CHARTERED ACCOUNTANTS
KHAN MANSION, 5TH FLOOR,
107, MOTIJHEEL C/A, DHAKA-1000
Tel.: 9564295, 9562786, 7161294
CHARTERED ACCOUNTANTS
SADHARAN BIMA SADAN (5TH FLOOR)
24-25, DILKUSHA C/A, DHAKA-1000.
Tel.: 9553617, 9568071
AUDITORS' REPORT TO THE SHAREHOLDERS OF
"PROVATI INSURANCE COMPANY LIMITED"
We have jointly audited the annexed Statement of Financial Position of PROVATI INSURANCE COMPANY
LIMITED as of 31st December, 2011 and the related Fire, Marine Cargo, Marine Hull, Motor and Miscellaneous
Insurance Revenue Accounts as well as Statement of Comprehensive Income, Income Appropriation Account,
Statement of Changes in Equity, the related Statement of Cash Flow for the year then ended and notes to the
Financial Statements in which the returns from the branch offices certified by the branch managers have been incorporated. The preparation of these Financial Statements is the responsibility of the Company's management.
Our responsibility is to express an independent opinion on these Financial Statements based on our audit.
Scope:
We conducted our audit in accordance with Bangladesh Standards on Auditing ( BSA ). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Financial Statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
Opinion:
In our opinion, the Financial Statements prepared in accordance with Bangladesh Financial Reporting Standards
(BFRS's) including Bangladesh Accounting Standards ( BAS's ) give a true and fair view of the state of the company’s affairs as of 31st December, 2011 and of the results of its operations and its cash flows for the year then ended and comply with the Companies Act, 1994, the Insurance Act, 1938, Insurance Rules 1958, the
Securities and Exchange Rules, 1987 and other applicable laws and regulations.
We also report that: i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof; ii) 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 and proper returns adequate for the purposes of our audit have been received from branches not visited by us; iii) The company’s statement of financial position and revenue accounts and its cash flows dealt with by the report are in agreement with the books of account and returns; iv) v)
The expenditure incurred was for the purposes of the company’s business;
The Statement of Financial Position and the Revenue Account have been prepared in accordance with the regulations contained in Part I and Part II (Form A) of the First Schedule and Part I and Part II
(Form F) of the Third Schedule of Insurance Act, 1938. As per regulation 11 of Part I of the Third
Schedule of the Insurance Act, 1938 as amended, we certify that to the best of our information and as shown by its books, the Company during the period under report has not paid any person any commission in any form outside Bangladesh and that the Company during the year under report has not received outside Bangladesh from any person any commission in any form in respect of any of its business re-insured abroad; vi) As per Section 40-C (2) of the Insurance Act, 1938 as amended, we certify that to the best of our knowledge and belief and according to the information and explanations given to us, all expenses of
Management wherever incurred whether directly or indirectly, in respect of Fire, Marine Cargo, Marine
Hull, Motor and Miscellaneous Insurance businesses transacted in Bangladesh during the year under report have been duly debited to the related Revenue Accounts and the Statement of Comprehensive
Income of the Company.
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
1
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2011
Particulars
Capital and Liabilities:
Share Capital:
Authorized Share Capital
Issued, Subscribed and Paid up Capital
Reserve or Contingency Account
Reserve for Exceptional Losses
Retained Earnings
Investment Fluctuation Reserve
Total Shareholders' Equity
Balance of Funds and Accounts:
Fire Insurance Revenue Account
Marine Cargo Insurance Revenue Account
Marine Hull Insurance Revenue Account
Motor Insurance Revenue Account
Miscellaneous Insurance Revenue Account
Premium Deposits Account
Liabilities and Provisions
Sundry Creditors-Including Provision for
Expenses and Taxes
Amount due to other persons or bodies carrying on Insurance Business
Deferred Tax Liability
Estimated liabilities in respect of outstanding claims whether due or intimated
Total Shareholders' Equity and Liabilities
Notes
20
Amount in Taka
31-12-2011 31-12-2010
20,00,00,000
20,00,00,000
21
22
16,80,00,000
9,65,43,929
7,04,68,889
2,35,75,040
25,00,000
15,00,00,000
8,44,94,238
5,83,06,000
2,36,88,238
25,00,000
26,45,43,929 23,44,94,238
23 7,79,08,473
4,16,80,511
1,75,20,223
1,09,975
1,77,62,992
8,34,772
7,24,23,606
3,97,91,412
1,29,35,649
1,80,894
1,85,89,787
9,25,864
24 67,88,828 58,56,577
10,29,50,902 10,79,77,063
25
26
27
28
6,41,24,752
55,61,814
1,11,092
3,31,53,244
5,85,57,260
31,42,905
1,89,302
4,60,87,596
45,21,92,132 42,07,51,484
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
2
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2011
Particulars Notes Amount in Taka
31-12-2011 31-12-2010
Property and Assets:
Investment:
Investment-At cost (NIB)
Investment in Shares
29
30
2,66,71,355
90,00,000
1,76,71,355
3,54,37,054
90,00,000
2,64,37,054
Interest Accrued but not Due
Amount Due from Other Persons or Bodies
Carrying on Insurance Business
Cash and Bank Balances including FDR's
Other Accounts :
31
32
Sundry Debtors-Including Advances, Deposits & Prepayments 33
1,28,32,167
3,63,16,188
5,56,26,262
1,90,63,950
4,46,51,397
2,62,29,966
34 27,99,00,102 24,80,21,348
35 4,08,46,058 4,73,47,769
Fixed Assets -At Cost Less Depreciation
Stock of Printing & Stationery
3,98,33,244
10,12,814
4,59,89,836
13,57,933
Total Property and Assets 45,21,92,132 42,07,51,484
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/
A. Hoque & Co. sd/
G. Kibria & Co.
Chartered Accountants Chartered Accountants
3
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars
Expenses of Management Not Applicable to any particular Fund or Account
Directors' Fees
Meeting Expenses
Legal Expenses
Statutory Fees for Business Licence & Annual Registration
Advertisement & Publicity
Subscription & Donation
Depreciation
Audit Fees
Net Profit transferred to Profit & Loss App. Account
Total
Notes Amount in Taka
31-12-2011 31-12-2010
35.01
4,96,800
7,89,375
2,54,955
9,74,137
5,43,822
10,22,025
72,25,882
1,87,500
4,73,10,959
2,80,000
7,94,839
4,24,392
9,82,465
5,32,410
4,42,500
85,26,876
1,26,500
4,02,93,915
5,88,05,455 5,24,03,897
Miscellaneous Income
Interest on FDR, STD and NIB
Loss on Investment in Shares
Profit /(Loss) Transferred from:
Fire Insurance Revenue Account
Marine Insurance Cargo Revenue Account
Marine Insurance Hull Revenue Account
Motor Insurance Revenue Account
Miscellaneous Insurance Revenue Account
Total
36
37
8,30,453
2,09,26,891
(34,92,409)
4,05,40,520
(61,57,045)
2,00,97,128
(5,084)
2,82,72,754
(16,67,233)
5,88,05,455
36,85,093
2,12,06,248
34,71,846
2,40,40,710
1,05,29,340
(35,85,458)
(1,47,886)
1,67,11,982
5,32,732
5,24,03,897
Earning Per Share (EPS)
Price Earning Ratio (PER)
Accounting Policies
41 1.63
29.35
1.64
49.50
6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
4
CHARTERED ACCOUNTANTS
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
INCOME APPROPRIATION ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars
Balance brought forward from last year
Net Profit for the year before Tax
Total
Notes Amount in Taka
31-12-2011 31-12-2010
2,36,88,238
4,73,10,959
7,09,99,197
78,38,594
4,81,32,509
4,02,93,915
Reserve for Exceptional Losses
Investment Fluctuation Reserve
Income Tax Expenses:
Current Tax
Deferred Tax
Provision for Prior Years Income Tax
Dividend Paid
Retained Earnings Transferred to Statement of Financial Position
Total
22.01
22.03
42
27(b)
1,21,62,889
0
1,47,55,661
1,48,33,869
(78,210)
25,05,607
1,80,00,000
2,35,75,040
7,09,99,197
1,10,36,563
25,00,000
1,09,07,708
1,08,94,678
13,030
2,36,88,238
0
0
4,81,32,509
Earning Per Share (EPS)
Price Earning Ratio (PER)
Accounting Policies
41
6
1.63
29.35
1.64
49.50
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
5
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
CONSOLIDATED ALL BUSINESS REVENUE ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars
Claims under the policies less Reinsurance:
Paid during the year
Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated
Less: Outstanding claims at the end of the previous year
Agency Commission
Expenses of Management
Reserve for un-expired risks of Premium Income of the year
Profit Transferred to Profit & Loss Account
Total
Notes Amount in Taka
31-12-2011 31-12-2010
9,99,44,236 7,19,34,189
28 3,31,53,244
13,30,97,480
4,60,87,596
4,60,87,596
11,80,21,785
3,54,22,603
38
8,70,09,884
3,72,12,067
4,49,75,807
7,79,08,473
4,05,40,520
8,25,99,182
3,63,70,524
4,34,90,790
7,24,23,606
2,40,40,710
28,76,46,751 25,89,24,812
Balance of Account at the beginning of the year
Premium Less Reinsurance
Commission on Reinsurance ceded
Total
7,24,23,606
19,46,06,220
2,06,16,925
6,14,40,310
18,07,87,675
1,66,96,827
28,76,46,751 25,89,24,812
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
6
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
FIRE INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars
Claims under the policies less Reinsurance:
Paid during the year
Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated
Less: Outstanding claims at the end of the previous year
Notes Amount in Taka
31-12-2011 31-12-2010
28
7,88,72,987
2,03,27,299
9,92,00,286
2,44,74,605
5,17,52,134
2,44,74,605
7,62,26,739
2,85,33,135
Agency Commission
Expenses of Management
Reserve for un-expired risks being 40% of Premium Income of the year
Profit Transferred to Statement of Comprehensive Income
Total
38
7,47,25,681
2,14,65,489
2,54,49,794
4,16,80,511
(61,57,045)
15,71,64,430
4,76,93,604
2,19,32,745
2,53,46,784
3,97,91,412
1,05,29,340
14,52,93,885
Balance of Account at the beginning of the year
Premium Less Reinsurance
Commission on Reinsurance ceded
Total
3,97,91,412
10,42,01,278
1,31,71,740
3,41,02,471
9,94,78,531
1,17,12,883
15,71,64,430 14,52,93,885
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
7
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
MARINE CARGO INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars Notes Amount in Taka
31-12-2011 31-12-2010
Claims Under The Policies Less Reinsurance:
Paid during the year
Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated
Less: Outstanding claims at the end of the previous year
Agency Commission
Expenses of Management
Reserve for un-expired risks being 40% of premium income of the year
Profit Transferred to Statement of Comprehensive Income
Total
28
38
1,46,15,645
71,21,865
2,17,37,510
1,20,88,417
1,43,46,934
1,20,88,417
2,64,35,351
25,45,446
96,49,093 2,38,89,905
61,76,819
82,52,721
1,75,20,223
2,00,97,128
44,41,383
66,73,797
1,29,35,649
(35,85,458)
6,16,95,984 4,43,55,276
Balance of Account at the beginning of the year
Premium Less Reinsurance
Commission on Reinsurance ceded
Total
1,29,35,649 89,83,713
4,38,00,557 3,23,39,122
49,59,778 30,32,441
6,16,95,984 4,43,55,276
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
8
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
MARINE HULL INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars Notes Amount in Taka
Claims under the policies less Reinsurance:
Paid during the year
Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated
Less: Outstanding claims at the end of the previous year
Agency Commission
Expenses of Management
Reserve for un-expired risks being 100% of premium income of the year
Profit Transferred to Statement of Comprehensive Income
Total
38
31-12-2011 31-12-2010
0
0
0
0
0
1,21,275
1,58,182
1,09,975
(5,084)
3,84,348
6,786
0
6,786
0
6,786
1,21,275
2,29,532
1,80,894
(1,47,886)
3,90,601
Balance of Account at the beginning of the year
Premium Less Reinsurance
Commission on Reinsurance ceded
Total
1,80,894
1,09,975
93,479
3,84,348
1,17,067
1,80,894
92,640
3,90,601
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
9
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
MOTOR INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars Notes Amount in Taka
31-12-2011 31-12-2010
Claims under the policies less Reinsurance:
Paid during the year
Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated
Less : Outstanding claims at the end of the previous year
Agency Commission
Expenses of Management
Reserve for un-expired risks being 40% of premium income of the year
Profit Transferred to Statement of Comprehensive Income
Total
Balance of Account at the beginning of the year
Premium Less Reinsurance
Total
28
38
64,10,811
54,23,494
1,18,34,305
93,73,944
78,38,026
1,77,62,992
2,82,72,754
58,27,454
93,73,944
1,52,01,398
39,63,425
24,60,361 1,12,37,973
66,63,135 69,74,477
85,37,111
1,85,89,787
1,67,11,982
6,29,97,268 6,20,51,330
1,85,89,787 1,55,76,861
4,44,07,481 4,64,74,469
6,29,97,268 6,20,51,330
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
10
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
MISCELLANEOUS INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars Notes Amount in Taka
31-12-2011 31-12-2010
Claims under the policies less Reinsurance:
Paid during the year
Total estimated liability in respect of outstanding claims at the end of the year whether due or intimated
Less: Outstanding claims at the end of the previous year
Agency Commission
Expenses of Management
Reserve for un-expired risks being 40% of
Misc. and accident premium income of the year
Profit Transferred to Statement of Comprehensive Income
Total
28
38
44,793
2,80,586
3,25,379
1,50,630
1,74,749
27,85,349
32,77,084
8,34,772
(16,67,233)
54,04,721
881
1,50,630
1,51,511
3,80,597
(2,29,086)
29,00,644
27,03,566
9,25,864
5,32,732
68,33,720
Balance of Account at the beginning of the year
Premium Less Re-Insurance
Commission on Re-insurance ceded
Total
9,25,864
20,86,929
23,91,928
54,04,721
26,60,198
23,14,659
18,58,863
68,33,720
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
11
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars Share
Capital
Reserve for
Exceptional
Losses
Investment
Fluctuation
Reserve
Retained
Earnings
Total
Shareholders
Equity
At 31-12-2010 15,00,00,000 5,83,06,000 25,00,000 2,36,88,238 23,44,94,238
Net Profit after Tax
Bonus Share Issued
Reserve for Exceptional Losses
0
1,80,00,000
0
0
0
1,21,62,889
0
0
0
3,00,49,691
(1,80,00,000)
(1,21,62,889)
3,00,49,691
0
0
At the end of the year 16,80,00,000 7,04,68,889 25,00,000 2,35,75,042 26,45,43,929
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh sd/ sd/
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
12
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 31ST DECEMBER, 2011
Particulars Amount in Taka
31-12-2011 31-12-2010
Cash Flows from Operating Activities:
Cash Receipts from Insurers and Others
Cash Paid for Claims and Management Expenses
Cash Generated from Operations
Income Tax Paid & Deducted at Source
Net Cash Generated from Operating Activities
Cash Flows from Investing Activities
Investment in Bonds / Shares
Acquisition of Property, Plant & Equipments etc.
Disposal of Property, Plant and Equipments etc.
Net Cash used in Investing Activities
Cash Flows from Financing Activities
Share Money (Return) / Deposited
Re-payment of Short Term Loan
Net Cash Generated/ (Used) in Financing Activities
Net (Decrease) / Increase in Cash and Bank Balances
Cash and Bank Balances at the Beginning of the Year
Cash and Bank Balances at the End of the Year
23,82,44,424
(19,84,09,841)
3,98,34,583
(1,24,85,756)
2,73,48,827
56,09,280
(19,90,892)
13,00,000
49,18,388
(3,88,462)
0
(3,88,462)
3,18,78,754
24,80,21,348
27,99,00,102
21,41,16,600
(15,13,85,041)
6,27,31,559
(46,35,641)
5,80,95,918
(2,61,30,054)
(1,46,17,321)
(20,86,787)
(4,28,34,162)
(60,21,11,835)
(95,72,330)
(61,16,84,165)
(59,64,22,409)
84,44,43,757
24,80,21,348
Net Operating Cash Flows per Shares 1.63 3.87
Accounting Policies 6
The notes are integral part of the Financial Statements
Approved and authorized for issue by the board of directors on 30-04-2012 and signed for and on behalf of the Board.
MANAGING DIRECTOR DIRECTOR DIRECTOR
As per our report of even date
CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
13
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
FORM "AA"
CLASSIFIED SUMMARY OF ASSETS AS AT 31ST DECEMBER, 2011
Class of Assets Book Value Remarks
Deposit with Bangladesh Bank (NIB)
Investment in Shares
Cash on Fixed Deposit and STD Account with Bank
Cash in Hand and Current Account with Bank
Cash Balance with BO Account
Stamp in Hand
Interest Accrued but not due
Amount due from other persons or bodies Carrying on Insurance business
Sundry Debtors Including Advances, Deposits & Prepayments
Fixed Assets (At Cost less Depreciation)
31-12-2011
90,00,000
1,76,71,355
24,61,36,925
1,71,55,161
1,48,96,016
17,12,000
1,28,32,167
3,63,16,188
5,56,26,262
3,98,33,244
31-12-2010
90,00,000
2,64,37,054
23,47,96,992
1,20,10,565
6,63,541
5,50,250
1,90,63,950
10,12,814
45,21,92,132 42,07,51,484
Realizable
Value
Do
Do
Do
Do
Do
Do
4,46,51,397
2,62,29,966
Do
Do
4,59,89,836 Written Down
Value
13,57,933 At Cost Stock of Printing and Stationery
Total
MANAGING DIRECTOR DIRECTOR DIRECTOR CHAIRMAN
Dated: 30th April, 2012
Place: Dhaka, Bangladesh
A. Hoque & Co. G. Kibria & Co.
Chartered Accountants Chartered Accountants
14
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
PROVATI INSURANCE COMPANY LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31ST DECEMBER, 2011
1.00 Corporate Information–Domicile, Legal Form and Country of Incorporation
The Company was incorporated in Bangladesh as a Public Company Limited by Shares on the
31st day of January, 1996 under the Companies Act, 1994 and permission for its commencement of business was given on 25th day of March, 1996 and the registration from the Controller of Insurance on 31st day of March, 1996 was received to start general insurance business. The company went into Initial Public Offerings (IPO) on 3rd September, 2009. The
Company is listed in both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) as a public traded company.
Address of Registered Office
The registered office of the Company is located at Khan Mansion, 11th Floor, 107, Motijheel
Commercial Area, Dhaka-1000. The operations of the company are being carried out through its 48 nos. of branches located all over Bangladesh.
Principal Activities and Nature of Operation
The main objectives of the Company are to carry on all kinds of insurance, guarantee and indemnity business other than life insurance business.
2.00 Basis of Presenting Financial Statements
The following underlying assumptions, measurement base, laws, rules, regulations and accounting pronouncements have been considered in preparing and presenting the financial statements:
Going Concern
Accrual
Historical Cost Convention
Generally accepted accounting principles and practices in Bangladesh
The Companies Act, 1994
Insurance Act, 1938 instead of Insurance Act, 2010 as no prescribed Format was mentioned in the Insurance Act, 2010
Insurance Rule, 1958 as no rule has yet been made in pursuance of Insurance Act, 2010
The Securities and Exchange Act and Rules, 1987
The Accounting Standards adopted by the Institute of Chartered Accountants of Bangladesh (ICAB).
3.00 Compliance of Bangladesh Financial Reporting Standards (BFRSs)
The Financial Statements have been prepared in accordance with the Bangladesh Financial
Reporting Standards (BFRSs) , including Bangladesh Accounting Standards (BASs) .
4.00 Risk and Uncertainty for use of Estimates and Judgments
The preparation of financial statements in conformity with the Bangladesh Financial Reporting
Standards (BFRSs) including the Bangladesh Accounting Standards (BASs) require management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and for contingent assets and liabilities that require disclosure during and at the date of financial statements.
Actual results could differ from those estimates. Estimates and underlying assumptions are used for accounting of certain items such as long-term contracts, provision for doubtful accounts, depreciation and amortization, taxes, reserves and contingencies.
5.00 Adoption of Bangladesh Accounting Standards (BASs)
In preparing and presenting these financial statements, considering relevant for the significant accounting issues of the company, following IASs have been implemented by the company, which were issued by the ICAB formulated in the light of the IASs originally issued by the International Accounting Standards Board and the conditions and practices prevailing in Bangladesh, and valid as on the financial position date:
15
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
IAS 1 Presentation of Financial Statements
IAS 2 Inventories
IAS 7 Statement of Cash Flow
IAS 10 Events after the Financial Position Date
IAS 12 Income Tax
IAS 16 Property, Plant and Equipment
IAS 18 Revenue
IAS 24 Related Party
IAS 33 Earnings Per Share
IAS 36 Impairment of Assets
6.00 Specific Accounting Policies Selected and Applied for Significant Transactions and Events
The specific accounting policies selected and applied by the Company’s Directors for significant transactions and events that have material effect within the framework of BAS 1
" Preparation and Presentation of Financial Statements ", in preparation and presentation of financial statements have been consistently applied throughout the year and were also consistent with those used in earlier years.
For a proper understanding of the financial statements, these accounting policies are set out below in one place as prescribed by the IAS 1 “ Preparation and Presentation of Financial
Statements ”.
(a) Revenue Recognition
Revenue represents invoiced value of policies. Revenue is recognized when policies are made. Invoices were made after satisfying the following conditions as prescribed by IAS 18 " Revenue Recognition ":
(i)
(ii)
(iii)
(iv)
(v) the significant risks and rewards of ownership of the policies have been transferred to the policyholder; the amount of revenue was measured reliably; it was probable that the economic benefits relating to the transactions will flow to the Company; neither continuing managerial involvement nor effective control usually associated with ownership of the policy was retained by the Company; and cost relating to the transactions was measured reliably.
(b) Revenue Account
While preparing the Revenue Account, the effect of necessary adjustment has duly been given in to accounts in respect of re-insurance business ceded and accepted.
Re-Insurance Premium ceded has been accounted for into accounts.
Surplus or deficit on revenue have been arrived at after providing for un-expired risks
@ 40% on all business except Marine Hull Insurance for which 100% provision has been created for un-expired risks.
(c) Premium and Claim
The total amount of premium earned on various classes insurance business underwritten during the period has been duly accounted for in the books of account of the Company and while preparing the financial statements of accounts, the effect of re-insurance ceded as well as the effect of total estimated liabilities in respect of outstanding claims at the end of the period whether due or intimated have also been reflected in order to arrive at the net underwriting profit for the year.
(d) Management Expenses
The management expenses charged to Revenue Account amounting to Tk.
4,49,75,807 represent approximately 16.72% of Gross Premium of Tk.
26,90,74,089 (including public sector business). The said management expenses have been apportioned 56.59% to fire, 18.70% to marine (cargo & hull), 17.43% to motor, 7.28% to miscellaneous business as per management decision.
16
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
(e) Recognition of Tangible Fixed Assets
These are capitalized at the cost of acquisition and subsequently stated at cost less accumulated depreciation in compliance with the benchmark treatment of IAS 16
"Property, Plant and Equipment". The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use and other related incidental charges. Expenditure incurred after the assets have been put into operation, such as repairs & maintenance is normally charged off as revenue expenditure in the period in which it is incurred. In situation where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use of the fixed assets, the expenditure is capitalized as an additional cost of the assets.
(f) Depreciation of Tangible Fixed Assets
In respect of all fixed assets, depreciation is provided to amortize the cost of the assets after commissioning, over their expected useful economic lives in accordance with the provision of IAS 16 "Property, Plant and Equipment"
Depreciation on Fixed Assets has been charged at a reducing balance method. 12 month's depreciation has been charged on the book value of Fixed Assets at the rates varying from 10% to 20%. Depreciation is charged at the rate shown below:
Furniture & Fixture
Books & Periodicals
Motor Vehicles
Motorcycle
Office Equipment
Decoration
Electric Fan
Telephone Installation
Air Cooler
Carpet
Electric Equipment
Crockeries
By Cycle
10%
10%
20%
20%
20%
10%
20%
15%
15%
20%
20%
20%
20%
(g)
Investment is stated at its cost of acquisition and the interest earned on statutory deposits lying with the Bangladesh Bank in the form of National Investment Bond and the interest and profit earned on term deposit have been duly accounted for on accrual basis. The Statement of Comprehensive Income also reflects the income on account of interest on investment in FDR, Shares and Miscellaneous Income. It may be mentioned here that a fluctuation reserve had been created in order to equalize the price go down below the cost price of the shares but during the year under audit loss on Realization of
Investment in Shares for price go down below the cost price of the shares has been charged directly to Comprehensive Income Statement in order to equalize the price of the shares as per Second Schedule, Part-II, Form-B of the Insurance Act, 1938.
(h) Inventories
In compliance with the requirement of
the lower of cost and net realizable value.
" Inventories ", inventories are stated at
Net realizable value is based on estimated selling price less any further cost expected to be incurred to make the sale.
(i) Sundry Debtors (Including Advance, Deposits and Pre-Payments)
These are carried at original invoice amounts, which represent net realizable value.
17
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
(j) Cash and Cash Equivalents
For the purpose of Financial Position and Statement of Cash Flow, cash in hand, fixed deposit with other banks, collection in hand, stamp in hand and bank balances represent
considering the IAS 1 " Preparation and Presentation of
Financial Statements " and IAS 7 " Statement of Cash Flow ", which provide, that cash and cash equivalents are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value and are not restricted as to use.
(k) Other Current Assets
Other current assets have a value on realization in the ordinary course of the company's business which is at least equal to the amount at which they are stated in the Statement of Financial Position.
(l) Income Tax
Current Tax
Current Tax has been provided on the estimated taxable profit for the year under review at 42.5% tax rate being the tax rate applicable for Publicly Traded Company.
It also includes adjustments for earlier year's short/excess provision.
Deferred Tax
The company has been adopted deferred tax during the year under review in compliance with the provisions of Bangladesh Accounting Standards (BAS-12)
'Income Taxes'. The company's policy of recognition of deferred tax assets/liabilities is based on temporary differences (Taxable or deductable) between the carrying amount (Book Value) of assets, and liabilities for financial reporting purposes and its tax base, and accordingly, deferred tax income/expenses has been considered to determine net profit after tax and Earnings Per Share (EPS).
Provision for Income Tax
Basis of Provision for Income Tax: Net Profit -Reserve for exceptional loss x tax rate.
(m) Proposed Dividend
(n)
The dividend has been proposed by the Board @ 12%.
Cost of Post Employment Benefits
(i) Defined Contribution Plan
This represents recognized contributory Provident Fund for all its permanent employees. Assets of provident fund are held in a separate trustee administered the fund as per the relevant rules and is funded by payments from employees and by the Company at pre-determined rates. The
Company's contributions to the provident fund are charged off as revenue expenditure in the year to which the contributions relate.
(ii) Defined Benefits Plan
This represents unfunded gratuity scheme for its permanent employees.
Employees are entitled to gratuity benefit after completion of minimum five years of service in the company. The gratuity is calculated on the basis of last basic pay and is payable at the rate one month basic pay for every completed year of service. The gratuity scheme is yet to be approved by the
National Board of Revenue.
(iii) Insurance Scheme
Employees of the company are covered under personal accident insurance scheme.
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A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
(iv) Number of Employees
There were 692 employees at the year ended 31st December, 2011.
Particulars
Managing Director
Adviser
Additional Managing Director
Executive Director
Deputy Managing Director
Assistant Managing Director
General Manager Cum Company Secretary
Senior General Manager
General Manager
Senior Deputy General Manager
Deputy General Manager
Assistant General Manager
Officers
Other Employees
Total
No. of Employees
1
3
25
4
1
1
2
1
6
9
17
50
422
150
692
(o)
(p)
Other Corporate Debt, Accounts Payable, Trade and Other Liabilities
These liabilities are carried at the anticipated settlement amount in respect of policies and services received, whether or not billed by the policyholder and the supplier.
Provisions
Provisions are liabilities of uncertain timings or amount. Provisions are recognized when the company has a present legal or constructive obligation as a result of past events. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.
(q)
The Company calculates earnings per share (EPS) in accordance with IAS 33 earnings per share" which has been shown on the face of statement of comprehensive income. The disclosure has been made in the Note 41 in respect of numerator (net profit) and denominator (weighted average number of shares) used in the calculation of basic EPS with necessary computation and reconciliation.
This represents earnings for the year attributable to ordinary shareholders, as there was no preference dividend, minority interest and extra ordinary items, the net profit for the year has been considered as fully attributable to the ordinary shareholders.
(r)
(s)
No diluted Earnings Per Share (EPS) is required to be calculated for the year as there was no scope for dilution during the year under review.
Reserve for Exceptional Losses
Provision for exceptional losses has been made during the year under audit.
Share of Public Sector Business
Company's Share of Public Sector business is accounted for in the year in which the complete statement of accounts from Sadharan Bima Corporation (SBC) is received.
During the year the company has included 4 (four) quarters of its share of the Public
Sector business as confirmed by the Sadharan Bima Corporation (SBC) in the following manner:
19
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
Period Particulars of Quarter
1st July, 2010 to 30th Sept, 2010 3rd Quarter-2010
1st Oct., 2010 to 31st December, 2010 4th quarter of 2010
1st January, 2011 to 31st March, 2011 1st quarter of 2011
1st April, 2011 to 30th June, 2011 2nd quarter of 2011
Total
No.
1 (One)
1 (One)
1 (One)
1 (One)
4 (Four)
(t) Recognized Gains and Losses
No gain or loss was directly dealt with though the shareholders equity without being recognized in the Statement of Comprehensive Income.
Therefore, net profit after tax for the year is the total recognized gains.
(u) Historical Cost Income and Expenditure
As there was no extra ordinary item, there was no difference in profit from ordinary activities before taxation and the net profit before tax. Furthermore, as there was no revaluation of fixed assets in previous years and during the year under review, there was no factor like the differences between historical cost depreciation and depreciation on revalued amount, realization of revenue surplus on retirement or disposal of assets etc. Therefore, no separate note of historical cost profit and loss has been presented.
(v) Statement of Comprehensive Income
The results for the year were not materially affected by the following:
(a) transactions of a nature not usually undertaken by the company;
(b) circumstances of an exceptional or non-recurring nature;
(c) charges or credits relating to prior years.
7.00 Classified Summary of Assets
The valuation of all assets as at 31st December, 2011 as shown in the Statement of Financial
Position and in the classified summary of assets in Form AA annexed with the report has been reviewed and the said assets have been set-forth in the Statement of Financial Position at amount not exceeding their realizable or market value in aggregate.
8.00
Financial Instruments and Derivatives
Primary Financial Instruments (Financial Assets and Liabilities)
The disclosure of primary financial instruments carried at the Statement of Financial Position date alongwith the recognition methods and risks involved are summarized in Note 44 in accordance with the provisions of
Presentation."
Financial Instruments: "Disclosure and
9.00
Derivative Financial Instruments
The Company is not a party to any derivative contract at the Statement of Financial Position date, such as forward exchange contract, currency swap agreement or interest rate option contract to hedge currency exposure related to import of raw materials and others or principal and interest obligations of foreign currency loans.
10.00 Impairment
In accordance with the provisions of lAS 36 : Impairment of Assets, the carrying amount of non-financial assets, other than inventories are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated and impairment losses are recognized in statement comprehensive income. No such indication of impairment has been observed till to date.
11.00 Information by Industry Segments and Geographical Areas
Industry Segment Information
No mention is made because the company does not have any segment other than the general insurance business.
20
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
Geographic Segment Information
Not applicable as the company does not have any business unit outside Bangladesh.
12.00 Reporting Currency
No Foreign Currency Transactions were transacted during the period and thus the conversion of Foreign Currency into Bangladeshi Taka Currency is not required during the year ended
31st December, 2011.
13.00 Comparative Information and Re-Arrangement thereof
Comparative information have been disclosed in respect of the year 2011 for all numerical information in the financial statements and also the narrative and descriptive information when it is relevant for understanding of the current year's financial statements.
Figures of the year 2010 have been rearranged whenever considered necessary to ensure comparability with the current year.
14.00 Transactions with Related Parties
During the year under review the Company did not carry out the transactions with the related parties in the normal course of business and on arm's length basis.
15.00 Events after Reporting Period
In compliance with the requirements of IAS 10: Events After Reporting Period, post Statement of Financial Position adjusting events that provide additional information about the company's position at the Statement of Financial Position date are reflected in the financial statements and events after Reporting Period that are not adjusting events are disclosed in the notes when material.
16.00 Approval of the Financial Statements
The financial statements were approved by the Board of Directors on 30th April, 2012.
17.00 Reporting Period
The Financial Statements of the Company cover a year from 1st January, 2011 to 31st
December, 2011 consistently.
18.00 Cash Flow Statement
Statement of Cash Flow is prepared principally in accordance with IAS 7 " Statement of Cash
Flow " and the Cash Flow from the operating activities have been presented under direct method as required by the Securities and Exchange Rules 1987 and considering the provisions of Paragraph 19 of IAS 7 which provides that " Enterprises are Encouraged to
Report Cash Flow from Operating Activities Using the Direct Method ".
19.00 Components of the Financial Statements
According to the components:
International Accounting Standards (IAS) 1 " Presentation and Preparation of
Financial Statements ", the complete set of Financial Statements includes the following
(i) Statement of Financial Position as at 31st December, 2011;
(ii)
(iii)
(iv)
Statement of Comprehensive Income for the year ended 31st December, 2011;
Income Appropriation Account for the year ended 31st December, 2011;
Revenue Accounts (Fire, Marine Cargo, Marine Hull, Motor, Miscellaneous Insurance
Revenue Account) for the year ended 31st December, 2011;
(v)
(vi)
Statement of Changes in Equity for the year ended 31st December, 2011;
Statement of Cash Flows for the year ended 31st December, 2011;
(vii) Accounting Policies and Explanatory Notes.
21
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
STATEMENT OF FINANCIAL POSITION
CAPITAL AND LIABILITIES
1,68,00,000 Ordinary Shares of Tk. 10/- each fully paid up in cash
Composition of Shareholdings:
AMOUNT (TK.)
31-12-2011
AMOUNT (TK.)
31-12-2010
20.00 SHARE CAPITAL
AUTHORIZED SHARE CAPITAL Tk. 20,00,00,000 Tk. 20,00,00,000
2,00,00,000 Ordinary Shares of Tk. 10/= each. The denomination of Tk. 100/= has been converted into Tk. 10/= as per order of the Securities & Exchange Commission vide letter no.
SEC/CMRRCD/200-193/109, dated September 15, 2011.
21.00 ISSUED, SUBSCRIBED AND FULLY PAID UP CAPITAL
16,80,00,000
16,80,00,000
15,00,00,000
15,00,00,000
The composition of Shareholding position as of 31st December, 2011 are as follows:
Particulars
Sponsors / Director
General Public
Company
NRB [Non-Resident Bangladeshi]
All Investors Accounts
Total
Number of
Shareholders
26
5,868
Number of
Shares
62,96,400
84,09,954
% of
Shares
37.479
50.059
130
165
14,18,716
1,17,070
8.445
0.697
33 5,57,860 3.321
6,222 1,68,00,000 100.00
Distribution of Schedule:
The distribution Schedule of 31st December, 2011 showing the number of shareholders and their shareholding in percentages is disclosed below as a requirement of the "Listing
Regulation" of Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
Range of holdings in number of Shares
1 to 499
500 to 5000
5001 to 10000
10001 to 20000
20001 to 30000
30001 to 40000
40001 to 50000
50001 to 100000
100001 to 1000000
1000001 to 1000000000
Total
Number of
Shareholders
743
5,144
169
92
18
5
9
18
23
1
6,222
Number of Shares
81,334
47,19,446
11,60,830
12,17,990
4,32,720
1,78,330
4,25,390
13,70,680
59,58,880
12,54,400
1,68,00,000
% of Share
Capital
0.484
28.092
6.910
7.250
2.576
1.062
2.532
8.159
35.470
7.467
100.00
22.00 RESERVE OR CONTINGENCY ACCOUNT
This is made up as follows:
Tk. 9,65,43,929 Tk. 8,44,94,238
22.01 Reserve for Exceptional Losses
22.02 Income Appropriation Account
22.03 Investment Fluctuation Reserve
22.01 RESERVE FOR EXCEPTIONAL LOSSES
This is made up as follows:
Opening Balance
Add: During the year
Tk. 7,04,68,889 Tk. 5,83,06,000
,, 2,35,75,040 ,, 2,36,88,238
,, 25,00,000 ,, 25,00,000
Tk. 9,65,43,929 Tk. 8,44,94,238
Tk. 7,04,68,889 Tk. 5,83,06,000
Tk. 5,83,06,000 Tk. 4,72,69,437
,, 1,21,62,889 ,, 1,10,36,563
Tk. 7,04,68,889 Tk. 5,83,06,000
This represents profit set-aside up to the year under review as expenses to meet exceptional losses. This reserve has been created as per requirement of paragraph 6(2) of 4th Schedule of the Income Tax Ordinance, 1984.
22
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
22.02 INCOME APPROPRIATION ACCOUNT
This is made up as follows:
Opening Balance
Add: Profit for the year
Less: Reserve & Provisions:
Reserve for Exceptional Losses
Investment Fluctuation Reserve
Provision for Income Tax
Prior Year Income Tax Adjustment
Deferred Tax Income
Bonus Share Issue
Tk. 2,35,75,040 Tk. 2,36,88,238
2,36,88,238
4,73,10,959
7,09,99,197
4,74,24,157
1,21,62,889
0
1,48,33,869
25,05,607
(78,210)
1,80,00,000
2,35,75,040
78,38,594
4,02,93,915
4,81,32,509
2,44,44,271
1,10,36,563
25,00,000
1,08,94,678
0
13,030
0
2,36,88,238
22.03 INVESTMENT FLUCTUATION RESERVE
This is as per last account.
Tk. 25,00,000 Tk. 25,00,000
23.00 BALANCE OF FUNDS AND ACCOUNTS Tk. 7,79,08,473 Tk. 7,24,23,606
This represents Reserve for un-expired risks provided against the Net Premium Income including Public Sector Business of the year at the rate of 40% on different classes of business except Marine Hull Insurance for which 100% as shown below:
CLASSES OF BUSINESS PERCENTAGE
Fire
Marine Cargo
Marine Hull
Motor
Miscellaneous
Total
40%
40%
100%
40%
40%
AMOUNT (TK.)
31-12-2011
4,16,80,511
1,75,20,223
1,09,975
1,77,62,992
8,34,772
7,79,08,473
AMOUNT (TK.)
31-12-2010
3,97,91,412
1,29,35,649
1,80,894
1,85,89,787
9,25,864
7,24,23,606
24.00 PREMIUM DEPOSITS ACCOUNT Tk. 67,88,828 Tk. 58,56,577
Balance on this account represents net premium received against cover notes for which no policy has been issued within 31st December, 2011.
25.00 SUNDRY CREDITORS INCLUDING Tk. 6,41,24,752 Tk. 5,85,57,260
PROVISION FOR EXPENSES AND TAXES
The balance is made as under:
Particulars 31-12-2011 31-12-2010
Salary and Allowances
Office Rent, Rates & Taxes
Telephone, Telex & Trunk Call
Electricity Charges
Audit Fees
Provident Fund Trust
Gratuity
General Public (Share Deposits Money)
Bills Payable
VAT on Premium
Tax Deducted at Source & VAT
Provision for Income Tax
Total
22,37,294
11,06,026
1,59,128
15,885
50,000
70,25,594
11,70,834
1,52,67,885
14,06,313
17,92,527
19,69,257
3,19,24,007
6,41,24,752
20,97,157
7,34,460
1,09,489
53,488
50,000
77,81,436
13,58,694
1,56,56,347
20,54,887
19,30,082
11,02,576
2,56,28,644
5,85,57,260
The unpaid amount of VAT has been subsequently deposited on 09-01-2012 and 15-01-2012.
23
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
26.00 AMOUNT DUE TO OTHER PERSONS OR BODIES
CARRYING ON INSURANCE BUSINESS
Tk. 55,61,814 Tk. 31,42,905
This represents balance of account with various Private Sectors in respect of co-insurance transactions and amount payable to co-insurers. The break up of the above amount is noted below:
NAME OF THE PERSON OR BODIES
Agrani Insurance Co. Ltd.
Asia Insurance Company Ltd.
Bangladesh Co-operative Insurance Co. Ltd.
Central Insurance Company Ltd.
Desh General Insurance Company Ltd.
Eastland Insurance Co. Ltd.
Express Insurance Co. Ltd.
Green Delta Insurance Co. Ltd.
Global Insurance Ltd.
Janata Insurance Co. Ltd.
Meghna Insurance Co. Ltd.
Mercantile Insurance Co. Ltd.
Northern General Insurance Co. Ltd.
Prime Insurance Co. Ltd.
Pioneer Insurance Co. Ltd.
People's Insurance Co. Ltd.
Republic Insurance Company Ltd.
Rupali Insurance Company Ltd.
Sonarbangla Insurance Company Ltd.
Takaful Islami Insurance Ltd.
Total
AMOUNT (TK.)
31-12-2011
1,32,221
3,22,666
1,42,137
54,629
4,12,478
35,480
7,37,506
36,801
3,40,356
7,22,055
3,76,301
89,082
1,15,714
1,36,878
95,721
4,309
4,13,463
3,09,777
4,24,173
6,60,067
55,61,814
AMOUNT (TK.)
31-12-2010
1,19,446
0
1,42,137
20,134
72,122
0
4,62,686
1,25,193
0
5,51,247
3,76,301
0
1,15,714
1,36,878
76,090
0
70,789
3,09,777
83,817
4,80,574
31,42,905
It is noted that no balance confirmation letters on positive request method for the confirmation directly to us were issued against the amount due to other persons or bodies carrying on insurance business and accordingly we could not confirm the above balance.
27.00 DEFERRED TAX LIABILITY Tk. 1,11,092 Tk. 1,89,302
(a) Deferred Tax Liability are arrived at as follows:
Particulars 2011 2010
Book Value of Depreciable Fixed Assets
Less: Tax Base Value
Taxable Temporary Difference
Book Value of Gratuity Payable
Less: Tax Base Value
Deductable Temporary Difference
Net Taxable Temporary Difference
Effective Tax Rate
Deferred Tax Liability
3,98,33,243
3,95,71,849
2,61,394
0
0
0
2,61,394
42.50%
1,11,092
4,59,89,836
4,55,44,419
4,45,417
0
0
0
4,45,417
42.5%
1,89,302
(b) Deferred Tax Expenses / (Income) are arrived at as follows:
Particulars 2011 2010
Closing Deferred Tax Liabilities
Opening Deferred Tax Liabilities
Deferred Tax Expenses / (Income)
1,11,092
1,89,302
(78,210)
1,89,302
1,76,272
13,030
(a) Deferred Tax Income of 2011 Tk. 78,210.
This represents the increase in deferred tax liability in 2010 in comparison to 2009
(b) The effective income tax rate of 42.50% has been considered as this tax rate is applicable for publicly traded companies.
24
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
28.00 ESTIMATED LIABILITIES IN RESPECT OF
OUTSTANDING CLAIMS WHETHER DUE OR INTIMATED
The break up of the above amount is noted below:
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
Tk. 3,31,53,244 Tk. 4,60,87,596
CLASSES OF BUSINESS
Fire
Marine Cargo
Motor
Miscellaneous
Total
PRIVATE
SECTOR
2,03,27,299
71,21,865
54,23,494
2,80,586
3,31,53,244
PUBLIC
SECTOR
TOTAL
31-12-2011
TOTAL
31-12-2010
0
0
0
0
2,03,27,299
71,21,865
54,23,494
2,80,586
2,44,74,605
1,20,88,417
93,73,944
1,50,630
0 3,31,53,244 4,60,87,596
PROPERTY AND ASSETS
29.00 INVESTMENTS -AT COST Tk. 90,00,000 Tk. 90,00,000
The above amount represents the value of 3 (Three) years National Investment Bonds at cost kept with Bangladesh Bank according to the provision of Section 7 (I) of Insurance Act (Act
IV of 1938 and 7th Schedule item 2 (f) of the said Act (Section 17 of the Insurance
Amendments Ordinance, 1984) as detailed below:
PARTICULARS AMOUNT (TK.)
31-12-2011
AMOUNT (TK.)
31-12-2010
9 Nos. 3 (Three) years National Investment Bonds at
Face Value of Tk. 10,00,000 each vide bearing no.
OK
-
3098 – 3105 &
PK
-000110 Date: 21-07-2008
90,00,000 90,00,000
30.00 INVESTMENT IN SHARES Tk. 1,76,71,355 Tk. 2,64,37,054
The market price of investment in shares as per requirement para 19 of BAS-25 have been shown as under:
Name of the Company
Becon Pharmaceuticals Ltd.
BRAC Bank Ltd.
BSRM Steel Ltd.
Eastern Bank Ltd.
Federal Insurance Co. Ltd.
First Security Bank Ltd.
Grameenphone Ltd.
ICB Islami Bank Ltd.
IBBL
KPCL
Lafarge Surma Cement Ltd.
Makson Spinning
Mercantile Bank Ltd.
Metro Spinning
Midas Finance
MTBL
Navana CNG
One Bank Ltd.
Premier Bank Ltd.
Shahjalal Islami Bank Ltd.
Summit Power
Sub Total
Face
Value
No. of
Shares
10.00 7,350
10.00 35,000
10.00
10.00
3,000
7,800
10.00 5,100
10.00 15,000
10.00 10,000
10.00
10.00 11,500
10.00
200
6,000
10.00 24,000
10.00
10.00
10.00 27,600
10.00
125
500
6,050
10.00 20,500
10.00
10.00
10.00
9,100
150
120
10.00
10.00
2,950
100
31-12-2011
Acquisition
Cost
Market Value
4,04,599.19
19,73,308.87
5,25,499.79
5,75,795.74
3,80,231.32
4,62,087.74
20,63,457.79
2,000.00
6,28,544.13
5,63,499.99
7,76,542.94
6,567.35
17,074.26
18,89,515.15
8,53,399.82
9,48,915.91
15,08,392.85
8,236.85
4,783.33
1,24,161.83
9,538.29
1,37,26,153.13 95,96,679.67
2,27,850.00
15,99,499.95
3,56,099.88
5,13,239.99
2,03,490.00
3,94,500.00
16,34,999.98
2,000.00
6,26,749.95
3,76,799.99
6,38,399.97
4,375.00
17,400.00
10,29,480.00
3,89,619.94
7,07,249.97
7,60,760.00
7,155.00
3,696.00
95,875.00
7,440.00
Consideration
Value
2,27,850.00
15,99,499.95
3,56,099.98
5,13,239.99
2,03,490.00
3,94,500.00
16,34,999.98
2,000.00
6,26,749.95
3,76,799.99
6,38,399.97
4,375.00
17,074.26
10,29,480.00
3,89,619.94
7,07,249.97
7,60,760.00
7,155.00
3,696.00
95,875.00
7,440.00
95,96,354.87
25
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
Name of the Company
Unlisted Securities at cost:
GMG Airlines
Unique Hotel & Restaurant
Energy Prima Ltd.
Sub Total
Grand Total
Face
Value
No. of
Shares
50.00 50,000
160.00 20,000
95.00 25,000
31-12-2011
Acquisition
Cost
Market Value
25,00,000.00
32,00,000.00
23,75,000.00
80,75,000.00
25,00,000.00
32,00,000.00
23,75,000.00
80,75,000.00
Consideration
Value
25,00,000.00
32,00,000.00
23,75,000.00
80,75,000.00
2,18,01,153.00 1,76,71,679.67 1,76,71,354.87
The acquisition cost or market value which is less has been taken into consideration in valuation of Investment in Shares. The loss on realization of investment in shares has been directly charged to Statement of Comprehensive Income as per Second Schedule, Part-II,
Form-B of the Insurance Act, 1938.
31.00 INTEREST ACCRUED BUT NOT DUE
(On FDR & National Investment Bond)
Tk. 1,28,32,167 Tk. 1,90,63,950
This is made up as follows:
PARTICULARS AMOUNT (TK.)
31-12-2011
AMOUNT (TK.)
31-12-2010
Interest on FDR
Interest on 3 (Three) years National Investment Bonds
Total
1,00,90,917
27,41,250
1,28,32,167
1,70,87,700
19,76,250
1,90,63,950
32.00 AMOUNT DUE FROM OTHER PERSONS OR
BODIES CARRYING ON INSURANCE BUSINESS
Tk. 3,63,16,188 Tk. 4,46,51,397
The above amount represents the total receivable from various persons or bodies carrying on insurance business as co-insurance and reinsurance as on 31st December, 2011. The details of which are given below:
NAME OF PERSONS OR BODIES AMOUNT (TK.)
31-12-2011
AMOUNT (TK.)
31-12-2010
Asia Insurance Co. Ltd.
Bangladesh General Insurance Co. Ltd.
Bangladesh National Insurance Co. Ltd.
City General Insurance Company Ltd.
Crystal Insurance Co. Ltd.
Continental Insurance Co. Ltd.
Dhaka Insurance Co. Ltd.
Eastland Insurance Co. Ltd.
Federal Insurance Co. Ltd.
Islami Insurance Co. Ltd.
Islami Commercial Insurance Co. Ltd.
Karnaphuli Insurance Co. Ltd.
Purubi General Insurance Co. Ltd.
People’s Insurance Co. Ltd.
Phoenix Insurance Co. Ltd.
Pragati Insurance Co. Ltd.
Reliance Insurance Ltd
Standard Insurance Company Ltd.
United Insurance Co. Ltd.
Sadharan Bima Corporation
Total
0
1,05,561
84,735
89,857
15,309
1,06,702
39,270
0
1,51,018
1,099
1,73,727
1,01,495
35,433
0
26,615
12,18,750
2,77,630
2,507
9,281
3,38,77,199
3,63,16,188
1,54,250
16,162
3,55,217
1,12,104
15,309
25,781
39,270
29,153
2,40,997
1,099
1,85,411
1,11,495
35,433
39,216
3,47,872
10,41,768
1,24,081
2,507
44,160
4,17,30,112
4,46,51,397
26
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
It is noted that balance confirmation letters on positive request method for the confirmation directly to us were issued against the amount due from other persons or bodies carrying on insurance business and accordingly we have obtained all the letters as were despatched to the parties for confirmation and we have found thereon none of the parties were in disagreement with the balances as per records of the books of accounts of the Company.
33.00 SUNDRY DEBTORS (INCLUDING ADVANCES ,
DEPOSITS & PREPAYMENTS)
Tk. 5,56,26,262 Tk. 2,62,29,966
The break up of the above is as under:
PARTICULARS
Advance against Floor Purchase
Advance against Salary & Allowances
Advance against Office Rent
Advance against Traveling
Advance Income Tax and deducted at sources
Security Deposits (Telephone & CDBL)
Advance against Purchase
Total
AMOUNT (TK.)
31-12-2011
2,56,58,000
10,30,198
62,01,007
0
2,04,98,866
3,79,000
18,59,191
5,56,26,262
AMOUNT (TK.)
31-12-2010
0
4,48,318
56,51,704
26,824
1,82,77,707
3,79,000
14,46,413
2,62,29,966
(a) The advance income tax deducted at source is called for adjustment against the assessment of assessed tax of the Company;
(b) No amount was due by directors, managers and other officer of the Company and any of them severally or jointly with any other person except as stated above;
(c) No amount was due by the related party.
34.00 CASH AND BANK BALANCES
The above amount is made up as follows:
Tk. 27,99,00,102 Tk. 24,80,21,348
PARTICULARS AMOUNT (TK.)
31-12-2011
AMOUNT (TK.)
31-12-2010
Fixed Deposit Receipts
Cash balance with BO A/c. 1202630016927226
Short Term Deposit Account
Jamuna Bank -STD A/c. 32000164-IPO
Jamuna Bank -STD FC Account-IPO
Current Accounts
Cash in Hand
Stamps in Hand
Cash in Transit
Total
20,96,90,522
89,057
3,64,46,403
1,39,12,824
8,94,135
11,31,376
1,19,57,651
17,12,000
40,66,132
18,29,60,366
6,63,541
3,05,09,585
1,51,33,127
8,90,836
10,92,797
1,09,17,768
5,50,250
53,03,078
27,99,00,102 24,80,21,348
(i) Fixed Deposit Receipts:
The detailed bank wise position of Fixed Deposit Receipt is as under:
Name of Bank
AB Bank Ltd.
Al-Arafah Islami Bank Ltd.
Agrani Bank Ltd.
Bangladesh Krishi Bank
Bank Asia Ltd.
BASIC Bank Ltd.
Bangladesh Com. Bank Ltd.
The City Bank Ltd.
Total (Tk.)
31-12-2011
1,99,36,732
1,35,73,376
7,00,395
1,77,182
64,09,458
12,01,292
73,67,577
0
Total (Tk.)
31-12-2010
1,45,50,000
86,00,000
6,50,000
1,00,000
52,00,000
15,00,000
67,60,000
10,00,000
27
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
Name of Bank
Dhaka Bank Ltd.
Dutch Bangla Bank Ltd.
Exim Bank Ltd.
First Security Bank Ltd.
HSBC
ICB Islami Bank Ltd.
IFIC Bank Ltd.
Islami Bank (BD) Ltd.
Jamuna Bank Ltd.
Janata Bank Ltd.
Mercantile Bank Ltd.
Mutual Trust Bank Ltd.
National Bank Ltd.
NCC Bank Ltd.
One Bank Ltd.
Premier Bank Ltd.
Prime Bank Ltd.
Pubali Bank Ltd.
RKUB Ltd.
Reliance Finance Ltd.
Rupali Bank Ltd.
Shahjalal Islami Bank Ltd.
Social Investment Bank Ltd.
Sonali Bank Ltd.
Southeast Bank Ltd.
Standard Bank Ltd.
The Trust Bank Ltd.
United Commercial Bank
United Leasing Co. Ltd.
Uttara Bank Ltd.
Total
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
Total (Tk.)
31-12-2011
45,19,466
10,36,000
1,24,69,432
1,99,999
15,50,821
24,62,230
83,33,609
74,43,338
2,81,02,085
11,20,678
27,21,818
89,13,984
1,67,84,649
36,24,721
42,69,620
10,30,699
40,77,814
55,77,826
18,74,500
10,00,000
12,71,249
49,47,778
39,14,830
11,75,950
1,02,26,434
31,98,159
4,99,999
1,65,34,058
5,42,750
9,00,000
Total (Tk.)
31-12-2010
20,96,90,522 18,29,60,366
37,50,000
15,00,000
1,34,00,000
2,00,000
50,00,000
40,50,000
67,00,000
55,00,000
2,00,50,000
10,00,000
27,00,000
49,50,000
1,48,50,000
31,00,000
44,00,000
10,00,000
45,00,000
40,00,000
18,00,000
10,00,000
12,50,000
44,00,366
32,00,000
10,00,000
77,50,000
30,00,000
5,00,000
1,91,50,000
5,00,000
4,00,000
(ii) Short Term Deposit, Current Account and Cash in hand
The branch wise balance position of Short Term Deposit Accounts, Current Accounts & Cash in Hand are as under:
Name of the Branch
Agrabad
Arichaghat
B.B. Avenue
Bangshal
Barisal
Bogra
Chuadanga
Chowmuhani
Comilla
Dewanhat
Dilkusha
Dilkusha Corporate Branch
Dinajpur
Faridpur
Gabtali
Gaibandha
Head Office Booth
Hatkhola
Cash in Hand
3,17,707
48,118
7,75,007
29,694
1,05,770
4,46,396
2,40,584
2,00,539
4,82,314
1,47,308
18,535
4,56,100
94,664
35,067
1,53,134
4,311
5,76,434
0
Current Account STD Account
134
0
1,353
2,346
0
12,203
16
0
95,472
13,495
3,247
1,560
730
0
1,304
0
7,529
0
5,46,716
75,417
7,18,366
2,29,086
1,92,181
1,67,878
1,91,237
2,77,338
6,30,957
3,66,527
6,05,031
12,43,534
1,57,673
70,922
3,50,496
10,44,321
15,61,026
1,32,841
28
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
Name of the Branch
Imamgonj
Jamalpur
Jessore
Jhenaidah
Jubilee Road
Kawran Bazar
Khatungonj
Kurigram
Kushtia
Laldighi
Local Office
Local Corp.
Moghbazar
Motijheel
Moulvibazar
Mymensingh
Naogaon
Narayangonj
Natore
Nawabpur
Nayabazar
Nayapaltan
Pabna
Principal
Rangpur
Sayedpur
Sylhet
Sena Kalyan
Sadarghat
Tangail
Gulshan
Head Office
Total
Cash in Hand
2,47,525
4,61,851
96,254
2,01,595
33,467
1,93,929
2,09,329
1,09,473
44,238
1,53,212
21,305
30,633
5,91,187
46,898
1,59,690
81,298
19,392
4,33,071
3,32,130
2,23,866
28,977
69,429
61,063
8,36,005
7,68,824
1,61,299
1,13,067
4,89,040
1,81,752
2,29,590
3,90,888
8,05,700
1,19,57,651
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
Current Account
0
0
2,645
9,998
57,732
56,161
6,972
1,14,574
0
915
412
460
0
6,217
390
153
1,288
5,40,530
1,152
495
1,068
1,605
26
21,466
1,082
1,355
6
58,118
6,879
0
105
1,00,175
11,31,376
STD Account
77,429
3,83,818
19,17,720
14,54,298
2,01,570
21,13,599
10,29,094
5,92,166
35,620
12,95,115
3,53,181
3,29,455
1,56,554
11,25,421
1,22,440
2,77,392
3,73,749
59,60,014
13,46,791
1,06,624
1,43,548
4,03,257
5,59,463
3,00,480
4,08,701
11,22,797
3,09,270
8,59,815
16,99,077
10,55,327
6,29,611
11,41,439
3,64,46,403
Cash balances have been verified with branch statements and have also been certified by the Head
Office management. Current account and the STD Account are in agreement with bank balances and in case of difference it was duly reconciled.
35.00 OTHER ACCOUNTS
This is made up as follows:
Tk. 4,08,46,058 Tk. 4,73,47,769
35.01 Fixed Assets (At Cost Less Depreciation. Note 36.01)
35.02 Stock of Printing & Stationery
3,98,33,244
10,12,814
4,59,89,836
13,57,933
4,08,46,058 4,73,47,769
35.01 FIXED ASSETS -AT COST LESS DEPRECIATION
This is arrived at as under:
Cost as on 01-01-2011/2010
Add: Addition during the year
Less: Sale Adjustment
Less: Depreciation:
Dep. as on 01-01-2011/2010
Deprecation charged during the year
Less: Deprecation Adjusted
Balance as on 31-12-2011/2010
Tk. 3,98,33,244 Tk. 4,59,89,836
10,69,27,082
19,90,892
25,00,500
9,43,96,548
1,46,17,321
20,86,787
10,64,17,474 10,69,27,082
6,09,37,246 5,41,79,294
72,25,882
15,78,898
85,26,876
17,68,924
6,65,84,230 6,09,37,246
3,98,33,244 4,59,89,836
29
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
35.02 STOCK OF PRINTING & STATIONERY
This is made up as follows:
Balance as on 01-01-2011/2010
Add: Purchased during the year
Less: Consumed during the year
Balance as on 31-12-2011/2010
36.00 MISCELLANEOUS INCOME
This is made up as follows:
Gain on Sale of Assets
Interest on IPO Account
37.00 INTEREST ON FDR, STD AND NIB
This is made up as follows:
PARTICULARS
Interest on STD Account
Interest on FDR
Interest on National Investment Bond
Total
38.00 ALLOCATION OF MANAGEMENT
EXPENSES (APPLICABLE TO FUND)
NAME OF
BUSINESS
APPORTIONED
EXPENSES
Fire
Marine Cargo
Marine Hull
Motor
Miscellaneous
Total
2,47,89,824
82,52,721
1,58,182
75,87,886
32,57,056
4,40,45,669
DIRECT
CHARGE
6,59,970
0
0
2,50,140
20,028
9,30,138
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
Tk. 10,12,814 Tk. 13,57,933
13,57,933
20,86,513
34,44,446
24,31,632
10,12,814
17,98,789
21,22,644
39,21,433
25,63,500
13,57,933
Tk. 8,30,453 Tk. 36,85,093
Tk. 3,78,398 Tk. 8,64,559
,, 4,52,055 ,, 28,20,534
Tk. 8,30,453 Tk. 36,85,093
Tk. 2,09,26,891 Tk. 2,12,06,248
AMOUNT (TK.)
31-12-2011
7,42,245
1,94,19,646
7,65,000
2,09,26,891
AMOUNT (TK.)
31-12-2010
7,36,922
1,97,04,326
7,65,000
2,12,06,248
Tk. 4,49,75,807 Tk. 4,34,90,790
AMOUNT (TK.)
31-12-2011
AMOUNT (TK.)
31-12-2010
2,54,49,794
82,52,721
1,58,182
78,38,026
32,77,084
2,53,46,784
66,73,797
2,29,532
85,37,111
27,03,566
4,49,75,807 4,34,90,790
39.00 GROSS PREMIUM INCOME Tk. 26,90,74,089 Tk. 25,62,10,459
Class wise Private & Govt. Gross Premium Income is as follows:
CLASS OF BUSINESS
Fire
Marine Cargo
Marine Hull
Motor
Miscellaneous
Total
DIRECT GOVT. AMOUNT (TK.)
2011
AMOUNT (TK.)
2010
14,00,84,360 30,18,900 14,31,03,260 14,62,18,297
5,02,86,845 1,14,61,231 6,17,48,076 4,30,92,042
8,08,500
4,33,74,238
4,24,360
10,46,662
50,35,746 1,55,33,247
12,32,860
4,44,20,900
1,85,68,993
13,21,783
4,64,96,516
1,90,81,821
23,95,89,689 2,94,84,400 26,90,74,089 25,62,10,459
30
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
40.00 CASH AND CASH EQUIVALENT
This is made up as follows:
PARTICULARS
Fixed Deposit Receipts
Short Term Deposits Account
Cash Balance with BO Account-1202630016927226
Jamuna Bank STD A/C. No. 320000164(IPO)
Jamuna Bank FC Accounts (IPO)
Current Account
Cash in Hand
Cash in Transit
Stamp in hand
Total
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS
Tk. 27,99,00,102 Tk. 24,80,21,348
AMOUNT (TK.) 2011 AMOUNT (TK.) 2010
20,96,90,522
3,64,46,403
89,057
1,39,12,824
8,94,135
11,31,376
1,19,57,651
40,66,132
17,12,000
27,99,00,102
18,29,60,366
3,05,09,585
6,63,541
1,51,33,127
8,90,836
10,92,797
1,09,17,768
53,03,078
5,50,250
24,80,21,348
41.00 EARNINGS PER SHARE (EPS) AS PER IAS 33
Basic Earnings per Share (EPS)
Basic EPS = Earnings Attributable to Ordinary Shareholders
(Net profit after tax and reserve for exceptional losses)
Weighted Average No. of Shares Outstanding during the year
Computation of Earnings Attributable to Ordinary Shareholders:
Net Profit before Tax
Less: Provision for Income Tax
Less: Provision for Income Tax @ 42.5%
on Reserve for Exceptional Losses
Tk. 4,73,10,959 Tk. 4,02,93,915
Tk. 1,48,33,870 Tk. 1,09,07,708
Tk. 51,69,228 Tk. 47,86,357
Tk. 2,00,03,098 Tk. 1,56,94,065
Tk. 2,73,07,861 Tk. 2,45,99,850
Computation of weighted average number of Shares Outstanding.
Date
Opening
During the year
Total
No. of Shares
Issued
1,50,00,000
18,00,000
1,68,00,000
= =
= Tk. 1.63 approx. = Tk. 1.64 approx.
Period
01-01-2011-
31-12-2011
01-01-2011-
31-12-2011
Days
365
365
Weight
365/365
365/365
Weighted average no.
1,50,00,000
18,00,000
1,68,00,000
42.00 CALCULATION OF PROVISION FOR INCOME TAX
This is made up as follows:
PARTICULARS AMOUNT
(TK.) 2011
AMOUNT
(TK.) 2010
Profit before Tax
Less: Reserve for Exceptional Losses
Profit on Sales of Shares
Capital Gain
Profit other than capital gain and sale of shares
Tax on profit other than capital gain and sale of shares @ 42.5%
Tax on profit of sale of shares @ 5%
Tax on capital gain @ 15%
Provision for Income Tax
4,73,10,959 4,02,93,915
1,21,62,889 1,10,36,563
0
3,78,398
34,71,846
8,64,559
1,25,41,287 1,53,72,968
3,47,69,672 2,49,20,947
1,47,77,110 1,05,91,402
0
56,759
1,73,592
1,29,684
1,48,33,869 1,08,94,678
In our opinion, the actual provision for Income Tax should be made into accounts.
31
A. HOQUE & CO.
G. KIBRIA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
43.00 INTRINSIC VALUE OR NET ASSETS VALUE
The Intrinsic Value or Net Assets Value of Provati Insurance Co. Ltd. is given below:
Particulars Amount (Tk.)
31-12-2011
Amount (Tk.)
31-12-2010
A. Assets:
Investment at cost
Investment in Shares
Interest Accrued but not due
Amount due from other persons or bodies carrying on Insurance Business
Sundry Debtors (Including Advances, Deposits & Prepayments)
Cash and Bank Balances
Other Accounts (Fixed Assets & Stock of Stationery)
Total
90,00,000
1,76,71,355
1,28,32,167
3,63,16,188
5,56,26,262
27,99,00,102
4,08,46,058
45,21,92,132
B. Liabilities:
Balance of Funds and Accounts
Premium Deposit Account
Sundry Creditors (Including provision for expenses and Taxes)
Amount due to other persons or bodies carrying on Insurance Business
Deferred Tax Liability
Estimated Liabilities in respect of outstanding claims whether due or intimated
Total
Net Assets (A-B)
7,79,08,473
67,88,828
6,41,24,752
55,61,814
1,11,092
3,31,53,244
18,76,48,203
26,45,43,929
No. of Shares
Intrinsic Value / Net Assets Value per Share
1,68,00,000
15.75
90,00,000
2,64,37,054
1,90,63,950
4,46,51,397
2,62,29,966
24,80,21,348
4,73,47,769
42,07,51,484
7,24,23,606
58,56,577
5,85,57,260
31,42,905
1,89,302
4,60,87,596
18,62,57,246
23,44,94,238
1,50,00,000
15.63
We have examined the above calculation of Net Assets Value (NAV) of the Company which appears to be correct.
44.00 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURE UNDER IAS 32 "FINANCIAL
INSTRUMENTS: DISCLOSURE AND PRESENTATION ".
Setout below is a year-ended balance of carrying amounts (book value) of all financial assets and liabilities (Financial Instruments):
Particulars Non Interest
Bearing
Total
Financial Assets
National Investment Bonds
Investment in Shares
Investment in FDR
Accounts Receivable
Cash and Cash Equivalents
Total
Financial Liabilities
Outstanding Claims
Creditors
Deferred Tax Liabilities
Total
Net Financial Assets/Liabilities
0
0
0
5,56,26,262
1,40,72,220
6,96,98,482
3,31,53,244
3,22,00,745
0
6,53,53,989
43,44,493
90,00,000
1,76,71,681
20,96,90,522
5,56,26,262
6,84,97,579
36,04,86,044
3,31,53,244
3,22,00,745
0
6,53,53,989
29,51,32,055
45.00
RELATED PARTY TRANSACTIONS-DISCLOSURE UNDER IAS 24 "RELATED PARTY DISCLOSURE "
During the year under review the Company did not carry out the transactions with the related parties in the normal course of business and on arm's length basis.
46.00 PAYMENT / PERQUISITES TO DIRECTORS
No amount of money was spent by the Company for compensating any member of the Board for services rendered other than Board Meeting Fee.
32
A. HOQUE & CO.
CHARTERED ACCOUNTANTS
47.00 CAPITAL EXPENDITURE COMMITMENT
There was no commitment for capital expenditure and also not incurred or provided for the year ended 31st December, 2011.
48.00 CONTINGENT LIABILITIES
The Company is contingently liable as on 31st December, 2011 on account of Income Tax, the details of which are given below:
CONTINGENT TAX LIABILITY :
Accounting
Year
2000
Assessment
Year
2001-2002
Assessed
Income
(Loss)
Tax
Demanded on Assessed
Income
Tax Paid in
Cash and
Deducted at Source
Remarks
1,48,28,460
1,05,98,470
66,89,747
45,40,415
13,10,153 Writ petition has been filed before the Supreme Court.
3,25,648
2,54,26,930 1,12,30,162 16,35,801
Do 2001
Total
2002-2003
49.00 CREDIT FACILITY NOT AVAILED
There was no credit facility available to the Company under any contract and also not availed as of 31st December, 2011 other than trade credit available in the ordinary course of business.
50.00 SUBSEQUENT EVENTS-DISCLOSURES UNDER IAS 10 "EVENTS AFTER THE REPORTING
PERIOD "
There were no non-adjusting post Statement of Financial Position events of such importance, non disclosure of which would affect the ability of the users of financial statements to make proper evaluations and decisions.
33