Delta Life Insurance 2009

IAnnual Report 2009

Annual Report2009

1;\

Delta Life Insurance Company Ltd.Registered Office:

Uttara Bank Bhaban, 90 Motijheel Commercial Area, Dhaka-1 000, BangladeshPhone : 9565033 (PABX), FAX : 88-02-9562219

Website : www.deltalife.com

ChronologyContents

Notice of the 24th Annual General Meeting........ 03

Financial Statistics ..............................................04

Directors' Report ...............................................05

Corporate Governance Report ..........................07

Auditors' Report ................................................16

Balance Sheet ......................................................19

Life Revenue Account ........................................21

Cash Flow Statement .........................................24

Statement of Life Insurance Fund ......................25

Form-AA ............................................................ 27

Notes to the Financial Statements ....................29

Certificate under the Insurance Act 1938 ..........61

Proxy Form & Attendance Slip .........................63

10 November 1986 Incorporation andCommencement of Business

17 December 1986 Signing of First Policy

February 1988 Launching of Grameen Bima

8 October 1993 Launching of Gono Bima

7 February 1994 Inauguration of Delta CareHospitalisation Plan

13 September 1995 Listed in Dhaka StockExchange Ltd.

6 December 1995 Listed in Chittagong StockExchange Ltd.

March 2001 Membership of Global Networkfor Banking Innovationin Microfinance (GNBI)

4 January 2003 Gono-Grameen Bima Merged

1 . Annual Report 2009 Delta Life

Delta Life Insurance Company Ltd.90 Motijheel Commercial Area, Dhaka-1000, Bangladesh.

Notice of the Twentyfourth Annual General Meeting

Notice is hereby given to all the shareholders of Delta Life Insurance Co. Ltd. that the 24 AnnualGeneral Meeting of the Company will be held on Saturday day, the 16" November, 2013 at 12:00 Noonat Delta Life Tower, Plot No. 37, Road No. 45 (South) & 90 (North), Gulshan Circle -2 , Dhaka totransact the following business

Agenda:

To receive, consider and adopt the Directors' and Auditors' Report and the Audited Accounts for theyear ended December 31, 2009.

Dated, Dhaka By order of the Board of DirectorsOctober 21, 2013

Sd/-(Abdullah Al-Mansur)Company Secretary

Notes:

a. The Record Date has been fixed on 30 ,h October, 2013. The shareholders whose name appears inthe Register of Members of the Company or in the Depository (CDBL) on the Record Date i.e.30' October, 2013 shall be entitled to attend the meeting.

b. A Shareholder entitled to attend and vote at the Annual General Meeting (AGM) may appoint aproxy who must be a shareholder of the Company to attend on his/her behalf. The proxy form,duly completed & stamped must be deposited at the Registered Office of the Company not less than48 hours before the time fixed for the Meeting.

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

N.B. As per the Judgement delivered on 20/06/2013 by the Appellate Division of the Hon'ble SupremeCourt of Bangladesh, election of Directors and appointment of Auditors will not be required inthis AGM and hence not included in the agenda.

03

Annual Report 2009 Delta Life

Financial StatisdBusiness Performance -2009

(Taka in Crore)2009 2008 2007 2006 2005

First Year Premium 107.37 95.32 82.30 85.40 81.93Renewal Premium 300.84 266.79 245.00 207.06 166.76Group Insurance Premium 19.94 16.17 10.60 8.32 6.51Health Insurance Premium 10.68 5.23 3.29 2.66 2.30Gross Premium 438.83 383.51 341.19 303.44 257.50Investment Income 181.90 127.64 112.05 89.14 60.01Claims 204.22 243.40 175.80 89.84 52.60Management Expenses

a) Commission 82.43 70.71 64.03 65.06 60.43b) Admin. Expenses 58.35 53.24 48.51 43.16 36.01

Assets 1750.29 1469.60 1321.25 1125.12 916.38Life Fund 1613.59 1342.47 1198.66 1032.88 843.05Claims to Premium (%)

46.54 63.47 51.53 29.61 20.43Management Expenses to premium (%) 32.08 32.32 32.98 35.66 37.45Dividend on face value of share

a)Cash - - - -b)Stock - - - - -

Business Growth

2009 2008 2007 2006 2005

Premium 14.42 12.40 12.44 17.84 22.47Assets 19.10 11.23 17.43 22.78 23.16Life Fund 20.20 12.00 16.05 22.52 23.83

04

Annual Report 2009Delta Life

Directors' ReportBismillahir Rahmanir Rahim

Respected Shareholders, Assalamualaikum,

The Board of Directors welcome you all to the 24" Annual General Meeting of Delta Life InsuranceCompany Limited and present before you the Annual Report together with Audited Accounts for the year2009 and the Auditors' Report thereon.

The Board of Directors continued to focus on mainly two key priorities in 2009; a) to sustain growth ofbusiness and to improve our financial strength and b) to invest in the future. Delta Life made steady progresstowards these two areas in 2009.

Growth of Business & Financial Strength:

Delta Life Insurance Company Ltd. completed another successful year in 2009. The premium income of thecompany consists of premium from OL (Ordinary Life), GN-GRB (Gono Grameen Bima), and GroupInsurance business. The gross premium income of the company increased to TK. 438.83 crore in 2009 fromTK. 383.51 crore in 2008 achieving 14.42 % rate of growth. The combined efforts of the sales team andprudent guideline of the board & management have made it possible to register such a progress.

Investment and other income have registered a positive growth of around 41.08% in 2009 as such the incomehas increased to TK. 186.24 crore in 2009 from TK. 132.01 crore in 2008.

Total income of the company has increased to TK. 622.07 crore in 2009 from 513.03 crore in the year 2008registering a growth of 21.25%.

Your company has paid and provided claims of TK.204.22 crore during the year 2009 as against TK. 243.40crore in 2008.

Average rate of interest yield on investment in the year 2009 stands at 13.11%.

A favourable trend has been observed in the management expenses of the company for the last couple ofyears. The management expenses to premium ratio for the year 2009 stands at 32.08% as compared to32.32% in 2008.

Life fund of the company as at December 31, 2009 stands at TK. 1613.59 crore as against TK. 1342.47 crorein 2008 registering a growth of 20.19%. An increase in life insurance fund is a clear indication of progressivebusiness.

Cash provided by operating activities stands at TK. 80.16 crore in 2009, which represents 18.39% of netpremium income.Net operating cash per share is TK.178.

Investment for the Future:

We put wholehearted efforts to ensure responsible and quality Corporate Governance with the highest level ofintegrity. We tried our best to streamline the organizational structure of the company in a bid to provide qualityservices to our clients at an affordable cost. We have been recruiting dynamic and enlightened youngprofessionals who would provide leadership in future and contribute accordingly to the growth of the company.

05 M


We continue to provide strategic directions in order to develop values; strengthen team spirit and improveour core capabilities. Combined together, all of these efforts would enable the company to sustain its growthand improve our financial strength in the time to come by way of providing value added services to ourclients.

Dividend:Bonus to the policyholders and shareholders are given from the surplus available for distribution as per theactuarial valuation report. Following the verdict/judgment of the honourable Supreme Court of Bangladesh(Appellate Division), pending AGMs for the years 2005-12 shall be held on the same day one after anotherwith separate and distinct notices.

Surplus for the years 2005-2006, 2007-2008, 2009-2010 & 2011 have been carried forward. Out of the surplusemerged in 2012 together with accumulated surplus for the years 2005 to 2011, 21 bonus shares (stockdividend) for each share of TK. 10 has been proposed by the Board of Directors in its meeting held onOctober 5, 2013 for approval of the members at the 27" Annual General Meeting to be held on November16, 2013.

Corporate Social Responsibility:

The company has always played its part in carrying out corporate social responsibilities sponsoring theprizes of Bishya Sahitya Kendra's 'Boi Para Karmashuchi' under its 'Desh Vittik Utkarsha Karjakram' forover a decade to promote reading habit among the school goers. We have also sponsored women'sschool/college handball tournament to encourage female participation in sports.

Outlook for the year 2010:

Your company is poised to further consolidate its activities in a bid to maintain its leading position byrelishing a healthy growth in all relevant spheres in the year 2010. The operational results achieved so far in2010 shows a healthy growth over that of the year 2009. Our activities will gain further momentum in thecoming days of 2010.

Appreciation:

On behalf of the Board of Directors, I wish to extend my heartfelt gratitude to our valued policyholders,honourable shareholders, the Office of the Chief Controller of Insurance, our bankers, Securities andExchange Commission (SEC), Dhaka and Chittagong Stock Exchanges and Central Depository ofBangladesh Ltd. (CDBL) for their continuous support and cooperation. The Board of Directors alsoexpresses deep appreciation to the Sponsors, Patrons, and Company Management, all members of our staffand well wishers whose continuous support/effort and patronage have made these results possible.

For and on behalf of the Board

Dhaka, October 05, 2013ChairmanBoard of Directors

M06


Corporate Governance Report:

The Company implements good corporate governance policies and strongly believes that through fosteringsound corporate governance, further enhancing its transparency and establishing effective system ofaccountability, the Company can operate in a more systematic manner, make decisions in a more scientificway, and boost the confidence of policy holders, share holders and other stakeholders.

Summary of corporate governance

Shareholders'General Meeting

Board

Executive Audit Building & Training &

BoardCommittee Committee Claims HRD

Secretariat/CompanyCommittee Committee Secretary

Company corporate governance philosophy is based on the following principles:

1. Be transparent and maintain a high degree of disclosure levels.2. Comply with all the applicable laws, rules and regulations.3. Fair and equitable treatment of all its stakeholders including employees, policyholders and

shareholders.4. Ensuring timely flow of information to the Board and its Committees to enable them to discharge their

functions effectively.5. A sound system of risk management and internal control.6. Independent verification of the Company's financial reporting.

07 ^


The Directors attended and actively participated in Board Meetings, and meetings of the Committees, inwhich they are members.The number of Board meetings and the attendance of Directors during the year 2009 were as follows:

SL Name Designation Total Total numberNo Number of of meetings

meetings held attended1. Mr. Syed Moazzem Hussain Chairman 5 52. Mr. Monzurur Rahman Director 5 53. Dr. Syed Mukarram All Director 5 54. Dr. Muhammad Raushan All Director 5 55. Mr. Mohd. Syedul Islam Director 5 56. Mr. Nurul Huda Director 5 57. Mrs. Farida R. Ahmed Director 5 48. Mrs. Fahmida R. Naser Director 5 59. Mrs. Farida Mostafa Director 5 510. Dr. Nasiruddin Ahmed Director 5 511. Dr. Sadigur Rahman Malik Director 5 512. Mr. Mahmud Hasan Director 5 513. Mr. Habibur Rahman Khan Director 5 514. Mr. Borhanuddin Ahmed Director 5 515. Mr. Arif Ahmed Director 5 216. Mr. Md. Nurul Islam Director 5 517. Mr. Kazi Faziur Rahman Director 5 318. Mr. Golam Sarwar Director 5 519. Ms. Adeeba Rahman, ACII Director 5 520. Mrs. Syeda Soyeli Ahmed Director 5 521. Ms. Anika Rahman Director 5 422. Ms. Saika Rahman Director 5 523. Mr. Aziz Ahmed, FCA, CISA (USA) Director 5 524. Mr. Md. Abdul Wahab Director 5 5

Directors not being present in any particular Meeting of the Board of Directors were grantedLeave of Absence.

08


COMPOSITION OF COMMITTEES OF THE BOARD AND ATTENDANCE AT THE MEETINGS

The Board in the course of carrying out its duties has set up Board Committees delegated with specificauthority and operating on the terms of reference as approved by the Board, to assist the Board in theexecution of its responsibilities. These Committees shall have the authority to examine particular issues andreport back to the Board with their recommendations. The ultimate responsibility for the final decision onall matters, however, lies with the entire Board.

The Board Committees set up to assist the Board on specific areas of responsibilities are set out below:a) Executive Committee

SL. Name Designation Total Total numberNo. number of of meetings

meetings attendedheld

01 Dr. Syed Mukarram All Chairman 10 1002 Mr. Nurul Huda Member 10 1003 Mr. Syed Moazzem Hussain Member 10 1004 Dr. Muhammad Raushan Ali Member 10 805 Mr. Mohd. Syedul Islam Member 10 1006 Mrs. Farida R. Ahmed Member 10 307 Mr. Md. Nurul Islam Member 10 10

b) Audit CommitteeSL. Name Designation Total number Total numberNo. of meetings of meetings

held attended1. Mr. Mohd. Syedul Islam Chairman 4 42. Mr. Syed Moazzem Hussain Member 4 43. Dr. Syed Mukarram All Member 4 44. Dr. Muhammad Raushan All Member 4 45. Mr. Nurul Huda Member 4 46. Dr. Sadigur Rahman Malik Member 4 47. Mrs. Syeda Soyeli Ahmed Member 4 408 Mrs. Fahmida R. Naser Member 4 4

01020304050607

Dr. Muhammad Raushan AliDr. Syed Mukarram AliMr. Syed Moazzem HussainMr. Muhammad Syedul IslamMr. Nurul HudaMr. Mahmud HasanMr. Golam Sarwar

Mr. Nurul HudaDr. Syed Mukarram AuMr. Syed Moazzem HussainDr. M. Raushan AllMr. Mohd Syedul IslamDr. Nasiruddin AhmedMr. Habibur Rahman KhanMrs. Farida Mostafa& Human Resources Devel

Name

Total numberof meetingsheld99999999

Totalnumber ofmeetines held2222222

Total numberof meetingsattended99999978

Total numberof meetingsattended2222222

C) & Claims Committee

SL. Name DesignationNo.

1J

IN

d) IRSSL.No

MemberMemberMemberMemberMemberMemberMember

CommitteeDesignation

ChairmanMember

MemberMemberMemberMember

09


SHAREHOLDING INFORMATIONAs on December 31, 2009, the following shareholders were holding the company's issued ordinary sharecapital:

(i) Parent/Subsidiaries/Associate companies and other related parties - Nil.(ii) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal

Audit and their Spouse and minor Children.

Share Holding of Directors:

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

1 Mr. Syed Moazzem Hussain 6,805

2 Mr. Monzurur Rahman 8,475

3 Dr. Syed Mukarram All 3,0004 Dr. Muhammad Raushan All

2,0005 Mr. Nurul Huda 5,000

6 Mrs. Farida R.Ahmed 5,0007 Mrs. Fahmida R.Naser 5,0008 Mrs. Farida Mostafa 2,8009 Dr. Nasir Uddin Ahmed 3,00010 Dr. Sadigur Rahman Malik 4,90011 Mr. Mahmud Hasan 5,00012 Mr. Habibur Rahman Khan 2,00013 Mr. Mohd. Syedul Islam 4,50014 Mr. Aziz Ahmed, FCA, CISA (USA)

10015 Mr. Kazi Faziur Rahman 12016 Mr. Borhanuddin Ahmed

1,68117 Mr. Md. Nurul Islam

50018 jMr. Md. Abdul Wahab 10019 Mr. Arif Ahmed 2,000

20 Mr. Golam Sarwar 2,000

21 Ms. Adeeba Rahman, ACII 10,22622 jMrs. Syeda Soyeli Ahmed 320

23 Ms. Anika Rahman 10,26324 Ms. Saika Rahman

10,190Chief Executive Officer, Company Secretary, Chief

NilFinancial Officer, Head of Internal Audit

Share held by Executives: Nil(iv) Shareholders holding 10% or more voting rights:

NilNote In the 7th EGM held on 17th November 2011, the Shareholders' of the Company approved the change

of present market lot of 5 (five) shares of Tk. 100 each to the lot of 50 (fifty) shares of Tk. 10 each.

10


CORPORATE GOVERNANCE COMPLIANCE REPORTStatus of the compliance with the condition imposed by the commission's Notification No.SEC/CMRRCD/2006-158/Admin 02-08 dated 20th February, 2006 issued under the section 2CC of theSecurities and Exchange Ordinance, 1969:

Condition Title Compliance status Explanation for nonNo. compliance with the

condition

Complied Notcomplied

1.1 Board's Size Due to litigation Boardsize could not be broughtdown.

1.2 Independent Directors(i) Independent Directors Under consideration(ii) Independent Director's

Appointment

1.3 Chairman of the Board andChief Executive Officer

1.4 The Directors' Report to Shareholders(a) Fairness of state of the affairs (b) Keeping proper books of

accounts

(c) Consistent application ofAccounting policies inpreparation of FinancialStatements.

(d) Observance of BangladeshAccounting Standard (BAS)

(e) Soundness and efficiency ofInternal Control

(0 Ability to continue as goingconcern

(g) Significance deviations fromlast year in operating result.

(h) Presentation of Key operatingand financial data for last threeyears.

(i) Declaration of Dividend Due to non-holding ofAGM, as a result ofCompany Matter No 114of 2005.

11


Condition Title Compliance status Explanation forNo

noncompliancewith the condition


(j) Number of Board Meetingsheld during the year andattendance by each director.

(k) Pattern of Shareholding2.1 Appointment of:

- Chief Financial Officer(CFO)

- Head of Internal Audit- Company Secretary

2.2 Requirements to attendBoard Meetings:

- Chief Financial Officer(CFO)

- Company Secretary3.00 AUDIT COMMITTEE3.1 Constitution of Audit Committee

(i) Composition of AuditCommittee

(ii) Audit Committee Members No IndependentAppointment

Directors had beenappointed by theBoard.

(iii) Terms of Service of AuditCommittee.

3.2 Chairman of the Audit Committee(i) Selection of the Chairman of

Audit Committee(ii) Qualification of the Chairman

of Audit Committee3.3 Reporting of the Audit

Committee3.3.1 (i) Reporting its activities to the

Board of Directors3.3.1 (ii) Report to the Board by Audit

Committee3.3.1 (ii)(a) Report on conflicts of interests N/A

12

POPPgill


Condition Title Compliance status Explanation for

No. noncompliancewith the condition


3.3.1 (ii)(b) Suspected or presumed fraud orirregularity or material defect inthe internal control system.

3.3.1 (ii) (c) Suspected Infringements of N/Alaws, including securitiesrelated laws, rules andregulations.

3.3.1 (ii)(d) Any other matter whichshould be disclosed to theBoard of Directorsimmediately

3.3.2 Reporting to the Authorities N/A

3.4 Reporting to the Due to non-holding of

Shareholders and General AGM, as a result of

Investors Company Matter No114 of 2005.

4.00 EXTERNAL/STATUTORY AUDITORS(i) Appraisal or Valuation

Services(ii) Financial Information Systems

design and implementation

(iii) Book-keeping or other servicesrelated to financial statements.

(iv) Broker-Dealer Services(v) Actuarial Serv ices(vi) Internal Audit Services(vii) Any Other Services that the

audit committee determines.

13 M

IAuditors'Report


Auditors' Reportto the Shareholders

We have audited the accompanying financial statements of Delta Life Insurance Company Limited, whichcomprises the Balance Sheet as at 31 December, 2009 and the related Life Revenue Accounts and Cash FlowsStatement, Statement of Changes in Equity for the year ended, and a summary of significant accountingpolicies and other explanatory notes.

Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Bangladesh Financial Reporting Standards (BFRS), the Companies Act 1994, the InsuranceRules 1958, Insurance Act 1938, The Securities and Exchange Rules 1987 and other applicable laws andregulations. This responsibility includes: designing, implementing, and maintaining internal controlrelevant to the preparation and fair presentation of financial statements that are free from materialmisstatement, whether due to fraud or error; selecting and applying appropriate accounting policies andmaking accounting estimates that are reasonable in the circumstances.

Auditors' ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonable assurance whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internalcontrol . An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

Opinion:In our opinion, the Financial Statements prepared in accordance with Bangladesh Financial ReportingStandards (BFRS), give a true and fair view of the state of the statement of the company's Affairs as at 31stDecember 2009 and of the results of its operations, its cash flows and statement of changes in equity for theyear then ended and comply with the Companies Act 1994, the Insurance Rules 1958, Insurance Act 1938,the Securities and Exchanges Rules 1987 and other applicable laws and regulations.

Further to our opinion in the above paragraph, we state that:(i) We have obtained all the information and explanations which to the best of our knowledge and

belief were necessary for the purpose of our audit and made due verification thereof;

______ 16


(ii) in our opinion, proper books of account as required by law have been kept by Delta Life InsuranceCompany Limited, so far as it appeared from our examination of those books;

(iii) the company's Balance sheet, Life Revenue Accounts, Cash Flows Statement and its Statement ofChanges in Equity dealt with by the report are in agreement with the books of account andreturns;

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

(v) As per section 40-b (2) of the Insurance Act 1938 as amended, we certify that to the best of ourknowledge and belief and according to the information and explanations given to us, all expensesof management whenever incurred and whether incurred directly or indirectly, in respect ofinsurance business of the Company transacted in Bangladesh during the period under report havebeen duly debited to the related Revenue Account of the Company and,

(vi) As per regulation 11 of part 1 of the third schedule of the Insurance Act 1938 as amended, wecertify that to the best of our knowledge and as shown by its books, the company during theperiod under report has not paid any person any commission in any form outside Bangladesh inrespect of any of its business re-insured abroad.

M. N. Islam & CompanyDhaka, October 05, 2013

Chartered Accountants

17

FinancialStatements

I

Annual Report 2009

As at December 31, 2009

SHARE CAPITAL AND LIABILITIESSHAREHOLDERS' CAPITAL

Delta Life

Notes 2009 2008Taka Taka

4.00

Authorized3,00,00,000 Ordinary Shares of Tk. 10 each

Issued, Subscribed and Paid - up45,00,000 Ordinary Shares of Tk. 10 eachfully paid up in cash

Dividend Equalisation Reserve

Life Insurance FundEstimated liabilities in respect of outstanding claims,whether due or intimatedAmount due to other persons or bodies carrying oninsurance businessSundry CreditorsProvision for Doubtful DebtsReserve for Unexpired RiskPremium Deposits

TOTAL SHARE CAPITAL AND LIABILITIES

300,000,000

300,000,000

45,000,000 45,000,000

1,000,000

1,000,000

5.00 16,135,913,971 13,424,726,552

6.00 603,844,575

7.00 19,490,414 18,290,661

8.00 475,506,086

397,808,126

9.00 86,845,641 64,248,084

127,691,040 84,086,216

10.00 7,641,656 7,360,433

1,321,019,412 1,225,321,276

17,502,933,383 14,696,047,828

The annex notes form an integral part of these financial statement

/jSwapan Kumar Sarkar, FCA Md. Mujibur Rahman Aziz Ahmed, FCA, CISA Monzurur RahmanManaging Director (In-charge) Director Director Chairman

19

17.01 5,255,279,983

17.02

735,781,246

17.03 583,242,833

666,82535,698,324

18,00 375,876,73456,344,380

7,042,890,325

19.00 572,191,2039,331,582

17,502,933,383

5,489,618,938246,335,009497,627,688

1,331,33419,690,617

293,128,84942,541,224

6,590,273,659

442,702,4499,959,973

14,696,047,828



PROPERTY AND ASSETS

LOANOn Insurer's Policies within their surrender value

INVESTMENT (AT COST)Statutory Deposit with Bangladesh Bank (NIB)Bangladesh Govt. Treasury Bond (BGTB)Shares Listed on Stock ExchangesDebentures and BondsShareholding in DBH Finance Corp. LtdMutual FundCentral Depository Bangladesh Ltd.Other Loans

CASH AND BANK BALANCESOn Fixed Deposit with BanksOn Current Account with BanksOn STD Account with BanksCash in HandCash in TransitCollection in HandBranch Petty Cash

OTHER ACCOUNTSFixed Assets (At Cost Less Depreciation)Stamps, Printing and Stationery in Hand

TOTAL PROPERTY AND ASSETS

Notes 2009Taka

11.00 363,915,863

12.002,000,000

5,136,935,2062,156,686,678

29,012,19150,000,00061,500,0002,000,000

110,155,199

2008Taka

325,064,387

2,000,0004,162,604,438

702,352,025459,973,962

50,000,000

2,000,000113,912,493

5,492,842,918

3,655,879830,801,396562,295,015377,572,011

60,880,141

7,548,289,274

Agents' Balance 3,656,785

Outstanding Premium 13.00 918,571,266Interest, Dividends and Rents Accruing But Not Due 14.00 517,141,067Advances And Deposits 15.00 466,299,442Sundry Debtors 16.00 60,646,576


A t4#1ze-All,6ra_"_

Swapan Kumar Sarkar, FCA Md. Mujibur Rahman Aziz Ahmed, FCA, CISA

Managing Director (In-charge) Director Director

Signed as per annex report on even date

Monzurur RahmanChairman

Dhaka, October 05, 2013 M. N. Islam & Co.Chartered Accountants

20.0021.00

92,007,572

13,424,726,552 11,986,629,415

85,448,800

r654,424,643419,314,102J

1,073,738,7451,785,340,4591,223,035,054

3,008,375,513199,436,944106,798,415

306,235,3594,388,349,617

(30,090,308)4,358,259,309

572,814,528380,394,579953,209,107

P1,i1,932,9701,116,001,142

2,667,934,112161,681,49952,259,011

213,940,5103,835,083,729

(24,956,150)3,810,127,579

22.00 1,818,989,557

23.00 43,371,0831,276,427,981

43,699,811

19,737,354,073 17,202,333,586

30,480,289691,623138,243568,45994,742

124,798382,8 13,891

14,573,827644,252,873

1.073,738,745

34,035,7401,700,781

377,903150,563347,893149,277

337,623,62314,015,858

564,807,469953,209,107


For the year ended December 31, 2009


BALANCE OF FUND AT THE BEGINNING OFTHE YEAR

ADJUSTMENTS MADE DURING THE YEARPREMIUM LESS REINSURANCEFirst Year Premium (OL)First Year Premium (GN-GRB)

Renewal Premium (OL)Renewal Premium (GN-GRB)

Group Life Insurance PremiumHealth Insurance Premium

Gross PremiumReinsurance PremiumNet Premium

INTEREST, DIVIDENDS AND RENTSOTHER INCOME

TOTAL INCOME

First Year Premium, where the maximum premium paying period is;

SingleFive yearsSix yearsSeven yearsEight yearsNine yearsTen yearsEleven yearsTwelve years or over (including throughout life)

21 M

Delta Life


24.00

1,139,003,843471,526,381

67,695,9001,714,160

52,693,018538,597

130,827,6182,041,220,130

937,1582,042,157,288

118,507,7291,707,515,482

403,499,27035,788,814

1,635,64957,930,313

406,351102,586,507

2,427,870,1156,139,937

2,434,010,052

331,667,1167,118,241

266,8002,027,8681,850,530

13,234,2355,347,817

14,313,87354,977,90341,086,3194,912,087

20,813,8402,785,714

457,9319,737,7393,587,7791,856,4332,454,8012,039,9243,125,328

444,73413,037,979

309,301,3756,684,116

209,3001,991,2692,389,126

12,071,7758,624,718

12,410,47247,590,31627,856,200

4,186,02218,979,4543,215,635

490,7459,742,5911,342,3943,987,7392,027,1631,607,3493,104,199

601,36511,096,121

Annual Report 2009

or the year ended December 31, 2009

CLAIMS UNDER POLICIES (INCLUDINGPROVISION FOR CLAIMS DUE ORINTIMATED), LESS REINSURANCEBy DeathBy MaturityBy SurvivalBy HospitalisationBy OthersBy SurrendersAnnuitiesBonus in Cash

Profit Commission

EXPENSES OF MANAGEMENTCommission: 25.00(a)Commission to Insurance Agents (Less that on reinsurance)(b) Allowances and Commission [other than commission including

in sub-item (a) preceding]

Salaries etc. (other than to agents and those contained in theallowance and commission)Traveling and ConveyanceDirectors FeesMedical FeesLegal and Professional Fees 26.00Insurance Policy StampAdvertisement and Publicity 27.00Printing and StationeryOffice RentBank ChargesRepairs and MaintenanceCar Fuel, Maintenance & RepairsGroup InsurancePapers and PeriodicalsTelephone, Telex and Electricity etc.Training & Recruitment ExpensesFees, Subscriptions and Donation !SISEntertainmentInsurance Premium (General)Postage and TelegramUniform and LiveriesDevelopment Expenses

657,287,4 552,455,496

L7P60,797

154,635,603

824,348,219 707,091,099

22


For the year ended December 31, 2009

Notes 2009

2008Taka Taka

Prizes and AwardsConferenceCompany Registration (Renewal) FeesStampsStaff Transport ExpensesDepreciation on Fixed AssetsCDBL Related Charges

Provision for Doubtful DebtsReserve for Unexpired RiskProvision for Income Tax 29.00BALANCE OF THE FUND AT THE END OFTHE YEAR AS SHOWN IN THE BALANCE SHEETTOTAL

2,818,1452,350,000

13,422,8191,780,9901,421,000

23,736,476805,211

583,479,6321,407,827,851

23,763,923127,691,040

16,135,913,97119,737,354,073

2,910,9654,360,872

11,941,4471,753,1571,190,400

20,611,243171,076

532,448,6041,239,539,703

19,971,06384,086,216

13,424,726,55217,202,333,586


Swapan Kumar Sarkar, FCA

Md. Mujibur Rahman Aziz Ahmed, FCA, CISA Monzurur RahmanManaging Director (In-charge) Director Director Chairman

Signed as per annex report on even date

Dhaka, October 05, 2013

M. N. Islam & Co.Chartered Accountants

23

4,300,579,143,335,358

(2,091,840,469)(1,360,991,413)

(89,452, 17)J801,631,049

3,652,529,15739,503,039

(2,457,193,182)(1,205 442 041)

(82,603,157)(53,206,184)

(2,059,203,650)(118,900,753)

(38,851,476)3,757,294

1,864,143,50540,872

(349,014,208)

(1,039,035,572)(60,373,992)(30,665,539)21,386,319

1,554,692,7474,198,172

450,202,135

(l75)t(175)

452,616,6666,590,273,6597,042,890,325

(39,832)(39,832)

396,956,1196,193,317,5406,590,273,659


CASH FLOW STATEMENT -For the year ended December 31, 2009

2009 2008Taka Taka

Cash flows from Operating ActivitiesCollection from PremiumOther Income receivedPayment for ClaimsPayments for Operating activitiesSource Tax (Income Tax) deductedNet cash from operating activities

Cash flows from Investing ActivitiesInvestment madeAcquisition of Fixed AssetsLoan against Policies PaidOther Loans realisedInterest, dividends & rents receivedProceeds from sale of Fixed AssetsNet Cash used in investing activities

Cash flows from Financing ActivitiesDividend PaidNet cash used in financing activitiesNet increase in Cash & Cash equivalentsCash and Cash equivalents at the beginning of the periodCash and Cash equivalents at the end of the period


4r`1-4 -0-91



24


STATEMENT OF LIFE INSURANCE FUND

Taka

ASSETSLoan on Insurer's Policies within their surrender valueInvestmentsAgents' BalanceOutstanding PremiumInterest, Dividends & Rents accruing but not dueAdvances & DepositsSundry DebtorsCash & Bank BalancesFixed Assets (at cost less depreciation)Stamps, Printing and Stationery in Hand

LESS: LIABILITIESEstimated liabilities in respect of outstanding claims, whether due or intimatedAmount due to other persons or bodies carrying on insurance businessSundry CreditorsProvision for Doubtful DebtsReserve for Unexpired RiskPremium DepositsDividend Equalisation Reserve

Gross Fund (Assets - Liabilities)Shareholders' Capital (Paid-up Capital)Life Insurance Fund as at December 31, 2009

363,915,8637,548,289,274

3,656,785918,571,266517,141,067466,299,442

60,646,5767,042,890,325

572,191,2039,331,582

17,502,933,383

603,844,57519,490,414

475,506,08686,845,641

127,691,0407,641,6561,000,000

1,322,019,412

16,180,913,971(45,000,000)

16,135,913,971




25


STATEMENT OF CHANGES IN STOCKHOLDERS! EQUITYI.

Share Share General Retained OtherParticulars TotalCapital Premium Reserve Earnings Reserve

Balance as on

45,000,000 - - - - 45,000,00001 January 2009 Bonus Sharefor the Year 2008 - - - - -Balance as on

45,000,000 - - - - 45,000,00031 December 2009 _____________ ___________ ___________ _________ _____________

The annexed Notes 1 to 37 form an integral part of these financial statements. These financial statementwere approved by the Board of Directors on October 05, 2013 and were signed on its behalf by:


4r-4p.,Swapan Kumar Sarkar, FCA


26



Class of Assets

Market Value Taka-I I I

OANOn Insurer's Policies within their surrender value 363,915,863 363,915,863 Realisable Value

NVESTMENTStatutory Deposit with Bangladesh Bank (NIB) 2,000,000 2,000,000 At CostBangladesh Govt. Treasury Bond (BGTB) 5,136,935,206 5,136,935,206 At CostShares Listed on Stock Exchanges 2,156,686,678 3,302,174,731 Market Value)ebentures and Bonds 29,012,191 29,012,191 At Cost

Shareholding in DBH Finance Corp. Ltd 50,000,000 50,000,000 Realisable ValueMutual Fund 61,500,000 61,500,000 At CostCentral Depository Bangladesh Ltd. 2,000,000 2,000,000 Book ValueOther Loans 110,155,199 110,155,199 Realisable Value

ASH AND BANK BALANCESOn Fixed Deposit with Banks 5,255,279,983 5,255,279,983 Book ValueOn Current Account with Banks 735,781,246 735,781,246 Book ValueOn STD Account with Banks 583,242,833 583,242,833 Book Valueiash in Hand 666,825 666,825 Book Value

Cash in Transit 35,698,324 35,698,324 Realisable ValueCollection in Hand 375,876,734 375,876,734 Realisable ValueBranch Petty Cash 56,344,380 56,344,380 Realisable Value

OTHER ACCOUNTSAgents' Balance 3,656,785 3,656,785 Realisable ValueOutstanding Premium 918,571,266 918,571,266 Realisable ValueInterest, Dividends and Rents Accruing But Not Due 517,141,067 517,141,067 Realisable ValueAdvances And Deposits 466,299,442 466,299,442 Realisable ValueSundry Debtors 60,646,576 60,646,576 Realisable ValueFixed Assets (At Cost Less Depreciation) 572,191,203 572,191,203 Carrying ValueStamps, Printing and Stationery in Hand 1 9,331,582 9,331,582 At Cost

Total 17,502,933,383 18,648,421,436


1ir,zSwapan Kumar Sarkar, FCA


27

LI

Notes to theFinancial Statements


Notes to The Financial StatementsF11 ME we I

1.00 LEGAL STATUS AND NATURE OF BUSINESS

1.01 Establishment and status of the CompanyDelta Life Insurance Company Ltd. was incorporated in Bangladesh in 10th November, 1986 as apublic Limited Company under the Companies Act. Its shares are quoted on the Dhaka StockExchange and Chittagong Stock Exchange. The company started its business in December 1986.

1.02 Nature of businessThe company is also registered with the Controller of Insurance / The Insurance Development andRegulatory Authority (IDRA) in carrying on the business of life insurance. The company's lifeinsurance business comprises of Individual life for urban and suburban people, micro insurance inthe name of Gono-Grameen Bima (GN-GRB) for low income group with limited or no access tofinancial instruments and Group business for conglomerates.

Most of the products are participating traditional while few products under individual life arenon-participating traditional. To enhance the benefits of the plans accidental and disability riders arealso offered.

2.00 BASIS OF PRESENTATION AND STATEMENT OF COMPLIANCE

2.01 Statement of ComplianceThe following underlying assumptions, measurement base, laws, rules, regulations and accountingpronouncements have been considered in preparing and presenting the financial statements: Going Concern Accrual unless stated otherwise except for Cash Flow Statement. Historical cost convention The Insurance Act 1938 / Rules 1958 Provisions of the Companies Act 1994 The Securities and Exchange (SE) Rules The Listing Regulations of Dhaka and Chittagong Stock Exchanges Income Tax Ordinance 1984 The Bangladesh Accounting Standards (BAS) 1, 2, 7, 8, 10, 12, 16, 19, 24, 34, & 37 which

have been adopted by the Institute of Chartered Accounts of Bangladesh (ICAB), and Any other applicable laws, regulations, covenants and conventions etc.

In case requirements differ provision of Company's Act 1994, the Insurance Act/Rules and SE rules1987 shall take precedence.

These financial statements have been prepared on the format of financial statements prescribed inthe Insurance Act/ Rules 1958 and SE rules 1987.

29


2.02 The functional and presentation currencyItems included in the financial statements are measured using the currency of the primary economicenvironment in which the company operates.The financial statements are presented in Bangladeshi Taka, which is the company's functional andpresentation currency.Figures in these financial statements have been rounded to the nearest Taka.

2.03 Use of Critical Accounting Estimates and JudgmentsThe preparation of financial statements in conformity with the accepted accounting principles andstandards require that the company's management make estimates and assumptions that affect thereported amounts of income and expenses for the year and reported balances of assets and liabilities.The estimates and assumptions used in the accompanying financial statements are based uponmanagement's evaluation of the relevant facts and circumstances of the date of financial statements.Actual results could differ from the estimates. Any revision to the accounting estimate is recognizedprospectively.

2.04 Reporting periodThe financial statements of the company covers one financial year from January 01 to December 31of the calendar year and is followed consistently.

2.05 Components of the Financial StatementsThe financial statements include the following components: Balance Sheet Life Revenue Account Cash Flow Statement Statement of Life Insurance Fund Statement of changes in stockholders equity Classified summary of the Assets (Form AA) and Accounting Policies and Explanatory Notes.

3.00 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies adopted in the preparation of these financial statements are consistent withthose followed in the preparation of the company's financial statements for the year endedDecember 31 2009.

3.01 Revenue RecognitionsAll business is written in Bangladesh.

3.1.1 Individual life policiesIndividual life first year, renewal, and single premiums are recognized once the related policies areissued /renewed against receipt and realization of premium.

30


However, Provision for outstanding premium for the accounting year is estimated on basis ofcollection in the following three (3) months taking into consideration the nature and practice in lifeinsurance industry.

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

3.1.2 Group Life and Health PoliciesThe premiums of Group policies are recorded after receipt of the premiums and in certaincircumstances premiums falling due under the policies within the financial period are alsorecognized if these premiums are subsequently received.

3.1.3 Reserve for Unexpired Risk- Group BusinessGross premium proportionate to the unexpired duration of the period for which the respectivepremiums have been billed and received are held as reserve for unexpired risk.

3.02 Interest, Dividends and RentsInterest income is recognized on accrual basis (except project loan) unless otherwise stated.Accretion of discount and amortization of premium in respect of debt securities and other fixedincome securities is amortized over the remaining period to maturity of such instruments onstraight line basis.

Realized gains and loses in respect of equity securities and units of mutual fund listed in the stockexchange are calculated as the difference between the net sales proceeds and their costs using theweighted average method.

Policy loans are allowed to the policy holders to the extent of surrender values of their respectivepolicies provided the policies are in force for not less than two years. Interest on policy loan isaccounted on accrual basis subject to the provisions of the Insurance Act/Rules.

Profit or loss on sale of securities/equities is taken to revenue only in the year of sale.Income on debentures is recognized at prescribed rates except recovery is considered doubtful inwhich case the income is recognized on a receipt basis.

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

Dividend income is accounted for when the dividend is received.

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

3.03 ProvisionsA provision is recognized in the Balance Sheet date if, as a result of past events, the company has apresent legal or constructive obligation that can be estimated reliably, and it is probable that anoutflow of economic benefits will be required to settle the obligation.

31


Provision has been made against the loans and advances with small prospect of recovery. Provisionshave not been made against advance for which legal cases instituted but remained pending fordecision.

3.04 Contingent LiabilitiesContingencies arising from claim, litigation, tax assessment, fines, penalties, etc. are recorded whenit is probable that the obligation has been incurred and the amount can reasonably be measured.

The Income Tax Department (DCT) has appealed to the High Court Division of Supreme Court inDecember, 2007 against the orders (ITA 3145 of 2004-2005) (Assessment year 2003-2004) ofAppellate Tribunal dated 27/03/2005 and Commissioner of Taxes (CT) (Appeals) dated 26/12/2004claiming that the Tribunal was not legally justified to uphold the order of the CT Appeals dated26/12/2004 for deciding interest income (Tk. 1,70,000) on national investment bond (NIB) asexempt income in the assessment of tax of the company for the assessment year 2003-2004.

The company has contended against the appeal of the DCT in that the Appellate Tribunal and CTAppeals have allowed the income on NIB as exempt one in the assessment year 2003-2004 and suchincome was also exempted from tax in previous years' tax assessment of the company.

As the case has not yet been settled and their exists uncertainties or timing of deciding the taxliability of the company, if any, and the experts have advised that the company's grounds ofreasoning against the appeal are well supported in law in view of which the company could notexpect any further liability. (please refer to note 16.04).There are no any other liabilities.

3.05 Premium depositPremium deposit represents premium received but risk has not yet been accepted because ofpending underwriting decision as on 31st December 2009.

3.06 Re-insuranceThe company maintains risk premium Re-insurance with Munich-Re-insurance. Re-insurancepremium ceded is recognized on due basis in accordance and terms and conditions of re-insurancetreaties. A claim recovery from re-insurer is recognized at the same time as the claims are intimatedand recorded in the books of account of the company.

3.07 Claims costsClaims costs consist of the policy benefit amount and claim settlement costs, where applicable.Death and rider claims are accounted for on receipt of intimation.Annuity benefits and Maturity benefits are accounted when due.

Surrenders are accounted for on the receipt of consent from the insured to the quote prescribed inthe policy deed provided by the company.

32


Maturity claims also include amounts payable on lapsed policies which are accounted for on the dateof maturity of policies.Re-insurance claims receivable are accounted for in the period in which claims are settled.

3.08 InvestmentsInvestments are made in accordance with the provisions of the Insurance Act/Rules 1938/1958 andthe circulars/notifications issued by the Controller of Insurance! IDRA in this context from timeto time.

a) Classification of investmentInvestments with fixed or determinable payments and fixed maturity, where the company haspositive intent and ability to maturity, are classified as Held-to-Maturity. Investments which areintended to be held for an indefinite period but may be sold in response to the need for liquidityor change in mark-up/ interest rates are classified as Available- For- Sale.

b) Valuation of investments(i) Investment property

Investment property represents land or building held for investment purpose. Investmentproperty is valued at historical cost plus revaluation, if any.Cost of investment property includes their acquisition cost and costs of various phases ofconstruction works including advance to contractors which have been completed at thebalance sheet date.

The construction works of office buildings on leasehold land at various places are inprogress, which has not been fully completed at Balance Sheet date and hence classified ascapital work in progress (CWIP) in the accounts.

(ii) Debt SecuritiesDebt securities with fixed income {Bangladesh Govt. Treasury Bond, National InvestmentBond (NIB), Private and Public Bonds and Debentures} are categorized by class and areaccounted for "held to maturity" and have been valued at cost. The discount in respect ofthe debt securities which is the difference between the purchase price and the redemptionamount is amortized and recognized in the Revenue Account on straight line basis over theremaining period to maturity of these securities. For fair presentation, premium, if any,premium on acquisition of those bonds and debentures are however charged to Revenue inthe year of acquisition.

(iii) Shares listed in Stock ExchangeListed equity shares and units of mutual fund are categorized as an asset class"available-for-sale" and the asset is valued at the lower of their acquisition cost and the yearend (last) lowest quoted closing prices on the Stock Exchanges. Adequate provision ishowever made for diminution if any, in the cost prices of such shares against such quotedprices in the Stock Exchanges. If the quoted prices of this class of shares are higher than thecost prices, no credit is taken to Revenue account.

33


De-listed and OTC shares are also included in the class and valued at cost being nominalamount (0.34%) of total investment portfolios in listed shares.

The equity investments and units of mutual fund that are quoted in active market are notpresented at fair value. Abnormal ups and downs have been going on in the market ofquoted shares and if the shares are measured at the fair value, the results of the financialperformance may be seriously misleading for the objective of financial performance.Considering the circumstances and to reflect fair financial position of the company, theprinciple of presenting the quoted share in market value has been departed for the timebeing.

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

(v) All other investments are recognized at cost including their acquisition charges, if any, lessimpairment, if any.

3.09 Fixed assets and Depreciation

Fixed assets are reported at cost less accumulated depreciation and impairment, if any. Cost includesthe purchase price and any cost directly attributable to bring the asset to its working condition forits intended use. Fixed assets of small value and assets for which useful lives can not be estimatedproperly are fully charged to the Revenue in the year of their purchases. Subsequent expendituresincurred on existing fixed assets are expensed out except where such expenditure increases the futureeconomic benefits from the existing assets. Any addition to the original fixed asset is depreciatedover the useful life of the asset. Depreciation is charged on pro-rata basis from the month ofpurchase and up to the previous month of sale. Methods and rates of providing depreciation areconsistently applied in relation to the previous year.

Capital works in progress (CWIP) is stated at cost less impairment, if any and consist of expenditureincurred and advances made in respect of fixed assets in the course of their acquisition, erection,construction and installation. The assets are transferred to relevant category of fixed asset when theyare available for use.Gains! Losses on disposal of fixed asset are taken to revenue account.

Tangible AssetsThe company has adopted the straight line method of depreciation so as to depreciate 100% of thecost of the assets at rates in the following manner:

Furniture and Fixtures 10%Renovation 20%Computer Hardware & Software 25%Electrical Equipments 20%Vehicles 20%

In case of acquisition depreciation is calculated from purchasing month, and in case of disposaldepreciation is charged up to previous month of sale.

34


Intangible AssetsIntangible Assets are reported at acquisition value with deductions for impairment losses, if any.Intangible Asset comprises system software which is stated at cost of acquisition, including any costattributable for bringing the same to its working condition less accumulated amortization. This isamortized over period of four (4) years. Any expenses on software for support and maintenancepayable annually are charged to Revenue Account.

Impairment of AssetsThe carrying amounts of assets are reviewed at the Balance Sheet date if there is any indication ofimpairment based on internal/external factors. An impairment loss, if any, is recognised wherevercarrying amount of an asset exceeds it's recoverable amounts.

Encumbrances:There were no encumbrances on assets of the company as at the Balance Sheet date (previous yearTk. nil).

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

3.11 Policy on Doubtful DebtsProvision for doubtful debts has been provided as determined by the management.

3.12 TaxationCurrentProvision for taxation is based on taxable income determined under the Fourth Schedule of theIncome Tax Ordinance, 1984.

Charge for the current tax is calculated following the accepted method of income assessment and theusing tax rate enacted at the Balance Sheet date and includes adjustments, where considerednecessary, relating to prior years.

Deferred taxDeferred tax is recognized using the Balance Sheet liability method on all temporary differencearising between the carrying amounts of assets and liabilities for financial reporting purposes andamounts used for taxation purpose.

Deferred tax is the effect of timing difference.

As the current tax has been measured using the rate, prescribed method of income assessment(annual average surplus) and tax laws that have been substantially enacted by the Balance Sheet dateas per Income Tax Ordinance there is no possibility for arising any timing difference and thuscreating of deferred tax asset/ liability at this stage does not arise.

Further, sufficient tax refund due has been admitted by Tax authority in the previous years whichis virtually certain to reduce the future tax liabilities, if any, of the company.

35


3.13 Risk Minimization Strategies

Underwriting procedures have been enhanced and rules have been structured to enable thecompany to strike a balance between mitigating risk, ensuring control and providing better service.The company seeks to reduce its risk exposure by reinsuring certain levels of risks with re-insurers.

The company continues to adopt a prudent policy in respect of Investments.

3.14 CommissionCommission to Insurance Agents (Less that received on re-insurance) represents first yearcommission, renewal commission and Group commission.

Allowances and Commission (Other than Commission to Insurance Agents less that onRe-insurance) represent Field Officers salary and allowances including bonuses.

3.15 Cash Flow StatementCash Flow Statement is prepared in accordance with BAS-7 and Cash Flow from operating activitieshas been presented under direct method as outlined in the Securities and Exchange Rules 1987. Forthe purpose of cash flow statement, cash and cash equivalents include the following:

j Cash at bank in current and STD accountsTerm deposits (FDRs) with commercial banks

j Cash in hand and in transit

3.16 Comparative informationRelevant comparative information has been disclosed in respect of the year for all numericalinformation in the financial statements.

3.17 Dividend to Share holdersDividends in cash and stock (bonus shares) to share holders are recognized in the period in whichthey are approved.

3.18 GeneralThe previous year's figures have been regrouped, rearranged and reclassified wherever necessary.Amounts and other disclosures for the preceding year are included as an integral part of the currentfinancial statements and are to be read in relation to the amounts and other disclosures relating tothe current year.

Amounts presented have been rounded to the nearest taka. Figures in brackets ( ) indicatededuction/negative balances.

M36


2009 2008Taka Taka

4.00 SHAREHOLDERS' CAPITALAuthorised Capital3,00,00,000 Ordinary Shares of Tk. 10 each

Issued, subscribed and paid-up capital45,00,000 Ordinary Shares of Tk. 10 each.

300,000,000 300,000,000

45,000,000 45,000,000

Category of Shareholders Share holding (%)Sponsor 36.76 16,540, 16,540,050General Public 63.24 28,459,950] 28,459

45,000,000 45,000,000

Number of non-resident shareholdersNumber of shares held by non-resident shareholders 1,914

4.01 Distribution Schedule of Paid-up Capital (as on record date July 16, 2013)

Category of Share Holders Share HoldingHolders

No. of Share No. of Share Percentageof Share

below 500 3 525 0.01

500-5000 39 109,275 2.43Sponsor 5001-10000 8 59,430 1.32

10001- Above 33 1,484,775 33.00Sub-total 83 1 1,654,0051 36.76

below 500 1,502 181,080 4.02500-5000 273 371,475 8.26

General Public 5001-10000 27 183,390 4.0810001 Above 29

12,110,050 46.89

Sub-total 1,831 1 2,845,9951 63.24Total 1,914 1 4,500,0001 100.00

In the 7th EGM held on 17" November 2011, the Shareholders' of the Company approved the change ofpresent market lot of 5 (five) shares of Tk. 100 each to the lot of 50 (fifty) shares of Tk. 10 each.

5.00 LIFE INSURANCE FUND Tk. 16,135,913,971

Balance at the beginning of the year 13,424,726,552 11,986,629,415

Add: Increase in Life Revenue Account during the year 2,711,187,419 1,438,097,137

Balance at the end of the year 16,135,913,971 13,424,726,552

37

12,396,101152,968,653

L___ 1,737,009167,101,76341,128,409

7,692,00015,296,301

603,844,575 -

8,651,882257,849,744

2,534,41J269,036,042

30,829,5807,892,0005,811,619

653,527,756

303,425,15124,036,894

5,443,6144,508,000

99,97222,646,478

47,42525,644,531

901,055881,533

16,409,6482,929,060

35,07138,563,59617,055,2095,810,7547,068,095

248,944,15418,486,6815,028,6904,100,000

828,76114,114,741

47,42526,460,627

1,823,213881,708

15,475,7822,752,332

9,18938,563,59614,086,2055,834,000

371,022


2009 20086.00 ESTIMATED LIABILITIES IN Taka Taka

RESPECT OF OUTSTANDINGCLAIMS, WHETHER DUE ORINTIMATED Tk. 603,844,575

a) Ordinary LifeDeath ClaimMaturity ClaimClaim on Survival

b) Gono - Grameen BimaDeath ClaimMaturity ClaimClaim on Surrender

c) Group Insuranced) Wage Earnerse) Health Insurance

7.00 AMOUNT DUE TO OTHER PERSONS ORBODIES CARRYING ON INSURANCE BUSINESS

a) Munich Reinsurance Company

8.00 SUNDRY CREDITORS Tk. 475,506,086Commission Payable (Note-8.01)Development Salary (Note-8.02)Agents' License Fees (Note-8.03)Insurance Policy Stamps (Note-8.04)Tax and VAT Deducted at SourceSecurity Deposit (Note-8.05)Welfare FundIncentive Bonus-Staff (Note-8.06)Salaries & Allowances Payable (Staff)Unpaid DividendCreditors for Expenses (Note-8.07)Provident Fund (Note-8.08)Group Insurance & Hospitalisation Insurance PremiumProvision for Income Tax (Note-8.09)Interest Suspense Account (Note-8. 10)Unidentified Deposit (Note-8.11)LR.K Securites Ltd. *

51,006,274 31,126,000

109,949,639 97,49 1,222

211,670,189 211,341,2J

372,626,102 339,958,515

19,490,414 18,290,661

475,506,086 397,808,126

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

38


2009 2008Taka Taka

8.01 Commissions payable 303,425,151 248,944,154

This represents the provision of commissions payable to OL and GN-GRB's agents and differentlevel of development officers which were due in December 2009 against first year and renewalbusiness. These were subsequently paid.

Development Salary 24,036,894 18,486,681

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

Agents' License Fees 5,443,614 5,028,690

This represents amounts received from various development staff for agent's licenses fees whichwere under process and deposited gradually to the IDRA.

Insurance Policy Stamps 4,508,000 4,100,000

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

Security Deposit Tk. 22,646,478

8.02

8.03

8.04

8.05

CourierPrinting MaterialsStationery SuppliersCar Repairs (Garage)Contractor's (Construction for office buildings)Computer Hardware & Software SuppliersStaff (Employment related))Others

54,720407,200

4,000150,100

17,929,192108,125

3,933,55159,590]

22,646,478

54,720412,000

4,000175,100

9,307,960188,125

3,903,24669,590

14,114,741

8.06 Incentive Bonus (Staff) 25,644,531 26,460,627

This represents provision of yearly incentive bonus payable to the employees' of the company onthe basis of the yearly operation results. This was paid subsequently.

39


2009 2008

Taka Taka

8.07 Creditors for Expenses

Printing and stationeryOffice RentPrize and awardsConferenceTelephone BillElectricity BillPostage and CourierTravelling and ConveyanceCar Fuel & MaintenancePhotostatUnit Office ExpensesBank ChargesEntertainmentLegal ExpensesOffice MaintenancePapers and PeriodicalsOthers

Tk. 16,409,648

P 1,550,5131,153,7873,703,1823,656,260

126,467464,528

65,859345,873442,743

6631,235,334

27,2231,1433,838

25,6461,080

3,605,50916,409,648

1,047,872881,900

3,811,9804,360,872

83,794449,928

50,650269,970640,056

4,3211,135,488

54,3512,235

66,2421,368

2,614,75515,475,782

* This represents various expenses incurred by the Company in the ordinary course of businessexclusively for the purpose of its operation and have been paid subsequently.

8.08 Provident Fund 2,929,060 2,752,332

This represents company's and employees' contribution to PF (Provident Fund Trust) for themonth of December 2009 which was subsequently paid.

8.09 Provision for Income Tax Tk. 38,563,596

Balance at the beginning of the yearAdd: Provision for Income Tax - Current yearBalance at the end of the year

38,563,596

38,563,59612^563,596

38,563,596

Provision for income tax has been made as required under the Income Tax Ordinance 1984.Assessment of income tax of the company has been finalized up to Financial Year (FY) 2003 withthe exception of Financial Year (FY) 2001 for which assessment has become time barred (Noteno-3.04).

40

Tk. 86,845,6417,883,100

62,944,2343,025,4083,510,9573,315,996

576,8445,589,102

86,845,641

7,883,10040,657,370

3,024,3113,601,6393,706,833

5,374,83164,248,084

Tk. 7,641,656

1,294, 1462,105,4064,172,104

70,0007,641,656

1,217,0642,060,2104,083,159

7,360,433


2009 2008Taka Taka

8.10 Interest Suspense Account Tk. 17,055,209

Overdue Interest on Home Loan Insurance Scheme 16,607,419

13,638,415Debenture Interest Receivable from Beximco Denims Ltd. L 447,790 447,790

17,055,209 14,086,205

Interest accrued and overdue from loanees under Home Loan insurance scheme related to the periodafter legal actions were instituted against those loanees has been credited to Interest SuspenseAccount.

Overdue debenture Interest receivable from the Beximco Denims Ltd. from FY 2003 but not yetreceived has been also credited to this Account.

8.11 Unidentified Deposits

Balance at the beginning of the yearAdjustments/ reconciledAdditionsBalance at the end of the year

Tk. 5,810,754

5,834,000(3,079,716)L 3,056,4705,810,754

5,400,417(2,262,540)2,696,1235,834,000

These represent deposits to company's various bank accounts which could not be reconciled andhence remained unidentified at year end due to lack of proper documents from banks. For fairrepresentation, the balance in the account aged more than three (3) years are credited to the RevenueAccount but proper records are kept for audit-trail and any subsequent adjustment, if any.

9.00 PROVISION FOR DOUBTFUL DEBTSAdvance incentive bonus (Development)Project loanMotor car, cycle and bicycle LoanBranch collection accountOther receivablesAdvance SalaryAdvance to agents

10.00 PREMIUM DEPOSITS

Ordinary Life - 1st yearOrdinary Life - RenewalGN-GRBGroup Insurance

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

41

F_^^

32^

'o64,38T7,855,6709,004,194)

363,915,863

294,398,848116,990,644(86,325,105)

325,064,387


2009

2008Taka Taka

11.00 LOAN Tk. 363,915,863

On Insurer's Policies within their surrender value

Opening balanceAdd: Loan disbursement during the Year (Note 11.01)Less: Loan recovery of loan during the year (Note 11.02)Balance as at December 31st

11.01 Loan disbursement during the year Tk. 127,855,670

Ordinary Life (OL) 118,488,959 104,613,114Gono-Grameen Bima (GN-GRB) 9,366,711 12,377,530

127,855,670 116,990,644

11.02 Loan recovery during the year Tk. (89,004,194)

Ordinary Life (OL) (74,157,733) (66,258,159)

Gono-Grameen Bima (GN-GRB)

L (14,846,461) (20,066,946)

(89,004,194) (86,325,105)

12.00 INVESTMENT (AT COST) Tk. 7,548,289,274

Government Securities (Note-12.01)Mutual Fund (Note-12.02)Shares Listed on Stock Exchanges (Note-12.03)Debentures and Bonds (Note-12.04)Other Investment (Note-12.05)Other Loans (Note-12.06)

5,138,935,20661,500,000

2,156,686,67829,012,19152,000,000

110,155,1997,548,289,274

4,164,604,438

702,352,025459,973,962

52,000,000113,912,493

5,492,842,918

42


2009

2008Taka Taka

12.01 Government Securities Tk. 5,138,935,206

Statutory Deposit with Bangladesh Bank (NIB):

The amount represents investment made under statutory _ ___requirements which is made up as follows: 2,000,000 2,000,000

2,000,000 2,000,000

The above amount is invested in 3-year National Investment Bond and deposited with BangladeshBank as Statutory Deposit as per provisions of the Insurance Act 1938.

Bangladesh Govt. Treasury Bond (BGTB) 5,136,935,206 4,162,604,438

5,138,935,206 4,164,604,438

12.02 Mutual Fund

1k. 61,500,000DBH 1' Mutual Fund

60,000,000 -Trust Bank Vt Mutual Fund

1,500,000 -

61,500,000 -

43


2009 2008Taka Taka

12.03 Shares Listed on Stock Exchanges 2,156,686,678

702,352,025

Name of the Face No.of Average Book Value at Market Value

SL Value Cost Cost (Taka) as (Taka) as atInstutionPer

UnitPer Unit at 31.12.2009 31.12.2009

Mutual Fund1 1STBSRS 100 1500 97.85 146,779 2,107,5002 1STPRIMFMF 10 409000 45.01 18,410,439 8,425,4003 AIMS1STMF 1 1220000 6.21 7,574,170 8,491,2004 EBL1STMF 10 164000 30.44 4,991,979 2,099,2005 GRAMEEN1 10 270500 87.05 23,546,400 19,908,8006 IGRAMEENS2 10 701500 51.27 35,968,435 14,450,900Bank & Leasings7 ALARABANK 10 59 42.36 2,499 2,5788 BANKASIA 10 27338 363.12 9,927,018 12,930,8749 BRACBANK 100 81300 606.37 49,298,071 36,503,70010 CITYBANK 100 26850 471.64 12,663,412 16,559,73811 DHAKABANK 10 28334 392.30 11,115,304 1,184,36112 DUTCI-IBANGL 100 150 2,670.40 400,560 195,48813 EBL 10 218341 456.70 9,971,482 1,128,81814 EXIMBANK 10 20106 119.30 2,398,741 910,80215 ICBIBANK 100 16875 960.97 16,216,325 217,68816 ISLAMIBANK 100 124492 457.30 56,930,326 76,531,45717 JAMUNABANK 10 35000 328.90 11,511,506 1,337,00018 MERCANBANK 100 69371 264.53 18,350,566 21,088,78419 MTBL 100 303891 231.57 7,037,305 10,970,42920 NBL 10 49640 477.35 23,695,678 2,844,37221 NCCBANK 10 38693 223.70 8,655,663 1,404,55622 ONEBANKLTD 100 43977 234.15 10,297,241 21,548,73023 PREMIERBAN 10 9029 253.41 2,288,033 327,75324 PRIMEBANK 10 54400 463.08 25,191,303 2,214,08025 PUBALIBANK 10 582945 205.52 119,806,425 28,972,36726 RUPALIBANK 100 9900 877.16 8,683,913 14,842,57527 SHAHJABANK 10 27767 235.88 6,549,747 1,382,79728 SIBL 10 31871 233.06 7,427,893 895,57529 SOUTHEASTB 100 24490 248.00 6,073,443 7,328,63330 STANDBANKL 100 25380 220.55 5,597,571 9,942,61531 TRUSTBANK 100 41656 414.65 17,272,486 19,849,08432 IUTTARABANK 10 18015 711.87 12,824,422 1,271,85944


Name of the FaceNo.of Average Book Value at Market Value

SL Value Cost Cost (Taka) as (Taka) as atInstutionPer

UnitPer Unit at 31.12.2009 31.12.2009

Pheramacuticals & Chemical33 ACT 10 138100 201.03 27,762,099 - 35,685,04034 ACIFORMULA 10 2564401 168.55 43,224,009 27,849,38435 BERGERPBL 10 101000 263.36 26,598,877 65,569,20036 BXPHARMA 100 488690 123.53 60,367,542 76,137,90237 GLAXOSMITH 10 95750 365.32 34,979,783 85,485,60038 IMAMBUTTON 100 1850 195.99 362,584 705,31339 KEYACOSMET 10 95500 48.45 4,626,611 9,588,20040 KEYADETERG 10 410940 34.29 14,091,828 33,779,268

41 MARICO 10 500 325.64 162,818 310,55042 ORIONINFU 100 1780 169.89 302,413 1,239,77043 PHARMACO 100 200 54.43 10,885 24,25044 RECKITTBEN 10 25000 250.42 6,260,409 24,165,00045 RENATA 10 652 3,113.13 2,029,763 7,951,46646 SQURPHARMA 1001 65591 2,000.42 131,209,540 209,940,393

Engineering47 1ATLASBANG

100 143716 403.10 57,932,329 44,666,93348 JBSRMSTEEL

10 10800 808.41 8,730,831 17,045,10049 JECABLES

100 12235 347.85 4,255,889 7,347,11850 GOLDENSON 10 1000 41.30 41,295 92,50051 KAY&QUE 100 415 242.42 100,603 168,28352 MARKBD 100 7487 29.33 219,574 127,27953 NAVANACNG 10 54800 196.49 10,767,574 8,532,36054 NTLTUBES 100 4515 1,190.81 5,376,501 4,858,14055 OLYMPIC 100 2000 705.65 1,411,299 3,481,50056 QSMDRYCELL 10 35000 71.61 2,506,454 3,689,00057 RANFOUNDRY 10 4000 73.12 292,477 379,20058 SALAMCRST 100 71000 692.98 49,201,348 39,316,25059 SINGERBD 100 12720 1,183.60 15,055,329 88,028,760

Information & Technology60 AGNTSYSL 10 124084 65.45 8,120,802 6,154,56661 BDCOM 10 16500 51.34 847,054 745,80062 DAFODILCOM 10 35000 77.91 2,726,912 1,039,50063 INTECH 10 64650 43.93 2,840,150 2,023,54564 TSNLTD 1 101 1370001 41.72 L 5,715,715 4,849,800

Tannery65 APEXADELFT 100 10 - - 28,49366 APEXTANRY 100 25520 248.74 6,347,777 35,090,00067 BATASHOE 10 101000 289.43 29,232,540 59,054,70068 PARAGON 1001 10235 37.04 379,102 163,760

45


Name of theFace No.of Average Book Value at Market ValueSL Value Cost Cost (Taka) as (Taka) as atInstution Unit

Per Per Unit at 31.12.2009 31.12.2009Textile

69 ANLIMAYARN 100 76 87.47 6,648 29,62170 APEXSPINN 100 5960 287.91 1,715,932 13,083,69071 APEXWEAV 10 1012 202.90 205,337 155,84872 BEXTEX 10 210970 50.72 10,701,188 13,248,91673 BXSYNTH 100 9693 104.49 1,012,778 4,732,60774 CMCKAMAL 10 10582 100.00 1,058,200 895,23775 DACCADYE 10 83500 56.94 4,754,247 5,961,90076 DELTASPINN 100 60 78.62 4,717 31,63577 DULAMIACOT 100 270 85.30 23,030 73,64378 DYNAMICTEX 100 105140 38.00 3,995,448 5,493,56579 MAKSONSPIN 10 39000 71.41 2,784,947 2,176,20080 METROSPIN 10 75300 35.71 2,688,815 5,067,69081 MHOSSAIN 100 19800 35.06 694,108 688,05082 MITATEX 100 22440 53.70 1,204,939 1,385,67083 MONNOFABR 100 2000 104.45 208,904 155,00084 PRIMETEX 100 13500 322.01 4,347,069 8,133,75085 QSMSILK 10 300 4.26 1,279 3,63086 SAIHAMTEX 10 620 73.82 45,767 54,87087 SQUARETEXT 10 300091 75.43 22,635,529 51,375,57988 STYLECRAFT 100 20 1,429.30 28,586 110,465

Food & Allied89 AMCL(PRAN) 100 25853 1,041.49 26,925,537 34,920,94090 BATBC 10 174350 215.60 37,590,169 109,718,45591 BIONICFOOD 10 1000 1.90 1,903 6,40092 CTGVEG 100 370 49.99 18,496 1,300,55093 MEGCONMILK 10 7000 28.14 196,984 392,70094 MEGHNAVEG 100 5300 64.46 341,644 176,22595 MONAFOOD 100 5000 27.98 139,885 275,000

Fuel & Power96 BDWELDING 100 65500 58.94 3,860,731 4,670,15097 BOG 100 203887 236.19 48,155,583 124,432,23698 DESCO 100 9502 1,322.74 12,568,697 16,193,78499 EASTRNLUB 10 17650 441.47 7,791,928 10,053,440100 JAMUNAOIL 10 22300 376.84 8,403,536 5,927,340101 MPETROLEUM 10 92430 246.27 22,762,624 17,986,878102 PADMAOIL 101 51560 697.42 35,959,055 35,406,252103 POWERGRID 100 79300 660.47 52,375,233 60,168,875104 SUMITPOWER 10 42174 925.50 39,032,165 4,871,097105 TITASGAS 100 142700 663.17 94,634,420 113,375,150

M46


Name of the Face No.of Average Book Value at Market ValueSL Instution UnitValue Cost Cost (Taka) as (Taka) as at

_____ _________________ Per Per Unit at 31.12.2009 31.12.2009Financ a! Institution

106 DBH 100 272250 - - 462,825,000

107 FLEASEINT 100 3306 236.54 782,006 3,129,956108 ICB 100 5020 38.84 194,993 15,632,280

109 ICB1STNRB 100 1000 407.57 407,570 412,750110 ICB2NDNRB 100 11350 191.45 2,172,962 2,045,838111 ICBAMCL1ST 100 10600 200.17 2,121,804 5,602,100112 ICBAMCL2ND 100 37550 185.08 6,949,904 4,787,625113 ICBISLAMIC 100 5150 145.81 750,903 1,660,875114 IDLC 100 1488 686.99 1,022,237 3,490,104115 ILFSL 100 2150 581.76 1,250,781 2,964,850116 IPDC 100 26365 360.56 9,506,112 11,640,148117 LANKABAFIN 10 97500 260.19 25,368,066 22.737,000118 MIDASFIN 100 11010 370.28 4,076,785 12,438,548119 PLFSL 10 2024 255.33 516,785 536,967120 PREMIERLEA 100 7925 174.86 1,385,782 5,842,706121 PRIMEFIN 10 8540 816.31 6,971,284 1,760,948122 ULC

100 14058 591.74 8,318,656 18,338,661123 UNIONCAP 10 7000 87.93 615,502 1,516,200124 UTTARAFIN 10 8321 435.85 3,626,687 1 2,126,016

Cement125 ARAMITCEM 10 3650 132.91 485,112 4,457,563126 CONFIDCEM 10 3068 243.62 747,416 767,000127 HEIDELBCEM 100 12979 1,289.32 16,734,147 38,823,434128 LAFSURCEML 100 1354059 99.99 135,393,190 509,803,214129 MEGHNACEM 1 10 7750 409.00 3,169,749 2,036,700

130 INILOYCEM1

100 6250 235.62 1,472,639 1,629,688Ceramic

131 BENGALFINE 10 2600 110.20 286,514 169,000132 FUWANGCER 100 800 174.52 139,612 365,600133 MONNOCERA 100 4655 305.57 1,422,421 3,648,356134 SPCERAMICS 10 428780 84.50 36,230,286 39,061,858

lMisce aneous135 ARAMIT 100 12600 229.12 2,886,871 4,730,040136 BEXIMCO 10 120754 154.90 18,704,237 35,465,450137 GQBALLPEN 10 10300 213.54 2,199,419 1,857,090138 MIRACLEIND 10 124527 34.21 4,260,278 4,470,519139 SINOBANGLA 10 68000 33.33 2,266,378 4,658,000140 USMANIAGL 100 9566 1,318.44 12,612,198 12,921,275

Insurance141 ASIAINS 100 14850 558.33 8,291,242 1,153,845142 ASIAPACINS 10 17650 388.09 6,849,801 11,516,625143 BGIC 10 41980 445.25 18,691,785 2,611,156144 EASTERNINS 100 11940 705.27 8,420,958 11,331,060145 EASTLAND 100 10638 439.28 4,673,086 10,494,387146 FAREASTLIF 10 6591 1,660.80 10,946,355 2,178,985147 FEDERALINS 10 58 25.43 1,475 9,616148 GLOBALINS 100 10790 356.61 3,847,822 7,523,328149 GREENDELT 10 84786 1,180.72 100,108,261 21,493,251150 JANATAINS 100 1218 163.58 199,235 1,888,814

47


2009 2008

Taka Taka

Name of the Face No.of Average Book Value at Market ValueSL T Value Cost Cost (Taka) as (Taka) as atinstutionPer

nitPer Unit at 31.12.2009 31.12.2009

151 KARNAPHULI 10 5476 539.01 2,951,617 439,175152 MEGHNALIFE 10 3363 628.78 2,114,587 1,156,199153 MERCINS 100 8450 162.57 1,373,681 8,086,650154 NATLIFEINS 100 1045 876.87 916,331 5,710,141155 NORTHRNINS 100 8300 384.64 3,192,476 5,766,425156 PEOPLESINS 10 26323 774.19 20,379,011 1,871,565157 PHENIXINS 10 2126 138.42 294,286 254,482158 PIONEERINS 100 3750 323.50 1,213,122 5,010,938159 PRAGATIINS 100 15360 1,034.28 15,886,470 16,285,440160 PRAGATILIF 100 900 682.71 614,441 3,019,275161 PRIMELIFE 10 10150 1,785.73 18,125,165 3,348,485162 RELIANCINS 100 19122 505.45 9,665,189 26,813,825163 RUPALTINS 10 1 - - 141164 ISANDHANINS

10 534 215.89 115,286 195,871165 JUNITEDINS 100 990 1,176,97 1,165,199 1,325,610

Services166 Eastern Housing Ltd. 100 1000 197.33 197,330 893,500167 SAMORITA 100 103 225.82 23,259 123,935168 SAPORTL 10 11440 1,222.87 13,989,608 1,567,280

Corporate Bond169 I IBBLPBOND 1000 1 4305 1 991.87 1 4,270,003 j 4,260,864

Telecom170 IGP I 101 111600 1 173.19 19,328,402 18,224,280

Total: 1 2,156,686,678 3,324,825,181Book value at cost has been divided by the number of unit.

12.04 Debentures and Bonds

29,012,191 459,973,962

FaceName of the Debentures and Bonds Value Per No. of Unit Total BookNo.

Value At CostDebenture 1.00 Beximco Fisheries 3,000 100 138,962

2.00 Beximco Denims Ltd. 2,500 4,000 8,645,580

3.00 Aramit Cement 2,500 640 228,800

4.00 ACT Zero Cupon Bond N/A N/A 19,998,849

Total 29,012,191

Si. No.1.00: Procured in 1995. Defaulted in payment as per schedule and necessary legal action has been taken. Recheduled"1.00: Procured in 1995. Defaulted in payment as per schedule and necessary legal action has been taken. Recheduled2.00: Procured in 1995. Defaulted in payment as per schedule and necessary legal action has been taken. Recheduled3.00: Public 20% convertible, 14% per annum.4.00: Private placement: 14.50% per annum.

48

Tk. 517,141,067

134,439,204303,790,457

30,494,8465,201,115

10,161,19032,626,693

427,562517,141,067

110,798,046377,681,35627,305,757

8,366,9488,050,246

29,835,100257,562

562,295,015


2009 2008Taka Taka

12.05 Other Investment Tk. 52,000,000Share of Shareholding in Delta Brac HousingFinance Corp.Ltd. (Private)Share of Central Depository Bangladesh Ltd. (Private)

50,000,000 50,000,000

2,000,000

2,000,000

52,000,000 52,000,000

12.06 Other Loans 1k. 110,155,199

Home Loan Insurance Scheme (HLIS) 46,900,000 45,700,000Project Loan (GN-GRB) 63,255,199 68,212,493

110,155,199 113,912,493

13.00 OUTSTANDING PREMIUM

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

Tk. 918,571,266

852, 140,85426,378,618

7,114,10232,937,692

918,571,266

759,444,61216,044,9767,417,177

47,894,01830,801,396

The amount represents premium receivable as on December 31st, 2009 for which grace periods didnot expire as on the above date. Most of the outstanding premium amounts have been realizedsubsequently.

14.00 INTEREST, DIVIDENDS & RENTSACCRUING BUT NOT DUE

Bangladesh Govt. Treasury Bond (BGTB)Fixed Deposit with BanksHome Loan Insurance SchemeInterest on Debentures & BondsDividend on ShareInterest on Policy and Project Loan.Statutory Deposit with Bangladesh Bank

49

9,537,906445,989,545

816,100912,451

7,883,1001,160,340

466,299,442

8,316,206356,537,371

666,1001,315,9827,883,1002,853,252

377,572,011

Wik Annual Report 2009 Delta Life

2009 2008

Taka Taka

15.00 ADVANCES AND DEPOSITS Tk. 466,299,442Advance Office RentAdvance Income Tax (AlT) (Note-15.01)Security DepositMotor Cycle, Bicycles LoanAdvance Against Incentive Bonus (Dev.) (Note-15.02)Other Advances (Note-15.03)

15.01 Advance Income Tax (AlT)

Balance at the beginning of the yearAdd: Addition during the year

Adjustment during the yearBalance at the end of the year

Tk. 445,989,545

356,537,37189,452, 174J

445,989,545

445,989,545

273,934,21482,603,157

356,537,371

356,537,371

15.02 Advance Against Incentive Bonus (Development) 7,883,100 7,883,100

Advance against incentive bonus (Development) of Tk. 7,883,100 represents money withdrawnfrom the company for payment of incentive bonus to the development officials of Gono -GrameenBima, which was not paid to the respective development officials. This amount has been broughtforward from the account of 1998 and has been fully provided for in the account. (Please refer tonote 9)

15.03 Other Advances 1,160,340 2,853,252

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

16.00 SUNDRY DEBTORS

Motor Car & Cycle Loan (Note-16.01)Bicycle Loan (Note-16.02)Project LoanBranch Collection Account (Note-16.03)Income Tax Refund due (Note-16.04)Other Receivables (Note-16.05)

Tk. 60,646,576

1,964,258927,788434,854

3,510,95742,382,12111,426,598

2,037,942927,788434,854

3,601,63942,382,12111,495,797

60,646,576 60,880,141

Adequate provision has been made against project loan (GN-GRB), branch collection account, motor car &motor cycle loan, bicycle loan and other receivables (Please refer to note 9).

50


2009 2008

Taka Taka

16.01 Motor Car & Cycle Loan 1,964,258 2,037,942

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

16.02 Bicycle Loan 927,788 927,788

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

16.03 Branch Collection Account 3,510,957 3,601,639

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

16.04 Income Tax Refund Due 42,382,121 42,382,121

This represents net income tax refundable to the company for the assessment years from 1996-1997to 2001-2002 & 2003-2004 to 2004-2005 as per tax assessment orders by the Income Tax Department.The assessment of the income tax of the company for the assessment year 2004-05 has beencompleted and the necessary adjustments have been effected in the accounts. The company filed taxreturn for the year 2002-2003 FY 2001 with loss and the tax return has been barred by limitation oftime. Regarding tax assessment for year 2003-2004, The Income Tax Department has assessed the taxliability of the company giving tax refund which have been duly accounted for in the accounts. Lateron The Income Tax Department PCT) has appealed to the High Court Division of the SupremeCourt against the order of the Appellate Tribunal for allowing the interest income on nationalinvestment bond (NIB) as exempt income in the tax assessment of the company for 2003-2004. Thecase is still pending in court (Please refer to note 3.04).

16.05 Other ReceivablesRe-insurance (Profit Commission) *Sundry AdvanceOthers **

* Subsequently adjusted.

Tk. 11,426,5986,366,1391,674,6833,385,776

11,426,598

6,607,6801,503,101L 3,385,0J

11,495,797

This represent money lying with development staff against advance allowances, abuse ofcompany's money for purchase of furniture and electrical equipments etc. of unit level offices ofGN-GRB and have been brought forward from the account of FY 1999. The amounts have beenfully provided in the accounts (Please refer to note 9).

51

Tk. 5,255,279,983

19,738,681923,544,256338,921,681232,276,844

67,573,381615,676,748

25,000,000507,902,622142,856,273146,783,156

162,045,496

225,420,50330,847,500

400,441,82731,181,75093,996,45262,635,776

147,388,293361,208,58054,162,175

326,813,901266,569,088

52,295,000

20

154,316,950524,063,063225,016,55694,020,472

263,147,251745,319,462

575,139,695103,858,96313 1,238,875

10,000,000856,229,66126,055,474

30,847,500105,965,68710,000,000

258,644,565160,066,549103,000,000140,673,050366,954,048

12,577,42059,725,670

210,258,02720,000,000

302,500,000


2009 2008Taka Taka

17.00 BANK BALANCES Tk. 6,574,304,062

On Fixed Deposit with Banks (Note-17.01) 5,255,279,983 5,489,618,938On Current Account with Banks (Note-17.02) 735,781,246 246,335,009On STD Account with Banks (Note-17.03) 583,242,833 497,627,688

6,574,304,062 6,233,581,635

17.01 On Fixed Deposit with Banks

Bank Asia Ltd.DBH Finance Corp. LtdExim Bank Ltd.First Security Bank Ltd.Mutual Trust Bank Ltd.National Bank of PakistanPremier Bank Ltd.Southeast Bank Ltd.Standard Bank Ltd.Brac BankPrime Bank Ltd.Dhaka Bank Ltd.Dutch Bangla Bank Ltd.Jamuna Bank Ltd.NCC Bank Ltd.One Bank Ltd.Shahjalal Islami Bank Ltd.State Bank of IndiaBank Alfalah Ltd.Eastern Bank Ltd.IDLC of Bangladesh Ltd.IPDC of Bangladesh Ltd.Pheonix Leasing Co. Ltd.Prime Finance Ltd.United Leasing Company Ltd.Midas Financing Ltd.Pubali Bank Ltd.AB Bank Ltd.

5,255,279,983 5,489,618,938

M52


2009

2008Taka Taka

17.02 On Current Account with Banks

Hongkong & Shanghai Banking CorporationBangladesh Krishi BankPubali Bank Ltd.Rajshahi Krishi Unnyan BankUttara Bank Ltd.National Bank Ltd.Citibank N.A.Sonali Bank Ltd.Janata Bank Ltd.Agrani Bank Ltd.Rupali Bank Ltd.Islami Bank-Bangladesh Ltd.Bank Asia LimitedTrust Bank Limited

Tk. 735,781,246

468,708,999206,686,068

12,616,51841,398,764

1,308,03245,139

341,953(803)

4,4774,662,909

5,9001,5001,000

790

30,900,000158,474,878

12,433,21141,099,990

89,63746,119

8,575253

2,8803,276,966

1,5001,000

735,781,246 246,335,009

17.03 On STD Account with Banks

Hongkong & Shanghai Banking CorporationDutch Bangla Bank Ltd.Bangladesh Krishi BankPubali Bank Ltd.Rajshahi Krishi Unnyan BankUttara Bank Ltd.The City Bank Ltd.National Bank Ltd.Premier Bank Ltd.Agrani Bank Ltd.Sonali Bank Ltd.Janata Bank Ltd.Rupali Bank Ltd.Citibank N.A.Islami Bank Bangladesh Ltd.Dhaka Bank Ltd.Mercantile Bank Limited

18.00 COLLECTION IN HAND

Tk. 583,242,833

10,280,67119,876,54426,040,658

377,111,45692,509,14729,731,510

63,637115,634

6513,514,7751,773,2445,476,1636,915,6416,703,2612,371,873

28,188729,780

583,242,833

375,876,734I

31,914,8271,644,501

19,541,539293,394,113104,109,478

19,085,80861,679

113,9331,785

2,294,6311,367,4697,011,8486,333,4876,729,1143,133,038

28,917861,521

497,627,688

293,128,849

Collection in hand represents first year premium outstanding as at 31st December for whichproposals await for underwriting at different Service Centers. The premiums were receivedsubsequently in full and the policies were issued with commencement date prior to 31st December.

53

128,118,577368,000,432

71,897,2383,221,830

36,633,87945,341,564

116,516,547769,730,067(197,538,864)572,191,203

128,118,577245,369,837

70,126,0932,875,952

28,839,20743,764,93497,973,880

617,068,480(174,366,031)442,702,449

Tk. 92,007,57284,086,21632,178,154

1,092,682(9,357,335)

866,1831,037,600

(18,219,110)929,564

(606,382)

57,140,18016,819,6295,551,766

(1,

Delta Life Insurance 2009

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Transcript of Delta Life Insurance 2009