876 13,603,281
Citibank N.A. 1,924,259 5,864,259
Islami Bank Bangladesh Ltd. 8,279,719 5,853,915
Dhaka Bank Ltd. 30,388 29,180
Mercantile Bank Ltd. 6,824,099 4,094,169
Southeast Bank Ltd. 460,594 2,318,683
Bank Asia Limited 6,355,155 1,827,274
Jamuna Bank Ltd. 321,928 481,000
Al-Arafah Bank Ltd. 2,623,696
947,127,835 731,324,450

18.00 COLLECTION IN HAND 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
2012 2011
Taka Taka
19.00 FIXED ASSETS (Annexure-A) Tk. 1,456,667,484
Cost
Land 128,191,043 128,191,043
Capital Work In Progress (Building) (Note-19.01) 1,269,122,484 872,518,442
Furniture & Fixture 76,532,182 75,963,785
Renovation 3,178,710 3,178,710
Computer Hardware & Software 47,802,987 45,205,876
Electrical Equipment 46,381,681 46,345,316
Vehicles 150,333,305 142,328,180
Total Cost 1,721,542,392 1,313,731,352
Accumulated depreciation at the end of the year (264,874,908) (244,429,624)
Carrying Value at the end of the year 1,456,667,484 1.069.301.728
ork in Prutrcss (\\i 1k. 1,269,122,484

Corporate
Khulna
Office Bogra Office Doctor's
Particulars Office Total
Building Building Tower
Building
(Guishan)
Amount in Taka
A. Contractor's Bills- Balance b/fwd 403,481,330 238,417,642 189,438,436 - 831,337,408
Add: Bills paid and adjusted 16,769,989 58,938,220 132,968,407 227,508,460 436,185,076
Sub Total (A) balance - c/fwd 420,251,319 297,355,862 322,406,843 227,508,460 1,267,522,484
B.Advance- Opening balance (b/fwd) 7,576,216 9,060,818 24,544,000 - 41,181,034
Less: Adjusted during the year (9,776,216) (9,060,818) (24,544,000) - (43,381,034)
Add: Paid during the year 3,800,000 - - - 3,800,000
Sub Total (B) balance - c/fwd 1,600,000 - - - 1,600,000
Total (A+ B) 1421,851,319 297,355,862 322,406,843 227,508,460 1,269,122,484
This represents expense incurred for office buildings under construction at various places. The break
up of the figure is as above
20.00 ADJUSTMENTS MADE DURING

THE YEAR 1k. 107,622,750
Reserve for unexpired risk 121,472,139 142,768,513
Claim provision 24,819,883 35,878,178
Premium (1,239,097) (2,310,114)
Commission (35,181,046) 4,331,689
Incentive Bonus 1,818,687 1,239,616
Re-Insurance (355,000)
Home Loan 960,000
Sundry expenses provision 2,382,587 2,056,108
Refund Premium (6,450,403) (11,372,450)
Prize & Awards (1,066,023)
7, 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.
2012 2011
Taka Taka

21.00 PREMIUM LESS REINSURANCE 5,029,426,902 4,975,346,673
Type of Premium GrossRI Premium Net Premium

Premium
First Year Premium-01, 371,198,513 4,622,920 366,575,593
First Year Premium- GN-GRB 439,481,594 - 439,481,594
Sub-total 810,680,107 4,622,920 806,057,187
p Renewal Premium-OL 2,100,825,850 4,644,765 2,096,181,085
Renewal Premium- GN-GRB 1,761,099,104 - 1,761,099,104
-I Sub-total 3,861,924,954 4,644,765 3,857,280,189
Group Insurance Premium 253,611,545 44,255,856 209,355,689
Health Insurance Premium 160,575,350 3,841,513 156,733,837
Sub-total 414,186,895 48,097,369 366,089,526
Total Tk. in 2012 5,086,791,956 57,365,054 5,029,426,902
Total Tk. in 2011 I

5,011,684,328 1 36,337,655 1 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) 1,118,258,534 894,417,157

Interest on Debentures and Bonds 65,559,096 74,322,329
Interest on Policy and Project Loan 48,383,297 33, 122,044
Interest and Commission on Bangladesh Govt.
Treasury Bond (BGTB) 867,672,413 686,324,309
Interest on Short Term Deposit (STD A/Cs) 16,737,504 11,351,827
Dividends on Shares 102,599,315 94,307,272
Interest on Home Loan 1,137,658 2,943,212
Profit/ (Loss) on Sale of Shares 107,096,873 316,115,666
Interest on Motor & Bi cycle Loans 18,020
Statutory Deposit with Bangladesh Bank (BGTB) 176,400
2,327,639,110 2,112,903,816
77

2012 2011
Taka Taka

23.00 OTHER INCOME Tk. 27,682,381

Service Charge & others 24,084,921 25,382,196

Misc. Income 1,540,873 2,299,965

Profit/(Loss) on disposal of Fixed Assets 2,056,587 1,052,056

27.682.381 28,734,217
24.00 CLAIMS UNDER POLICIES

[INCLUDING PROVISION FOR CLAIMS DUE

OR INTIMATED], LESS REINSURANCE 2,842,866,842 2,296,733,387
V
Ordinary Group Health
Particulars GN-GRB Total
Life Insurance Insurance
By Death 51,255,680 28,180,873 119,276,322 - 198,712,875
By Maturit y 6 17,181,257 956,972,414 10,761,834 - 1,584,915,505
By Survival 346,548,565 161,108,954 - - 507,657,519
By Hospitalisation 3,570,431 - - 65,731,054 69,301,485
By Others 1,369,680 - 2,185,625 - 3,555,305
By Surrenders 72,258,314 7,002,379 3,346,493 - 82,607,186
Annuities 527,500 - 90,240 - 617,740
Bonus in Cash 376,596,797 - - 376,596,797
Sub-total 1,469,308,224 1,153,264,620 135,660,514 65,731,054 2,823,964,412
Profit Commission - - 18,902,430 - 18,902,430
Total Tk. in 2012 1,469,308,224 1,153,264,620 154,562,944 65,731,054 1 2,842,866,842
(Total Tk. in 2011 1,035,447,140 11,057,473,531 132,906,250 70,906,466 1 2,296,733,387
25.00 COMMISSIONS Tk. 630,474,261
Ordinary Life
266,284,726 574,858,375
Gono-Grarneen Bima 360,298,152 403,018,903
Group Insurance 3,226,064 2,533,059
Health Insurance 665,319 731,361
630,474,261 981,141,698
78

2012 2011
Taka Taka
26.00 LEGAL AND PROFESSIONAL FEES Tk. 6,507,451
Legal advisers' fees for providing legal opinion

and vet legal document etc. 429,375.00 1,030,500.00
Lawyers' fees and expenses in respect of legal
cases for condonation of delay in holding pending
AGMs of the company. 1,176,607 10,881,399
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. 1,401,469 863,115
Other legal & professional fees and expenses
Ea
(Mgt. & Special Audit 2005-2012) 3,500,000 9
6,507,451 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 1,136,906
Publicity in various medias- Newspapers, Television,

Delta Barta, Calendar, Gift, Magazine etc. 7,846,090 7,109,909

Advertisement - Sign Board, Bill Board, etc. 601,640 79,648
9,406,597 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 2,808,722

Various Committee Meeting Fees 207,000 830,000
Charity & Donations 550,000

4,598,268 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

2012 2011
Taka 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 1 3,637,074
57,365,054 3,637,074
33.00 COMPANIES ACT 1994, SCHEDULE XI PART- 11 [NOTE 3(P) (VI) 5]

i) Number of employees drawing salary above Tk. 3000 per month 2,410 2,403
ii) Number of employees drawing salary below Tk. 3000 per month 1 465 525
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:
2012 2011
Particulars
Di rectors Officers Directors Officers
Board Meeting Fee 1,048,000 - 761,150 -
Basic Salary 193,408,255 - 100,792,560
Provident Fund Contribution 17,195,885 - 17,286,589
House Rent 68,420,572 - 68,110,323
Other Allowances 134,365,527 - 232,454,022
Total 1,048,0001 413,390,239 761,150 418,643,494
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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82
Delta Life Insurance Company Limited
Directors' Responsibility Statement
In terms of Section 62 of the Insurance Act 2010, the Board of Directors of the Company certify that:
1. The value of investment in shares and debentures has been taken at cost;
2. The value of all assets as shown in the Balance Sheet and as classified on Form "AA" annexed have
been duly reviewed as at 31 December, 2012;
3. In our belief, the said assets have been set forth in the Balance Sheet at amounts not exceeding their
realizable, carrying or market values under the several headings as enumerated and
4. All expenses of management in respect of Life Insurance Business transacted by the Company in
Bangladesh have been fully debited to the Life Revenue Account as expenses.
Swapan Kumar Sarkar, FCA

Managing Director (In-charge)
Md. Mujibur Rahman
Director

4^"
Aziz Ahmed, FCA, CISA Monzurur Rahman
Director

Chairman
-0-1
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 No.)
Si No, Address Phone (T&T) Mobile

1 Dhaka. Gause-A-Pak Biponi Bitan Bhahan,28/G/1, Toyanabee Circular Road, Motijhcel C/A, Dhaka. 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 02-9568932 01911975855
Chittagong. Ajmol Arcade (3: Floor), 1806, Shiekh Mojub Road, Agrabad C/A, Chittagong. 031-713059 01716159569
- 05 1-62625
' Bogra Surnon Complex (2n1 Floor),Moftz Paglar Mor, Sherpur Road, Bogra 01712177976
051-61507
6 Comilla Goni Bhuiya Mansion (2 Floor), Monoharpur, Comilla 081-68796 01716878859
7 Feni Feni Super Market (3' Floor), Trank Road, Feni 0331-61348 01819460237
8 Khulna Jalil Tower (3r5 Floor), 77, Lower Jessore Road, Khulna. 041-725636 01711957050
9 Munshiganj 607, Razia Hamid Plaza (1' Floor), Bagmamudali Para, Hospital Road, Munshiganj. 02-7620559 01713426850
10 Lakshamipur Poura Super Market (3rd Floor), Lakshamipur. 0381-55605 01776116886
ii Rajshahi CNB Mor, Kazihatta, Rajshahi. 0721-770693 01712084429
12 Barisal Ahsan Plaza (1st Floor), Bottola, Nobograin Road,Barisal. 0431-64306 01712658808
13 Tangail Habib Super Market (2 Floor), Main Road, Tangail. 0921-63299 01711310930
0 82 1-7113 17
14 Symet Mannan Super Market (2 Floor), Amborkhana, Syihet. 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 43, M. K. Road, 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
85
Important Offices of the Company
Gono-Grameen Bima Division

ii I Center ( è 0111 act

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

7 Dhaka -1 132/B, A, Kazi Mokrna para Bazar Road, Savar, Dhaka. 02-7744916, 7744917

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

4 Faridpur 1/1, Jhiltuli, Chourangi Faridpur. 0631-65909, 0631-62069
5 Mymensingh 10 Swadeshi Bazar, Mymensingh 091-66829, 091-51936

6 Chittagong Municipal Housing Estate, 119/120 Mirzarpool, Muradpur, Chittagong 031-656333, 031-654939

7 Comilla 114/127 Nazrul Avenue, Kandirpar, Comilla 081-64226, 081-67200
8 Chandpur Khan Villa, Biponibagh Chandpur. 0841-66451, 0841-65803

9 Barisal 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 071-62261, 071-73045
14 Moulvibazar Noor Mahal, 120 Shantibag, Moulvibazar 0861-53804, 0861-62096
15 Sylhet House # 50, Road # 2, Block # E Shahjalal Upashahar Sylhet. 0821-2832772, 2832749.
16 Pabna Square Road, Thanapara Shalgaria, Pabna. 0731-64379, 073 1-51859
17 Bogra Judge Court Road, Jalcshwaritala, Bogra. 051-78319, 051-63814, 051-61038
18 Naogaon Par Naogaon (Adjacent to Hotel Abakash) Naogaon. 0741-61757, 0741-61163
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
86
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) ....................................................................
Revenue Signature of Shareholder(s)
Folio/BO ID No............................................. stamp
Tk. 20.00 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.
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:
1) ............................................
Signature of Shareholder(s)
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 L

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

Annual Report 2012: A ! T Delta Life Insurance Company LTD

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Annual Report 2012: A ! T Delta Life Insurance Company LTD

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Annual Report 2012

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 -

13 September 1995 Listed in Dhaka Stock

6 December 1995 Listed in Chittagong Stock

March 2001 Membership of Global Network

4 January 2003 Gono-Grameen Bima Merged

30 January 2012 Silver Jubilee of the Company

ANNUAL REPORT FOR THE YEAR ENDED 31st DECEMBER, 2012

Notice of the Twenty-seventh Annual General Meeting

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

I Managing Director (In-Charge)

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

El Respect for all people

Business Performance -2012

Premium & Life Fund

243.40 284. 29 150

400 800 1200 1600 2000 2400 2600

Analysis of Utilisation of Income (in %)

U Management Expenses Claims Provision • Life Fund

Respected Shareholders, Assalamualaikum,

I L)elta Life Insurance Cornpan Ltd.

Investment for the Future:

Risk and Concerns:

Directors' Responsibility Statement:

Mr. Md. Mujibur Rahman, Public Shareholder Director

Mr. M. Anisul Haque, FCMA, Independent Director

Mr. Joynul Abedin, Independent Director

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

- Other Income 1,837 - 1,165

Total Segment Revenue 7,383,406 7,116,287

Total Revenue Surplus (Excess of Revenue over expenditure)

Capital Employed (Segment Assets Less Liabilities)

Notes on Segment information

Key Operating and Financial Statistics: Amount in Crore Taka

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

Claims to Premium (%) 55.89 45.83 45.72 46.54 63.47

Management Expenses to 27.68 34.30 33.76 32.08 32.32

Corporate Social Responsibility:

Outlook for the year 2013:

16 Mr. Md. Nurul Islam Director 11 7

The Pattern of Shareholding as on December 31, 2012.

Si. No. Name of the Directors No. of share

1 Mr. Monzurur Rahman 84,750

2 Mr. Aziz Ahmed, FCA, CISA (USA) 1,000

3 Mr. Borhanuddin Ahmed 16,810

4 Mr. Kazi Fazlur Rahman 1,200

5 Mr. Goiam Sarwar 20,000

7 Mr. Zeyad Rahman 101,880

8 Mr. Arif Ahmed 20,000

10 Mrs. Syeda Soyeli Ahmed 3,200

12 Ms. Saika Rahman 101,900

Si. No Name Status

The Concept of Corporate Governance:

Composition of the Board:

Responsibilities of the Board:

The role of Chairman and CEO:

Relationship with Shareholders and other Stakeholders:

Condition Title Compliance Status - Remarks