ANNUAL REPOR T 2015 - Wonder ITwonderit.com/cms/uploads/files/QLnvnUcSSOtF.pdfANNUAL REPOR T 2015...

ANNUAL REPORT 2015

CENTRAL INSURANCE COMPANY LIMITED 1

ANNUALREPORT

2015

Symbol of Progress & Protection

CENTRAL INSURANCE COMPANY LIMITED2

CONTENTS

Letter of Transmittal 3Notice of the 28th Annual General Meeting 4List of Board of Directors & Sponsors 5Photographs of Board of Directors 6-7Composition of Executive, Audit & Management Committee 8 Organogram of the Company 9Executives of Head Office 10Review from the Desk of Chairman 11-13Review from the Desk of Chief Executive Officer 14-15CEO & CFO’s Certificate to the Board of Directors 16Report of the Audit Committee for the year 2015 16-18Directors’ Report 19-32Credit Rating Report 33Certificate of Corporate Governance 34Status of Compliance of Corporate Governance 35-39Shareholding Position of Directors, Sponsors & Executives 40Board Meeting held in the year 2015 40Company’s Performance 41Photographs of Claim Payments & Others 42-43Investors’ Information 44Short Particulars about Directors' & Senior Corporate Officals 45Directors’ Certificate 46Independent Auditors’ Report 47Statement of Financial Position 48-49Statement of Comprehensive Income 50-51Profit and Loss Appropriation Account 50-51Consolidated Business Revenue Account 52-53Fire Insurance Revenue Account 54-55Marine Insurance Revenue Account 56-57Motor Insurance Revenue Account 58-59Miscellaneous Insurance Revenue Account 60-61Statement of Changes in Shareholders’ Equity 62Statement of Cash Flow 63Form “AA” - Classified Summary of Assets 64Schedule of Property, Plant & Office Equipment 65Notes to the Financial Statements 66-76

Investment in Share 77

History of the Company 78List of the Branches 79

ANNUAL REPORT 2015


LETTER OF TRANSMITTAL

All Shareholders,Bangladesh Securities & Exchange Commission (BSEC)Insurance Development and Regulatory Authority (IDRA)Registrar of Joint Stock Companies & Firms (RJSC)Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange Limited (CSE).

Subject:- Annual Report for the year ended December 31, 2015.

Dear Sir (s),

A copy of the Annual Report along with the Audited Financial Statements as on December 31, 2015 depicting the Financial Position, Income Statement, Statement of changes in Shareholders’ Equity and statement of Cash Flows for the year ended December 31, 2015 including notes thereon of Central Insurance Company Limited is being enclosed herewith for kind information, record and necessary action.

With thanks & regards

Yours Sincerely,

(Md. Jafar Ali ACS)Company Secretary


NOTICE OF THE 28TH ANNUAL GENERAL MEETING

Notice is hereby given that the 28th Annual General Meeting of Central Insurance Company Limited will be held on Thursday, June 02, 2016 at 11-00 a.m. at Auditorium Hall, Krishibid Institution Bangladesh (KIB) Complex, Krishi Khamar Sarak, Farmgate, Dhaka-1215 to transact the following business:

AGENDA

1. Consideration and adoption of the Directors’ Report and the Audited Financial Statements of the Company for the year ended December 31, 2015 together with the Auditors’ Report thereon.2. Declaration of Dividend for the year ended December 31, 2015 as recommended by the Board of Directors.3. Election/Re-election of Directors.4. Appointment of Auditors for the year 2016 and fix their remuneration.

5. Approve the appointment of Independent Directors.

By order of the Board of Directors

Md. Jafar Ali ACS Company SecretaryDhaka, 09 May, 2016.

Notes:

A) April 26, 2016 (Tuesday) is the Record Date. Shareholders whose names will appear in the Register of Members of the Company or in the Depository Register on that date will be eligible to attend the Annual General Meeting and receive dividend.

B) A member entitled to attend and vote at the Annual General Meeting may appoint a proxy in his/her stead. The “Proxy Form”, duly filled & stamped at Tk. 20 must be deposited at the Company’s Share Department at Corporate Head Office not later than 72 (seventy-two) hours before commencement of the AGM

C) Detailed Schedule of election/re-election of Directors is available at the Notice Board of Company at its Corporate Head Office.

D) Members are requested to notify change of address, if any, to the Company well ahead of time. In case of BO A/c holders, the change of address, if any, to be recorded with their Brokerage Houses well in time.

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Corporate Head Office : CIC Tower (3rd & 4th floor), 7-8, Motijheel Commercial Area, Dhaka-1000.

ANNUAL REPORT 2015


LIST OF BOARD OF DIRECTORS AND SPONSORS

Chairman Mr. Md. Nurul Islam

Vice-Chairman Mr. Mohammed Musa

Directors (Group-A) Mr. Abul KalamAlhaj Md. Abu Taher Chowdhury

Mrs. Shahida Nazneen Mr. Nabab Siraj-Ud-Dowla

Mr. Sabbirul KabirMrs. Nurun NaharMs. Angee ChowdhuryMr. Zoynal Abedin Chowdhury

Directors (Group-B) Mr. S.M. Shafiul Bari Mrs. Shamim Ara Begum Mr. Md. Sazzad-un Newaz

Mrs. Rokeya BegumMrs. Tayeeba Alam

Sponsors Mr. Md. Tayabur Rahman Mr. Md. Masud Hossain

Alhaj Md. Nurun NewazMr. Md. Masud KarimMrs. Rosy RahmanMr. Ifthehar MalequeAlhaj Md. Shahjahan

Mr. Abu MohammadAlhaj Md. Yousuf ChowdhuryMrs. Hosne Ara AzizAlhaj Md. Abdul MalequeMr. Shah Alam ChowdhuryAlhaj Mohammed ShafiMr. Mir Rahmat AliMr. A.K.M. Azizur RahmanMr. Mohammad Golam Kibria

Independent Directors Mr. Md. Abdullah Zehad

Mr. Md. Nurul Islam

Chief Executive Officer Mr. Md. Zahid Anwar Khan

Company Secretary Mr. Md. Jafar Ali ACS


PHOTOGRAPHS OF BOARD OF DIRECTORS

Md. Nurul IslamChairman

Mohammed MusaVice-Chairman

Nurun NaharDirector

Nabab Siraj-ud-DowlaDirector

Shahida NazneenDirector

Angee ChowdhuryDirector

Md. Abu Taher Chowdhury Director

Abul KalamDirector

Sabbirul KabirDirector

CENTRAL INSURANCE Company LIMITED6

ANNUAL REPORT 2015


Rokeya BegumDirector

Shamim Ara BegumDirector

Md. Abdullah ZehadIndependent Director

Md. Nurul IslamIndependent Director

Tayeeba AlamDirector

Md. Sazzad-un NewazDirector

Md. Zahid Anwar KhanChief Executive Officer

S.M. Shafiul Bari Director

Zoynal Abedin Chowdhury Director



COMPOSITION OF EXECUTIVE, AUDIT & MANAGEMENT COMMITTEE

Executive Committee

1. Mr. Mohammed Musa Chairman2. Mr. Abul Kalam Member3. Alhaj Md. Abu Taher Chowdhury Member4. Mrs. Nurun Nahar Member5. Ms. Angee Chowdhury Member6. Mr. Zoynal Abedin Chowdhury Member7. Mrs. Shamim Ara Begum Member8. Mr. Md. Sazzad-un Newaz Member9. Mrs. Rokeya Begum Member

10. Mrs. Tayeeba Alam Member

Audit Committee

1. Mr. Md. Abdullah Zehad Chairman2. Mr. Md. Nurul Islam Member3. Mrs. Shahida Nazneen Member

Management Committee

1. Mr. Md. Zahid Anwar Khan Chairman2. Mr. S.M. Jahirul Alam Member3. Mr. Md. Morshed Hasan Member4. Mr. Md. Jafar Ali, ACS Member5. Mr. Md. Mahfizur Rahman Member6. Mr. Rezaul Islam Member

ANNUAL REPORT 2015


ORGANOGRAM OF THE COMPANY

Board of Directors

Company Secretary

Incharge-Share Department

Head of Accounts& CFO

Head of Internal Audit

Head of Claims& Re-Insurance

Head of BCD & Underwriting Head of IT Head of

EstablishmentHead of

Administration

Chief Executive Officer

Incharge Provident Fund

Head of Developments& Branch Incharges

Executive Committee Audit CommitteeChairman


EXECUTIVES OF HEAD OFFICE (AS ON 31ST DECEMBER, 2015)

CHIEF EXECUTIVE OFFICERMd. Zahid Anwar Khan

DEPUTY MANAGING DIRECTOR & CFO Md. Zafrul Islam Bhuiyan

SENIOR EXECUTIVE VICE PRESIDENTSS. M. Jahirul Alam Md. Morshed Hasan

(Claims & Re-Insurance Department) (Branch Control & U/W Department)

SR. VICE PRESIDENTSMd. Jafar Ali ACS Md. Mahfizur Rahman Rezaul Islam

(Board, Share & PF) (BCD & Claims) (IT Department)

SR. ASSISTANT VICE PRESIDENTS Md. Azahar Hossain S. M. Hasan Akther Ibrahim Miah

(Accounts Department) (Share & Estb. Department) (Branch Control Department)

ASSISTANT VICE PRESIDENTS Md. Firoze Akhter Md. Enamul Haque Md. Faruk Hossain

(Branch Control Department) (Accounts Department) (Accounts Department)Md.Tazul Islam Mozumder S.M. Mostafizur Rahman Md. Wahidur Rahman

(Branch Control Department) (Accounts Department) (Re-Insurance Department)Zahid Iqbal Mozumder Md. Mostafizur Rahman

(Underwriting Department) (Accounts Department)SENIOR MANAGERS

Md. Golam Rejwani Mrs. Ruchira Sultana Syed Mozammel Hoque(Claims Department) (Branch Control Department) (Administration Department)Md. Mojibullah Sikder Md. Salah Uddin Nur Hossain

(Branch Control Department) (Audit Department) (Accounts Department)Subir Mistry- (Branch Control Department)

AUDITOR CREDIT RATING INFORMATION LEGAL ADVISERRahman Mustafiz Haq & Co. & SERVICES LTD. (CRISL) Advocate A.S.M.M Kabir Khan

Chartered Accountants Nakshi Homes (1st, 4th & 5th floor) Ex. Assistant Attorney General85, Naya Paltan (3rd Floor) 6/1/A, Segun Bagicha 6/1/A, Segun BagichaDhaka-1000, Bangladesh. Dhaka-1000 Dhaka-1000

CORPORATE HEAD OFFICECIC Tower (3rd & 4th Floor)

7-8, Motijheel Commercial Area, Dhaka-1000 Phone : 9560251-4, Fax : 9567421-2

E-mail : [email protected], Website : www.cicl-bd.com

ANNUAL REPORT 2015


REVIEW FROM THE DESK OF CHAIRMAN

Bismillahir Rahmanir Rahim

Honorable Shareholders – Assalamualaikum.

It is great pleasure to welcome you at the 28th Annual General Meeting of Central Insurance Company Limited. At the very beginning, I would like to express my heartfelt thanks and profound gratitude for your continuous support and co-operation to the Company being recognized as one of the Premier Brand in Insurance Industry of Bangladesh. The Company has always driven to maintain an acceptable balance between increasing shareholders’ value, high ethical standard and operation within the framework or regulatory norms. The Board of Directors is very much cordial and delegated day to day operations to the management and the Chief Executive Officer.

We established good corporate Governance which is vital for sound management system, management efficiency and all other matters connecting for smooth functioning at the Company rests on sound corporate Governance. It is profound product of harmonious relationship between different tiers of the organization such as Board of Directors, Management Authority, Shareholders and all other relevant regulatory Authorities.

Inspire of stiff market competition, performance of the Central Insurance Company Limited during the year 2015 was noteworthy. Gross premium income and net premium income stood at Tk.308.52 Million and Tk.221.19 Million registering a growth1.84% and 8.48% respectively over the previous year. Total assets of the Company stood at Tk.1,625.61 Million as at 31st December, 2015 showing a growth of 3.40% than that of the last year.


Central Insurance Company Limited operating results during 2015 comparing with 2014 are summarized as under:

(In million Tk)Particulars 2015 2014 Growth

Gross Premium Income 308.52 302.94 1.84%Net Premium Income 221.19 203.89 8.48%Underwriting Profit 30.79 47.83 (35.63%)Pre-tax Profit 97.47 134.17 (27.35%)Net profit after tax 69.73 92.39 (24.53%)Total Reserve Fund 440.64 416.52 5.79%Total Assets 1625.61 1572.21 3.40

You will also be delighted to know that Central Insurance Company Limited has been awarded “A” by Credit Rating Information and Services Limited (CRISL) based on its financial statements ended December, 2015. This is no doubt a praiseworthy achievement which indicated very high claim ability, strong financial performance and sound solvency of the Company.

Inspire of various negative factors, the year ahead looks bright. We are fully prepared for the challenges and opportunities that lie ahead. We have a good market reputation for timely claim settlement and efficient services to clients. Over the years, we have built a strong platform for future growth of the Company with our experienced management team and sound capital base.

Before, I conclude, I would extend my gratitude to all the stakeholder like members of the Board of Directors, Regulatory Authorities, Shareholders, Valued Clients and the staff members for their continues support, guidance and advice.

May Almighty Allah in his infinite mercy guide us for our continued growth, prosperity and well being in days to come.

Thanking you and Allah Hafez.

Md. Nurul Islam Chairman.

ANNUAL REPORT 2015


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Bismillahir Rahmanir RahimDear Shareholders -Assalamualaikum.I have the privilege to welcome you all to the 28th Annual General Meeting of Central Insurance Company Limited. On behalf of all of us related to the Company, I would like to express my sincere thanks and profound appreciation for your continued interest and support to the Company.Management efficiency, Functional ability and all other matters connecting to smooth functioning of the Company rest on sound corporate governance which Central Insurance Company Limited possesses. As a result, harmonious relationship exists among the Board of Directors, Management Team, Valued Shareholders & Stakeholders and all other concerned legal entities, Insurance Developments and Regulatory Authority (IDRA), Bangladesh Securities and Exchange Commission (BSEC), Dhaka and Chittagong Stock Exchange Limited and so on. However, Central Insurance Company Limited is fully committed to external best possible personalized services to its valued stakeholders and maintains close relationship with them. It has a committed policy to settle all payable claims within the shortest possible time.As you all know that, the market of Insurance Industry in Bangladesh was very challenging and uncertain due to the market competition in the year of 2015. Moreover in the previous year the Company had to operate in a more challenging in the domestic environment. Despite all adverse scenarios, I am delighted to inform you that our Company has grown stronger & stronger over the past years. We managed to achieve possible growth in almost all segment of our business in 2015.We look forward to strengthen further our position in the years to come and enhance the image of our Company through our achievements, Our Priority for 2016 is to continue to implement our growth strategy. We may face significant challenges as well as come across with new opportunities. We are committed in taking those challenges and grab those opportunities. Insha’Allah we will strive towards sustained profitability for our Company.I sincerely thank our respected shareholders and valued clients for reposing their unshakeable trust and confidence in the management and employees of Central Insurance Company Limited. I also express heartfelt thanks and gratitude to the Board of Directors of the Company and our valued well-wishers for their practical guidance and constructive suggestions during the year.

Thanking you with best regard.

.Md. Zahid Anwar KhanChief Executive Officer

REVIEWFROMTHE DESKOF CHIEF EXECUTIVE OFFICER

ANNUAL REPORT 2015


REVIEWFROMTHE DESKOF CHIEF EXECUTIVE OFFICER

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CEO & CFO’S CERTIFICATE TO THE BOARD OF DIRECTORS

This is to certify that we have reviewed financial statements of the Central Insurance Company Limited for the year ended 31st December, 2015 and that to the best of our knowledge we belief that,

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

c) There are no transactions entered into by the Company during the year of 2015 which are fraudulent, illegal or violation of the Company’s code of conduct.

Md. Zafrul Islam Bhuiyan Md. Zahid Anwar Khan Chief Financial Officer Chief Executive Officer

The Audit Committee Report presented under condition # 3.5 of the Bangladesh Securities and Exchange Commission (BSEC) guidelines provides an insight on the functions of the Audit Committee during the year 2015.

As mentioned in the compliance statement, the Board of Central Insurance Company Limited has formed an Audit Committee, required under the codes of Corporate Governance of BSEC, with some specific assignments under its Terms and Reference. The Committee is comprised of 3 members including 2 independent directors where one of them (Independent Director) is the chairman of the Committee. The Company Secretary performs as a Secretary to the Audit Committee. As required, all members of the Audit Committee are ‘financially literate’ and are able to analyze the financial statements.

Purpose of Audit Committee

The role of the Audit Committee is to monitor the integrity of the financial statements of the Company and review and, when appropriate, make recommendations to the Board on business risks, internal controls and compliance. The Committee assists the Board of Directors to ensure that the financial statements reflect a true and fair view of the state of affairs of the Company and in ensuring a good monitoring system within the business. The Audit Committee is responsible to the Board of Directors .

REPORT OF THE AUDIT COMMITTEE FOR THE YEAR 2015

ANNUAL REPORT 2015


Responsibilities and Duties of Audit Committee

The responsibilities and duties of the Audit Committee are:

A) Financial Reporting

• To review the quarterly and annual financial statements of the Company, focusing particularly on;• Any significant changes to accounting policies and practices; • Compliance with applicable Financial Reporting Standards and other legal and regulatory

requirements.

B) Internal Control

• To consider annually the Risk Management Framework adopted within the Company• To ensure that the system of internal control is soundly conceived

C) Internal Audit

• To review the internal audit plans and to be satisfied as to their consistency with the risk management framework used and adequacy of coverage.

• To review status reports from the Internal Audit and ensure that appropriate actions have been taken to implement the audit recommendations

D) External Audit

• To review the external auditor’s audit plan, scope and audit report.• To review any matters concerning the appointment and re-appointment, audit fee and resignation or

dismissal of the external auditor• To review the external auditor’s findings arising from audits

E) Other Matters

• To act on any other matters as may be directed by the Board

Reporting of the Audit Committee

A) Reporting to the Board of Directors

The Audit Committee reports on its activities to the Board of Directors. The Audit Committee immediately reports to the Board of Directors in case of conflicts of interest, irregularity or material defect in the internal control system, infringement of laws, rules and regulations.

B) Reporting to the Authorities

The Audit Committee reports to the Board of Directors about anything which has material impact on the financial condition and results of operation. The Committee also discuss with the Board of Directors and the Management if any rectification is necessary. If the Audit Committee finds that such rectifications has been unreasonably ignored, the Committee reports such findings to the Bangladesh Securities and Exchange Commission upon reporting of such matters to the Board of Directors for three times or completion of a period of 6 (Six) months from the date of first reporting to the Board of Directors, which is earlier.


C) Reporting to the Shareholders and General Investors

Report on activities carried out by the Audit Committee, including any report made to the Board of Directors under condition 3.4.1 (ii) of the BSEC Corporate Governance Notification above during the year, shall be signed by the Chairman of the Audit Committee and disclosed in the Annual Report of the Company.

Meeting Attendance

The Audit Committee met four times during the year 2015. All the members were present in all meetings of the Committee.

The Audit Committee met with the external auditor’s separately, and with the internal auditors, on an annual basis without any Executive Directors being present. The Secretary of the Audit Committee facilitates the Chairman and other members for effective functioning of the Committee as per its terms of reference as well as corporate governance notification of BSEC. The Details of attendance of each member at the Audit Committee meetings during 2015 are given bellow:

Attendance at Audit Committee MeetingsSl.N Composition of Audit Committee Held Attended %

1 Mr. Md. Abdullah ZehadChairman, Audit Committee (Independent Director) 4 4 100%

2 Mr. Md. Nurul IslamMember, Audit Committee (Independent Director) 4 4 100%

3 Mrs. Shahida NazneenMember, Audit Committee (Non-Executive Director) 4 4 100%

4 Mr. Md. Jafar Ali ACSSecretary, Audit Committee (Company Secretary) 4 4 100%

Finally, The Audit Committee would like to express its sincere thanks to the Board of Directors, Key Management Personnel, Internal Audit Division and all employees to their utmost dedication for achieving transparency in performance and all sorts of cooperation extended to the committee in discharging its responsibilities.

Md. Adbullah Zehad Md. Jafar Ali ACSChairman of Audit Committee Secretary of Audit Committee

ANNUAL REPORT 2015


DIRECTORS’ REPORTFor the year ended 31st December, 2015

Yearwise Total Investment (Taka in crore)

20152014201320122011 201520142013201220110

10

20

30

40

50

60

70

80

Appropriation of Profit in 2015Yearwise Total Asset (Taka in crore)

0

50

100

150

200

146.71162.56157.22

130.46

106.24

66.5574.55 73.6873.89

44.18

Provision for TaxationProvision for Gratuity FundProvision for Exceptional LossesProvision for General Reserve

28.21%0.51%

22.49%2.03%

Provision for Retained ProfitProvision for IEF

46.76%0.00%

100.00%

Bismillahir Rahmanir Rahim,

Dear Shareholders, Assalamu Alaikum wa Rahmatullah,

At the outset, the Board of Directors of Central Insurance Company Limited would like to thanks all of you for your continued patronage and support over our rich 28-years journey, make an important milestone in the history of our Company. We are indebted to all those who have enabled us to present a comprehensive Annual Report along with the Audited Financial Statements for the year ended December 31, 2015 together with the Auditor’s Report thereon, for the kind consideration and approval of our shareholders. The Board of Directors adopted these on April 02, 2016 in its 200th Meeting.

In view of the above, the Director’s Report has been prepared in compliance with section 184 of the Companies Act, 1994 (Act No. XVIII of 1994) and other relevant rules and notifications issued by the regulatory bodies. Relevant disclosures and explanations pertaining to issues to ensure compliance, transparency and good corporate governance practices have been made along with the details of our Business performance, operations and achievements for the year 2015.

Global Economic Scenario

In the past few years, the global economy has lacked a positive dynamic exemplified by the uneasy combination of technological opportunities, slow investment growth and lackluster business and consumer confidence. It is expected that the world economy would witness the pace of growth to improve in 2015, after four years of intermittent recessions among major economies from 2011– 2014. The world is expected to expand in 2016 by 3.6% (inflation adjusted), up from the last year’s estimated 3.1% growth. Both advanced and emerging economies are expected to contribute to the improvement. Europe is slated for moderate growth, 1.9% measured by the GDP, while North American’s growth is expected to being pace with the last year. Asia represents the global economic landscape with India, China and Indonesia expected to continue to report leading growth rates. Latin America and Africa are facing difficult times, Commodity prices are almost 30% lower than their 2011 peaks, driving cutbacks in mining, petroleum and agriculture.

Bangladesh Economy

Bangladesh is a developing country that is classified as a Next Eleven emerging market and one of the Frontier Five. According to a recent opinion poll, Bangladesh textile industry is the second most pro-capitalist population in the developing world.


Composition of Underwriting Profit in 2015 Yearwise Reserve (Taka in crore)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1.731.87

2.39 2.46

2.94

Yearwise Net Profit before Tax (Taka in crore)

2015201420132011 2012 2015201420132011 20126

9

12

15

9.46

12.34

9.75

13.42

7.36

5.53%

68.31%

14.74%

11.42%

Fire Revenue Account

Marine Revenue Account

Motor Revenue Account

Miscellaneous Revenue Account

100.00%

Between 2014 and 2015, Bangaldesh averaged a GDP growth rate of 6%. The economy is increasingly led by export-oriented industrialization. The Bangladesh textile industry is the second-largest in the world. Other key sectors include pharmaceuticals, shipbuilding, ceramics, leather goods and electronics. Being situated in one of the most fertile regions on Earth, agriculture plays crucial role, with the principal cash crops including rice, jute, tea, wheat, cotton and sugarcane. Bangladesh ranks fifth in the global production of fish and seafood, Remittances from the Bangladehsi diaspora provide vital foreign exchange.

The Bangladesh telecoms industry has withnessed rapid growth over the years and is dominated by foreign investors. The government has emphasised the development of software services and hi-tech industries under the Digital Bangladesh scheme. Bangladesh has substantial reserves of natural gas and coal; and may international oil companies are involved in production and exploration activities in the Bay of Bengal. Regional neighbours are keen to use Bangladeshi ports and railways for transhipment. Located at the crossroads of SAARC, the ASEAN+3, BIMSTEC, and the Indian Ocean, Bangladesh has the potential to emerge as a regional economic and logistics hub.

In 2015, Per-capita income stood at USD 1,314. While achieving singnificant macroeconomic stability, Bangladesh continues to face challenges such as inftrastructure deficits and energy shortages.

GDP growth

The GDP growth forecast for FY-2016 is ambitious but attainable to 7%. According to the donor agencies, the prospect for Bangladesh is bright if it can overcome certain obstacles, for instance, increase private investments, provide macroeconomic stability and adopt economic development policies that will propel faster growth. The World Bank, the ADB and the IMF have upgraded the fiscal year’s outlook for Bangladesh’s economic growth recently on the back of the optimism of the positive indicators of the economy.

The GDP growth of Bangladesh for 2016 is the third highest in the region. The Government has been emphasizing on increased public spending on cost effective projects in power and transportation sectors and is also fostering climate change for stable positive economic growth.

Insurance Industry in Bangladesh

Emerging risk lines will be the growth engine for insurers over the comong decade, a trend potentially applicable for Bangladesh when it comes to absorbing the shock of spillover effect from the rest of the worl’s economy. However, according to Bangladesh Bank the country’s economy is estimated to grow

ANNUAL REPORT 2015


at an encouraging 6.5% in FY-2015 and is projected to grow at 7.0% and 7.2% in FY-2016 and FY-2017 respectively.

At 6.6% percent the growth of Non-life insurance companies’ premium income remained almost stagnant compared to preceding year. A total of 47 private insurance and a state-owned corporation’s cumulative earning stood at Tk.24,471 million in 2014. In the year when Bangladesh graduated to a middle income country, this poses as a rather disappointing result and is evidently due to the let-down of Insurance Sector to be on par with the economic growth of the country.

In Bangladesh, where growth falls by 1.2 percentage points in response to a 1 percent decline in global growth, we have been had double digit growth in non-life insurance sector in the past years up to 2012. Non-life Insurance penetration rate (insurance premium as a percentage of GDP) has shrunk from 1.1% in 2010 to 0.70% on 2014 leaving the market on a standstill.

within the existing non-life insurance market players, consequenty leading to many detrimental practices. The problem is all the more adverse as World Bank’s estimate suggest that spillovers from a 1 percent negative growth shock in India results in a 0.6% points decline in Bangladesh.

Thus, the facts mentioned henceforth represent a dismal and a rather incongruous market scenario. However, while it is deplorable to fathom the rationale for the insurance market being in the slump, it is in essence thriving at a reasonably good rate of 6%; thwarting multiple problems and keeping pace with booming economy. Evidently, Bangladesh insurance market has every potential to grow in high double digits by tapping the hitherto unexposed segments of the market.

Role and expectation of IDRA

Necessary rules and regulations are to be formulated to implement the “Jatio Bima Niti’, Introduce Corporate Governance. Develop Wage and Means to uphold policy holder’s interest, Develop Surveillance on insured, Developed Product to cater insurance needs for the newly implemented high tech park and economic zones, More training for the Agent and as well as for the Surveyors, Increase local Capacity, More Symposiums, Conferences, Workshops are to be organized. More Surveillance for controlling the unethical practice of the market, IDRA needs to be technically sound to develop the industry, Industry expects to Government will provide more manpower of IDRA. IDRA must have a comprehensive insurance software, Solution on the VAT issue on Agency Commission, Regulation as developed by IDRA must be client oriented, Innovation of customer friendly new product, IDRA must have product parameter/policy guide so that each and every product does not need vetting.

Yearwise Gross & Net Premium IncomeTaka in crore

2015201420132011 20122015201420132011 2012

2015201420132011 2012Gross Premium Net Premium

0.0

6.4

12.8

19.2

25.6

Yearwise Gross Claim Paid (Taka in crore)

0

1

2

3

4

5

6

7

8

4.46

5.876.19

3.68

4.62

26.8

6

30.2

9

19.9

4

20.3

9 30.8

5

22.1

2

24.6

9

23.9

1

17.1

6

15.7

3

Yearwise Pretax Profit & Underwriting Profit

Taka in crore

0

3

6

9

12

15

Pretax Profit Underwriting Profit

9.46

12.3

4

13.4

2

7.36

4.50 4.78

9.75

3.79

3.63

3.29


Digitalization

Current World is moving very fast with the development of Information Technology. To keep up this progressive digital world, Bangladesh Government has taken indicatives to digitalize the whole country through technological uses and developments.

Central Insurance is also seriously preceding seriously the computerization of activities at all levels. In this regard, we have already launched ERP software named insurance manager softwear for improving better services. Most of the branches allover Bangladesh already connected through an IT network. Our dynamic website contains comprehensive information; Annual Report and other relevant information are also available for our valued shareholders and customers.

Corporate Governance

Corporate performances are needed to good governance and good governance requires a transparent, efficient and effective system of decision-making. It aims for a high level of transparency in the Company’s operation. It has always been our Company’s endeavor to excel though better governance. The management strictly address to two basic principles of corporate governance i.e. transparency and disclosure. The Board Meetings are held regularly where policy decisions are taken on the basis of open discussion and consensus, keeping the interests of all shareholders and stakeholders of the Company in mind. Since the inception of the Company the Board of Directors has been fully committed to build a strong and empowered management team. This has helped us to maintain good corporate governance. Listed below are our specific positions with respect to specific compliance requirements.

• The Financial Statements of the Company present a true and fair view of the Company’s state of affairs, result of its operations, cash flows and changes in equity.

• Proper books of accounts as required by law are being maintained.

• Appropriate accounting policies have been followed in formulating the Financial Statements and accounting estimates are reasonable and prudent.

• The Financial Statements are prepared in accordance with international Accounting Standard (IAS) as applicable in Bangladesh.

• The Internal Control System is sound in design and effectively implemented and monitored.

• There is no significant deviation from the operating result of last year.

• Bangladesh Securities & Exchange Commission’s Compliance Report is enclosed herewith

• Key Operating and financial data of last five years have been presented in summarized form in this repot under the head “5 Years at a Glance”

• The Board of Directors of the Company has been formed an “Audit Committee” in compliance with guidelines of BSEC’s notification.

• The CEO and the CFO had duly endorsed the Financial Statements of the Company before placing them before the Board for approval.

• The meetings of the Board of Directors were presided over by the Chairman. Written notices of the Board meeting mentioning agenda along with working papers were circulated ahead of the meeting; minutes were correctly recorded, signed by the Chairman and circulated. Minutes were also shared with IDRA.

ANNUAL REPORT 2015


Business Achievement

Now I take this opportunity to present before you some of the prime aspects of the Company’s Audited Accounts & Financial Statement 2015 compared to that of 2014:-

Gross premium income of the Company for the year 2015 at Tk.30,85,24,774.00 Which was Tk. 30,29,35,994.00 in the year 2014. The total premium income increased by 1.84% compared to that of previous year. The net premium income of the year under review at Tk.22,11,86,298.00 Which was Tk. 20,38,91,987.00 in the previous year. Increase in the rate of the net premium is 8.48% over the previous year. In Bank and other financial instruments we have an investment of Tk.73.69 crore and in land & building; we have so far invested Tk.40.28 crore. Business of the Company includes our Company’s share of premium on account of public sector business received through the Sadharan Bima Corporation for the year ended December 31, 2015.

Now-a-days, we are facing hard competition to procure business with limited scope of opportunity and this has ultimately affected the business of our Company like others. However, at the direction of the Board of Directors our management has taken all out efforts within legal norms to increase the business and the income as well. If we can uphold the present spirit and the Company’s present position in the Industry, Insha’Allah, in future our Company shall come in line with other reputed Companies.

Class wise Financial Achievement in 2015 compared to 2014 is shown below:

(Figures in million Taka)

Description Fire Marine Motor Mise Total 2015

Total 2014

Gross Premium 133.66 122.37 31.23 21.26 308.52 302.93Re-Insurance ceded 31.00 34.92 6.14 15.28 87.34 99.04Net Premium 102.66 87.45 25.10 5.98 221.19 203.89Net Claim 21.90 11.95 2.93 0.04 36.83 46.20Expenses of Management 54.72 45.60 12.39 3.89 116.60 84.82Reserve for unexpired Risk 41.06 35.44 10.04 2.39 88.93 81.70Underwriting Profit 1.70 21.03 4.54 3.52 30.79 47.83Investment & other income 75.11 93.57Unallocated expenses 8.44 7.23Net Profit before Tax & Reserve 97.47 134.17Reserve for Exceptional Losses 22.19 20.39Taxation Provision 27.74 41.78Net Profit after Tax 69.73 92.39

Dividend & Other Reserves

The Board of Directors of the Company has recommended 10% cash dividend for the year ended 31st December, 2015 from the net profit of Tk.97.47 Million. The Board of Directors of our Company recommended transfer of Tk.22.12 Million for exceptional loss account, Tk.27.74 Million as income tax, Tk. 2.00 Million as general reserve, Tk. 0.5 Million as provision of Gratuity Fund and carried forward the balance amount transfer to Balance Sheet. The policy of the Directors is to pay dividend to the heights possible extent from the surplus after being considered tax & reserve for exceptional loss subject


to normal business condition. On 31st December, 2015 total investments in Bank & Other financial instruments are Tk.7.06 Million. This progress undoubtedly shall create hopes in the mind of valued shareholders.

Directors’ List

During the year 2015 Mr. Md. Nurul Islam, Mr. Mohammed Musa, Mr. Abul Kalam, Md. Abu Taher Chowdhury, Mrs. Shahida Nazneen, Mr. Nabab Siraj-ud-Dowla, Mr. Sabbirul Kabir, Mrs. Nurun Nahar, Ms. Angee Chowdhury and Mr. Zoynal Abedin Chowdhury held the posts of Directors from Group-A (Sponsors) and Mr. S.M. Shafiul Bari, Mrs. Shamim Ara Begum, Mr. Md. Sazzad-un Newaz, Mrs. Rokeya Begum and Mrs. Tayeeba Alam are Directors from Group-B (Public) shareholders.

Independent Directors

To comply with BSEC’s requirement, the Board of Directors in its 177th & 184th Meeting held on 03-01-2012 & 14-01-2013 respectively appointed following two personalities as independent Directors :-01. Mr. Md. Nurul Islam.02. Mr. Md. Abdullah Zehad

The tenure of above Independent Directors has been expired on proper time. In this regard in accordance with the recommendation by the Board of Directors their tenure is enhance for the next 3 years which is submitted for kind approval in the 28th Annual General Meeting.

Directors’ Remuneration

We have been paid Tk.5,000/- (Five Thousand) only to each director including independent director as a Meeting fee in 2015.

Retirement of Directors

Group-‘A’ (Sponsors' Portion)

In accordance with the provision of the Articles of Association of the Company, four directors from Group-A namely Mr. Abul Kalam, Mrs. Shahida Nazneen, Mr. Nabab Siraj-ud-Dowla and Mr. Sabbirul Kabir will retire from office by rotation at the 28th Annual General Meeting and being eligible for reappointment. In place of those vacant posts of Directors Mrs.Rosy Rahman, Mr. Masud Hossian, Mr. Ifthehar Maleque and Mr. Md. Masud Karim Sponsor Shareholders have offered their candidature for appointment as director and their resumes are enclosed herewith as Annexute-1.

Group-‘B’ (Public Portion)

In accordance with the provision of the Articles of Association of the Company two directors from ‘Group-B Directors Namely Mr. S.M Shafiul Bari and Mr. Md. Sazzad-un-Newaz will retire from office by rotation at the 28th Annual General Meeting.

In pursuance of the Insurance Rules 1958, necessary arrangements have been made for election of two Directors from ‘Group-B’ shareholders and notice has been published in two daily newspapers inviting nominations from the eligible candidates in this respect. Mr. A. K. Gulam Kibria, Principal of G. Kibria & Co., Chartered Accountants has been appointed as Election Commissioner as per the decision of the Board of Directors.

ANNUAL REPORT 2015


Appointment of Auditor

M/s. Rahman Mustafiz Haq & Co, Chartered Accountants, External Auditor of the Company, retire at the 28th Annual General Meeting and will be completing 3 (three) consecutive years at the end of this AGM. As per law, a new External Auditor for the Company is required to be appointed for the year 2016. The Board of Directors have recommended for appointment of M/S. G. Kibria & Co., Chartered Accountants, Sadharan Bima Sadan (5th Floor), 24-25, Dilkusha Commercial Area, Dhaka-1000 as external auditor for the year 2016 with remuneration of Tk.125,000/- (one lac twenty five thousand only) submitted to shareholders for kind approval.

Conclusion

Finally Hon'ble Board of Director's of Central Insurance Co. Ltd. is also grateful to all the govt & Non-Govt. Bank, Financial Organizations, Private Companies and all kind of share holders for cordial co-oparation & contribution in our Company's activities and growth. Valuable clients Royel Cement Ltd. KSRM Billet Industry, Ama Syntex Ltd., Kamal Yarn Ltd., Crossline Knit Fabrics, Nuruzzaman Khan, Super Knitting & Dyeing Mills Ltd., Rahima Aziz Knit Spin Mills Ltd., Sonali Fabrics and Textile Mills (Pvt) Ltd. T.K. Group, Flora Ltd., JK Group, Islam Group, Bengal Group, Shovon Group, NRG Group, Khan Sons Group, Alco Pharma, BRB Group, Lucky Trading, Kabir Steel Re-rolling Mills, Benz Industries Ltd., Visual Knitwear Ltd., Musa & Sons, Mosharrof & Brothers, Aftab Group, Nipa Fashion, Rashid Krishi Khamar, Toka Ink (BD) Ltd., Unigears Ltd., Nova Digital Electronics Ltd., Sadma Fashion ware Ltd. Mouchak Knit Composit Ltd., Masud Apparels Ltd., Babilon Group, Badsha Group, Impressive Group, Mohammad Elias Brothers Poy Manufacturing Plat Ltd., Madina Garments Ltd., Masud Group, Electro Mart Ltd., Daf PP Industries Ltd., Energypac Engineering Ltd., M/S Alhaj Abdul Kuddus Ltd., Alhaj Motahar Group, Basumati Group, Paragon Group, Ershad Group, Impex International, Afil Fish Feed Ltd. Daf CTG Ltd., Need Group of Industries, Mohona Enterprise, Ross Dresses Ltd. Shamoli Ideal and Technical Collage, Haji Hasem Spinning Mills Ltd. Super Star Group, Orix Packaging and Accessories, Royel PP Bag, Universe Synthetic Fiber Ltd. Pharma and Farm, Voyager apparels, Southeast Textiles, Interstoff Apparels, Aziz Group, Aftab Group, Bengal NFK Textile Ltd., Total Fashion, Next Accessories Ltd. ASM Chemicals Industries Ltd. and all clients of the Company is expressed its sincerely thanks & gratefullness by the Hon'ble Board of Directors of the Company.

On behalf of the Board of directors,

(Md. Nurul Islam) Chairman


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2016 A_© eQ‡ii wRwWwc cªe„w×i jÿ¨gvÎv 7% D”Pvwfjvmx n‡jI AR©b m¤¢e| `vZv ms¯’vi gZvbymv‡i evsjv‡`‡ki wRwWwc cªe„w×i jÿ¨gvÎv AR©‡bi D¾¡j m¤¢vebv i‡q‡Q hw` wKQz wbwðZ cªwZeÜKZv `~i Ki‡Z cv‡i - †hgb, †emiKvix wewb‡qvM e„w×, mvgwMÖK w¯’iZv Ges A_©‰bwZK Dbœqb bxwZ I ev¯Íe cÖ‡qvM Ki‡jB `ªæZ cªe„w× wbwðZ n‡e| wek¦ e¨vsK, Gwkqvb Dbœqb e¨vsK Ges AvšÍR©vwZK A_© Znwej evsjv‡`‡ki cÖwRwUf A_©‰bwZK Dbœqb m~PK ‡`‡L evsjv‡`‡ki A_©‰bwZK cÖe„w× m¤ú‡K© Zv‡ì `„wó fw½ e`wj‡q‡Q|

2016 mv‡ji A_© eQ‡i evsjv‡`‡ki wRwWwcÕi cÖe„w× AÎ AÂ‡j Z…Zxq m‡e©v”P| miKvi ¯’vqx Ges wbwðZ A_©‰bwZK cªe„w× wbwðZK‡í we`y¨r I cwienb LvZmn Rjevqy cwieZ©b †ivaK‡í e¨q mvkÖqx cÖK‡í wewb‡qv‡Mi j‡ÿ¨ †Rvi w`‡q‡Q|

evvsjv‡`‡ki exgv wkí

evsjv‡`k eZ©gv‡b D`xqgvb A_©‰bwZK kw³i †`k wn‡m‡e AvZ¥cÖKvk Ki‡Z mÿg n‡q‡Q| wkí wewb‡qvM †hgb evo‡e, †Zgwb evo‡e AcÖZ¨vwkZ ÿwZi SzuwK| exgvKvix KZ©„K ÿwZi SzuwK wbqš¿Y eë¯’v eëmv e„w×i hš¿ wn‡m‡e KvR Ki‡e| evsjv‡`k e¨vsK Gi g‡Z 2015 A_© eQ‡i cÖe„w×i nvi 6.5% Ges 2016 I 2017 A_© eQ‡i m¤¢ve¨ cÖe„w× h_vµ‡g 7.0% I 7.2% aiv n‡q‡Q|


†nv‡Uj †iwWmb eøy, PÆMÖv‡g †Kv¤úvbxi MÖvnK mgv‡ek|

eZ©gv‡b bb-jvBd BÝy¨‡iÝ †Kv¤úvbx mg~‡ni wcÖwgqvg e„w× MZ eQ‡ii mgvb 6.6%| 47 wU †emiKvix exgv †Kv¤úvbx I ivóª wbqš¿Yvaxb K‡c©v‡ik‡bi †gvU AvqK…Z exgv wcÖwgqvg 24,471 wgwjqb| evsjv‡`k ga¨g Av‡qi †`‡ki A_©bxwZ‡Z eZ©gvb exgv wcÖwgqvg msMÖ‡n ˆbivk¨RbK Ae¯’v‡b i‡q‡Q, hv A_©‰bwZK cªe„w×‡Z exgvLv‡Zi Ae`vb nZvkve¨ÄK| hLb wek¦ A_©bxwZi cªe„w× 1.2% AebwgZ †mLv‡b weMZ 2012 mv‡j bb-jvBd BÝy¨‡iÝ Lv‡Z cªe„w× nq wØ¸b nv‡i| wRwWwc‡Z bb-jvBd BÝy¨‡iÝ wcÖwgqv‡gi †RvMvb 2010 mv‡j 1.1% †_‡K K‡g 2014 mv‡j n‡q‡Q 0.70% |

`wÿY Gwkqvi gaëZx© ¯’v‡b Ae¯’v‡bi Kvi‡Y evsjv‡`k bb-jvBd BÝy¨‡iÝ †Kv¤úvbx mg~n cÖej cÖwZ‡hvMxZvi m¤§yLxb, d‡j †eAvBwb I A‰bwZK cÖ_v †e‡o wM‡q‡Q| G Kvi‡Y evsjv‡`k exgv eëmv‡qi Rb¨ Lye D‡ØMRbK AÜKviv”Qbœ Ges †emvgvj wPÎ Dc¯’vcb K‡i| hv†nvK, exgv evRv‡i eZ©gvb †kvPbxq Ae¯’v Abyaveb KiZt g›`v KvUv‡Z hyw³hy³ mgvavbK‡í AvBwWAviG Gi M„nxZ c`‡ÿc m¤¢vebvi Øvi Lyj‡Z cv‡i|

exgv Dbœqb I wbqš¿Y KZ©„cÿ Gi Kg© I cÖZ¨vkvexgv Dbœqb I wbqš¿Y KZ©„c‡ÿi Kv‡Q exgv wk‡í mswkøó mK‡ji cÖZ¨vkv Óexgv bxwZÓ Kvh©Ki Ki‡Z n‡j cÖ‡qvRbxq wewa-weavb cÖbqY Kiv, K‡c©v‡iU Mf©‡bÝ I cwjwm MÖvnK‡ì mKj ¯^v_© msiÿY wbwðZ KiY, exgvKvixi Dci bRi`vixi Dbœqb, be PvjyK…Z nvB‡UK cvK© I A_©‰bwZK †Rv‡bi exgv †mev cÖ`v‡b Dc‡hvMx ‡mev PvjyKiY| exgv G‡R›U I RwicKvix‡ì Rb¨ AwaK cÖwkÿ‡Yi eë¯’v Kiv, Avf¨šÍixY jÿ¨gvÎv e„w× KiY, AwaK mfv, mgv‡ek, IqvK©k‡ci Av‡qvRb Kiv| exgv wk‡í A‰bwZK eëmv msMÖnmn bvbv Awbqg `~ixKi‡Y ¸iæZ¡v‡ivc mn mwVK bRi`vixi eë¯’vKib Ges exgv wkí‡K AwaK kw³kvjx Ki‡Y AvBwWAviG-‡K cÖhyw³MZfv‡e `ÿ nIqv| exgv wkí Avkv K‡i miKvi Av‡iv AwaK Rbej wb‡qvM w`‡e hv‡Z K‡i Rbe‡ji Afve RwbZ KvR m¤úbœ K‡i AvBwWAviG GKwU kw³kvjx cÖwZôvb wn‡m‡e wb‡R‡ì cÖgvY Ki‡Z cv‡i| AvBwWAviG Gi Aek¨B md&UIq¨vi _vK‡e, G‡RwÝ Kwgkb Gi f¨vU welqK mgm¨v mgvav‡b wb‡`©kbv, wewa-weavb hv Pvjy Kiv n‡q‡Q. Zv Aek¨B MÖvnK †mev mywbwðZ Kiv DwPr| MÖvnK evÜe bZzb bZzb †mev/cÖWv± D™¢veb I Pvjy Kivi †ÿ‡Î AvB.wW.Avi.G Gi Aek¨B GKwU mywbw`©ó MvBW jvBb _vK‡e hvi Øviv cÖ‡Z¨K cÖWv‡±i Rb¨ †fwUs‡qi cÖ‡qvRb bv nq|

wWwRUvjvB‡RkbZ_¨ cÖhyw³i Dbœq‡bi mv‡_ eZ©gvb wek¦ Lye `ªyZ GwM‡q hv‡”Q| GB j¶¨‡K mvg‡b ‡i‡L evsjv‡`k miKvi mviv †`k‡K wWwRUv‡ji AvIZvq Avbvi Rb¨ Z_¨ cÖhyw³i eënvi I Gi Dbœq‡b e¨vcK Kg©m~Px nv‡Z wb‡q‡Q|

†m›Uªvj BÝy¨‡iÝ †Kv¤úvbx mKj ¯Í‡ii Kv‡R Kw¤úDUvi eënv‡ii welqwU‡K ¸iæ‡Z¡i mv‡_ MÖnY K‡i‡Q| d‡j, BwZg‡a¨ Avgiv m‡e©vËg †mev cÖ`v‡bi j‡¶¨ BÝy¨‡iÝ g¨v‡bRvi bv‡g B.Avi.wc. md&UIq¨vi gva¨‡g hvÎv ïiæ K‡iwQ| Avgv‡ì cªvq mKj kvLv Awdm¸wj AvB.wU †bU-Iqv‡K© hy³| GQvov Avgv‡ì GKwU mg„× I‡qe-mvBU i‡q‡Q, †hLv‡b m¤§vwbZ MÖvnKMY

ANNUAL REPORT 2015


†Kv¤úvbxi Aa©-evwl©K kvLv eë¯’vcK m‡¤§jb Dcj‡¶¨ g‡Â Dcweó Av‡Qb cwiPvjbv cl©‡ì m`më„‡›ì mv‡_ gyL¨ wbe©vnx Kg©KZ©v|

I †kqvi‡nvìviMY Zvr¶wYKfv‡e †Kv¤úvbxi wek`&-Z_¨vw` I evwl©K cÖwZ‡e`bmn Ab¨vb¨ Avbylvw½K Z_¨-DcvË Lye mn‡R †c‡q _v‡Kb|

K‡c©v‡iU my-kvmbK‡c©v‡iU cvidi‡g‡Ýi Rb¨ ̀ iKvi my-kvmb Avi my-kvm†bi Rb¨ ̀ iKvi ̄ ^”QZv, ̀ ¶Zv, Revew`wnZv I Kvh©Ki wm×všÍ MÖnY cÖwµqv| †Kv¤úvbx cwiPvjbvi †¶‡Î D”P gvÎvi ¯^”QZvi Rb¨B GwU cÖ‡qvRb| my-kvmb cÖwZôvi gva¨‡g Avgv‡ì †Kv¤úvbx me©`vB Ab¨‡ì Zzjbvq fv‡jv Ki‡Z cªqvmx| †Kv¤úvbxi eë¯’vcbvi †¶‡Î `yÕwU welq cÖwZcvjb wbwðZ Kiv nq, Zv n‡jv - ¯^”QZv Ges cÖKvk¨ ev `„wó‡MvPi Kiv| cwiPvjbv cl©‡ì mfv wbqwgZ AbywôZ nq Ges D³ mfvq †Kv¤úvbxi †kqvi‡nvìvi I ¯^v_© mswk¬óM‡Yi ¯^v‡_©i welqvw` we‡ePbv K‡i Db¥y³ Av‡jvPbv I HK¨g‡Zï wfwË‡Z bxwZ-wba©viYx wm×všÍmg~n M„nxZ n‡q _v‡K| †Kv¤úvbxi Rb¥jMœ †_‡KB Avgv‡ì cwiPvjbv cl©` †Kv¤úvbxi eë¯’vcbv KZ©„c¶‡K ¶gZvqb I kw³kvjx Kivq e×cwiKi| GwU †Kv¤úvbx‡Z my-kvmb cÖwZôvq AZ¨šÍ mnvqK| my-kvmb cÖwZôvq Avgv‡ì mywbw`©ó Ae¯’vb wbgœiƒc:-

� Avw_©K weeiYx‡Z †Kv¤úvbxi cÖK…Z Ae¯’v, cwiPvjbv, K¨vk-†d¬v Ges BKzB¨wU cwieZ©‡bi welqvw` mwVK I ï×iæ‡c cÖwZdwjZ nq|

� AvBb Abyhvqx hveZxq wnmvemg~n h_vh_fv‡e msiw¶Z nq|� Avw_©K weeiYx cªbqYKv‡j wnmve-weÁv‡bi Dchy³ bxwZ h_vh_fv‡e AbymiY Kiv nq Ges cÖv°jbmg~n †hŠw³K I

weP¶YZvi mv‡_ cÖbqY Kiv nq|� Avw_©K wnmve weeiYxmg~n evsjv‡`‡k cÖPwjZ AvšÍR©vwZK wnmve-weÁv‡bi gv‡b cÖYxZ n‡q _v‡K| � Af¨šÍixY wbqš¿Y eë¯’v wbf©i‡hvM¨ Ges Zv Kvh©Kifv‡e ev¯Íevqb I cixwe¶Y Kiv nq|� cwiPvjbv ev eë¯’vcbvi djvd‡ji †¶‡Î c~e©eZx© eQ‡ii Zzjbvq D‡j¬L‡hvM¨ †Kvb wePz¨wZ †bB|� weMZ cuvP eQ‡ii cwiPvjbv/eë¯’vcbv msµvšÍ Ges Avw_©K ̧ iæZ¡c~Y© Z_¨vw` G cÖwZ‡e`‡bi mv‡_ Ó5 Years at a Glance”

wk‡ivbv‡g cÖ`Ë n‡q‡Q|� evsjv‡`k wmwKDwiwUR GÛ G·‡PÄ Kwgkb (we.Gm.B.wm) KZ©„K RvixK…Z wb‡`©kvejx Abymi‡Y cwiPvjbv cl©` KZ©„K

AwWU KwgwU MwVZ n‡q‡Q|� Avw_©K weeiYx †evW© KZ©„K Aby‡gv`‡bi c~‡e© wm.B.I Ges wm.Gd.I KZ©„K h_vh_fv‡e cÖZ¨qb Kiv n‡q‡Q|� ‡Kv¤úvbxi †Pqvig¨vb cwiPvjbv cl©‡ì mfvq mfvcwZZ¡ K‡ib| mfv Abyôv‡bi c~‡e© Av‡jvP¨m~Px I Kvh©cÎmn mfvi

†bvwUk †cÖiY Kiv nq, Kvh©weeiYx ï×fv‡e wjwce× Kiv nq I mfvcwZ KZ©„K Zv ¯^v¶wiZ nIqvi ci weZiY Kiv nq| Kvh©weeiYx exgv Dbœqb I wbqš¿Y KZ©„c¶‡KI cÖ`vb Kiv n‡q _v‡K|


eëmvwqK mdjZv

†Kv¤úvbxi 2015 I 2014 mv‡ji wbixwÿZ wnmve I Avw_©K weeibxi wKQz ̧ iæZ¡c~Y© Zzjbvg~jK Z_¨vw` wb‡gœ Dc¯’vcb KiwQ:-

†Kv¤úvbx 2015 Bs mv‡j 30,85,24,774.00 UvKv MÖm wcÖwgqvg Avq K‡i‡Q| hvi cwigvY 2014 Bs mv‡j wQj 30,29,35,994.00 UvKv| c~e©eZ©x eQ‡ii Zzjbvq MÖm wcÖwgqvg Avq 1.84 % e„w× †c‡q‡Q| G eQ‡i bxU wcÖwgqvg Avq n‡q‡Q 22,11,86,298.00 UvKv hv c~e©eZ©x eQ‡i wQj 20,38,91,987.00 UvKv| bxU wcÖwgqvg Avq e„w× †c‡q‡Q 8.48%| e¨vsK I Ab¨vb¨ Avw_©K cÖwZôv‡b †Kv¤úvbxi †gvU wewb‡qv‡Mi cwigvY cÖvq 73.69 †KvwU UvKv Ges ̄ ’vei m¤úwË‡Z †gvU wewb‡qv‡Mi cwigvY 40.28 †KvwU UvKv| GLv‡b D‡jøL¨ ‡h, 31†k wW‡m¤î, 2015 Bs mgvß eQ‡i Dc‡iv³ eëmvi g‡a¨ miKvix LvZ n‡Z AvqK…Z mvaviY exgvi gva¨‡g cÖvß †Kv¤úvbxi Ask we`¨gvb i‡q‡Q| Avgiv eZ©gv‡b Ab¨vb¨ †Kv¤úvbxi gZ mxwgZ my‡hv‡Mi g‡a¨ eëmv msMÖ‡n Zxeª cÖwZ‡hvMxZvi m¤§yLxb nw”Q| hv †nvK, G Ae¯’v n‡Z D‡Ëvi‡Yi j‡¶¨ Avq Ges gybvdv e„w× Kivi D‡Ï‡k¨ cÖ‡qvRbxq c`‡¶c MÖnY K‡iwQ| hvi djkÖywZ‡Z Avgv‡ì †Kv¤úvbx AvMvgx‡Z wbtm‡›`‡n exgv RM‡Z Av‡iv AwaKZi fv‡jv Ki‡e|

2015 I 2014 Bs m‡bi ‡kªYxIqvix eëmvi Zzjbvg~jK djvdj wbgœiƒc:- (wgwjqb UvKvq)

weeiY AwMœ ‡bŠ ‡gvUi wewea ‡gvU 2015 ‡gvU 2014MÖm wcÖwgqvg 133.66 122.37 31.23 21.26 308.52 302.93wi-BÝy¨‡iÝ wcÖwgqvg hv Gmwe-†Z cÖ‡`q 31.00 34.92 6.14 15.28 87.34 99.04bxU wcÖwgqvg 102.66 87.45 25.10 5.98 221.19 203.89bxU `vex cwi‡kva 21.90 11.95 2.93 0.04 36.83 46.20eë¯’vcbv e¨q 54.72 45.60 12.39 3.89 116.60 84.82AbyËx©Y SuywKi R‡b¨ wiRvf© 41.06 35.44 10.04 2.39 88.93 81.70AewjLb gybvdv 1.70 21.03 4.54 3.52 30.79 47.83wewb‡qvM Avq - - - - 75.11 93.57Aew›UZ LiP - - - - 8.44 7.23Ki c~e© bxU gybvdv - - - - 97.47 134.17A¯^vfvweK ¶wZ Lv‡Z wiRvf© - - - - 22.19 20.39AvqKi mwÂwZ - - - - 27.74 41.78Ki ev‡` gybvdv - - - - 69.73 92.39

jf¨vsk Ges Ab¨vb¨ msiwÿZ Znwej

cwiPvjbv cl©` 31†k wW‡m¤î, 2015 Bs mgvß erm‡ii Rb¨ bM` 10 kZvsk jf¨vsk Aby‡gv`‡bi Rb¨ mycvwik K‡i‡Qb| bxU gybvdv 97.47 wgwjqb UvKv †_‡K †Kv¤úvbxi cwiPvjbv cl©` 22.12 wgwjqb UvKv A¯^vfvweK ¶wZ Lv‡Z, AvqKi Lv‡Z 27.74 wgwjqb UvKv, mvaviY mwÂwZ wnmv‡e 2.00 wgwjqb UvKv, 0.5 wgwjqb UvKv MÖvPzB¨wU Znwe‡j Ges Aewkó UvKv cieZ©x eQ‡ii Rb¨ DØ„Ëc‡Î ¯’vbvšÍZi K‡i‡Qb| Ki ev‡` A¯^vfvweK ¶wZ Lv‡Z wiRvf© Ges cÖ‡qvRb Abyhvqx eëmv cwiPvjbvi †¶‡Î gybvdv AR©b BZ¨vw` wel‡q j¶¨ †i‡L fwel¨‡Z Av‡iv †ekx jf¨vsk cÖ`v‡bi Rb¨ m‡Pó _vK‡eb e‡j cwiPvjKe„›` Avkvev` e¨³ K‡ib| 31†k wW‡m¤î, 2015 Bs Zvwi‡L e¨vsK I Ab¨vb¨ Avw_©K cÖwZôv‡b †gvU wewb‡qv‡Mi cwigvY 7.06 wgwjqb UvKv| GB AMÖMwZ Aek¨B †Kv¤úvbxi Z_v †kqvi‡nvìviM‡Yi Rb¨ AZ¨šÍ Avkve¨ÄK|

ANNUAL REPORT 2015


cwiPvjK gÛjx

2015 Bs mv‡j †Kv¤úvbxi MÖyc-G (D‡`¨v³v) Rbve †gvt b~iæj Bmjvg, Rbve †gvnv¤§` gyQv, Rbve Aveyj Kvjvg, AvjnvR¡ †gvt Avey Zv‡ni †PŠayix, wg‡mm& mvwn`v bvRbxb, Rbve beve wmivR-D`&-†`Šjv, Rbve mvweŸiæj Kexi, wg‡mm& b~iæb bvnvi, wgm& GwÄ †PŠayix Ges Rbve Rqbvj Av‡e`xb †PŠayix cwiPvjK c‡` envj wQ‡jb| Aci w`‡K MÖyc-we (cvewjK) As‡k Rbve Gm.Gg kwdDj evix, wg‡mm& mvwgg-Aviv †eMg, Rbve †gvt mv¾v`-Db&-†bIqvR, wg‡mm& †iv‡Kqv †eMg Ges wg‡mm& ˆZqev Avjg cwiPvjK c‡` envj wQ‡jb|

¯^Zš¿ cwiPvjK

evsjv‡`k wmwKDwiwUR G¨vÛ G·‡PÄ Kwgk‡bi wb‡`©kbv Abyhvqx weMZ 03-01-2012 Bs I 14-01-2013 Bs Zvwi‡L AbywôZ cwiPvjbv cl©‡ì 177Zg I 184 Zg mfvq wb‡¤œv³ `yÕRb e¨w³‡K ¯^Zš¿ cwiPvjK wn‡m‡e wb‡qvM †Ìqv n‡qwQj|

1) Rbve †gvt b~iæj Bmjvg|

2) Rbve †gvt Avãyjøvn& †Rnv`|

Dc‡iv³ `yÕRb ¯^Zš¿ cwiPvj‡Ki †gqv` h_vmg‡q †kl n‡e| cwiPvjbv cl©` Zuv‡ì †gqv` e„w× Kivi mycvwik K‡i‡Qb| 28Zg evwl©K mvaviY mfvq Dc‡iv³ `yÕRb ¯^Zš¿ cwiPvj‡Ki †gqv` Av‡iv 3 ermi e„w×i mycvwik Aby‡gv`‡bi Rb¨ †ck Kiv n‡jv|

cwiPvjKe„‡›ì m¤§vbx fvZv

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cwiPvjKe„‡›ì Aemi MÖnY

MÖyc-G (D‡`¨v³v Ask)

†Kv¤úvbxi AvwU©K¨vjm Ae G‡mvwm‡qkb Gi aviv Abyhvqx cwiPvjK c‡ì †R¨ôZv wePv‡i MÖyc-G (D‡`¨v³v) As‡ki cwiPvjKM‡Yi ga¨ †_‡K 04 (Pvi) Rb cwiPvjK h_v- (1) Rbve Aveyj Kvjvg, (2) wg‡mm& mvwn`v bvRbxb, (3) Rbve beve wmivR-D`&-†`Šjv Ges (4) Rbve mvweŸiæj Kexi †Kv¤úvbxi 28Zg evwl©K mvaviY mfvq Aemi MÖnY Ki‡eb| Aemi MÖnYKvix cwiPvjKe„›` cybtwbe©vP‡bi †hvM¨| D³ c‡` m¤§vwbZ D‡`¨v³v ‡kqvi‡nvìvi wg‡mm& †ivRx ingvb, Rbve †gvt gvmy` †nvmvBb, Rbve Bd&‡Znvi gv‡jK Ges Rbve †gvt gvmy` Kwig wb‡qvM jv‡fi Rb¨ Av‡e`b K‡i‡Qb|

MÖyc-we (cvewjK Ask)

†Kv¤úvbxi AvwU©K¨vjm Ae G‡mvwm‡qkb Gi mswkøó weavb †gvZv‡eK cwiPvjK c‡ì †R¨ôZv wePv‡i MÖyc-we (cvewjK) As‡ki cwiPvjKM‡Yi ga¨ †_‡K 02 (`yB) Rb cwiPvjK h_v- 1) Rbve Gm. Gg. kwdDj evix Ges Rbve †gvt mv¾v`-Db †bIqvR Avmbœ 28Zg evwl©K mvaviY mfvq Aemi MÖnY Ki‡eb| 28Zg evwl©K mvaviY mfvq MÖyc-we As‡ki cwiPvjK c‡ì 02 (`yB) wU k~b¨ c‡` wbev©P‡bi D‡Ï‡k¨ AvMÖnx †hvM¨ m`m¨‡ì wbKU †_‡K g‡bvbqbcÎ Rgv †Ìqvi Rb¨ exgv wewagvjv 1958 Gi mswkøó weavb †gvZv‡eK h_vixwZ ̀ yBwU RvZxq cwÎKvq weÁwß cÖKvk Kiv n‡q‡Q| wbev©Pb Kwgkbvi wn‡m‡e †gmvm© wR. wKe&wiqv GÛ †Kv¤úvbx, PvU©vW© G¨vKD‡›U›Um Gi wcÖwÝcvj Rbve G. †K. †Mvjvg wKe&wiqv‡K cl©‡ì wm×všÍµ‡g wbev©Pb Kwgkbvi wn‡m‡e wb‡qvM †`qv n‡q‡Q|


wbix¶K wb‡qvM

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ANNUAL REPORT 2015


CREDIT RATING REPORT


CERTIFICATE OF CORPORATE GOVERNANCE

ANNUAL REPORT 2015


Status of Compliance with the conditions imposed by BSEC’s Notification on Corporate Governance.

ConditionNo. Title Compliance status Remarks

(if any)

Complied Not Complied

1.1 Board Size √

1.2 (i) Number of Independent Director √2 Independent Directors as per Insurance Act, 2010

1.2 (ii)(a) Shareholding position of Independent Director √ Nil

1.2 (ii)(b)Independent Director is not sponsor, nor any family member/family relationship of the sponsor

√

1.2 (ii)(c)Independent Director does not have any other relationship with the Company or its’ subsidiary associates companies

√

1.2 (ii)(d) Independent Director is not a member, director or officer of any stock exchange √

1.2 (ii)(e)Independent Director is not a shareholder, director or officer of any member of stock exchange or an intermediary of the capital market

√

1.2 (ii)(f)Independent Director is not a partner or an executive or was not a partner or an executive during the preceding 3 (three) years of the concerned Company’s statutory audit firm

√

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

√

1.2 (ii)(h)Independent Director has not been convicted by a court of competent jurisdiction as a defaulter in payment of any loan to a bank or a NBFI

√

1.2 (ii)(i) Independent Director has not been convicted for a criminal offence involving moral turpitude. √

1.2(iii) The Independent Director(s) shall be appointed by the board, and approved by the shareholders in the Annual General Meeting (AGM)

√

1.2(iv) The post of Independent Director(s) cannot remain vacant for more than 90 (ninety) days. √

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

√

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

√

1.3 Qualification of Independent Director (ID)

1.3(i) Independent director shall be a knowledgeable individual with integrity, ensure compliance with financial, regulatory and corporate laws.

√

1.3(ii)

Independent Director should be a Business Leader/Corporate Leader Bureaucrat/University Teacher with Economics or Business Studies or Law background/Professionals. Independent Director must have at least 12 (twelve) years corporate management/ professional experiences

√

STATUS OF COMPLIANCE OF CORPORATE GOVERNANCE


ConditionNo. Title

Compliance statusRemarks(if any)


1.3(iii)In special cases the above qualifications may be relaxed subject to prior approval of the Commission

Not applicable

1.4

Chairman of the Board and Chief Executive Officer shall be filled by different individuals. The Board of Directors shall clearly define respective roles and responsibilities of the Chairman and the Chief Executive Officer.

√

1.5 The Director’s Report to Shareholders shall include the following additional statements.

1.5(i) Industry outlook and possible future developments in the industry √ Available in Annual Report

1.5(ii) Segment-wise or product-wise performance √ Available in Annual Report1.5(iii) Risks and concerns √ Available in Annual Report

1.5(iv) A discussion on Cost of Goods sold, Gross Profit Margin and Net Profit Margin Not applicable

1.5(v) Discussion on continuity of any Extra-Ordinary gain or loss. Not applicable

1.5(vi) Basis for related party transactions-a statement or all related party transactions should be disclosed in the annual report

Not applicable

1.5(vii) Utilization of proceeds from public issues, rights issues and/or through any others instruments. Not applicable

1.5(viii) An explanation if the financial results deteriorate after the Company goes IPO, RPO, Rights Officer, Direct Listing, etc.

Not applicable

1.5(ix)Significant variance occurs between Quarterly Financial Performance and Annual Financial Statements

No such significant variance occurs

1.5(x) Remuneration to directors including independent director √ Available in Annual Report

1.5(xi) Financial statements present fairly state of affairs, the result of its operations, cash flows and changes in Shareholders’ equity of the Company

√

1.5(xii) Proper books of account of the issuer Company have been maintained √

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

√

1.5(xiv)

International Accounting Standards (IAS)/ Bangladesh Accounting Standards (BAS)/ International Financial Reporting Standard (IFRS)/ Bangladesh Financial Reporting Standards (BERS), as applicable in Bangladesh have been followed in preparation of the financial statements

√

1.5(xv)The system of internal control is sound in design and has been effectively implemented and monitored

√

1.5 (xvi)There are no significant doubts upon the issuer Company’s ability to continue as a going concern.

Available in the Annual report


ANNUAL REPORT 2015


ConditionNo. Title

Compliance statusRemarks (if any)


1.5(xvii)Significant deviations from the last year’s operating results of the Company shall be highlighted

Not applicable

1.5(xviii) Key operating and financial data of at least preceding 5 (five) years shall be summarized √ Available in the Annual

report

1.5(xix) If the issuer Company has not declared dividend (cash or stock) for the year

Declared dividend regularly (Cash & Stock)

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

√5 Meetings took place with an average 75% attendance

1.5(xxi)(a) Share holding position parent/Subsidiary/Associated Companies and other related parties

√ Available in the Annual report

1.5(xxi)(b) Share holding position of Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and their spouses and minor children


1.5(xxi)(c) Share holding position of Executives of the Company √ Available in the Annual

report

1.5(xxi)(d) Share holding ten percent (10%) or more voting interest in the Company √ Available in the Annual

report

1.5(xxii)(a) A brief resume of the appointed/re appointed director √ Available in the Annual

report

1.5(xxii)(b) Expertise is specific functional areas of the appointed/ reappointed director √ Available in the Annual

report

1.5(xxii)(c) Names of companies in which the person also holds the directorship and the membership of committees of the board


2.1

The Company appointed Chief Financial Officer, a Head of Internal Audit (Internal Control and Compliance) and Company Secretary. The Board of Directors clearly defined respective roles, responsibilities and duties of the CFO, the Head of Internal Audit and the CS

√

2.2Requirement to attend the Board Meeting. The CFO and the Company Secretary of the companies attend meetings of the Board of Directors

√

3 Audit Committee

3(i) The Company has an Audit Committee as a sub-committee of the Board of Directors √

3(ii)

The Audit Committee assist the Board of Directors in ensuring that the financial statements reflect true and fair view of the state of affairs of the Company and in ensuring a good monitoring system within the business

√

3(iii)The Audit Committee is responsible to the Board of Directors. The duties of the Audit Committee clearly set forth in writing

√

3.1 Constitution of the Audit Committee3.1(i) The Audit Committee shall be composed of at

least 3 (three) members √ 3 (three members)

3.1(ii)The Board of Directors appointed members of the Audit Committee who are directors of the Company and includes 1 (one) independent directors

√



ConditionNo. Title

Compliance status Remarks (if any)


3.1(iii)All members of the audit committee are “financially literate” and 1(one) member have accounting or related financial management experience

√

3.1(iv)Board of Directors appoint the new Committee member(s) to fill up the vacancy immediately or not later than 1 (one) month from the date vacancies in the Committee

√

3.1(v) The Company secretary shall act as the secretary of the committee √

3.1(vi)The quorum of the Audit Committee meeting shall not constitute without at least 1 (one) independent director

√

3.2 Chairman of the AuditCommittee

3.2(i) Independent Directo is the Chairman of the Audit Committee √

3.2(ii) Chairman of the Audit Committee shall remain present in the Annual General Meeting (AGM) √

3.3 Role of the Audit Committee √

3.3(i) Audit Committee oversees the financial reporting process √

3.3(ii) Audit Committee monitor choice of accounting policies and principles √

3.3(iii) Audit Committee monitor Internal Control Risk Management process √

3.3(iv) Audit Committee oversee hiring and performance of external auditors √

3.3(v)Audit Committee review along with the management, the actual financial statements before submission to the board for approval

√

3.3(vi)Audit Committee review the quarterly and half yearly financial statements before submission to the board for approval

√

3.3(vii) Audit Committee review the adequacy of internal audit function √

3.3(viii)Audit Committee review statements of significant related party transactions submitted by the management

No such case raised

3.3(ix)Audit Committee review Management Letters/Letter of Internal Control weakness issued by statutory auditors.

No such case raised

3.3.(x)Money is raised through IPO. RPO/Rights Issue the Company shall disclose to the Audit Committee about the uses/applications of funds.

Not applicable

3.4 Reporting of the Audit Committee √3.4.1 Reporting to the Board of Directors

3.4.1(i) The Audit Committee shall report on its activities to the Board of Directors √

3.4.1(ii)(a) The Audit Committee shall immediately report on conflict of interest. No conflict of interest

3.4.1(ii)(b) Suspected or presumed fraud or irregularity or material defect in the internal control system. Not applicable

3.4.1(ii)(c) Suspected infringement of laws, including securities related laws, rules and regulations. No such case raised

3.4.1(ii)(d) Any other matter which shall be disclosed to the Board of Directors immediately √


ANNUAL REPORT 2015


ConditionNo. Title

Compliance status Remarks (if any)


3.4.2

If the Audit Committee reported to the Board of directors about anything which has material impact on the financial condition as result of operation. Audit Committee funds that such rectification has been unreasonably ignored, the Audit Committee shall report such finding to the Commission.

Not applicable

3.5Report on activities carried out by the Audit Committee, under condition 3.4.1(ii) above during the year, shall be signed by the Chairman of the Audit Committee

√

4 External/statutory auditors to perform4(i) Appraisal or valuation services or fairness opinions √4(ii) Financial information systems design and implementation. √

4(iii) Book-keeping or other services related to the accounting records or financial statements √

4(iv) Non-engagement in Broker-dealer services Not applicable4(v) Non-engagement Actuarial services Not applicable4(vi) Internal audit services √4(vii) Any other service that the Audit Committee determines √

4(viii) No partner or employees of the external audit firms shall possess any share of the Company √

4 (ix) Audit/Certification services on compliance of corporate governance as required under clause (i) of condition no.7 √

5 Subsidiary Company5(i) The compositions of the Board of Directors of the

subsidiary Company. √

5(ii) At least 1 (one) independent director shall be a director on the Board of Directors of the subsidiary Company. √

5(iii)The minutes of the Board meeting of the subsidiary Company shall be placed for review at the following Board meeting of the holding Company √

5(iv)The minutes of the respective Board meeting of the holding Company shall state that they have reviewed the affairs of the subsidiary Company also √

5(v) The Audit Committee of the holding Company shall also review the investments made by the subsidiary Company √

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

6(i)(a) The CEO and CFO shall certify to the Board that Financial statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading

√

6(i)(b)Financial statements together present a true and fair view the Company’s affairs and are in compliance existing accounting standards and applicable laws.

√

6(ii)To the best of knowledge and belief, no transaction entered into by the Company during the year which fraudulent, illegal or violation of the Company’s code of conduct.

√

7 Reporting and Compliance of Corporate Governance

7(i)The Company obtained a certificate from a practicing Chartered Accountant regarding compliance of conditions of Corporate Governance Guidelines.

√Certificate available in the Annual Report

7(ii)The directors of the Company shall state, in accordance with the Annexure attached, in the directors’ report whether the Company has complied with these conditions

√



SHAREHOLDING POSITION OF DIRECTORS, SPONSORS & EXECUTIVESAS ON 31ST DECEMBER, 2015

(i) Shareholding of Directors Number of shares held (ii) Shareholding of Sponsor Number of

shares heldMr. Md. Nurul Islam 8,98,129 Mr. Md. Tayabur Rahman 11,21,002Mr. Mohammed Musa 8,97,059 Mr. Md. Masud Hossain 11,21,002Mr. Abul Kalam 18,68,344 Alhaj Md. Nurun Newaz 10,93,240Alhaj Md. Abu Taher Chowdhury 8,98,126 Mr. Md. Masud Karim 9,04,329Mrs. Shahida Nazneen 8,96,913 Mrs. Rosy Rahman 8,98,306Mr. Nabab Siraj-ud Dowla 8,97,241 Mr. Ifthehar Maleque 8,98,233Mr. Sabbirul Kabir 10,63,911 Alhaj Md. Shahjahan 8,97,241Mrs. Nurun Nahar 10,12,413 Mr. Abu Mohammad 8,97,029Ms. Angee Chowdhury 8,97,003 Alhaj Md. Yousuf Chowdhury 4,74,570Mr. Zoynal Abedin Chowdhury 9,72,795 Mrs. Hosne Ara Aziz 2,50,000Mr. S.M. Shafiul Bari 8,51,612 Alhaj Md. Abdul Maleque 2,31,398Mrs. Shamim Ara Begum 3,18,798 Mr. Shah Alam Chowdhury 1,92,421Mr. Mohd. Sazzad-un Newaz 2,69,098 Alhaj Md. Shafi 1,29,025Mrs. Rokeya Begum 3.46.431 Mr. Mir Rahmat Ali 1,20,401Mrs. Tayeeba Alam 6,23,770 Mr. A.K.M. Azizur Rahman 1,14,694Mr. Md. Abdullah ZehadIndependent Director Nil Mr. Mohammad Goalm Kibria 67,163

Mr. Md. Nurul Islam Independent Director Nil

(iii) Shareholding of the Executives:

Name of the Executives Designation Number of Share heldMr. Md. Zahid Anwar Khan Chief Executive Officer NilMr. Md. Zafrul Islam Bhuiyan DMD & CFO NilMr.Md. Jafar Ali ACS Company Secretary NilMr. Md. Salah Uddin Head of Internal Audit NilSpouses & minor childrens of Executives Nil

(iv) Shareholding position of the Executives (Top four salaried employees)

Name of the Executives Designation No. of Share heldMr. S.M. Jahirul Alam Sr. Executive Vice President NilMr. Md. Morshed Hasan Sr. Executive Vice President NilMr. Md. Mahfizur Rahman Senior Vice President NilMr. Rezaul Islam Senior Vice President Nil

(v) Shareholders who are hold 10% or above shares as on 31/12/2015 - Nil

BOARD MEETING HELD IN THE YEAR 2015

Name of Meeting Meeting Date Directors present (A)

Directors present (B)

IndependentDirector

Total present

194th Board Meeting 20/03/2015 9 3 2 14195th Board Meeting 24/04/2015 8 2 2 12196th Board Meeting 06/06/2015 10 5 2 17197th Board Meeting 23/06/2015 8 4 2 14198th Board Meeting 29/10/2015 7 4 2 13

ANNUAL REPORT 2015


Taka in Million

Financial Performance 2011 2012 2013 2014 2015

Gross Premium 239.13 246.93 268..58 302.93 308.52

Net Premium 157.26 171.57 199.41 203.89 221.19

Net Claim 44.55 58.73 61.89 46.20 36.83

Underwriting Profit 32.92 36.30 44.99 47.83 30.79

Investment & Other Income 47.21 66.61 87.64 93.57 75.11

Net Profit before Tax 73.64 94.65 123.39 134.17 97.47

Net Profit after Tax 51.04 63.05 82.05 92.39 69.73

Share Capital and Reserve

Paid up Capital 224.67 370.71 415.19 415.19 448.41

Shareholders’ Equity 603.57 835.21 917.26 951.03 991.19

Total Reserves 345.03 363.69 387.77 416.52 440.64

Assets

Investment 153.69 156.63 180.07 179.36 185.10

Cash, FDR and Bank balances 317.48 540.57 604.85 588.46 589.79

Land at Cost 311.18 318.92 339.94 379.04 402.82

Fixed Assets 14.81 13.84 20.07 19.66 22.27

Other Assets 265.26 274.65 322.12 405.69 425.63

Total Assets 1062.43 1304.61 1467.05 1572.21 1625.61

Others

Dividend in Percent 15% Bonus 12% Bonus 14% Cash7% Cash 8% Bonus

10% Cash

Earnings per Share (EPS) 2.19 1.79 1.98 2.21 1.54

Book Value per Share 25.36 21.33 20.69 22.91 22.10

COMPANY’S PERFORMANCE5 Years at a Glance

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PHOTOGRAPHS OF CLAIM PAYMENTS & OTHERS

ANNUAL REPORT 2015


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PHOTOGRAPHS OF CLAIM PAYMENTS & OTHERS


INVESTORS’ INFORMATION

Company Publication

The Company informs investors about the Company’s business and operation by issuing an Annual

Report (with Notice of Meeting) and other reports on financial statements like 1st quarter, half yearly

& 3rd quarter (Un-audited).

Voting Rights

The voting rights of shareholders are set out in the Company’s Articles of Association. Each holder of

Ordinary shares is entitled to vote at any general Meeting of shareholders. On a show of hands, each

holder of Ordinary shares is entitled to one vote. On a poll, one vote is counted for every Ordinary

Shares. A person is not entitled to vote when disqualified by virtue of the restrictions contained in the

Company’s Articles of Association, Companies Act 1994 and other relevant laws of the land.

Inquiries

Shareholders with inquiries about registration of share transfer change of address and dividend

payment etc. should contact the share Department at 9554778. Other questions should be directed

to the Company Secretary at the registered office.

Stock Exchange

The Company’s ordinary shares trade is on the Dhaka Stock Exchange Ltd. and on the Chittagong

Stock Exchange Ltd. The marketable parcel on both the Stock Exchanges is 200 shares.

Share Department

Corporate Head Office

CIC Tower (3rd floor), 7-8 Motijheel Commercial Area

Dhaka-1000

Telephone - 9554778

Mission

Our mission is to improve the quality of the life style of the people by providing security of their trade

and hard earned properties through our professional service.

Vision

Our vision is to be the most confident and a reliable insurer of the country.

ANNUAL REPORT 2015


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DIRECTORS’ CERTIFICATE

As per Regulations contained in the First Schedule of the Insurance Act, 1938 as amended and as per Section 40-C of the said Act, we certify that :

1. The value of investments as shown in the Balance Sheet have been taken at cost.

2. The values of all assets as shown in the Balance Sheet and as classified on Form “AA” annexed have been duly reviewed as at 31st December, 2014 and in our belief, the said assets have been setforth in the Balance Sheet at amounts not exceeding their realisable or market values under the several headings as enumerated in the annexed form.

3. All expenses of Management, wherever incurred and whether incurred directly or indirectly in respect of Fire, Marine, Motor and Miscellaneous insurance business have been duly debited to the related Revenue Accounts and Profit & Loss Account.

(Md. Zahid Anwar Khan) (Md. Abdullah Zehad) (Mohammed Musa) (Md. Nurul Islam) Chief Executive Officer Director Vice-Chairman Chairman

ANNUAL REPORT 2015


We have audited the accompanying Financial Statements of Central Insurance Company Limited. which comprises the Statement of Financial Position as at 31 December 2015, and the related Statement of Comprehensive Income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s responsibility for the financial statementManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Accounting Standards (BASs), Bangladesh Financial Reporting Standards (BFRSs), the companies Act 1994 and other applicable laws and regulations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSAs). Those standards require that we comply with relevant ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. The procedures selected depend on our 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, we consider 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 principles 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.OpinionIn our opinion, the financial statements present fairly in all material respects, the financial position of Central Insurance Company Limited. as at 31 December 2015 and its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards (BFRSs).Emphasis of MatterThe management needs to make arrangement to introduce the Workers Profit Participation Fund (WPPF) in the Company with compliance of applicable rules and regulations.We also report that:

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

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

c) the Company's Statement of Financial Position, Comprehensive Income Statement dealt with notes by the report are in agreement with the books of accounts and returns; and

d) the expenditure incurred was for the purposes of the Company’s business.

Place: Dhaka Rahman Mustafiz Haq & Co.Date: April 02, 2016 Chartered Accountants

INDEPENDENT AUDITORS’ REPORTTo the shareholders of Central Insurance Company Limited


CENTRAL INSURANCE COMPANY LIMITEDSTATEMENT OF FINANCIAL POSITION AS

CAPITAL & LIABILITIES NOTES 2015Taka

2014 Taka

SHARE CAPITAL

AUTHORISED100,000,000 Ordinary shares of Tk.10 each 2.00 1,000,000,000 1,000,000,000

ISSUED, SUBSCRIBED AND PAID UP 448,408,570 415,193,120 44,840,857 Ordinary shares of Tk.10 eachSHARE PREMIUM 56,167,900 56,167,900 11,233,580 Ordinary shares of Tk.5 eachRESERVE OR CONTINGENCY ACCOUNT 3.00 486,618,073 479,666,665 Reserve for exceptional losses 190,437,394 168,318,764 General Reserve 29,000,000 27,000,000 Investment Equalization Fund 14,600,000 14,600,000 Revaluation Reserve 206,599,638 206,599,638 Profit & Loss Appropriation Account 45,981,041 63,148,263

BALANCE OF FUND & ACCOUNT 4.00 88,930,256 81,702,281 Fire Insurance Business Account 41,062,742 31,252,117 Marine Insurance Business Account 35,436,927 38,343,761 Motor Insurance Business Account 10,037,686 9,172,824 Misc. Insurance Business Account 2,392,901 2,933,579

DEPOSIT PREMIUM 5.00 43,665,488 40,867,912

LIABILITIES & PROVISIONS 126,745,283 163,386,774 Estimated liability in respect of outstanding- 6.00 20,518,158 30,187,501 claims whether due or intimatedAmount due to other persons or bodies- 7.00 106,227,125 133,199,273 carrying on insurance business

SUNDRY CREDITORS 8.00 320,222,736 292,840,991 (Including provision for expenses & taxes)

OTHER LIABILITIES ( Bank Overdraft) 9.00 54,847,014 42,388,207

Total Taka 1,625,605,320 1,572,213,850

The annexure notes form an integral part of these Financial Statements.

Date: April 02, 2016 (Md. Zahid Anwar Khan) (Md. Abdullah Zehad) Chief Executive Officer Director

ANNUAL REPORT 2015


CENTRAL INSURANCE COMPANY LIMITEDAT DECEMBER 31, 2015

PROPERTY & ASSETS NOTES 2015Taka

2014Taka

INVESTMENT (At cost) 10.00 185,098,354 179,359,701

OUTSTANDING PREMIUM - -

INTEREST, DIVIDEND & RENT OUTSTANDING 11.00 26,432,481 27,922,992

Accrued Interest

AMOUNT DUE FROM OTHER PERSONS OR

BODIES CARRYING ON INSURANCE BUSINESS 12.00 182,791,886 192,125,982

SUNDRY DEBTORS 13.00 215,659,627 184,704,930

CASH AND BANK BALANCES 14.00 589,786,224 588,464,471

Fixed Deposit Accounts 551,801,010 559,501,010

Current and STD Accounts 28,005,790 21,072,882

Cash and Cash Equivalents 9,979,424 7,890,579

OTHER ACCOUNTS 425,836,748 399,635,774

Property, Building & Land Development 15.00 402,818,229 379,040,274

Plant, Office Equipments & Other Fixed Assets 16.00 22,273,617 19,661,196

Stock of Stationery 17.00 392,196 287,383

Security Deposit 18.00 162,175 162,175

Insurance Stamps in hand 19.00 190,531 484,746

Total Taka 1,625,605,320 1,572,213,850

Signed in terms of our separate report of even date

(Mohammed Musa) (Md. Nurul Islam) Rahman Mustafiz Haq & Co. Vice-Chairman Chairman Chartered Accountants


CENTRAL INSURANCE COMPANY LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR

2015Taka

2014Taka

Expenses of Management(Not Applicable to any particular Fund or Account) 8,437,262 7,227,851

Advertisement & Publicity 345,461 229,199 Directors Meeting Fee 539,250 490,000 Audit and Retainers Fee 267,650 248,750 Legal and Professional Fees 612,250 57,500 Contribution and Subscription 1,113,839 636,184 Fees, Registration & Renewal 1,327,794 1,158,274 Group Insurance Premium 457,572 584,785 Depreciation 3,773,446 3,823,159

Profit/Loss for the year transferred to Profit & Loss Appropriation Account 97,465,648 134,169,435

Total Taka 105,902,910 141,397,286

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR

2015Taka

2014Taka

Reserve for Exceptional Losses 22,118,630 20,389,199 Provision for Taxation 27,335,534 41,485,459 Deferred Income Tax 399,737 289,260 Provision for Gratuity Fund 500,000 500,000 Provision for General Reserve 2,000,000 4,500,000 Provision for Investment Equalization Fund - 4,000,000

Balance transferred to Balance Sheet 45,981,041 63,148,263

Total Taka 98,334,942 134,312,181 Earnings Per Share (EPS) (Note # 22.00) 1.54 2.21 The annexure notes form an integral part of these Financial Statements.


ANNUAL REPORT 2015


CENTRAL INSURANCE COMPANY LIMITEDTHE YEAR ENDED DECEMBER 31, 2015

2015Taka

2014Taka

INTEREST, DIVIDEND AND RENTS(Not Applicable to any particular Fund or Account)

Interest Received and Accrued 53,948,555 57,612,335 House Rent Income 18,319,200 23,599,200 Dividend Income 2,574,601 2,845,324 Capital Gain/(Loss) on Sale of Share (6,827) 9,509,271 Revenue Gain on Sale of Car 278,389 -

PROFIT OR (LOSS) TRANSFERRED FROM 30,788,992 47,831,156 Fire Revenue Account 1,702,369 3,931,917 Marine Revenue Account 21,032,994 37,507,289 Motor Revenue Account 4,536,700 5,149,714 Miscellaneous Revenue Account 3,516,929 1,242,236

Total Taka 105,902,910 141,397,286

THE YEAR ENDED DECEMBER 31, 2015

2015Taka

2014Taka

Balance brought forward from last year 869,294 142,746

Net Profit for the year(Transferred from Profit and Loss Account) 97,465,648 134,169,435

Total Taka 98,334,942 134,312,181




CENTRAL INSURANCE COMPANY LIMITEDCONSOLIDATED BUSINESS REVENUE ACCOUNT FOR

2015Taka

2014Taka

CLAIMS UNDER POLICIES LESS RE-INSURANCE 36,834,627 46,202,561

Paid during the year 46,503,970 47,743,434

Total estimated liability in respect of outstanding claim

at the end of the year whether due or intimated 20,518,158 30,187,501

67,022,128 77,930,935

Less: Outstanding at the beginning of the year 30,187,501 31,728,374

Agency Commission 40,889,211 39,339,693

Expenses of Management 116,598,106 84,821,783

Balance of Account at the end of the year

as shown in the Balance Sheet :

Reserve for unexpired risks being 100% for Marine Hull 88,930,256 81,702,281

& other clasess 40% on net premium income

Profit/(Loss) Transferred To Profit & Loss Account 30,788,992 47,831,156

Total Taka 314,041,192 299,897,474



ANNUAL REPORT 2015



2015Taka

2014Taka

Balance of Account at the Beginning of the year 81,702,282 80,296,544

Premium Less Re- Insurance (Notes-20.00) 221,186,298 203,891,987

Commission on Re- Insurance ceded 11,152,612 15,708,943

Total Taka 314,041,192 299,897,474




CENTRAL INSURANCE COMPANY LIMITEDFIRE INSURANCE REVENUE ACCOUNT FOR

2015Taka

2014Taka

CLAIMS UNDER POLICIES LESS RE- INSURANCE 21,907,649 32,886,250


Total estimated liability in respect of outstanding claims-


37,584,256 47,452,902

Less: Outstanding at the end of the previous year 15,676,607 14,566,652



BALANCE OF ACCOUNT AT THE END OF THE YEAR

Reserve for unexpired risks @ 40 % of

premium income of the year 41,062,742 31,252,117

Profit /(Loss) transferred to Profit & Loss Account 1,702,369 3,931,917

Total Taka 138,952,299 118,312,550



ANNUAL REPORT 2015



2015Taka

2014Taka

Balance of Account at the beginning of the year 31,252,117 32,123,632

Premium Less Re- Insurance 102,656,856 78,130,292

Commission on Re- Insurances ceded 5,043,326 8,058,626

Total Taka 138,952,299 118,312,550




CENTRAL INSURANCE COMPANY LIMITEDMARINE INSURANCE REVENUE ACCOUNT FOR

2015Taka

2014Taka



Total estimated liability in respect of outstanding claim-


24,503,018 20,785,763

Less: Outstanding at the end of the previous year 12,553,577 13,734,417




Reserve for unexpired risks @ 40 % of Marine Cargo-

and @ 100 % of Marine Hull premium income of the year 35,436,927 38,343,761

Porfit/(Loss) transferred to Profit & Loss Account 21,032,994 37,507,289

Total Taka 129,952,666 137,578,738



ANNUAL REPORT 2015



2015Taka

2014Taka




Total Taka 129,952,666 137,578,738




CENTRAL INSURANCE COMPANY LIMITEDMOTOR INSURANCE REVENUE ACCOUNT FOR

2015Taka

2014Taka





4,808,912 9,556,154

Less: Outstanding at the beginning of the year 1,872,600 3,305,000




Reserve for unexpired risks @ 40 % of

premium income of the year 10,037,686 9,172,824

Profit/(Loss) transferred to Profit & Loss Account 4,536,700 5,149,714

Total Taka 34,303,279 31,728,860



ANNUAL REPORT 2015



2015Taka

2014Taka



Commission on Re- Insurance ceded 36,240 181,484

Total Taka 34,303,279 31,728,860




CENTRAL INSURANCE COMPANY LIMITEDMISCELLANEOUS INSURANCE REVENUE ACCOUNT FOR

2015Taka

2014Taka

CLAIMS UNDER POLICIES LESS RE- INSURANCE 41,225 13,811

Paid during the year 41,225 51,399


at the end of the year whether due or intimated 84,717 84,717

125,942 136,116

Less: Outstanding at the beginning of the year 84,717 122,305

Agency Commission 995,614 1,259,845



Reserve for unexpired risks @ 40 % of Net premium 2,392,901 2,933,579

Porfit/(Loss) transferred to Profit & Loss Account 3,516,929 1,242,236

Total Taka 10,832,948 12,277,326



ANNUAL REPORT 2015



2015Taka

2014Taka




Total Taka 10,832,948 12,277,326




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ANNUAL REPORT 2015


CENTRAL INSURANCE COMPANY LIMITEDSTATEMENT OF CASH FLOW FOR THE YEAR ENDED DECEMBER 31, 2015

Rahman Mustafiz Haq & Co. Chartered Accountants

2015Taka

2014Taka

A. CASH FLOW FROM OPERATING ACTIVITIESCollection from premium and other income 350,227,848 341,531,140 Income Tax paid (29,675,401) (37,231,782)Payment for Management Exp. Re-Insurance & Claim (267,506,071) (225,877,462)Net cash flow from operating activities 53,046,376 78,421,896

B. CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed Assets (Addition) (30,195,433) (42,512,325)Sale of Fixed Assets 310,000 - Investment Enhancement (5,738,652) 714,297 Net cash flow from investing activities (35,624,085) (41,798,028)

C. CASH FLOW FROM FINANCING ACTIVITIESShare Capital - - Overdraft 12,458,807 3,997,604 Dividend Paid (28,559,345) (57,010,760)Net cash flow from Financing activities (16,100,538) (53,013,156)

D. Net inflows/(out flows) for the year (A+B+C) 1,321,753 (16,389,288)

E. Opening Cash and Bank balance 588,464,471 604,853,759

F. Closing Cash and Bank balances ( D + E) 589,786,224 588,464,471

Net operating cash flow per share (NOCFPS) 1.18 1.89





FORM “AA”CLASSIFIED SUMMARY OF ASSETS AS ON DECEMBER 31, 2015

(IN TAKA)

BOOK VALUE AS PER BALANCE

SHEETPARTICULARS MARKET VALUE REMARKS

Bangladesh Government Treasury Bond (BGTB) 25,000,000 25,000,000 Not quoted in market Realisable value

Investment in Share 60,098,654 46,474,177 do Investment in CIC Investment Ltd. 99,999,700 99,999,700 do In Fixed deposit with Bank 551,801,010 551,801,010 do In STD A/C. with Banks 27,455,679 27,455,679 do Cash in Hand 9,979,424 9,979,424 do Accrued interest 26,432,481 26,432,481 do At call on short notice 550,111 550,111 do

OTHER ASSETS:

Amount due from otherPersons or bodies carryingon insurance business 182,791,886 182,791,886 do Sundry Debtors 215,659,627 215,659,627 do Stock in Stationery 392,196 392,196 At costSecurity Deposit 162,175 162,175 do Stamps in hand 190,531 190,531 do Property, Plant & Equipments 425,091,846 425,091,846 Depreciated value

(Except Land and Development Cost)

(at cost less depreciation)

Total 1,625,605,320 1,611,980,843

Certificate u/s 7 (a) of part of the first schedule to the Insurance Act, 1938. Certified that the value of all assets have been reviewd, that the said costs have been set forth in the balance sheet at amounts not exceeding their realizable or market value.

Notes form the integral part of these financial statements.

Rahman Mustafiz Haq & Co. Chartered Accountants


ANNUAL REPORT 2015


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CENTRAL INSURANCE COMPANY LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015

1.00BASIS OF PRESENTATION OF FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICES:

A. NOTES GENERAL

A.01 BUSINESS DESCRIPTION:

The Central Insurance Co. Ltd. was incorporated as a Public Limited Company on November 12, 1987 under the Companies Act, 1913 having registered office in Bangladesh. The Company went into public issue during 1994 and its shares are listed with both Dhaka and Chittagong Stock Exchange of Bangladesh.

The principal place of business of the Company is at Central Insurance Bhaban (3rd & 4th Floor), 7-8, Motijheel C/A, Dhaka-1000, Bangladesh which is also the Registered Office of the Company.

The Company has form another subsidiary Company viz; Central Insurance Investment Ltd. with a view to carry out business activity of Merchant Bank, but the permission for operating business as Merchant Bank not yet obtained.

A.02 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements have been prepared on going concern basis under historical cost convention, cash flow statement has been prepared on Direct Method and accrual basis of accounting has been followed.

A.03 COMPLIANCE WITH LOCAL LAWS:

The financial statements have been prepared in compliance with requirement of the Companies Act,1994, Securities & Exchange Rules 1987, Insurance Act, 1938 amended Act of 2010 Insurance Rules 1956 and other relevant local laws. The cash flow from operating activities are computed under direct method.

A.04 COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS:

The financial statements have been prepared as on December 31, 2015 in compliance with requirement of the International Accounting Standards (IAS) International Financial Reporting Standard (IFRS) approved by the International Accounting Standard Board (IASB) and as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) as Bangladesh Accounting Standards (BAS) and regulations applicable in Bangladesh.

A.05 REPORTING CURRENCY:

The financial statements are presented in Bangladesh currency (Taka) which have been rounded off to the nearest Taka except indicated otherwise.

A.06 ACCOUNTING PERIOD:

The Financial period of the Insurance Company covers one year from January 01, 2015 to December 31, 2015.

ANNUAL REPORT 2015


A.07 GENERAL

Figures of previous periods have been rearranged wherever necessary to conform the current period's presentation.

B. SIGNIFICANT ACCOUNTING POLICIES

B.01 INVESTMENT:

i. Investment are stated at cost of acquisition.ii. Income on Investment other than shares are accounted for on accrual basis.iii. Dividend income on Investment in shares are accounted for in the year of receipt of such dividend.iv. Gain on sale of shares are accounted for, on actual realization basis.

B.02 Property, Plant & Equipments :

All assets of the Company shown in financial statement that are within the scope of BAS-36, are in physical existence and valued on more than their recoverable amount following International Accounting Standards adopted by ICAB, disclosures with regards to "Impairment of Assets" as per BAS 36 have not been considered necessary.

Property, Plant and Equipment are depreciated following the reducing balance method on the basis of life expectancy of the assets in accordance with BAS-16. Depreciation on newly acquired assets is charged according to the date of acquisition. A comprehensive fixed Assets Register is to be introduced by the Company which at present are not maintaining.

Land and land development stated at revalued price during the year [Note 16.00] and no depreciation has been charged on the value of land and land development. Depreciation charged on all other fixed assets at a rate mentioned below :

a) Furniture and fixtures 10% f) Telephone Installation 20%

b) Office Equipment 15% g) Sundry Assets 25%

c) Office decoration 10% h) Electrical Equipments 15%

d) Air Cooler 15% i) Computer & Software 25%

e) Motor Vehicles 20%

Operating Lease :The Company purchased 3 (three) motor vehicles by taking loans from the leasing companies.Details of operating lease of vehicles are shown below :

Particulars Car No. 35-9239

Car No. 22-0815

Car No. 35-9410

Total Lease Amount 1,525,000 1,800,000 2,205,000 Down Payment 500,000 - - Monthly Installments 28,472 59,786 74,030 Total number of installments 36 36 36Total number of installments paid 22 12 4No. of installments over due 14 24 32


B.03 SHARE OF PUBLIC SECTOR BUSINESS:

Company's share of public sector business is accounted for in the period for four quarters commencing from January 2014 to December 2014 for which the complete statement of accounts from Sadharan Bima Corporation (SBC) has been received and which was consistently followed by the Company.

B.04 PROVISION FOR TAX:

During the year under audited provision for income tax has been made @ 40.00% as per financial Act 2015.

B.05 CLASSIFIED SUMMARY OF ASSETS:

The valuation of all assets as at December 31, 2015 as shown in the financial statement and in the classified summary of Assets on Form "AA" annexed with the report have been reviewed and the said assets have been set-forth in the financial statement at amount not exceeding their realizable or market value in aggregate except cost of shares.

B.06 EMPLOYEE'S BENEFIT PLAN: Company has introduced gratuity benefit for its permanent employees as per board decision those who has been working since 1st April, 2006 are entitled to get this benefit and Company contributes @ 10% of basic salary of the employee to contributory provident fund which is wholly administrated by a Board of Trustees. The gratuity fund was not recognised by the NBR

B.07 EARNING PER SHARE (EPS):

The Company calculates Earning Per Share (EPS) in accordance with the International Accounting Standards - IAS-33. "Earning Per share" as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB).

B.08 RESERVE FOR EXCEPTIONAL LOSSES:

As per Para 6 of 4th Schedule, to meet the exceptional losses, Company sets aside 10% of the premium income of the year in which it is set aside from the balance of the profit to Reserve for exceptional losses. As per Insurance Act 1938 as amended 2010, 10% statutory reserve is maintained out of profit by the Company to meet any possible future claims on net premium income during the year.

B.09 REVENUE RECOGNITION:

Revenues are generated from premium income received against the insurance policies and by adjusting the deposit premium received against Cover Note.

B.10 CASH & CASH EQUIVALENTS:

According to BAS-7 "Cash flow statement" Cash comprises cash in hand and demand deposit and cash equivalents are short term, high liquid investments that are readily convertible to know amount of cash and which are subject to an insignificant risk of changes in value, BAS-1 "Presentation of Financial Statement" also provides that cash equivalents are those which have no restriction in use considering the provision of BAS-7 and BAS-1, cash in hand and Bank balance have been considered as cash and Cash equivalents.

B.11 DEFERRED TAX LIABILITIES: Deferred tax liabilities is recognized for all taxable temporary differences. Accordingly tax liability is created and provided in the profit & loss appropriation account. Provision for deferred tax liabilities has been provided in the accounts against BAS-12. Deferred tax calculation are shown in note no. 8.02.

ANNUAL REPORT 2015


CENTRAL INSURANCE COMPANY LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015

2.00 SHARE CAPITAL :Authorized shares capital Tk. 1,000,000,000100,000,000 Ordinary Shares of Tk. 10 each.Issued, Subscribed & Paid-up Capital : Tk.448,408,570 44,840,857 ordinary shares of Tk.10 each

The Category wise shareholding position as on 31 December, 2015 are noted below :

Category of Shareholders No. of Shares % of Holdings Amount Tk.

1. Sponsors & Directors (Group -A) 21,228,421 47.34 212,284,210 2. ICB & Institutions (Group -B) 7,502,809 16.73 75,028,090 3. General Public (Group-B) 16,109,627 35.93 161,096,270 Total 44,840,857 100.00 448,408,570

Classification of Shareholders according to holding of shares :

i) Group-A

Class Interval No. of Shares

No. of Shareholders

Total Holding%

% of Total Paid Up-Capital

Less than 5000 Shares - - 0 05001-10,000 - - 0 010,001-50,000 31,771 2 0.15 0.0750,001-100,000 67,163 1 0.32 0.15100,001-200,000 674,585 5 3.18 1.5200,001-500,000 1,886,535 6 8.89 4.21500,001-1,000,000 12,352,366 14 58.18 27.551,000,001-2,000,000 6,216,001 5 29.28 13.86Total of (A) 21,228,421 33 100.00 47.34

ii) Group-B

Class Interval No. of Shares

No. of Shareholders

Total Holding%

% of Total Paid Up-Capital

Less than 5000 Shares 2,039,069 3,884 8.64 4.555001-10,000 490,228 69 2.08 1.0910,001-50,000 2,726,268 108 11.55 6.0850,001-100,000 1,505,782 23 6.38 3.36100,001-200,000 2,140,816 15 9.07 4.77200,001-500,000 3,806,706 11 16.12 8.49500,001-1,000,000 5,489,174 7 23.25 12.241,000,001-2,000,000 2,533,230 2 10.73 5.652,000,001-2,500,000 2,881,163 1 12.20 6.43Total of (B) 23,612,436 4,120 100.00 52.66

Grand Total (A +B) 44,840,857 4,153 100.00

This shares are listed with both DSE and CSE.


2015 2014

3.00 RESERVE OR CONTINGENCY ACCOUNT: Tk. 486,618,073 Tk. 479,666,665

This has been made up as under:

A. Reserve for Exceptional Loss :Balance as on January 01, 2015 416,518,402 387,629,203 Add: Reserve for Exceptional Loss for the year 22,118,630 20,389,199 Add: General Reserve for the year 2,000,000 4,500,000 Add: Investment Equalization Fund - 4,000,000

Sub Total 440,637,032 416,518,402 B. Profit & Loss Appropriation Account :

Undistributed Profit up to Balance Sheet Date 45,981,041 63,148,263 Grand Total 486,618,073 479,666,665

4.00 BALANCE OF FUND & ACCOUNT: Tk. 88,930,256 Tk. 81,702,281

This has been made up as under:

Fire Revenue Account 41,062,742 31,252,117 Marine Revenue Account 35,436,927 38,343,761 Motor Revenue Account 10,037,686 9,172,824 Miscellaneous Revenue Account 2,392,901 2,933,579

Total Taka: 88,930,256 81,702,281

5.00 DEPOSIT PREMIUM : Tk. 43,665,488 Tk. 40,867,912

The above balance represents the premium, stamp duty and VAT received against cover-notes for which policies have not yet been issued.

6.00 ESTIMATED LIABILITY IN RESPECT OF OUTSTANDING CLAIMS AT THE END OF THE PERIOD WHETHER DUE OR INTIMATED : Tk. 20,518,158 Tk. 30,187,501

The break up of the above is as under:

Fire Insurance 7,040,403 15,676,607 Marine Insurance 10,906,314 12,553,577 Motor Insurance 2,486,724 1,872,600 Miscellaneous Insurance 84,717 84,717

Total Taka: 20,518,158 30,187,501

7.00 AMOUNT DUE TO OTHER PERSONS OR BODIESCARRYING ON INSURANCE BUSINESS : Tk. 106,227,125 Tk. 133,199,273

The break up of the above is as follows:

Sadharan Bima Corporation 104,675,048 131,647,196 Other Insurance Companies of Bangladesh 1,552,077 1,552,077

Total Taka: 106,227,125 133,199,273

ANNUAL REPORT 2015


2015 2014

8.00 SUNDRY CREDITORS : Tk. 320,222,736 Tk. 292,840,991 This has been made up as under

Provision for Income Tax 192,063,404 164,727,870 Bills Payable (Note no.8.01) 1,205,707 1,193,778 Advance Rent Receive 17,578,800 16,003,800 Provision for Audit Fee 105,000 85,000 Income Tax Deduction at source 324,987 320,244 VAT deducted at source 144,939 144,939 Dividend Payable 2,824,583 2,292,847 Deferred Income Tax (Note no.8.02) 1,686,559 1,286,822 Provision for Bonus 2,427,279 5,241,643 Excess Deposit Premium 19,795 55,131 Premium Payable on Co-Ins. Share 203,433 418,917 Death Claim Group Insurance Premium 585,000 585,000 Loan from Central Insurance Investment Ltd. 99,245,000 99,245,000 Security Deposit (Contractor) 940,000 740,000 Provision for Gratuity (Note no.8.03) 868,250 500,000

Total Taka: 320,222,736 292,840,991

8.01 BILLS PAYABLE : Tk 1,205,707 Tk. 1,193,778

Opening Balance 1,193,778 945,456 Security Deposit (Open Cover) - 250,000 Fractional Dividend 11,929 (1,678)

Total Taka: 1,205,707 1,193,778

8.02 DEFERRED TAX : Tk. 1,686,559 Tk. 1,286,822

Written down value of Fixed Assets as per financial statement 22,273,617 19,661,196 Written down value of Fixed Assets as per tax basis 21,274,275 18,980,585 Taxable temporary difference 999,342 680,611 Current year Deferred tax liabilities 399,737 289,260 Add. Opening Deferred tax liabilities 1,286,822 997,562

Total Taka: 1,686,559 1,286,822

8.03 PROVISION FOR GRATUITY : Tk. 868,250 Tk. 500,000

Opening Balance 500,000 - Less : Paid during the year 131,750 -

368,250 - Add : Provision made during the 500,000 500,000

Total Taka: 868,250 500,000

9.00 BANK OVERDRAFT : Tk. 54,847,014 Tk. 42,388,207

The above mentioned overdrawn facility was allowed by the bank as mentioned below against lien of Fixed Deposit of the Company.


2015 2014

Social Islami Bank Ltd., Principal Br., A/c # 36832 52,769,451 - Social Islami Bank Ltd., Principal Br., A/c # 37181 2,077,563 - NCCBL, Foreign Exchange Branch - 42,388,207

Total Taka: 54,847,014 42,388,207

10.00 INVESTMENT: Tk. 185,098,354 Tk. 179,359,701

This is made up as follows.Bangladesh Government Treasury Bond (BGTB) 25,000,000 25,000,000 Investment in Share 60,098,654 54,360,001 Investment in CIC Investment Ltd. 99,999,700 99,999,700

Total Taka: 185,098,354 179,359,701

Value of share has been shown at cost price which was inflated by Tk. 13,624,477 as per market price as on 31.12.2015 and are shown in annexure-1. Moreover unquoted shares also shown at cost price. Considering the instability in stock market the Company has made a cumulative provision amounting taka 14,600,000 for unrealized loss on the investment in share and no provision was considered in this year considering that the total provision covers the total expected losses.

11.00 INTEREST, DIVIDEND & RENT OUTSTANDING: Tk. 26,432,481 Tk 27,922,992

The amount represents interest receivable on Bangladesh Government Treasury Bond (BGTB) and Fixed Deposit Receipts (FDR) as on the date of financial statement.

Fixed Deposit Receipt (FDR) 25,398,885 26,889,396 Bangladesh Government Treasury Bond (BGTB) 1,033,596 1,033,596

Total Taka: 26,432,481 27,922,992

12.00 AMOUNT DUE FROM OTHER PERSONS OR BODIES CARRYING ON

INSURANCE BUSINESS: Tk. 182,791,886 Tk. 149,831,839


Sadharan Bima Corporation 179,278,162 146,318,115 Other Insurance Companies of Bangladesh 3,513,724 3,513,724

Total Taka: 182,791,886 149,831,839

13.00 SUNDRY DEBTORS : Tk. 215,659,627 Tk. 184,704,930


Advance Against Salary 930,528 456,816 Advance Against Office Rent 1,018,048 1,396,048 Advance Income Tax 180,056,589 151,297,148 Advance Against Printing 350,000 343,350 Advance Against Car on HP 1,003,354 676,440 Advance Income Tax Against House Rent 4,167,773 3,251,813 Advance Against CIC Investment 2,653,926 2,653,926 Bills Receivable 1,143,386 1,247 Bank Guarantee 20,710,418 19,934,881 Agent Balance 3,625,605 4,693,261

Total Taka: 215,659,627 184,704,930

The above debts are considered good for realization / adjustment.

ANNUAL REPORT 2015


2015 2014

14.00 CASH AND BANK BALANCES: Tk. 589,786,224 Tk. 588,464,471

The break up of the above is as follows :

A) At BankShort term Deposit 27,455,679 20,616,353 Current Deposit 550,111 456,529 Fixed Deposit 551,801,010 559,501,010

579,806,800 580,573,892 B) Cash and Cash Equivalents 9,979,424 7,890,579

589,786,224 588,464,471

15.00 PROPERTY, BUILDING & LAND DEVELOPMENT: Tk. 402,818,229 Tk. 379,040,274

The above value represents the revalued price of Land and Land Development at the financial statement date. They has employed an independent valued viz. A. Wahab & Co., Chartered Accounted during the year 2009 and the value arrived as under:

Land at Kawran Bazar Area 43,200,000 43,200,000 Land and building at 7-8 Motijheel 268,172,500 268,172,500 Building Under Constraction (Kawran Bazar) 91,445,729 67,667,774

402,818,229 379,040,274

16.00 PLANT, OFFICE EQUIPMENTS & OTHER FIXED ASSETS : Tk 22,273,617 Tk. 19,661,196

The above balance represents written down value of the Plant, Office Equipments & Other Fixed Assets as financial statement date, Details of the fixed assets are shown in Schedule A.

17.00 STOCK OF STATIONERY : Tk. 392,196 Tk. 287,383

The stock of stationery was valued at cost price or net realizable value whichever is lower.

18.00 SECURITY DEPOSIT : Tk. 162,175 Tk. 162,175

This represents the security money deposited against Bangladesh Telephone & Telegraph Board (BTTB), Bangladesh Power Development Board (BPDB) and Dhaka Electric Supply Authority (DESA).

19.00 INSURANCE STAMP IN HAND : Tk. 190,531 Tk. 484,746

This represents unused insurance stamp in hand at the end of the period and was valued at cost price.

20.00 PREMIUM LESS RE-INSURANCE : Tk. 221,186,298 Tk. 203,891,987

This represents net premium from Direct Business and Government Business.

2015 2014

Class of Business

GrossPremium

Re-InsuranceAccepted

Re-Insurance

CededNet Premium Net Premium

Fire 133,659,413 - 31,002,557 102,656,856 78,130,292

Marine 122,373,873 - 34,920,898 87,452,975 95,495,687

Motor 31,231,307 - 6,137,093 25,094,214 22,932,061

Misc. 21,260,181 - 15,277,928 5,982,253 7,333,947

Total Tk. 308,524,774 - 87,338,476 221,186,298 203,891,987


21.00 Compliance of Section 40C of Insurance Act, 1938The Section 40C deals with the limitation of Expenses of Management of General Insurance businessand in the light of the Section 40C and Rule 40 the Insurance Rule, 1958 the comparative figure ofManagement Expenses is given below:

Class Level of Premium Rate Allowable

ExpensesActual

Expenses Variance Remarks

Income from Non Marine BusinessFirst 10,000,000 30% 3,000,000 Next 10,000,000 25% 2,500,000 Next 10,000,000 24% 2,400,000 Next 10,000,000 24% 2,400,000 Next 10,000,000 23% 2,300,000 Next 10,000,000 22% 2,200,000 Next 12,500,000 18% 2,250,000 Balance 113,650,901 16% 18,184,144 Sub-Total 186,150,901 35,234,144

Income from Marine BusinessFirst 10,000,000 18% 1,800,000

Next 10,000,000 15% 1,500,000

Next 10,000,000 15% 1,500,000

Next 10,000,000 13% 1,300,000

Next 10,000,000 13% 1,300,000

Next 10,000,000 13% 1,300,000

Next 12,500,000 11% 1,375,000

Balance 49,873,873 10% 4,987,387

Sub-Total 122,373,873 15,062,387

Total: 308,524,774 50,296,531 121,261,922 (70,965,391) Adverse

No provision for income tax has been made for excess management expenses as per 4th Schedule of Income Tax Ordinance, 1984 because the Company has applied to IDRA for condonation of contravention under section 40C of the Insurance Act, 1938.

ANNUAL REPORT 2015


2015 2014NOTES ON OTHERS

22.00 EARNING PER SHARE (EPS):

The Computation of EPS is given below:

a) Earnings attributable to ordinary share holders 69,230,377 91,894,716 (Net profit after taxation and provision)b) Ordinary shares at 1st January 44,840,857 41,519,312 c) Earnings per share (EPS) (a/b) 1.54 2.21

23.00 NET ASSETS VALUE (NAV) :

The Computation of NAV is given below:

a) Total Assets 1,625,605,320 1,572,213,850 b) Current Liabilities 634,410,776 621,186,165 c) Net Assets Value ( c = a -b ) 991,194,544 951,027,685 d) Ordinary shares at 1st January 44,840,857 41,519,312 e) Net Assets Value (NAV) Per Share ( e = c / d ) 22.10 22.91

24.00 POST EVENT OF FINANCIAL STATEMENT :

The Board of Director of Central Insurance Company Ltd. in its 200th meeting held on April 02, 2016 has recommended cash dividend @ 10% for the year 2015, out of the surplus available for the year 2015 subject to approval of shareholders in the ensuing Annual General Meeting.

25.00 CLAIMS AGAINST Company NOT ACKNOWLEDGED AS DEBT: There was no claim against Company, which is not acknowledged as debt other than normal course of business.

26.00 CONTINGENT LIABILITIES:

There was no contingent liabilities other than normal course of business.

27.00 CREDIT FACILITIESThere was no credit facility available to the Company under any contract and availed of as on December 31, 2015 other than trade available in the ordinary course of business.

28.00 MISC. EXPENSESNo single transaction under this head of accounts miscellaneous exceeded Tk. 5,000.

29.00 Capital Expenditure Commitment :There was no capital expenditure commitment as at 31st December 2015.

30.00 There ware 302 numbers of employees.

31.00 There was no bank guarantee issued by the Company on behalf of their directors.

32.00 Auditors were paid only statutory audit fee duly approved by the Shareholders in the last AGM.

33.00 There was capital work in progress at the end of the Accounting year (Note no. 15).

34.00 No expenses were paid as Royalty and Salary to Technical Experts etc.


35.00 During the year the Company was not entered into any agreement with the third party.

36.00 There was no event occurred after financial statement date, which might effect financial position of the Company as on financial statement date.

37.00 No remuneration was given to the director except the board meeting fees.

38.00 Internal Control :The following steps have been taken for implementation of an effective internal control procedure of the Company:i) A strong internal control and compliance division has been formed with a view to establish a well designated system of internal control.

ii) Regular review of internal audit reports with view to implement the suggestion of internal auditors in respect if internal control technique.iii) To establish an effective management system that includes planning, organizing and supervising culture in branches of the Company as well as at head office.

39.00 Subsequent Disclosure of Events after the financial statement Date - Under BAS 10 :

There is no non-adjusting post financial statement event of such importance, non disclosure of which would affect the ability to the users of the financial statements to proper evaluation and decision.

40.00 Approval of the financial statements:

These financial statements were authorized for issue in accordance with a resolution of the Company's Board of Directors on April 02, 2016.

41.00 Credit Rating Report :

Credit Rating Information and Services Limited (CRISL) has assigned the Claim Paying Ability (CPA) rating of the Company to 'A' (pronounced as Single A) based on the audited Financial Statements up to December 31, 2014 and other relevant qualitative and quantitative information up-to the date of rating. The above rating has been done on the basis of its fundamentals such as average & steady financial performance, good liquidity, good FDR base, good renewal business, diversified investment portfolio, etc.

ANNUAL REPORT 2015


CENTRAL INSURANCE COMPANY LIMITEDINVESTMENT IN SHARE AS ON DECEMBER 31, 2015

Annexure-1

Sl. Name of Itemes No.of Share Book Value Market Rate Market Value as on 31.12.15

1 Central Depositery Bangladesh Ltd. 571,181 1,569,450 2.75 1,569,450

2 City Bank Ltd. 21,000 460,061 20.40 428,400

3 Eastland Insurance 21,550 1,566,240 19.40 418,070

4 Fareast Islami Life Insurance Ltd. 4,107 5,000 62.50 256,688

5 Generation Next Fashions Limited 44,081 851,548 8.80 387,913

6 Global Heavy Chemicals Limited 10,000 606,718 40.00 400,000

7 GMG Air Lines Ltd. 110,000 5,000,000 45.45 5,000,000

8 Grameen Mutual Fund (One) 138,682 4,230,509 18.60 2,579,485

9 Green Delta Mutual Fund 100,000 1,000,000 4.80 480,000

10 IBBL Mudaraba Perpetual Bond 500 460,652 981.50 490,750

11 ICB Islamic Mututal Fund 30,000 1,490,175 4.90 147,000

12 ICB AMCL 1st Unit Fund 124,100 3,286,572 26.48 3,286,572

13 ICB Islamic Bank Ltd. 200 2,000 4.50 900

14 Khulna Power Co. Ltd. 223,177 17,663,533 74.90 16,715,957

15 Matin Spinning Mills Ltd 3,000 139,224 40.70 122,100

16 Orion Laboratories Ltd. 30,000 2,500,000 36.80 1,104,000

17 Reliance 1st MF 103,822 819,160 6.90 716,372

18 Singer BD Ltd. 30,175 6,412,184 180.20 5,437,535

19 Southeast Bank 20,000 390,751 17.60 352,000

20 Square Pharmaceuticals Ltd. 3,375 765,402 253.70 856,238

21 Sumit Power Ltd. 18,112 1,058,517 39.70 719,046

22 Titas Gas 157 13,513 47.40 7,442

23 Trust Bank 1st MF 859,692 5,804,503 4.40 3,782,645

24 United Leasing Co. Ltd. 58,443 4,002,943 20.80 1,215,614

Total : 60,098,653.99 46,474,177


Corporate Information

First Board Meeting : 18th March, 1988

Date of incorporation : 12th November, 1987

Obtained certificate for commencement of business : 12th November, 1987

Registered with the Department of Insurance : 30th November, 1987

Commencement of Business : 10th December 1987

First Dividend declared : 1992

Listing on Dhaka Stock Exchange : 20th March, 1995

Listing on Chittagong Stock Exchange : 22nd October, 1995

Prospectus issued for public subscription : 22nd September 1994

Subscription Opened : 19th December, 1994

Subscription Closed : 28th December, 1994

Public Subscription : Tk. 3.00 crore

Amount over subscription : Tk. 32,38,24,500.00

First Trading of shares on Dhaka Stock Exchange : 20th March, 1995

First Trading of shares on Chittagong Stock Exchange : 22nd October, 1995

Market Price of each share as introduce in DSE : Tk. 177.17

1st AGM in participation of public shareholders at Sonargaon Hotel : 7th August, 1995

Issuance of 1st Bonus Share : 11th September, 2004

Agreement Sign with CDBL : 23rd July, 2005

Issuance of 1st Right Share : 24th April 2006

Capital structure & Share Value

Authorised Capital : Tk. 100.00 crore

Issued, Subscribed & Paid-up Capital : Tk. 44,84,08,570.00

Number of shares issued : 4,48,40,857 nos.

Face Value : Tk. 10.00

Market Lot : 1 nob.

Number of shareholders as on 31 December 2015 : 4000 Nobs.

First election of Public Directors : 26th November, 1997

Book Value per share : Tk. 22.10

Market price – DSE in 2015 : (High) Tk. 24.40 (Low) Tk. 16.10

Market price – CSE in 2015 : (High) Tk. 24.80 (Low) Tk.16.00

HISTORY OF THE COMPANY

ANNUAL REPORT 2015


1 LOCAL OFFICEMr. Md. Badrul AminAdditional Managing Director & Incharge

2 MOULVI BAZAR BRANCH

Mr. S. M. ShahidullahDeputy Managing Director & Incharge

3 NAYARANGANJ BRANCHAl-Haj Khabir Uddin AhmedDeputy Managing Director & Incharge

4 NAWABPUR BRANCHMr. K.M. Hossain PoragSr. Executive Vice President & Incharge

5 SK. MUJIB ROAD BRANCHMr. Nur MohammedSr. Executive Vice President & Incharge

6 KHATUNGANJ BRANCHMr. Md. Ali Sarwar TituSr. Executive Vice President & Incharge

7 KAWRAN BAZAR BRANCHMr. Md. Anwar HossainSr. Executive Vice President & Incharge

8 NARSINGDI BRANCHMrs. Tangema Sultana (Ruma)Sr. Executive Vice President & Incharge

9 JUBILEE ROAD BRANCHAlhaj Md. Abdur RoufSr. Vice President & Incharge

10 DILKUSHA BRANCHMr. Md. Monir Hossain (Eron)Senior Vice President & Incharge

11 BANGSHAL BRANCHMr. Jainal AbedinSr. Vice President & Incharge

12 RANGPUR BRANCHMr. M. A. Halim KanoonSr. Vice President & Incharge

13 BOGRA BRANCHMr. A.B.M. SiddqueSr. Vice President & Incharge

14 KUSHTIA BRANCHMr. Ali Hossain AkhterVice President & Incharge

LIST OF THE BRANCHES

15 DINAJPUR BRANCHMr. Md. Kafilwara MasudVice President & Incharge

16 RAJSHAHI BRANCHMr. Md. Torab HossainVice President & Incharge

17 SATKHIRA BRANCHMr. Shaikh Arifur RahmanVice President & Incharge

18 MYMENSINGH BRANCHMr. Md. Abdur RoufAssistant Vice President & Incharge

19 COMILLA BRANCHMr. Md. Abul Hashem Mojumder PervezAssistant Vice President & Incharge

20 JOYPURHAT BRANCHMr. Md. Mostafizur RahmanAssistant Vice President & Incharge

21 FARIDPUR BRANCHMr. Md. Abdul HaqueAssistant. Vice President & Incharge

22 PABNA BRANCHMr. Md. Abdul QuddusAssistant Vice President & Incharge

23 VIP ROAD BRANCHMr. Md. Shah AlamAssistant Vice President & Incharge

24 SYLHET BRANCHMr. Azad Bakth ChowdhurySenior Manager & Incharge

25 BARISAL BRANCHMr. Md. Shahidul HaqueSenior Manager & Incharge

26 AGRABAD BRANCHMr. Abdul MomenSr. Manager & Incharge (c.c)

27 LALMONIRHAT BRANCHMr. A.K.M. Rafiqul IslamManager & Incharge

28 JESSORE BRANCHMr. Uttam Kumar AdikariIncharge (c.c)


Thakurgaon

Panchagarh

Central Insurance Company‘s Branches

Rangpur

KurigramLalmonirhat

Dinajpur

Jamalpur

Sherpur

GaibandhaJoypurhat

Naogaon

Nawabganj

RajshahiNatore Serajganj

Pabna

Bogra

Tangail

ManikganjKushtiaMeherpur

Gazipur

Mymenshing

Netrakona Sunamganj

HobiganjMoulavibazar

Sylhet

Kishoreganj

ChuadangaJhenaidha

MaguraFaridpur

Madaripur

NoakhaliLuxmimpur

Comilla

Bahmanbaria

Narsingdi

Feni

Munshiganj

Dhaka N. Ganj

Chandpur

GopalganjNarailJessore

Pirozpur

Barisal

BholaPatuakhaliRangamati

Chittagong

Bandarban

Cox’s Bazar

Khagrachari

Jhalakati

Barguna

Bagerhat

KhulnaSatkhira

NETWORK OF THE BRANCHES

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