Nailer] Mma t=4 ole) at yah IN Pte INSURANCE LIMITEDPRAGATI LIFE aera Uo =o) Annual Report 2018 AN PRAGATI LIFE srorure INSURANCE LIMITEDAN PRAGATI LIFE ORY insurance uMTED Contents At a Glance IDRA Certificate BAPLC Renewed Certificate Letter of Transmittal Notice of the 19th Annual General Meeting Vision, Mission and Corporate Focus Corporate Milestone Company Information Directors’ Profile Executive Album Useful Information for the Shareholders Value Added Statement Comparative statement of new business and business in force Financial Highlights Chairman’s Message Shareholders’ View Directors’ Report Report on Corporate Governance Audit Comittee Report Nomination & Remuneration Comittee The Certificate of Corporate Governance Compliance Statement of Corporate Govermance Compliance Guidelines Key Financial Indicators Declaration by CEO and CFO Auditors’ Report Financial Statements Balance Sheet Revenue Account From — “AA” Statement of Life Insurance Fund Statement of Cash Flow Statement of Change in Shareholders’ Equity Notes to the Financial Statements Directors’ Certificate Pragati Life Events Our Presence Proxy Form & Attendance SlipAX PRAT! 2D insurance NSN tagati Life Insurance Limited was established on January 30, 2000 as a public limited company under the Companies Act, 1994 with the philosophy of maintaining competitiveness and balanced with prudent management and fairness to all policyholders. The Company obtained registration from the Department of Insurance on April 11, 2000 under the Insurance Act, 1938 to carry out insurance business. The Company started with a paid up capital of Tk. 30 million against an Authorized Capital of Tk. 250 million. Now the present paid up capital stands to Tk. 133.49 million. Pragati Life has been sponsored by some renowned business entrepreneurs of the Country linked with different industrial groups. The Company went for public issue in 2005 and listed in both Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. Pragati Life was established with the vision of participating effectively in the process of providing financial security to the clients as well as facilitates creation of long term capital in the market. The Company, in the process of materializing its vision, has been developing new customer oriented and inno- vative products developed by its own Actuarial Department. Within a short span of time, the Company has created a fran- chise value in the market by expanding its business network with a diversified product lines across the Country. Pragati Life has re-insurance agreement with the largest Rein- surer of the world-Munich Reinsurance Company, Germany since its inception. Pragati Life is also the first insurer in Ban- gladesh introducing the status of the policies through Push-Pull (SMS) service to its Policyholders. In addition, the policyhold- ers can also know their policy details from anywhere in the world from its website. Pragati Life has also initiated digital premium payment options. xr Tr) EEAN OAT LIFE Rea Ra A (efear a(0) B87) fear en izy09/3000 ‘frees wanTAa Sifts o> SR, 2092 | SPAT ROEM corey Za SEH, odo (Qodo MeN Ne AR MRA) MAF HAT DD GATTI od ‘oar, 20% ee os BoM Qos AM Me ane me TT PS om Ree Te eat acter eet et | ByT UG 2-0-2029 ‘waar VT Vad Vad VET Va yRA IDRA IDRA IDRA. IDEA FN SD ay a eNO BEVIS 5. Or)wl 2 = ey 3 : a ElOz saguiara® , JE jun quauno surpuiaL aqvorftua? siyT, oxasays Buruwysaddy saBapoud pun sqyBu ayy yp 0} paygaua si pup sajuedwog past] Ajaijqnd Jo uone|ossy Yysape|sueg fo sagmayy; Copuzpiq st CALIWTT AONVANSNI ddI LLVOVAd | | qwyy Cfiz4a9 07 St SIYT, | ayeo III) pamauay 0G * 11 Ksmmayag : anss} fo mq ssu/orazny 2ON foe | SaINWdINOD cals Alda Or)- All Shareholders Insurance Development and Regulatory Authority trar of Joint Stock Companies and Firms Bangladesh 4 ~ Bangladesh Securities and Exchange Commission - Dhaka Stock Exchange Limited AS Chittagong Stock Exchange Limited Central Depository Bangladesh Limited All other Stakeholders ‘Annual Report for the year ended December 31, 2018 __ Dear Sir, | ‘We are pleased to enclose copy of the Annual Report-2018 together with the Audited Financial Statements including Balance Sheet, Revenue » “Recount, Cash Flow Statement, and Notes to the Accounts for the year | | ended December 31, 2018 for your kind information and record. Sincarely yours, Jagadish Kumar Bhanja, FCS | Company SecretaryAX PRAGAT! LIFE 22 insurance uMTeD ane mae Sper MoT eer SI : etre Reger Sa (ws we) 20-29, PAT MAT, TIFT-DAdE | sowT see Talat eT aTS a UTS ATOR BATA TIAN Ce, she TE Rep RNS om swET Re ATET FET RET eee FPA ST STMT LOH SPPS, Rode, AAT, ARPT 30,00 HPS HAA Rew, BRAT VAS aremTEre ae, HARRTRR, CTCAT H AS-5, BAR aT TG, AUACHD, WIAT-SA3¢ WEES AA 09 AONE, Rosy wife are aCe AAS forte Raw « Rabeeore afore cae aor afecart ate, RETA 6 BATT 129 ROME Rody WIRE Hate AeA ABT MH NES esr SCAT afters Retytator BTR at MOT oe CTU aE ATT $08 OTE BAT Coma FATE Face ier sae Fafa 1. RON HOT BT CHM TOMAS scr Pte PCAN 8 wre ae ET geaoe ifr ones STR at wile Et we, cree Re OT ERTS, 2oN Cala Hos areca’ SA THME, 209s 3. TPA ORATOR TOT AT GRE CEE CoP HET eT Fafie eT HER T ETAE MITT coer tat ae att rete cates, cOBATs ae MTONT TT CMT TAR | Mra rar cate a ORD eee CN RET CHRCRNTT OH CRE ATA TET CATS COE ett HT maT eR FACT AC AAT | LARC COTM HOTA CHRTACRTOET RTS ALT AR TMNT AHIFS Borge afters rer TCT ae corms Fahne wreecm Te CHET 4g TUT LS wT fT AT 9. aie efocane me eat oa poe mete ater BMT steer | effec Rewer NTT ete ree 8. Terma aR eB caIT-Qose coeta Rar cece wee wat ATC | aa ae AR esfcaT FETA FAT Re AT TRS aerarT Co STREET www.pragatilife.com Neat A | CAO ae a FcR aatRoroT weMeT OT STAT WOR GL, at ete ate Re ‘Rast cota wtfter omer Rs wore Reet etait sy INNS, Roos em ACT Colma ABE ates CCT Wa SA Sa BT | rer oman Fare as ott etcatey ee | xr Tr)AN PRAGATI LIFE INSURANGE LIMITED Our Vision We shall be recognized as the leader among all life insurance companies in Bangladesh. Our success will be built on our absolute dedication to the satisfaction of our policyholders, through constant innovation, operational efficiency, prompt services, cost effectiveness and the talents of our people. We shall always apply high standards of Integrity and responsibility in our activities. ~ area *| x —— = Corporate Focus = oN ur vision and mission are to emphasize on the | SS quality of product, process and service leading on = growth of the Company imbibed with good gover- a nance in practices. =AN PRAGATI LIFE 22 insurance uMTeD Corporate Milestone Registration as a Joint Stock Company January 30, 2000 ‘Commencement of Business ‘April 1, 2000 ‘Signing of contract with the world's largest re-insurer, Munich Re, Germany for| April 17, 2000 reinsurance coverage Signing of first policy ‘May 03, 2000 Inauguration of official website uly 02, 2003 |Appointment of Issue Manager December 22, 2004 [Agreement with CDBL ‘September 25, 2005 Consent to issue IPO shares (October 16, 2005 Publication of Prospectus (October 19, 2005 ‘Subscription Opens Novenber 24, 2005 Allotment of IPO Shares December 22, 2005 Listing in Dhaka Stack Exchange February 06, 2006 Listing in Chittagong Stock Exchange February 06, 2006 First Trading In Stock Exchanges February 06, 2006 Holding the first public AGM (6th) September 17, 2006 Introduction of first ever Push-Pull service for policyholders’ information ‘March 01, 2007 Declaration of fist policy bonus january 29, 2007 First Credit Rating January 30, 2008 Received Century International Era Award (Gold Category) March 11, 2012 — Platinum Star for Quality Award ‘September 21, 2014 eo Lee)AN EGA URE Company Information The Company was incorporated as a Public Limited Company in Bangladesh in the year 2000 under the Companies Act 1994. The Company within the stipulation Ieid down by Insurance Act 1938 (New Act 2010) and directives as received from time to time from Insurance Development & Regulatory Authority (IDRA) provides life insurance services. The Company is listed with Dhaka Stock Exchange and Chittagong Stock Exchange as a Publicly Traded Company. Pragati Insurance Bhaban (6th floor), 20-21 Kawran Bazar, Dhaka-1215 Registered Office Contacts :Telephone : +88 02 8189184-8, Fax : +88 02 9124024 E-mail : info@ pragatilife.com, Website : www pragatilife.com Mss Ez Hoda Vasi Chowdhury & Co Auditor Chartered Accountants ‘BTMC Bhaban, 7-8 Floor, 7-9 Kawran Bazar C/A Dhaka-1215 AS M/s Mahfel Hug & Co, Tax Adviser Chartered Accountants BGIC Tower (4th floor), 34 Topkhana Road, Dhaka-1000 ee ‘Dr. Mohammad Sohrab Uddin, Phd, AIA, Consulting Actuary ‘House#6 (4th Floor), Road #12, Section#13 Actuary ‘Uttara Model Town, Dhaka-1230 Contact no: +8801715013176 Barrister Margub Kabir Advocate, Supreme Court of Bangladesh Legal Adviser Hug & Co 7/1 Purana Palton, Dhaka-1000.AX PRAGATI LIFE 2223 insurance unre Mr. Khalilur Rahman Chairman Mr. Khalilur Rahman was bom on 10 Apri, 1945 in Chittagong. His father was Lato Alha) Abul Khair and mother was Lete Al-Haj Fatema Begum. He is @ Bachelor of Science in Management and a renowned industrialist and Commercially Important Person (CIP). He has gol a wide range of work involvement at home and abroad. He has business links with USA, Canada, Europe, Scandinavian Countries, Japan, South Asian’ Sub-Continent, Korea, ‘Shgepore, Talwan, China, Thalland, Germany, Srlanka, ‘Agartala/inda, Pakistan, South Africa, Vietnam, Liberia, DR. Congo, Malaysia, Indonesia, Combodia, Myanmar, Dubal, Mozambique, Ghane, Malawi, Tanzania, Sierra Leaon, Gabon, Nigerie, Fareast and Middle East, He is the founder Chairman of Southem University Bangladesh, Khalilur Rahman Mohila College, Khalll Mit Degree Coliege, Khallur Rahman Girls’ High School, Khalil Mir Girs’ High School, Ziti Khalil Mir High School, Kartala Belkhain Mohabodhi High School, Knalilur Rehman Shishu Niketon Garten), Khailur Rahman Cultural ‘Academy, East Kelgram Saberia Khallla Islamia Sunnia Madrasha, Shaindair Gouchiya Tayoubia Delwara Begun ‘Sunnia Alim Madrasha, Shaindair Al-Haji Abul Khair Sunnia. Senior Madrasa an rember ofthe Governing boy of S.A ‘Noor High School, Hulain Saleh Noor College: Rahman Girls’ High School. He is the Group Chairman of KDS. The concerns of KDS are ~ KDS Garment Industries Lid. KDS Apparels Ltd, KDS. Hi-Tech Garments (Bd) Lid. fos Washing Plant, KDS Mafizur KDS Label Printing incusties Lid., KDS Cotton Poly Thread Industries Lid., KIY Steel industries Ltd., KY Stal Mils Ltc., KDS IDR Lic,, Rahman & Co, (Fossil C.N.G & Patlya CNG), He is the Founder President of Chittagong Metro Chamber of Commerce and industries and Patiya Samity ‘at Chittagong City, Chairman of Bangladesh CR Coil ‘Syndicate, M/S Salim & tan Manufacturer & Association and Pragati Life Insurance Lid, Ex-Chairman of Bangladesh Red-crescent Sociaty (Chittagong district unit), Ex-1st Vice President & Director of BGMEA & Vice President of Bangladesh Inland Container Depot Association (BICDA). He is the running Director of Pragat! Insurance Ltd. and National Bank Ltd. He is a Sponsor Share holder of Northem General Insurance Ue,, Social Islami Bank Lid, and A-Arafah Islami Bank Lid, He is the Life Member of Bhaliary Goff and County Sub, Chittagong Boat Club, Chittagong Club Lid, Chitag fiatopotien Lene ub Gityorg Prose Gu, Chilago Institute Lid. (Senior's ‘Club), Chittagong Maa & Shishu Hospital, Ziri Zanakollan Trust & Intemational Business Forum of Bangladesh. He is the Excoutive Mombor of Bangladesh Cl Sheet and GP Sheet Association. ‘As an Indusbialist, Businessman and En he ‘achieved a good numbers of awards in different categories, He achieved President Gold Trophy for High Export of Hage Crmonts ne your 185 10571295 1005 1898, 1999, 2001 and 2002. Received Gold Medal/Crest as Recognition of Quality and Quality Garments Exporter of AMC, TARGET, USA in the years 1988, 1999, 2001 and ‘2002; Golden Trophy For Quality In Ready Made Garments {rom Madrid 1982, Spain; National Export 1987-88, 1988-89, 1989-90, 1990-1891, 1991-1992, 1994-1995, 1995-1996, 1996-1997, 1999- 2000, 2003-2004, 2005-06, 2006-2007, 2007-2008, 2008- 2008; Kmart. Carparalion ‘Award; Intemational Gold Star For Quality, Intematonal Recognition of Efficiency from Business Intiative Directons, ‘Texas, USA, artnet ‘Outstanding Performance Award Leader Ciub, Spain - 5 Times; ‘Gold Medal Crest For Export- Received Charming Shopps Inc. Excellence Award 2000 from TARGET; Vendor Award 2005 from TARGET For Delivery High Quality Products, Intemational Supplier of the Year 2004, 2005, 2009 & 2010 Award from Wal-Mart Canada and Wal-Mart UK George. Recaived Batexpo Award - 1999 and 2000; Cafaxpo Award - 2009; Top Ciaint Tropy from Agrabad Hotel - 1988; Best Wishes Tropy from Agrani Bank Ltd, - 2000; Business Award from Mercantile Bank - 2011; Business Award from Janata Bank Lid,, Business Award from Jamuna Bank Ltd., Awarded from Lions Club Intemational; Certificate of Excellence is Awarded fo KDS. ‘Group from Pragati Insurance Lid., Performance Award from Shabjelal Islami Bank Ltc., “Vijaya Shree” - An International “Buddhist Award” - 2009; Golden Award from UNESCO Academic Development Project and Mother Teresa Humanrights Gold Award 20°4 by Bangladesh Information & Humanrights Foundation on 04 , “Ekyshey Padak 2015" from Chittagong City Corporation {for Contribution in Trade & Industry, or)‘Syed M. Altaf Hussain Director Syed M. Altaf Hussain, son of Syed M. Weres All ‘was bom in @ respectable Muslim farily in 1964. He has involved in Trade, Commerce, Agr-Business and Industries since the beginning of his career in 1878. He graduated from UTA (Texas), USA with focus on Agribusiness. Currently he is the Chief Executive Officer of WAW Grains Comp. representing Cargill Inc., USA & The Mosaic Company in Bangladesh, the ‘world's largest privately held Company W&W Grains and Cargil inc. of United States joined their hands ‘together to deliver highest quantity of Agricultural produce mainly food grains and crop nutrition to Bangladesh. Mr. Altaf was associated with Agro-based Industries & Technology Development Project (ATDP-II), sponsored and funded by USAID, ‘88 advisor of the project on behalf of Cargill Technical Services Inc. USA. He has played a greet role in the process of agricultural growth in Bangladesh. He attended a short course on agribusiness in Harvard University, USA. Presently he is the Chairman of United Petro-Chemi- cal Lid., Sonic Allied Industries Lid., WW Avion Tours & Travels Lid. and also the Chairman of editorial board of the Daily Janata, a national daily news paper. He is also Chairman of Pragati Insurance Ltd. and founder Chairman & Director of Pragati Life Insurance Ltd. where he Is also the Member and convener of the Directors’ Finance Committee of Pragati Life Insurance Lid. & Co-Chairman & Director of Jamuna Resort Lid. Mr. Altaf is an extensively ‘traveled person. He visited many countries across the like world North America, Europe, Australia, and East- ‘8m Europe & Asia. He has eamed name and fame in business community for his honesty, integrity, dedica- ‘tion, hardworking, and high degree of sense of responsibilty. AN PRAGATI LIFE £23 insurance LMTeD Mr. Abdul Awal Mintoo Director Mr, Abdul Awal Mintoo was born in @ renowned Musiim family in February 1849. He obtained his B.Sc, and M.Sc, degree from the Stats University of New York, He also obtained M.Sc. in Agricultural Economics from the University of London. Mr. Minto isa visionary man and leading business personality in the Country, He is the CEO of Multimode Group, Director of Dula Mia Cotton and Spinning Mills, Kay & Que (BD) Limited, Lal Teer Seeds Limited, North South Seeds Limited, MF. Consumer Limited, NFM Limited, NFM Energy Limited, A & A Investment Limited and Multimode Limited. He is also @ Director of Heidelberg Cement Bangladesh Lid., United Hospital Limited and Pragati Insurance Limited. He is ‘the former Chairman of National Bank Limited and Past Chairman of Bangladesh Association of Banks. He is the Chairman of Jamuna Resort Limited. He is associated with a number of Social and trade bodies. He was elected President of FBCCI, the Apex ‘Trade Body for two terms and has been recognized through numerous awards. He is the founder of Iqbal Memorial College in his village. He is associated with number of Social and educational institutions. Mr. Mintoo is very widely traveled person and he already ‘traveled most of the countries of the world. He is fond cof reading and writing and already authored few books Le. mera sor Ge, ATE PO SUT TTC TEA 8 TRAE BEART TTA Coca)PRAGATI LIFE 2S insurance unre0, Mr. Mohammed Abdul Awwal Director Mr, Mohammed A. Awwal was bom on 6th December 1945 in Noakhali. His father, late M. Khallur Rahman was 4 reputed business personality of the then Pakistan. Mr ‘Awwal Graduated from Govt. College of Commerce, Chittagong and obtained Masters Degree in Management (M.Com) in 1987 from University of Dhaka. After the sad demise of his illustrious father in early 1977, he took over ‘as the CEO of MKR Group with offices in Chittagong, Dhaka, Khulna & other places of Bangladesh. The group was established during mid 1960s & later floated as Private Limited Company with name & style as Associated ‘Traders & Mariners & Bengal Shipping Line Ltd in early 1962. Mr Awwal have diversified his group of business in various sectors other than shipping. He was a sponsor Director of several public listed organizations like; National Bank Ltd., Pragati Insurance Lid., Pragati Life Insurance Lid,, Dulamia Cotton & Spinning Mills Lid etc. He was an initial promoter of Chittagong Stock Exchange Ltd in its ‘early year. Currently; he is also a Director of Padma Oil, Co. Lid, & Eastern Lubricants Lid. Mr Awwal is involved in many professional and business bodies. throughout Bangladesh and some overseas business bodies. The business bodies are; Chittagong Chamber of Commerce & Industry, Metropolitan Chamber of Commerce & Industry, Chittagong & Dhaka, Bangladesh Shipping Agents Associa- tion, Bangladesh Master Stevedores Association and many ‘others. Nir Awwal is a former Member of the Islamic Ship ‘Owners Association based in Jeddah. He was also one of the early Member of the famous World Economic Forum-Geneva. Apart rom these, Mr Awal have promoted the establishment of BPCCI & was its former President. He ig also a Sponsor Director of Metropolitan Chamber of ‘Commerce & Industry(MCCh, Chittagong, He served as Governor, Rotary Intemational District 3280 (Whole of Bangladesh) during 1998-99. He has also sorved Rl in various capacities in RI Zone 68. He is a leading philanthropist and social worker especially in ‘education and a senior member in_ several leading Givi Society Insitutons lke Chittagong Club Ltd, Gulshan Clu Lid, Bhatiary Golf Cub, Chittagong Boat Club, Chittagong Press Club & mary more. Mr. Awwal is appointed 0s Honorary Consul of the Republic of Philipines. in ‘Chitagong since September 2010 which he is continuing, [Mr Awwal is happily married with Khaleda Adib Avwwval who is also a distinguishes community leader in her own right. She is the President of Chittagong Ladies Club & was the National Representative of Inner Wheel Bangladesh, during 2018-19. Mr Awwal is the proud father of two sons & two daughters who are all settled in their respective lives. Mrs. Nelofer Kamal Director Mrs. Nelofer Kamal, daughter of Md. Badiuzzaman ‘was born in a renowned Muslim family in 1963. She completed Graduation and Master Degree in Social Science from Chittagong University She is the wife of Mr. Mohammed Sarwar Kamal, a Fenowned businessman in Trading, Finance and other sectors, Presently, she is one of the Directors of Mc.Donald Group engaged in Steel, Seeds, Polymer Agro and other businesses. roeA Mr. Khan Mohammed Ameer Director Mr. Khan Mohammed Ameer was bom in a respectable Muslin family on 18th December, 1943 in Dhaka. He is the second son of Late Al-ha| Mohammed Eunoos Khan and Late Bibi Taleha. Mr. ‘Ameer completed his Graduation Degree from the Jagannath College, Dhaka, Bangladesh. Mr. Amoer started his business career ta joined with his father’s printing business “The Art Press’, besides business he studied in Graphic Arts, Photography and [Scanner operation from Dr. Hell Institute, Kiel, Germany in 1967. At present Mr. Khan Mohammed Amesr is the Chairman of Padma Group of Companies; and its concem Eunoos Trade Centre Ltd., Padma PolyCotion Knit Fabrics Ltd, Cheque Bureau Centre Lid., Padma Technologies Ltd,, Padma Real Estate Lid., Color ‘Trade Lid, Color Process Ltd, Padma Color Lab Lid, Amesertex Ltd, Texprint Ltd. 4N Needle Craft Ltd., Padma Color Wash Ltd. and he is also, Vics Chairman of Pragati insurance Ltd. Under his Dynamic Leadership and Efficient Guidance Padma Group is maintaining @ sub stainable growth, His resent development in industrial sector is concentrated to The Texile, Composite Knit Garments, Real Estate, Printing & Packaging, MICR ‘Cheque Printing and; also operation & management cof a wide network of color fim processing laboratories ‘throughout the country, sole representation of Fuji Photo Film Co, Ltd. of Japan, More over. Mr. Ameer also engaged himself in difforent social activities and associated with many social and philanthropic organizations. He is a widely travelled person and has traveled all over ‘the world for business and other purposes. He Is a highly experienced and resourceful person. AN PRAGATI LIFE s ASM Mohiuddin Monem Director AS M Mohluddin Monem, is the Deputy Managing Director of Abdul Monem Group, Chairman of Servic Engine Lid and the honorary consul of the Czech Republic in Bangladesh. Mr. Monem received his Bachelor's degree in Industrial Engineering from North Easter University, Boston, U.S.Ain 1982 and a Master Degree in Engineering Managerrent from the ‘same institution in 1994, where he graduated with Honors with CUM LAUDE. ‘Afier the graduation, he joined AML and since then he has revolutionized the company. With hie traneforma- ‘ional capabilties and tschnological foresight. he applied ‘modem management concepts to broaden the outreach ‘of the businesses, Under his dynamic leadership the business process at AML have gained greater efficiency, ‘which has been translated into unprecedented growth in Beverage, Ice-cream & Dairy, Food, Sugar and Construction units, He is the pioneer in sating up the first US Bangladesh joint verture BPO operation in IT ‘sector, which has been featured in Fortune magazine as ‘the only BPO Company from Bangladesh ranking within top 100 global BPO finns. He was a private sector member in the national committee for industrial development headed by the honorable Prime Minister and he Is also a Director of Pragati Life Insurance Limited and Pragall Insurance Limited. He is also a former Director of DCCl(Dhaka Chamber of Commerce and Industries). Forhis outstanding contribution in Industial development ‘of Bangladesh,Mr. Monem hes been awarded with ‘President's Award for industrial Develeopment- 2014, 2016 and 2017" Mr. Monem also received the prestigious National Export Gold Trophy for five consectuive years from the Honorable Prime Minister for the extra-orinary contribution of his company, ServicEngine Ltd, to the country’s export trade in Computer Software. Moreover, he has also been honored with CIP (Commercially Important Person) in consecutive seven years and Highest Tax Payer ‘awards five years in a row.AX PRAGATI LIFE XY surance umes Mr. Tabith M. Awal Director Mr. Tabith M. Awal elder son of Mr. Abdul Awal Mintoo and Mrs. Nasreen Fatema Awal was born in a renowned Muslim family on 20th February 1979. He completed his education from George Washington University in D.C. USA and obtained combined degree in M.Sc. in Information System Technology and BBA in Management Information System. He has joined their family business as one of the Director just immediate after his higher education. Their family business is known as Multimode Group of Companies. The Company involved in various sectors like Trading, Textiles, Spinning, Agro-industry, manufacturer of Carbon Rod, Marketing-Distributions, Automobile agency, Oil and Gas, Insurance, PE foam manufacturing, Banking etc. Mr. Tabith is a widely traveler and visited many countries in relation to development their business. Besides, he was elected as the Vice President, Bangladesh Football Federation in 2012 and he is also the Member of Executive Committee, Bangladesh CNG Filling Station and Conversion Workshop Owners Association. Mr. Tabith is currently holding the position of Deputy Chief Executive Gficer of Multimode Group. Mr. Md, Shafiur Rahman Director Mr, Md. Shafiur Rahman, son of Mr. Md. Syedur Rahman Mintoo was bom in @ renowned muslim family. He has completed Bachelor of Engineering (Givi) from Birla Institute of Technology (MESRA), India and MBA from Clark University, USA. Presently he is the Depuly Managing Director and managing operation and marketing of Pro Star Group- ‘a 100% export oriented garments: manufacturers, ‘Aiso, he is engaged in various business organizations ‘established both with foreign collaboration and local ventures. He is the Member of IEB, Kurmitola Got? lub and American Alumni Association. Besides, he is involved in various social welfare organizations like Charitable Dispensary, Orphanage, Vocational Training School, Primary Education etc. ro2 Mr. Tafsir M. Awal Director Mr. Tafalr M. Awal second son of Mr. Abdul Awal Mintoo and Mrs. Nasreen Fatema Awal. He was bom in a renowned Muslim family in August 1981 in Charlotte, North Carolina, USA. He graduated from Indiana University, Bloomington, USA in Telecom- munications. He ‘also obtained two Minors in Psychology and Marketing and also completed his Masters in Enirepreneurial Management from Euro- pean Business School in London. Mr. Tafsit is currently engaged with their family business and holding the position of Director of the Multimode Group. He is highly ambitious and devoted to his ‘work. AN PRAGATI LIFE ONY msurance uMTED on Mohammed Abdul Hamid Director Mr. Mohammed Abdul Hamid, son of Late Alhal Mohammed Khaliur Rahman and Mrs. Saleha Khatun was bom in January 1964. He completed his BS in Industrial and Management Technology from the Texas Southern University, Houston, Texas, USA in 1987 and Masters in Transportation and Management in 1991 from the same University. After that he worked in a leading commercial ‘establishment in the USA in a managerial position. Jn 1993 he joined their family business in the MKR Group. Mr. Hamid is now the Managing Director of Bentrans (Pvt) Lid., an IATA approved Logistics Company Involved in Air & Sea freight operations ‘and Warehouse facilties. Besides that he sa Direc- tor of Bengal Shipping Line Ltd., Pacific Ol Manu- facturing Ld. and CEO of MKR Aviation Services. He is also involved with some social organization ‘and a member of the Kurmitola Golf Club.XR insuRANce UWTED Mrs. Nigar Jahan Chowdhury Director Mrs. Nigar Jahan Chowdhury was bom in a renowned Muslim family in Comila. She started her career in 1974 in teaching profession and successfully completed Training on Teaching. She got married with A-haj Younus Chowdhury a Tenowned businessman from Chittagong in 1975, and left teaching profession. She traveled with her husband to London, America, Dubal, Hongkong, Mexico and other countries for business expan- sion. Presently she is Chairman of Caesar Apparels Ld., KZM Apparels Lid. and an active member of the Advisory Committee of Islamic Library and ‘engages hersaif in various social weltare organiza- tions. She is a loving mother of child. She is known as honest, amiable, amicable, affectionate, kind-hearted and compassionate person. Mrs. Meherunnessa Monem Director Mrs, Meherunnessa Monem, daughter of Shaheed ‘ANM Idrish Miah & Shaheed Afia Khatun was born ina respectable Muslim Family of Brahman Baria on ‘August 07, 1939. Her parents were brutally killed by the Pakistan Army during the War of Liberation 1971. She is martiod to Mr. Abdul Monem, Manag- Ing Director & Chairman of Abdul Monem Group of Companies. She is the proud mother of two sons ‘and three daughters. All of them have excellence in their respective fields and eamed eminence in the ‘society, as well as in the professional world. Mrs. Monem is the Director of Abdul Monem Limited and ‘AM Socurities & Financial Services Limited. She is ‘an active social worker, who enthusiastically partic pattes in the social reformation programs and activi- ties that alleviate the poor women.Mr. Md. Akbar Hossain Director Mr. Md. Akbar Hossain is a Director of Pragati Life Insurance Limited and member of the Directors Claim Committee. He is a Graduate. He is the Director of Dula Mia Cotton Spinning Mills Ltd., Kay & Que (Bangladesh) Ltd. and also a Independent Director of Pragati Insurance Ltd. He is associated with many social and educational institutions in his native village in Feni. He has keen interest in sports and social work. bye AN PRAGATI LIFE INSURANCE UNITED Syed Muhammad Jan Director Syed Muhammad Jan, is a Bangladeshi citizen born in 1985. His Father Syed M. Altaf Hussain was the founding Chairman of Pragati Life Insurance Ltd for almost 10 years. Mr. Jan has. completed his Bachelors from Clark University, Massachusetts, USA in 2008. After graduation he spent a few years working in the US. Presently he is the Director of Pragati Life Insurance and various other trade relat- ed companies in Bangladesh ) Mr. Md. Jalalul Azim jing Director & Chief Executive Officer Mr. Md. Jalalul Azim is an MBA from IBA, University of Dhaka. He also obtained B.Sc. in Agriculture Engineering and secured ‘st class 1st Position. Mr. Azim started his career in BAT (British American Tobacco) and worked in various capacities at home and abroad with Multinational Companies like ALICO, BAT & DSG in UK. He is a “Fellow of Life Management Institute, USA", Ex BCS Railway Cadre Officer Mr. Azim's insurance career begun in ALICO in 1994 and he served as Agency Director — ALICO Bangladesh from 2002 to 2006. Later he migrated to United Kingdom. Prior to taking over the helm of Pragati Life Insurance Limited, he also served as Managing Director & CEO in “Delta Life Insurance” and “Pragati Insurance Limited’. He attended various training programs at home and abroad on Insurance and Management and won many International Awards. He visited many countries of the world. Mr. Azim is Life Member of IBA Alumni Association, Member of Institute of Engineers & Army Golf Club. He is the Ex- officio Member of all Committees in Board and nominated Director of Kay and Que (BD) Limited. Cee)AN PRAGATI LIFE @™Y iwsurance ute Mr. Muhammad Jamaluddin Independent Director Mr. Muhammad Jamaluddin was born in a respectable Muslim family of Chittagong on 29 August 1950. He obtained his B. Sc. (Hons.) and M. Sc. degrees in Physics from the University of Dhaka Mr. Jamaluddin joined Petrobangla as Geophysicist in June 1975 and started his career as an oil and gas explorer in the country. He retired from Petrobangla in August 2007 as the Managing Director of BAPEX. He was also members of ‘Bangladesh Gas Act’ Preparation Committee, Steering Committee for the "Gas Sector Master Pian and Strategy for Bangladesh Project’ and Bangladesh Expert Committee for "Petroleum Potential and Resource Assessment Project 2001” during his tenure in Petrobangla. He also served as Member of Board of Directors of Bangladesh Petroleum Exploration & Production Company Ltd., (BAPEX) and Pash- chimanchal Gas Company Lid, He is also a member of Board of Directors of Center for Mass Education in Science (CMES), an NGO working in rural Bangladesh for imparting non-formal educa- tion and hands-on technical education to the disadvantaged children of the country. Since his retirement from Petrobangla, Mr. Muhammad Jamaluddin had has been working as a consultant for different gas-sector projects of Asian Development Bank (ADB), SAARC Energy Center, Islamabad, Gustavson Associates, USA (for implementation of ADB funded project), Keystone Business Support Company Ltd., and IUCN. He occasionally writes in the national dailies on critical energy sector issues of the country. He travelled to a number of countries in Europe, Asia and the USA for professional training and education and also as member of government delegation Dr. Rashed Al Mahmud Independent Director Dr. Rashed Al Mahmud Titumir, holds Ph.D. in Economics from the University of London, M.Sc in Development and Financial Economics from the University of London, Certificate in Trade Policy and Commercial Diplomacy from the Universities of Carleton and Ottawa, BSS (Hons. from the Univer- sity of Dhaka, and HSC and SSC from Jhenidah Cadet College. Dr. Titumir has worked in diverse constituencies, namely, academia, governments, think-tanks, inter- national organizations, private sector, and media. He is currently a Professor at the Department of Development Studies, University of Dhaka and also taught economics at the Department of Economics, Royal Holloway, University of London, and at the Bangladesh Open University. He has provided advisory services to the govem- ments on multilateral negotiations in platforms such as WTO, UNFCCC, UNCED, besides actively Participating in those negotiations. He has been contributing to the multilateral processes as a member of different UN committees of experts. He has led numerous projects for diverse organizations including governments, development pariners and Intemational organizations. Professor Titumir is on the boards of different inter- national and national organizations and is the founding Chairperson of the Unnayan Onneshan, a rmultdisciplinary independent think-tank and served on the Syndicate of University tumir Dr. Titumir has written articles and books on implica- tions of structural adjustment, poverty reduction strategies, world trading system, regional economic cooperation, climate change, poverty, agriculture, biodiversity, education and health. He is currently researching on ideas of state in capitalist transfor- mation, focusing on five areas, namely expansion of productive capacity, fiscal and monetary policies. social policies, natural resource management and agrarian transition. ree)AN PRAGATI LIFE ERY insurance uivreD Part of Corporate Management Jagadish Kumar Bhanja, FCS, LLB Chandra Shekhar Das, FCA Company Secretary DMD & CFO Experionce : |. Company Secretary Experience : i, Chief Group Auditor AK Khan & Company Lid. © PranRFLGroup il, Company Secretary ji, In charge Internal Aucit ‘Apex Tannery Limited Prime Islami Life Insurance Limited li Company Secretary wy, Satta insurance Company Lid Education: M.Com Accounting 2 Senior Coordinator Proshika Manoblk Unnoyon Kendra Natoral Uniiaraty, ¥. Senior Officer (S grade) Garmeen Bank Education : B.Com (Hons) M.com University of Rajshahi Md. Saifur Rahman Munir Head of Internal Audit & Compliance Experlence |. Head of ilemal Audk & Compliance rat I. Hod fll Aud & Compliance Mission Group li, Manager Operation & Accounts Malik Group iv.Head of Accounts “JM Digita Business Ltd. v. Loan Inct Habitat for Humanity Intemational viManager Audit BRAC Education: | M. Com Jegannath College University Diploma in Social Compliance BIM (Bangladesh Institute of Management) reaAd PRGAT UE Executive Album Or)AN se UE Head of Project & CEOAx rsen ure ‘Annual Report 2018AN ra re Group Insurance Department Or)a PRAGATI LIFE INSURANCE LIMITED. Internal Audit & Complinace ‘Department ‘Underwriting, Docoments & Claims DepartmentUseful Information for the Shareholders The history of raising Share Capital of Pragati Life Insurance Limited: AN PRAGATI LIFE 2% insurance united ‘One of the prime objectives of Pragati Life Insurance Limited is to provide consistently good return to its shareholders. The dividend and Capital Raising history of the Company are detailed below. From the very beginning, it may be observed that the Company has maintained a stable dividend policy in line with the sound underwriting and investment results. The Company has also adhered to a policy of timely preparation of its Accounts and holding of AGM, which may be noted from the financial calendar below. Financial Calendar: 2000 | As per MOA & AOA 3,00,000 | 3,00,00,000 3,00,00,000 2005 | Initial Public Offering 4,50,000 | 4,50,00,000 7,50,00,000 2010 | 12% Bonus Shares 90,000 90,00,000 8,40,00,000 2011 | Denomination of Face Value of Share| 84,00,000 | 8,40,00,000 8,40,00,000 2011 | 12% Bonus Shares 10,08,000 | 1,00,80,000 9,40,80,000 2012 | 5% Bonus Shares 4,70,400 47,04,000 9,87,84,000 2014 | 5% Bonus Shares 4,93,920 49,39,200 10,37,23,200 2016 | 17% Bonus Shares 17,63,294 | 1,76,32,940 12,13,56,140 2017 | 10% Bonus Shares 12,13,561 | 1,21,35,610 13,34,91,750 Financial Calendar 2016 Announcement of 2016 final results 2017 Record date 27 July, 2017 Annual report 2016 dispatched 12 September, 2017 17th Annual General Meeting 28 September, 2017 Financial Calendar 2017 Announcement of 2017 final results 2018 | Record date 27 August, 2018 Annual report 2017 dispatched 11 September, 2018 18th Annual General Meeting 27 September, 2018 Financial Calendar 2018 Announcement of 2018 final results 2019 Record date 17 July, 2019 Annual report 2018 dispatched ‘05 August, 2019 19th Annual General Meeting 25 August, 2019 CoreNn PRAGATI LIFE INSURANCE UNITED Value Added Statement. Particulars EC Gross Premium 2,559,900,371 _-2,319,557,309 Less: Re-Insurance Premium (632,528) (28,580,600) Net Premium 2,559,267,843 _-2,290,976,709 Investment & Other Income 405,583,912 392,204,316 Total Income 2,964,851,755 _2,683,181,025 Less: Claims 1,663,308379 —1,321,729,612 Less: Management Expenses (excluding Staff salaries & depreciation etc) 698,170,772 647,667,921 Value Addition 603,372,604 713,783,492 Distribution of Value Addition To Staff Cost 198,112,757 190,207,417 To Shareholder Dividend 30,339,031 25,930,800 To Government as Tax 20,000,000 18,500,000 To Depreciation 21,965,713 23,820,490 Retained in the Business 332,955,103 455,324,785 Value Added Statement Distribution of Value Addition in 2018 Distribution of Value Addition in 2017 a Staffcost 32.83% stafFCost 27% Shareholder areholder Dividend 5.00% Dividend 4% 1 Governmentas Tax 3.35% Governmentas Tax 3% Depreciation 3.64% Depreciation 3% 1 Retain the Business 55.18% lw Retain the Business 63% Contribution to the National Economy: Pragati Life Insurance Ltd. is engaged in life insurance business and its taxation is based on taxable income determined under the fourth schedule of the Income Tax Ordinance-1984. Besides, the company deducts income tax, VAT deducted at source from employees, suppliers, use of policy stamp etc. and deposit to the same to the national exchequer. In the year 2018, the Company contributed Tk. 11.02 crore to national exchequer as Tax and VAT deducted at source from employ- ees, suppliers and uses of policy stamp. CeCe)AN rg LEE A comparative statement of new business and business in force is attached separately as a part of the Report INDIVIDUAL ERODUCT, LINE (IPL) Tain ition Sum Assured | No.ofPolicies |FirstYear Premium | Sum Assured | No. of Policies pt 3,147.85 18,644 481,34 8449.99 | 69,748 2017 5,120.45 29,608 an 72 11,762.58 88,572 TAKAFUL Tokai milion Sum Assured | No.of Policies |FirstYear Premium | Sum Assured | No. of Policies a 42.991 165 86.86 330.54 3309 2017 1,089.13, 6A75 86.88 2,223.11 17,425 Micro Taka in million Sum Assured | No.ofPolicies |FirstYear Premium | Sum Assured | No. of Policies Ee 4,239.25 29,959 107.98 5,175.27 | 49,900 2017 1,229.00 15,196 91.30 3,106.51 54,557 Group Life And Health “Takai vata Assured |No, of Policies|Annual Premium |No. of Lives | Sum Assured | No. of Polices| No. of Lives a fae 123 858.79 | 478,600/191,264.44| 643 5,186,231 2017, 51,338.76 | 119 645.76 | 956,528 | 184,187.82 564 | 4,707,631 Total Individual Life Tekan ion Sum Assured | No.of Policies |FirstYear Premium | Sum Assured | No. of Policies Eta 7,430.09 43,768 676.18 13,955.80 | 122,957 2017 7438.58 51,279 649.09 17,092.20 | 160,554Financial Highlights Taka in“000" a re ee First Year Premium 676,180 649,898 | 579,371) 418,909 322,363 Renewal Premium 1,024,932) 823,895 | 799,632| 770,732 677,066 ‘Group Insurance Premium-life 858,788, 845,763 825,974 800,141 656,090 Gross Premium |2,559,900 [2.319.556 |22,04977 1,999,761 | 1,655,519 % increase aver the previous year 1036 520, 1082| 20.19 15.82 ‘Overall conservation ratio (96) 70 6 a 7 82 Investment income 383,185 | 370,785) 344,076 336,073 Investment yield (income realizedto mean LifeFund) | 7.64% | 7.99% | 857% BB2% (9.44% ‘Claim 1,321,729 | 1,228,309 | 1,170,475 943,905 Management Expenses-Actual 861,695 | 799,021 745,284 | 688,307 ‘Assets (excluding excess IPO deposit money) 5414818 | 4,736,258 | 4,124,672 | 3,792,107 ((6) increase over the previous year 1432 1483 876 801 Life fund 5.216451 | 4,761,126 | 4,260,148 | 3,886,869 ((6) increase aver the previous year 638 956 1176 9.60 8.86 Ratio of: Expenses of Managementto Premium income(%) | 35.87) 37.15 3624) 37.45 4158 ‘Claim to Premium (%6) 64.98 56.98 5571 59 37PRAGATI LIFE INSURANCE LIMITED Mr. Khalilur Rahman, Chairman EEAN PRAGATI LIFE INSURANCE UMTED Chairman's Message Dear Shareholders, Assalamu Alaikum, |, on behatf of the Members of the Board of Directors, have the pleasure to weloome you on this august occasion ofthe ‘18th Annual General Meeting of Pragati Life Insurance Limited. We are delighted at your participation inthis Meoting. ‘Your spontaneous participation is your confidence on the ‘Company. Thank you al. Annual Report-2018 of this Company has been dispatched to you for your kind perusal. | believe you will ‘get a comprehensive view from the Directors’ Report and {0 assess the financial positon of the Company. | assure you that we shall always be with you and your investment will always be secured. | presume the performance of the business operation during the year under review was quite satistactory. ‘Our strong operating segment, the Group Life & Health Insurance, achieved a record premium of Tk. 858 milion. This strong performance reflects innovation and good ‘customer service. Realizing the need to improve productivity in order to ‘maintain profitability in a competitve environment, the ‘company continued its aggressive cost management strategies. Payment to policy holder in the year 2018 was Tk. 1,663, million as against Tk. 1,321 milion in the year 2017 being ‘an increase of 26%. Claims were increased due 10 payment against Maturity, Survival Benefit, Death, and Hospital Ciaims, ‘The major investments include Goverment Securities, Bangladesh Goverment Treasury Bond (BGTB), Fixed Deposit Receipt (FDR) and Listed Equity Securties. ‘The Life Funds during 2018 was Tk. 5.548 millon ‘compared fo Tk, 5,216 million in 2017 showing a growth of 6%. ‘The corporate tax change for the campany is 37.50%. We made a tax provision of Tk. 20 milion in 2018. | would lke to express my profound gratitude to all our valued Shareholders, Policyholders, Regulatory Bodies ‘and well-wishers of the Company who extended their cooperation, suggestion & guidance in running the business successfully, | would also like to record my ‘sincere thanks to the employees of the Company for their dedicated services for growth of the Company. Chairman at ere ereHE TIO cadE aAtoTeTORE ow EE TOT RTE TRRRPTOVA aS ME RATA PRCT EN AR ee ere eR RT IME wR | Cee EE TE SS SITE TORRE STATOR SEAT RR CHM aT cari Re efocerr-gosy aR Reem BET SINT Ret ee ner eae) IR ate eta after afr oR CRNA re A TRANS STR TAS MT A CITT afr ere so ru IC eR tT Pree Te eal oe erat Get atone tod eee eR IAC AARC ‘wanton Reb ratoere rece | tat Fer Reaws ere arent wer reat fig ener Se cca Ty Br TORT TTT AE NA BEIT ‘eer eet werOC AT bee FAI Bret | ak gang Bate aT BT aR orate foe eticarthare after Serta fe eo RE ET TaN atte een eneMat on Ramet ar eT FAR sod OF MO TERT RT EE MANET fer 3,480 ‘Afar brat a 3054 MONE 3,033 RA Brae BHATT 6% AE eR Se AAS UNM tae FA MRE STE BEL CAE TOTS A, site aPeerte Ae, TRAIT AA am or TET Reiter ‘Rona Woo weg wen HARTA, eet sea Gist Te, oa Raa re aT APNG hate | ody maT ater Te een FAs Brg CHS WH, T2024 HIT ant foe ore ORT 6% CAAT rem war erste Dir er 8.0% | wIeEt go Fifer Br Sree AME EAE Rody >| at iS 0 eMny Foe wt shor HES CtnRTIST, 2A ates, Rent TUPRE at SENT Wet TT TT RTE REPT BT ET CAAT, BONER 8 OTT TIT rT REET | AT BAS 6 eer HT CAMA eT TT ele 9 Eaton aE 9 OTT HAT STOTT TH watAN PRAGAT LIFE ER surance: syreR aie arta HET r) N18" Amucl General Meeting Pragati Life Insurance Limited 3) =Directors’ ReportDirectors’ Report Respected Shareholders, ‘Assalamu Alaikum, The Board of Directors of Pragat Life Insurance Limited welcome, you allto the 19th Annual General Meeting of the Company. itis indeed our pleasure to place before you the Directors’ Report and audited financial statements for the year ended 31st Decem- bber,2018 together with the Report ofthe Auditors. ‘A Review of Bangladesh Economy in 2018 Bangladesh grew at an impressive rate of 7.86% in FY 2017-18 signifying strong macroeconomic fundamentals. Growth in service sector increased in FY 2017-18 registering 7.28% compared to 6.25% in FY 2017-18. Industral sector growth slightly lowered to 1.24% In FY 2017-18 from 639% in FY. 2017-18, There were promising signs as private sector invest- ‘ments share in GDP increased to 23.26% in FY2017-18 from 23.10% in FY 2016-17. The Government maintained increased {growth in public investment showing higher level of commit- ‘ment in developing the economy. Insurance Industry in Bangladesh Considering the current calm political environment and recent, development activities by the government we are expecting higher economic growth in the coming years. Life Insurance. Industry is an integral part and playing important role in the, ‘economic growth. Apart from undertaking life ris, Life Insurance, creates savings, savings create investment, investment creates Capital and capital enhances economic growth. With 32 life Insurance Companies in the country stil lfe insurance penetra- tion rate is around 0.5 percent, which indicates the poor level of development of Insurance sector in the country. The future ‘growth of this sector warrants all out government support Business performance of the Company With much pleasure we would like to inform the honorable Shareholders that in spite of stiff comptetion among different insurers, the year 2018 was another successful year of the ‘company. It was possible because ofthe strength of our market- ing forces, soundness of our organizational structure and our, Constant endeavor to review our business strategies wherever, recessaty keeping in view of the quality of business, improved customer services and less management expenses than the limits prescribed by law. Gross Premium: The gross premium income during 2018 stood at Tk 2559.90 milion from Tk. 2,319.56 milion in 2017 registering a growth of 10.36%. Life Fund: The life fund stood at Tk 5,549.41 milion as of December 31, 2018 whereas it was Tk. 5.21645 million as at December 31,2017 i, an increase by 6.38%, Investment Income: The total investment income made by Pragati Life Insurance Limited crossed to Tk. 383.18 milion in 2018 from Tk. 370.78 milion in 2016 registering an increase of 3.34%, Total Assets: Total assets of the Company stood at Tk 5,762.48 milion as of December 31,2018 against Tk 5,416.94 millions of December 31,2016 registering an increase of 6 389%. AN PRAGATI LIFE 3B insurance usareD sfrorrenetta afocrr ans craCTS “Spe SITET cif me Roger RST ioIroreAt @ afer syeR ate ane TENT eM TER | oN ITT oT o> fore, gone RC rs aE aa OH PA eeCREE TE fee rere TH OAT FICO Ter OAT wT FT sre a aa opty 8d RE TOTOTCN EET ee WE THE Ge serena, ai abe wafer Se eH MOT) Sosy aE eH 3098 RT TP OT TS TCE 8.30 TET Ce 5.27 | sod WE aE 3038 ERECT GA PE HOT OTR 8.99 MER OU 3.88 1 BER TE fa TT CR TARPS cored RFfctoT fence aosq3y a REET 30.30 MET CAC Ca UTHER. MaTeT |r AE BEA TET Te eT Cora RM BUS AGN LEN ANT AE RTT | arenes Bat Pe rr come Sa astro ce ar aa Aree Ba Sr aiaiibladstabtenaiceds icbuick tassdacauhentai wx aes Sem arf er rs er, I ee BERN oT eet ty we | She a es UG eae Aa eT I a, 7 fae Fay, RC oh ace EI STE fT ER Se eRe | omen a ait RTE CoN RITA era EBC Bes Sit coca wa one fete, we) Sam A Pees ETE emt rere wae | oR roe ee Bae eA ae TCE Bee rear ore are SEE rahe crmtacerers yf wi aca wc ae ICE ie Bet bon ae Mem eECTETE ATE OMY AAS AHL TMA SoS AULT TER ay AUS RCE ANTE AT A, rer, apes anes wth, ToT TENT we BAS ateRTRT eer RT GE TUTE AT Ae TUTTE xen am San At RTI ACS EATS ANA OH SH A A cate Refer: corn 2034 mH 8.03.06 Fram Tre RCE ost FE Seeh.b0 FRI Bra aS TENT SIN LATE, MTT aiff a 30:08% | ie WIS: 2039 7TH @,298.80 eT Brats RUBCe 203% ACT 08.85 RE Br eA TRE TS HR CTT, CONTR BH oLer% | ‘omen Boe fife es core 2039 2 wre.s¥ ier RATS Aovy ATT oby.o8 {RE Dre ROTA Sar we ST “ae, CTT AER RE A | IB am cormiata 2099 AIF @,8 6.8 filtres Stee faraicw 2030 2 0,968.8 RE Er a TI A OTE, SOT eR oer roodAN PRAGATI LIFE 38 insurance unre Business Review ras its First Year Premium Individual Product Line (IPL) 481.34 4772 2.03 Pragati Bima Division 90.46 75.84 19.27 Islami Jiban Bima (Takaful) 86.86 86.88 (0.02) Islami Deposit Pension Scheme 17.52 15.46 13.30 Sub Total 676.18 649.90 4.04 Renewal Premium Individual Product Line (IPL) 648.02 484.61 3371 Pragati Bima Division 184.68 176.20 aat Islami Jiban Bima (Takaful) 143.47 124.51 25.29 Islami Deposit Pension Scheme 48.76 48.57 0.39 Sub Total 1024.93, 823.89 24.40 Group Insurance Premium, 858.79 845.76 154 Gross Premium 2559.90 7319.55 10.36 Reinsurance Premium 0.63 28.58 (97.79) Net Premium 2559.27 2290.97 1.71 Investment and other income 405.58 392.20 3aL Total income 2964.85 2683.18 10.49 Life Fund 3549.41 5216.45 6.38 Analysis of Utilization of Total Income in 2018 Utilization of Total Income = Claim by Death 0.65% = Survival Benefit 8.239% = Group Claims 23.00% © Other Claims 24.21% = Commission & Allowance 16.21% ‘= Administration & Other Expenses 16.35% © Excess of Income over outgo added to Life Fund 11.25% CoordYear-wise Number of New Business/Lives Covered AN PRAGATI LIFE ‘Year wise break-up of new business / lives covered for last five years is tabulated below: No.of New Gusiness& Lives 2014 24,260 5,924 3,961 1,669 | 1,432,276 |__1,473,090 2015, 25,704 6547 1,468 aises | 1834961 | 1,880,545 2016 27a71 7376 16,492 1443 | 2,089,505 | 2,142,287 2017 29,608 6475 13,513, 1,683 956,528 | __ 1,007,807 2018 27203 5388 13503, 2674 478,600 527,368 Gross Premium ont Pragati Life Insurance Limited achieved Gross Premium of Tk. 255990 millon as of December 31, 2018 as against Tk. 231955 milion as of December 31, 2017 registering an increase of 10369, The chronological statement of Gross Premium for last five years s tabulated below Taka nition 2014 1,656 16% 2015, 1,990 20% 2016 2,205 11% 2017 2,319 5% 2018 2,560 10% Premium income by Product Line/Project Inthe year 2018, the proportionate income of all product lines/projects is shown below: Individual Product Line (Pu) | 1,229.35 | 44.12 Pragati Bima & Pragati] 275.14| 10.75 Islami Bima Division (PB & IBD) Group Life & Health| 958.79| 33.54 Insurance (GL & H) Islami Jibon Bima (Takaful) | 230.33 9.00 Islami Deposit Pension] 66.29 2.59 ‘Scheme (IDPS) Total 2,559.90| 100 re te Rogen RS 203 9 2,098.00 far Drea FORE 09h ER Sec. bo FATT Tre ca ar oe TR, WET 30.20% | fore Ae ace cae er eT Ba Fe ea are 24 2015 201620172018 rom are eR sep RTE ST 0b ar we, me ore Eero EN IETS fT ‘ares feet ra oer Fey eer wat IT: Project wise Proportionate Income lpenrod anton ia aad) INSURANCE UMITEDPRAGATI LIFE 2 ivsurance Mire Investment Income The total investment income earned by the Company rose to Tk. 398.02 million in 2018 from Tk. 383.18 million in 2017, registering an increase of 387% ‘A comparative statement of Investment Income for last five years is given below: [ear [investment income] crown | zoe 38607 25% 2ois sos | 238% 2ote 37073 o% 2o17 sess | 330% zoe sen | 3.87% * Lew eres ie on FOR ithe cause of decreas hnvestment neon rth Total Income Pragati Life Insurance Limited eamed Tk. 2,964.85 million as at December 31, 2018 against Tk. 2,683.18 million as December 31,2017 registering an increase of 10.50%, ‘The year-wise statement of total income for last five years is tabulated below: retin mon [Year | Totalincome [Growth | 2014 1,966.15 18% 2015 2,328.27, 18.42% 2016 2553.31 10% 2017 2,688.18 5% 2018 2,964.85: 10.50% Claims Payment to policy holder in the form of Maturity, Survival Benefit, Death, and Accidental Claims in the year 2018 was Tk. 1,663.31 milion against Tk. 1321.73 million in 2017 being an increase of 25.84%6, Since the inception of the Company, the issued life insurance policies have been increasing day by day. At the same time, Payment to Policy- holder at Maturity, Survival Benefit, Death, and Accidental Claims is being met together with. As a result the claim scenarios successively increased, Pragat Life Insurance Ltd. is always committed to settle the claims promptly and accurately. {A statistics for last five years‘claim settlement is presented below: “aka in milion a on ae iss = an ee S =a saat S 2 2017 1,321.73 8% 300 2018 1663.31 25.84% ® 20142015 2016201701 ‘Rea sor ret R03 me obk.o8 fle Brat Rca Sn ae sate, HE 2038 7 fet ara. FET Tre, ORT FR TH Or | fos so cae fae os ie es ee ca Te ice emer om Investment income 400; 300} 200} 100} ol 04 2015-2016 «0172018 = ae Bs a a a TORT A OE RA WH SER ater af eer Rega PRICES 303 AT Rutre, db Fam Brae AIC 2030 AE 08. fH a I Ee HE 30.00% ‘ors ne ace nts tore era fa abe Fy ere aT RTS Total income 2500 1500 1000 500 201420152016 20172018 wit Bteay Rosy A oA area Tra Beraits we, arte afrratrs me, ryratre me, ex oars me mE ONE ‘sods ofaaet fier >,uw0.0) fifi Bret eT 2099 AI yoRd.9e fafam Brin ern 208% coh aR ace cs ke FR ore wr eR ERNST ee oT FR Te COTS ex aisiteie afeeratrs a enna | care ashe ce RITES ree ae fen Rt Ff cre BOT ee TT orm Boers aa, arse aawatrs wa, yEeerE Ma, ae wptoaretits m8 aq aBorce ofacere wa eee | re wrrefere, HA eoia fa ceriferers Seq avis ate Bye fafae eT rah CATER, BFE aa AETSE FM FATE | wes fate fare aw sean Gat nt face afer fame aTOCT Fig ae a ee CoordLife Fund Company's excess of income over outgo added to the Life Fund during the year 2018 is Tk. 33296 million. Conse- quently total Life Fund stood at Tk. 5,549.41. million which {5 6.38% more than 2017. The table of enhancement of Life Fund for last five years is appended below [year [te Fun aut 3887 2ois 4260 zai A764 2017 5216 28 5.509 Total Asset The Company has sound asset management policy which assures safeguarding of assets against unauthorized use €or disposition. The Company also follows proper records and policy regarding capital expenditures. Out of total asset, the Company has Vehicles which incur depreciation each year. The Book Value of those Fixed Assets is declined. The chronological statement of Assets forthe last five years istabulated below PRAGATI LIFE 2XY insurance united ates rer SHAT CHE MER RODy CT MRE TE eT 998. Fre Brat on EHR RCE dE RG TSE MASA erm 280,83 ffm Bear a 203.4 Heme HA eK CA | fore oe ecar ee rc eaT ca ST cy oP aT TE El Life Fund 5000 4000 3000 2000 1000 24-2015 2016 2017-2018 a a ae mo rears afew coRte Com SETAE THE 3 PT ce | Ca eT ene Prost fer CR CREA eT Tone TN ART oT x cr mee a ee | Coron Cx ML Wo WOT res Rene ee es Ten OT PE TE, oA TA enter ge STH a es METRE APT | ‘ote a ere te tore rr fae Fg ea aT “akan milion eco Ten [Year [rota assets |" Growin | soo 2014 3,798.22 8% 4000 2015 4,126.79 2% ae 2016 4,738.38 15% 100 2017 5,416.93 14% iz 24 2015 2016 2072018 2018 5,762.48 | 6.38% Management Expenses ween ‘The Management expenses as a percentage to total premi- ‘um income has reduced Inthe year 2018 the management expenses of the Company was lower by Tk. 29.68 lakh than the allowable limit prescribed by Law. Management expenses were within the allowable limit for consecutive three years Risk Management Risks the element of uncertainty or possibilty of loss. Risk is a core part of Insurance Business. Sound risk manage- ‘ment practicesare the fundamental to long term success of Insurance Industry. By strengthening risk management capabilities and executing optimal isk controls, Pragati Life Insurance Limited aims to ensure the soundness and appropriateness of its operations and to protect the interests of stakeholders. In this way, we shall improve our reputation as a trustworthy and credible life insurance ‘company which will fulfil our responsibilty to society Tare Tem Te AT NTE ERT TFET ATR! 03r Hee REMY O MICe wee FTE CHE ATMA Bh Sear ar rR oe or OT REE TATA TT LTTE HEAT fen Faw fe ae roman ate aren de tat coMT aah oP wet oe ae reer satin Bay ems Ase TET ls Fg reves et een ox Firat oT, rer Mora IER « TUK Foe Tar ae eee sree TT es MTA ARTIS aT TAT | searefepam, amr e eran aHICH Sey Rt efbdrr for ST a oe eae Te a ae eh Tr har TS AA reo)AN PRAGATI LIFE OXY surance umTeD, Dividend to Shareholders and Bonus to Policyholders ‘As per recommendation of the Actuary, the Board of Directors has recommended a cash dividend at the rate of 15 (fifteen) percent and stock dividend at the rate of 15 (fifteen) percent for each share of. 10 each tothe Shareholders of the Compa ny forthe year 2018.n order to recommend the Dividend, the Board of irectorshas taken into consideration of the results of the Actuarial Valuation of the company’s liabilities under policies isued till 31 December, 2018. While recommending total dividend atthe rate of 30 (thirty) percent the Board has also approved the Policy Bonus as recommended by the ‘Actuary for valued policyholders on the basis of Actuarial Valuation Report. Staff Welfare Staff Welfare has always been uppermostin the Company. The facilites been introduced are contributory Provident Fund, Gratuity Scheme, Group Life & Health Insurance and incentive Bonus forthe workforce. Corporate Social Responsibility ‘The Company always acknowledges its responsibilities for the well being of the society and takes part in such activities whenever it becomes necessary. We pursue a strong policy in respect of Corporate Social Responsibility. We get our business sustenance from the society in which we live and operate. In reciprocation, we want to do something back to the society. Our corporate social responsibilty includes our customer, employees shareholders, business associates anda society asa whole, (Out Look for 2019 To meet the growing competition in the market, the manage ‘ment will initiate the following measures to achieve the target, for the year 2018: 1. Expansion of existing Distribution Network throughout the Country; 2. Commercalization of successfully piloted alternative distribution channel ; 3.Emphasis on Customer Services; 4.Take appropriate initiatives to maintain management expenses within the allowable limit; 5.Enhance the yield on our investment; 6. Manage our business prudently; 7.Growth & Profitability of core business. Board of Directors’ and Committee Meetings and Attendance During the yer, the Board of Directors met four bmes and the ‘Audit Commitee met for times. The atiendance record of the Directors is shown in this report (Attached page no. 42). The Directors who could nt attend the meeting were granted leave of absence. As per Insurance regulations, the Company only pays a eating feet its Directors for attending the meeting RTT SRT MTT A AM CARSON CTT erp art seth ore ote or R03 et wT eSB 50 rar ARON ERT FONTS $e (9TH) Met BLE WT See 3 (ATR) MRE Tee RATES em HA “wrATR! gone Aree od foores vfs REE MA wie Bot creda nero ae STREET TET ae Cer ‘se, se Fic Ta Fe RTH ae OTT Goi co Meet Meret erm aUeN EL oom Er carers racers wereene fefece certs rate Sat OTE BT ARE TE AA TAT OT etators afer ‘ethtione Se ree coro eq THT were FE eT commie wie8) © wiion wut cermin afeoret othr cofeus ee, RFID ond Gere Tas Aa ae BABS CAPT ema ee eS rater enwet are aE MTEL CoM Arata eH orm Te AT safer ae com Ae ee ARTERTS BT Te aR) Ae ea, ee aT AE eT ER | ERT TE Re rer oT a a CRE TOTTI Se OTE AT | ercn sree ICR wT Fa Bae UR) cree, Kee, omacers, ete er oe AME HAT ANTE CoP aire wrenm TSS | 090 ae er so3e a1 efcatiete merce BAB ere mn TEEN EF ‘Frnfitirs arent art ces 9. OM A FR Te RE 2 Rear Tarn De Feee Frees eee fore ATE OFA BH GF As 8 TRA TE TRS FAT ROT TE BT TE TT TT . fee 9 8, Rowe 96 Fen off: se er ey 6 mEMREETT| tora efi a HE oni ee OTT oe A oe SR AR RT ST afte ae) 8 ferry aftorrenice BoE Cres recat TR CR Tm 84) 1 ET Boe few or OOH cepa acer et eo Fa RUT cer oe BoE “eorre wa opr eftorera HEI fe em AT CoordElection of Sponsor Directors tn accordance with the Company’ Articles of Association, the under noted Sponsor Directors shall retire from the office by rotation. Being eligible (execept Mr. Khan Mohd. Ameer) they offered themselves for re-election 1.MehallurRahman 2.Syed M.Altaf Hussain 3.MASM.Mohiuddin Monem 4.MicKhan Mohd, Ameer Election of Public Shareholders Directors In accordance with the Company's Articles of Association following 2 (two) Directors from Public Subscribers shal retire Inthe 19th Annual General Meeting. 1.Me.Mohammed Abdul Awwal 2.Mrs. Meherunnessa Monem Renewal of Managing Directors tenure ‘According to Companies Act 1994 Section 110 Managing Director Mr. Ma Jalaul Azim was proposed to renew his tenure forthe next S years. Appointment of Auditors ‘As per requirements of law the current Statutory Auditors of the Company Hoda Vasi Chowdhury & Co."Chartered Accoun- tants Firm will rete in 19th Annual General Meeting, They have expressed their willingness to be re-appointed for the year 2019, ‘Appointment of Corporate Governance Auditors AS per requirements of law, the current CG Auditors of the CCompany’Mabs &J Partners*Chartered Accountants Firm will retire in 19th Annual General Meeting. They have expressed their willingness to be re-appointed for the year 2019 Corporate Governance Five separate Sub-Committees for Audit Claim, Administrative, Finance and Health Insurance have been formed. The Commit- tees look into the Compliance of various procedures and regulations related to Corporate Governance and review various guidelines, procedures and safeguards to minimize the incidents of various rss faced by the Company inthe business environment A separate report on Corporate Governance is provided a partofthe Annual Report. AN PRAGATI LIFE @N% insurance united ‘somrer torre Fete cron mete Fee weft Rees Sonor afore Se ae ATER | TEE at ATH RT TH AT (HATE ware cep a TSS) | 3. wee wg eT 3. DF, ETE COTE 6 ARERR 8B as OTTEH eT rere cruacapte afte Reto ort efor Ferm cet PATTER) Be Tee Crea ARDTTONE yp afer AES MOTT WR RS CE swear ofivencer or ay crema ore Sas a HT 330 TERRE TEETH fore wore ‘we a RSE @ eS TF BAT RTT TE Fl ATE ‘Rites Ra attere aerate PTs, Corts ‘Observe strict confidentiality ofthe information acquired in the course of discharge of duties of office and not use the same for any personal purpose or advantage. Use Company property only for official purpose and for no personal gain. The assets of the company shall not be misused but should be employed for the purpose of conducting the business for which they are duly authorized. TIICSC Include tangible assets such as equipment and machinery, systems, facilities, ‘materials and resources as well as intangible assets such as property information, relationships with customers and suppliers, ee. ‘Not accept any personal gratification from suppliers! Service provider/ business partners, etc (Note: personal gratification will not include normal entertainment and gifts of no Significant value) acceptance of gifts. Donations, hospitality and! of entertainment beyond the customary level from existing or potential suppliers, Customers or other third parties which have business dealings with the company. Notwithstanding that such or other instances of conflict of interest exist, adequate and full disclosure by the interested ‘employees should be made to the Chairman of the PLIL. .They will ensure that a full disclosure of any interest, which the employee or the employee's immediate family, which would include parents, spouse and children. May have in a company or firm. Which is a supplier, customer, distribution of is made to the Chairman of the PUL 10, Deal fairly with customers, supplier's employees and business partners. IL, Respect safety and health of all employees and provide working conditions, which are safe and healthy. Encourage employees to acquire skills, knowledge and training to expand! enhance their professional and oreo)AN PRAGATI LIFE EX surance unite specialized knowledge 3 Provide equal opportunities to all employees and aspirants for employment in the Company irrespective of gender, caste, religion, race or clement being the sole differentiating factor. 7. ‘Conduct business operations in compliance with competition laws and principles of fair market competition 35. Maintain high ethical and professional standards in all dealings 16. Not to conduct own selves in a manner as may bring dispute to office or tarnish the reputation and image of the company. 7. Not take up activities competing with the business of the company. 18. Make proper record ofall financial transactions and not create undisclosed or unrecorded account/fund or asset. 18. Make all efforts to establish good relationships with all stakeholders of the company with whom they interface while carrying out their duties for the company and must try to make positive contributions to the communications in which they perform such duties, 20. Whole time Directors and Senior Management shall not without the prior approval of the Chairman accept employment or a position of responsibility (such as @ consultant or a director) with any other company nor provide ‘freelance’ service to anyone 2 Insider trading is prohibited by Law as well as by the company policy:= Directors and Senior Management and his or her immediate family shall not derive any benefit or assist others to derive any benefit from the access to and possession of information about the Company, which is ‘not in the public domain and thus constitute insider information, Insider Trading invokes severe penalties under the Regulations issued in Bangladesh under the Securities and Exchange Commission Act 1993 "Price Sensitive information’ means any such information which, if published, may influence market price of we concerned security and includes the following information, namely- Report in respect of the financial condition of the company or any basic information in respect thereof; Information relating to dividend; Decision for giving right share to security-holders, issuing bonus or giving similar other privilege; Decision of the company for purchasing or selling any immovable property; Information relating to BMRE or establishment of new unit ofthe company; basic change in the field of the company’s activities (e.g. produced goods, preparation and implementation of plan or policy decision in respect thereof; ete); © _Any other information determined by the Commission by notification in the offical Gazette. eeeee @ 2, Report any violation of this Code of Conduct to the Chairman of the PLL CoroA\ PRAGAT! LIFE 2X8 insurance unre REPORT ON CORPORATE GOVERNANCE Corporate Governance clearly defines the rights and responsibilities of the Board of Directors, Management, Share- holders and other Stakeholders. The Board supports Management, Internal and External Auditors and other related Parties including the Shareholders. A good corporate reputation is the most valuable and competitive asset of a compa nny. Pragati Life Insurance Limited believes in the continued improvement of corporate governance. The Board of Direc- tors and the Management Team of Pragati Life Insurance Limited is committed to maintaining effective Corporate Governance through a culture of accountability and transparency. Board of Directors ‘The Board of Directors comprises of 17 (Seventeen) members including two Independent Directors. All Directors have sound knowledge in the area of Ife Insurance, managerial expertise and sound academic and professional knowledge. ‘They are well conversant with corporate governance. Appointment of Board Members ‘The Directors of the Board are appointed by the Shareholders in the Annual General Meeting who are accountable to the Shareholders, Appointment of Independent Directors ‘The Board of Directors appointed two Independent Directors. Shareholders approved appointment of Independent Directors in its 18th Annual General Meeting held on September 27, 2018. In selecting Independent Directors, the ‘Company always looks for individuals who possess experience; strong inter personal skill and independence. Indepen- dent Directors are considered by the Board to be independent of the Company and free of any business or other relationship that could interfere with the exercise of their independent judgment. The Board believes that their experi- ence and knowledge assist in providing both effective and constructive contribution to the Board. ‘The Role of the Chairman and Managing Director Position of the Chairman and Managing Director (CEO) are clearly identified, The Chairman is responsible for leading the Board and its effectiveness. The Managing Director serves as the Chief Executive of the Company. Audit Committee ‘The Audit Committee was established as a sub-committee of the Board and has jurisdiction over Pragati Life Insurance Limited. The audit committee is comprised of 7 (Seven) members of the Board including Independent Director. Independent Director is acting as the Chairperson of the Audit Committee. The Audit Committee assists the Board. Nomination and Remuneration Committee (NRC) ‘The Nomination and Remuneration Committee (NRC) was also established as a sub-committee of the Board and has control over Pragati Life Insurance Limited. The NRC is comprised of 4 (Four) member of the Board including Indepen- dont Director, Independent Director is acting as the Chairperson of the Nomination and Remuneration Committee. The NRC assists the Board. Company Secretary ‘Mr. Jagadish Kumar Bhanja, FCS has been appointed as the Company Secretary of the Company. He provides legal ‘matters to the Board. Among other functions, the Company Secretary: + Bridges between the Board of Directors and Shareholders on strategic and statutory decision, + Acts as a quality assurance agent in al information towards the Shareholders and Board + Is responsible for ensuring that the appropriate Board procedures are followed. + Acts as the ‘Disclosure Officer’ of the Company and monitors the compliance of the Acts, rules, regulations, notifications, guidelines, orders/directives etc. issued by the Bangladesh Securities and Exchange ‘Commission, Stock Exchange (s) applicable to the conduct of the business activities of the Company. + The Company Secretary keeps the records of the Company's compliance / noncompliance status of the conaitions imposed by BSEC which has been shown in the compliance report on BSEC Notification. reedAN PRAGATI LIFE © insurance unired Chief Financial Officer ‘Mr. Chandra Shekhar Das, FCA has been appointed as the Chief Financial Officer of the Company. He looks after the overall financial affairs of the Company. Among other functions, the Chief Financial Officer: + Prepares Quarterly, Half yearly and Yearly financial statements, + Financial reporting procedures inline with the requirement of Bangladesh Accounting Standards. * Reports financial position of the Company in its Board meeting. Head of Internal Auditor & Compliance Mr. Saifur Rahman Munir has been appointed as the Head of Internal Auditor & Compliance of the Company. He looks after the overall internal audit of the Company. Among other functions, the Intemal Audit & Compliance: + To prepare annual audit plan for adequacy of scope and comprehensive coverage of these activities of the Company. + To prepare audit programs, resources requirements for the year and assessed the performance of the internal audit functions + The intemal audit reports, audit recommendations and management responses. Financial Reporting and Transparency Financial Statements have been prepared in line with the International Accounting Standards, Bangladesh Accounting ‘Standards and other legislations as applicable in Bangladesh. Timely publication of quarterly, half yearly and annual financial statements with comprehensive details beyond the statutory requirement. Compliance with Applicable Rules and Regulations The Company's business activities are guided and supervised by local laws and regulations: +The Companies Act 1994. + Insurance Act-2010. + The Bangladesh Securities and Exchange Commission + Listing rules of Dhaka and Chittagong Stock Exchange Limited. + Bangladesh Accounting Standards Purchase Committee ‘A purchase committee is functioning with a group of executives, headed by a senior most executive to examine the purchase proposal of goods. Among others, the followings are the main responsibilities of the Committee: + To evaluate the received proposal and find out the effectiveness of each proposal * To prepare a report on the basis of evaluation ofthe purchase proposal with recommendation and sent 10 concered departments for obtaining approval from the competent authority. + To supervise the entire activities against procurement Statutory Audit Statutory Audit of the Company is governed by the Companies Act 1994. The Company Act provides guidelines for the appointment, scope of work and retirement of auditors, Shareholders appoint auditors and fix their remuneration in the Annual General Meeting. Internal Audit Internal Audit support the Company to achieve its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of its risk management and control. Internal Audit activity is governed by the Internal ‘Team, which is approved by the Board, Internal Control ‘The Company has an Internal Audit department consisting of five members and headed by the Head of Internal Auditor. The Internal control system is maintained and reviewed by an internal audit function that reports to Management and the Audit Committee. Internal Control mechanism is built by the Company's systems and procedures to reduce the risk of error and fraud. It roe)AN PRAGATI LIFE 4X surance unre. may be able to reduce the risk that financial statements contains. The Board of Directors ensures sound internal control to provide reasonable assurance regarding the achievement of the Company objectives in the areas of: + Effectiveness and efficiency of operations. + Reliabilty of financial reporting * Compliance with laws and regulations. Code of Conduct Pragati Life Insurance Limited has adopted Codes of Conduct for securing good business ethics and conduct in all aspects of the Company's activiies. The Code of Conduct is properly communicated to and with all employees and other activities, and is strictly required to abide by it. Management Committee The day-to-day Management of the Company is entrusted with the Managing Director and the Management Commit- tee. The Management Committee serves the interest of the Company and achieves sustainable growth. The members of the Management Committee are jointly accountable for the entire management of the Company and decide on the basic issues of business policy and corporate strategies. Restrictions on dealing in the Company's share by insiders ‘The Company has established policy relating to trading shares by Directors, Employees and other insiders. The securi- ties laws also impose restrictions on similar sort of transaction. Group Term Life Insurance Policy ‘The Board of Directors has approved for Group Term Life Insurance Policy for employees of Pragati Life Insurance Limited Going Concern ‘The Company has adequate resources to continue operational existence for the future. For this reason, the Company continues to adopt the going concem basis in preparing the financial statements, Communication with Shareholders: Accountable to: t Board of Directors Accountable to: The Company encourages communication with shareholders throughout the year and welcomes their participation at shareholders meeting. The Company is transparent with the stakeholders, including the owners of the Company. Four times each year, Pragati Life Insurance Limited reports to its shareholders regarding its business, financial position and earnings. These include: + Quarterly and Annual financial statements + Annual General Meeting + Price-Sensitive Disclosure and other disclosure to the BSEC and Stock Exchanges {In additional information, the Company is under a legal and regulatory requirement to publish via the newspaper. Pragati Life Insurance Limited believes in transparency and accountabilty tothe society as a whole through establish- ment of an efficient and effective Corporate Governance procedure roe\ PRAGATI LIFE 433 insurance umired AUDIT COMMITTEE REPORT Background In accordance to the best practices of Corporate Governance, the Board of Directors of Pragati Life Insurance Limited established an Audit Committee on April 24, 2006 in its 19th Board Meeting as per Circulation of BSEC Vide order no ‘SECICMRRCD/2006-158/ Admin/02-06 dated 9 January, 2006 and Status of compliance with the conditions imposed by the Commissions Notification No. SEC/CMRRCD/2006-158/ 129/Admin/43 dated 03 July, 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969: The Audit Committee supports the Board in fulfilling its responsibilities more efficiently. ‘Composition of the Audit Committee ‘The Audit Committee is now composed of the following members: Muhammad Jamaluddin Independent Director Chairperson of Audit Committee Kalilur Rahman Director Member Syed M. Altaf Hussain Director Member Mohammed Abdul Avwal Director Member ASM. Mohiuddin Monem Director Member Tabith M. Awal Director Member ‘Syed Muhammad Jan Director Member Jagadish Kumar Bhanja, FCS Company Secretary Secretary ‘The Chief Financial Oficer attends the meeting by invitation only as and when necessary. The Company Secretary functions as the Secretary of the Audit Committee, Meeting During the year ended 31 December, 2018, the Audit Committee held 4 (Four) meetings. Proceedings of the Audit Committee Meetings were reported regularly to the Board of Directors. The details of attendance of the Audit Commit- tee Members have been shown below: ‘Audit committee meeting and attendance during the year ended 31 December, 2018, Name of Members No. of Meeting Held No. of Meeting attended Muhammad Jamaluddin 4 4 Khalilur Rahman 4 2 Syed M. Altaf Hussain 4 3 ‘Mohammed Abdul Awwal 4 4 AS.M. Mohiuddin Monem 4 0 Tabith M. Awal 4 3 ‘Syed Muhammad Jan 4 2 The Members who could not attend the meetings were granted leave of absence. Role of the Audit Committee The Audit Committee assisted the Board of Directors in fulfiling its responsibilies regarding the Company's account- ing and financial reporting process by monitoring the following: +The integrity of the Company's financial statements + The independence, qualifications and performance quality of its external auditors + The Company's system of internal controls +The performance of the Companys internal audit process + The Companys compliance with laws, regulations and codes of conduct with a view to safeguard the interest ofall stakeholders of the Company ree)AN PRAGATI LIFE XS surance umireo ‘Summary of Activities The Audit Committee carried out the following activities during the financial year ended December 31, 2018 Regulatory Compliance ‘The Committee examined whether the Company's procedures are in place to ensure compliance with + The laws and regulations framed by the regulatory Authorities (IDRA, BSEC, DSE, CSE and RUSC) Internal regulations approved by the Board of Directors. + The Company is duly following the rules and regulation of the Regulatory bodies and also strictly follows areas with conflict of interest. The Committee was satisfied that the Company substantially complied with these regulatory requirements Financial Reporting ‘The Committee assisted the Board of Directors and the management to carryout their responsibilities of preparing true and fair financial statements in accordance with the books of accounts and Bangladesh Accounting Standards by: * Reviewing the adequacy and effectiveness of the internal control system and procedures in order to provide reasonable assurance that al transactions are accurately and completely recorded in the books of account. + Reviewing the integrity of the process by which financial statements are prepared from the books of account. + Reviewing the process by which compliance of provision of Bangladesh Accounting Standards. ‘The Committee also reviewed: The quarterly and annual financial statements of the Company prior to recommending them for the approval by the Board The annual audited financial statements of the company with extemal auditors prior to submission to the Board for approval. The review focused particularly on changes of accounting policy and compliance with applicable accounting standards as adopted in Bangladesh and other legal & regulatory requirements. Internal Control ‘The Committee examined whether the management has set up the appropriate compliance culture across the Company in order to ensure that all employees have a clear understanding of their roles and responsibilities. The Committee reviewed the arrangements made by the management for bulding up a suitable Management Information System (MIS) luding computerized systems and its applications thereof. Internal Audit ‘The Committee reviewed and discussed the relevant reports of special investigations which were submitted by the ‘Audit Team. They are as follows + The annual audit plan for adequacy of scope and comprehensive coverage of these activities of the Company. + The audit programs, resources requirements for the year and assessed the performance of the internal audit functions * The internal audit reports, audit recommendations and management responses to these recommendations and actions taken to improve the system of internal control and procedures, + Exercise Internal Audit of Pragati Life Insurance Limited. Review the effectiveness of Internal Audit functions including performance and compliance with professional standards. Examine audit findings and material weak ness and monitor implementation of audit action plans. + The Committee advised the management to take effective steps for rectification of al the lapses and weaknesses identified by internal audit and to take utmost care, so that such weaknesses and lapses shall not be repeated in future. Department heads attended the meetings when their reports were discussed. ree)AN PRAGATI LIFE OXY surance united External Audit The Committee met with the extemal auditors at the conclusion of the annual audit and exchanged views on their Audit Report. The Committee reviewed the findings and recommendations made by the external auditors in order to remove the weaknesses as detected in the external auditing process. The Committee reviewed the performance of the External Auditors and recommended to the Board on their appointment and fees. Approval of Financial Statements The Audit Committee reviewed and examined the Annual Financial Statements for the year ended 31 December, 2018 prepared by the Management and audited by the External Auditors Hoda Vasi Chowdhury & Co. Chartered ‘Accountants and recommended to place the same before the Board for consideration. ‘The Board approved the same at it 427th meeting held on 20 June, 2019. Acknowledgement ‘The Audit Committee expressed sincere thanks to the Chairman and members of the Board, management and the Auditors for their support in carrying out its duties and responsibilities effectively. ‘On behalf of the Audit Committee, Nand RE Muhammad Jamaluddin Chairperson of Audit Committee reeAN PRAGATI LIFE £X¥ isurance uate Nomination and Remuneration Committee (NRC) In compliance with the Corporate Governance Code 2018, the Board of Directors at its meeting held on 13 December 2018 constituted the Nomination and Remuneration Committee ("NRC’) to assist the Board broadly in formulation of policy with regard to determining qualifications, positive attributes, experiences, remuneration mainly for directors and top level executives. A brief of the NRC and its roles, responsibilities and functions are appended below: ‘Composition and Meetings ‘The NRC of Pragati Life comprises of four (4) members who will exclusively be Non-Executive Directors, including one (1) Independent Director. ‘The Committee includes: 4. Mr. Muhammad Jamaluddin, Chairperson 2. Syed M. Altaf Hussain, Member 3. Mr. Abdul Awal Mintoo, Member 4, Mr. Mohammed Abdul Awwal, Member ‘The Independent Director, Mr. Muhammad Jamaluddin acts as Chairperson of the Committee. As per regulatory guidelines, the Company Secretary, Mr. Jagadish Kumar Bhanja, FCS acts as Secretary to the Committee. ‘The NRC, accordingly, performs in coherence and ensures compliance with the Corporate Governance Code promulgated by the Bangladesh Securities and Exchange Commission (BSEC). Permanent invitees to the meetings are the Chief Executive Officer (CEO), the Head of Human Resources, the Company Secretary. Relevant heads of divisions and other members of the Management team will aso attend the meetings at occasions, as required. Major Responsibilities of NRC ‘The purpose, authority, composition, duties and responsibilities of the Nomination and Remuneration Committee are delineated in its Charter. Some of the major responsibilities of the NRC are as follows: + Recommend a policy on Board's diversity taking into consideration age, gender, experience, education and nationality; + Formulate the criteria for determining qualification and independence of Directors; + Identify persons who are qualified to become Directors and in top level executives and recommend their appointment and removal; + Formulate the criteria for evaluation of performance of Independent Directors and the Board; + Recommend a policy to the Board relating to the remuneration of the Directors, and top level executives; + Assess that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate suitable Directors to run the company successfully; + Evaluate that remuneration to Directors and top level executives involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the company and its goals; + Identify the company’s needs for employees at different levels and determine their selection, transfer or replace ment and promotion criteria; + Recommend and review annually the Company's human resources and training policies; + Recommend the remuneration policy of the Company, particularly in relation to the yearly increment principle; and + Recommend the Code of Conduct for the Chair of the Board, other Board Members and Chief Executive Officer of the Company. CeCe)AN PRAGATI LIFE ND insurance unateD Nomination, Election and Selection of Directors ‘The NRC is responsible to ensure that the procedures for appointing new Directors are transparent and rigorous. The Board places great emphasis on ensuring its membership reflecting diversity in broader sense. A combination of age, gender, experience, Governance Nomination and Remuneration Committee Report Ethnicity, educational background, nationality and other relevant personal attributes in the Board is important in providing a range of perspectives, insights and challenges needed to support right decision making. Recruitment and selection processes for Board members identify candidates with the most suitable skills, knowledge, experiences and personal values. Qualifications stated explicitly in Pragati Life's corporate governance promote the equitable and unbiased selection. Evaluation of the Board ‘The NRG is responsible for ensuring the effectiveness of the Board. The Board shall carry out an evaluation once a year of its work, functions, performance as well as monitoring of internal control over financial reporting for the preparation of external financial statements and the safeguarding of assets. The evaluation process is led by the Chair of the Board and assisted by the Company Secretary. Each Director is required to complete a confidential pre-set questionnaire. The evaluation includes a review of the administration of the Board and its committees covering their operations, agenda, reports, and information produced for consideration, and relationship with Management. Top Level Executive Selection and Remuneration Policy The performance of the Company depends upon the quality of its Directors and Top Level Executives. To prosper, the Company must attract, motivate and retain highly skilled Directors and Executives. The recruitment process for Top Level Executives shall be transparent, non-disoriminatory, diversified and in alignment with the Codes of Conduct. Recruitment standards shall support Pragati Life's reputation as an attractive employer. The objective of Pragati Life's remuneration policy is to secure that reward for Top Level Executives shall contribute to attracting, engaging and retaining the right employees to deliver sustainable value for shareholders in accordance with the Pragati Life behavior. Remuneration for Board of Directors Each Director shall receive reasonable remuneration from the Company for every meeting attended, plus travelling expenses from and to usual place of residence and an allowance per day for the number of days spent attending, travelling to and returning from Board meetings. The amounts will be determined by the Shareholders at the General Meeting Activities of the NRC during the reporting period Since the NRG was constituted as a sub-committee of the Board on 13 December 2018, no meeting of NRG was held during the reporting period. For and on behalf of the Nomination and Remuneration Committee of Pragati Life Insurance Limited. nas Muhammad Jamaluddin Chairperson of NRC re edPRAGATI LIFE XY insurance unre MABS & J Partners | NEXTA| CERTIFICATE OF An independent member ofNeviTnteratonl, UK COMPLIANCE TO THE SHAREHOLDERS OF Pragati Life Insurance Limited (As required under the BSEC Guidelines) We have examined compliance to the BSEC guidelines on Corporate Governance by Pragati Life Insurance Limited for the year ended 31 December 2018, These guidelines relate to the notification # SEC/CMRRCD/2006-158/134/ ‘Admini44 dated 7 August 2012 and subsequently amended through the notification # ‘SECICMRRCD /2006-158/207/Admin/80 dated 3 June 2018 of Bangladesh Securities and Exchange Commission (BSEC) on Corporation Governance under section 2CC of the secu- tities and Exchange Ordinance, 1969. ‘Such compliance codes of Corporate Governance is the responsibilty of the company's management. (Our examination was limited to the procedures and implementation thereof as adopted by the company in ensuring the compliance to the conditions of Corporate Governance Guidelines. This is a scrutiny and verification only and not an expression of opinion on the financial statements of the company. In our opinion and to the best of our information and according to the explanations provided to us, we certify that, subject to the remarks and observations as reported in the attached Compliance Statements, the coppany has complied with the conditions of Corporate Governance Guidelines as stipulated in the above-mentioned guidelines issued by the BSEC. We also state that such compliance is neither an assurance as to the future viability of the company, nor a certification on the efficiency or defectiveness with which the management has conducted the affairs of the company. This is also no endorsement about quality of contents in the annual Report of the company. Vee Dhaka, 21 July 2019 MABS/& J Partners Chartered Accountants Annual Report 2018PRAGATI LIFE 2X3 insurance unaired CORPORATE GOVERNANCE COMPLIANCE STATUS IAS PER CONDITION NO. 1(5)(XXVII)] Status of compliance with the conditions imposed by the Commission's Notification No. SEC/CMRRCD /2006-158/207/Admin/80 dated 3 June 201 sued under section 2CC of the Securities and Exchange Ordinance, 1969: 10 (Report under Condition No. 9) Board of Decor aay ‘The total number of members of 2 company's Board of Directors | (hereinafter referred to as "Boers" shall nat be less than 5 (five) and more than 20 (twenty). Independene Cece 10,0) TAL Teast one-fifth (1/5) of the Total number of directors te the ‘company’s Board shall De Independent arectars; any fraction shall be | oreldared tothe next Integer or whole. number ‘for calculating umber of independent deector{s) As per Insurance Act ‘2010 2200) “Independent Orecor mesnsa vector wha either does not hold ony share in the company or holds ess than | Vv ‘one percent (19) shares ofthe total paid-up shares oF Ue companys 22 ,0y60) ‘who Is not a sponsor of the company or is not connected with the company’s. aily sponsor or director or nominated. director “oF Shareholder of the company oF any ofits assoclates, sistor concerns, Subsidlanes and parents oF holding entives who Rolds ‘one percent (1%) oF more shares of the total paid-up shares of the company on | the basis of family relationship and his er her family members alse Shall not hold above mentioned shares in the company: Proviced that ‘Spouse, son, daughter, father, mother, Brother, sister, soninsiaw ne ‘Saughter inlaw shall be considered as family members 20M) who has net been an executive of the company in immediately |, receding 2 (two) financial years, 22,0) whe does not have any other relationship, whether pecuniary or Dthenwise, “with the company ‘er ts. subsidiary oF associated | ‘companies: 12K) who is net a member of TREC (Tracing Right Entitlement Cerificate) |, holder, director or officer of any stock exchange: 12KoKv) ‘who 42 not 2 shareholder, director excepting independent director or fomicer of any member oF TREC holder of stock exchange or an | V Intermediary ofthe capital market; senenwid wha ls not a partner or an executive or was not ® partner or an ‘executive during the preceding 3 (three) years ofthe concerned ‘company’s statutory audit frm or aut Arm engaged in internal audit | services or aut im conducting special auditor professional ering compliance of this Code; 2x0 ‘who isnot indeoendant director in more than 5 five) ated | ‘companies, 120) ‘who has not been convicted by a court of competent jurisdiction 36 = ‘efauiter in payment of any loan or any advance to a bank ora Non- |v Bank Financia! Institution (NBFT): and 22 0)00 Who as not Been convicted for a ciinal ance Tavelvng War ‘turpitude: 12K0) ‘The independent arecore) shall be oppointed by the Board and |, _spproved by the shareholders In the Annual General Meeting (AGM); 10K8) ‘The post of independent divector(s) cannot remain vacant for more | y, than 90 (ninety) days; ane 10K6) he tenure of ofc of an independant decor shal be fer @ ‘ood of thee) yrs wich may be tended fort fone) Sede Provided that a former Independent director may be considered for reappointment for another tenure after ame gap of one tenure, Le, | ¥ {three years from his or her completion of consecutive two tenures [., six years]: Provided further that the independent director shall not be subject to fetirement by rotation os per Companies Act, 1994, ‘Qualification of dependent ecto 1G)@) Independent. director shell bee Knowledgeable individual with Intagety whe Is able to ensure compliance with nancial laws, | regulotory requirements and corporate laws ang can make meaninael oneributlon t the business oe)PRAGATI LIFE XY surance ure 100) Independent drecor sa have following qulfatons Business Leader who is or was 2 promoter or director of an unlstec| ‘ompany having minimum palg-up capital of Tk. 100.00 milion or any listed company or 2 member of any national or Intemational chamber ‘of commerce or business aezodiation, oF A030 ‘Corporate Leader who is or was a top level executive nok Tower ian Chief Executive Officer or Managing Director or Deputy ‘Managing Director oF Chie’ Financial Officer or Head of Finance or Accounts OF Company Secretary or Heed of Internal Audit and Compliance or Head (of Lagal Service or 2 candidate with equivalent posiuon of an unlisted ompany having minimum pala-up capital ef Tk. 100.00 milion or of & listed companys or scaxoyen) Former official of government or statutory or autonomous or regulatory body in the position not below sth Grade of the national bay Seale, who has atleast ecucational background af bachelor aegree In-ecanories or commerce or business or Law OF 13X00) University Teacher who has educational background In Economics OF ‘Commerce or Susiness Studles oF Law; or 120) Professional who i or was an advocate pradicing at least ln the Fgh Cour Division of Bangladesh Suoreme Court or a Chartered ‘Accountant or_ Cost ond “Management Accountant or Chartered Financial Analyst or Charcered Certified Accountant or Certfied Public ‘Accountant of Chartered “Management. Accountant or ‘Chartered ‘Secretary or equivalent qualification; Not Applicable 1X0) ‘The independent director shall have at least 10 (ten) years of experiences in ay Feld mentioned in cause (6); 1x8) Th special cases, the above qualifications or experiences may be relaxed subject t prior approval of the Commission Not Applicable Ousiy of Chakperaon ofthe Board of Deion and Menaping Drectar or brecuve meer aaa) ‘The postions of the Chairparson of the Board and the Managing Director (MD) and/or Chiet Executive Officer (CEO) of the company shall be fled by diferent incividsals 10400) ‘The Managing Director (MD) and/or Chie? Executive Officer (CEO) of = lstee company shail not hold the same positon in another letes company 100) “The Chalrparson of tre Board shall be elected Wom among Wie nor xecutve rectors of te 1axe) ‘The Board shall ceary define respecive roles and responsbilties_ of the Chairperson and the Menoging Director andor Chiet Executive Officer aye) Tn the absence of the Chairpenon of the Bosra, the remaining ‘embers may elect one of themselves from nonexeeative clrectors oF ‘Chairperson for that particular Board's meating, the reason of absence ‘of the regular Chairperson shall be duly recorded in the minctes = The Dain Report to Sharehoider 16) ‘sion! tatoments 9 closures Inthe Ovecor Report [repre unr secon 184 of te Componis ACL 1908 (Ack Novn of 950) [an industry outlook and possibie future developments inthe industry: 1X) “The Sogment- wise or product-wise performance; < foro) Risks and concerns including internal and external Rak factors, Wrest fo sustanahiity ane negative Impacs on environment, i 1X) ’R alscussion of Cost of Goods sold, Gross Profit Margin and NeE Prove Margin, where appleable; Not Applicable 1610 ‘discussion on continuity of any extraordinary aciviies and thelr Implications (gain or loss), Asn) A detailed discussion on relaled_ party Wansaclons song with Statement showing. amount, nature of reloted party, nature. of ‘wansactions and basis of transacions of all related party Cansactons; Asa) ‘A statement of utilization of proceeds raised through public issues, fights leaves anc/or any other Instrumente; Not Aoplicable asc) ’An explanation Ifthe financial results deteriorate after the company ‘Goes for inital Puble Orfering {1PO), Repeat Puble Offering” (KO), Rights Share Offer, Direct Listing, te.) Net Applicable 1809) ’n explanation on any significant variance That omurs belweeh ‘Quartery Financial performances and Annual Financial Statement 1500) ‘statement of remuneration paid to the directors inctuding Independent directors 165), "A. statement that the fnandlal_satements prepared bythe ‘management of the issuer company present fairly Its stata of affairs, the result of ts operations, cash flows and changes in equ oe’R statement thet proper books of account af the Issuer company have AN PRAGATI LIFE INSURANCE LIMITED aceon —_ | Astatement that ‘A. slatement. that_approprate sccourtina poles fave been csyoxnny | Sonsstentiyapolied in preparation of te financial statements snd that fhe accounting estimetes are. based on reasonable "and prudent Judgment; ‘R. staterient_that_Tnternatonal Accounting _Stardarde (IAS) oF International Financ Reporting Standards (IFRS), as applicable In a¢5yim | Bangladesh, have. been followed in. preperaton’ of the finance! Sratements' and any departure there from nas been adequately diseased “aoe | statement thatthe system of intemal contol [s Sound Tn design and has been effectively imblemented and monitored, statement What minority shareholders have been protected. Tom usypeuy | Sbusve” actions "by, oF Im te Interest of controling shareholcers ee ‘acting ether alrectly or Indirect and have effective means of rodrets TR statement that theres fo signifeant Goubt upon the Tesuer sesiem | eomoany’s abifty to continue asa going concem,. if the issuer Company fs not considered to be 9 going concern, the fect along with Seasons there of snail be diedosed; ‘An explanation that signifeant deviations fom the Tast years C3) G00 persting results of the issuer company shall be highlighted and the seasons thereof shall bs explsined, Tang A statement where key operating and Thencal data of at Teast 510400 | receding 5 (five) yeors shall be summarized respon | A exslenton on the reasons fhe nue” company os ot dedared aaaale Troan | B2ards statement tothe effect that no bonus share ar stock avidend hes been oF shall be declared os Interim dividend, The total umber of Board meetngs hela during the year and seca attendance by each director; TA report on the pater of shawholling asdosing he ‘arepele rimber of shares { eh th me sre tl s.sbeaiinga) | Shwe tated blow el erent or Subsidiary or Associated Companies and other related parties (name-wise deals) Directors, Chie? Executive Officer, Company Secretary, Chief Financial s.sGouinge) | Officer, esd of Intemal Auclt and Complines and thelr spoures an ‘minor eilaren (name-wise details); TSQRINEe|_| executives; and nolders holding ten percent (10%) oF more voting Interest in the "No shareholder BORK: | Ee =" holds 10% or Tp case ofthe appv or veappominant of a dela, & (SyGav}(a)_ | dectoure on thetolowngfrnaton tthe tharshalere: [Rtbriet resume of the director T{S]GRIG)_| Nature of his or her expertise in specific functional areari and “‘csvo0twycey | Names oF companies In wich the person also holds the areeoraip KSiaivit0)_| yng the membership of committes of the Boar {I Mansgerents Dirctson and Anshas soned by CxO or MD. frsening setae’ 2 nays of te company’s postion and ¢syoonn(ay. | eet along wih» bit dscasson of changes inthe [Reeounting polices ond estimation for preparation of nancial Statements 1(5 0000) ‘Changes in aczounting policies and estimation, 1 any, clearly ‘eseribing the effect on financial performance or resuits and’ Anan! Dosivan ss well as cosm flows In absolute Agure Yor such changes; AES ooo) Gomparative. analysis (Inducing effects. of infation) of ‘nancial Derormance of results and fnanial position as wall as cash flows for Corrent financial year with Immediate preceding fv Years 2x3Iining Seasons there: 1(5)6001) Compare such financial performance or result and financial powson ‘3s well 3s cash flows with te peer industry scenario: AS 0001) Grieiy explain the francal and economic Scenario oF We COUNTY ane the alobe; ASO) IGks and concerns issues related to the nancial statements, ‘explaining such risk and concems mitigation plen of te company and Future plan or projection or Torecast_ for company’s operation, atsytowte) | performance ana faneial peston, with justfeaton thereat Le, ‘tual postion shal be explained tothe shareholders in te next AGM, Timitmwn | Detiaration or certification by the CEO and the CFO to the Board as required under condition No. 3(3) shall be dclosed as per Annewure:AN PRAGATI LIFE 2 surance ured ‘Azand 105) Gexvi) “The report os wall as certeate regarding compliance of conditions {ils Code as requlred under condition Noo 106) ‘Meeting ofthe Boar of Dretors: ‘The company shall conduct ts Board mectings and record the minutes ff the meetings as well a keop required books ané records in line with the provisions of the relevant Bangladesh Secretarial Standards (855) "as adopted ‘by the Institute of Chartered Secretaries of Bangladesh (ICSB) in'so far as those standards are not inconsistent ‘with any condition of this Code. Coxe of Conduct forte Chait pation, the Board meribrs 10%) ‘The Soerd shall ley down 8 code of conduet, based on the Fecommendation of the Nomination and Remuneration Commitee (Qui) ‘at eoneltion No. 6, for the Chatroerson of the Board, other board members and Chief Executive Officer of the company 100) “The code of conduct as determined by the NRC shall be posted on the ‘website ofthe company including, among others, prudent conduct and Behavior; confidentally; conflet of Interest; compliance wit laws, rules and regulations; prohibition of Insider trading; relationship with ‘environment, employees, customers and suppliers) and independency, 3 ‘Goverance of Board of DvetorsofSubiry Company 2) Provisions resting to the composition of the Board of the holding ‘company shal be made applicable to the composition af the Board of the subsiclary company; Not Applicable 2) ‘AE least 1 (one) independant arediar on the Board oF the Ralaing ‘company shall be a director on the Board of the subsidiary company; Not Applicable 20 "The minutes of the Board meeting ofthe subsidiary company shall be placed for review at the following Board meeting of the holding compan Not Applicable 2) “The minutes ofthe respective Board mestng of the holding company shall state that they have reviewed the affairs of the subsilary ‘company also Not Anplicable 20) "The Aucit Cornmities of the helding company shall also review the financial statoments, in particular the Investments made by the ‘subsidiary compa Not Applicable ‘Managing Decor (ND) or Caf Enecatve Ofer (CEO), Chel Financ fer (CFO Head of nea Au and Complance (0940 and Company Secreta CS saya) Agportent ‘The Board shall appoint a Managing Director (€D) or Chief Executive ‘OMicer (CEO), a Company Secretary (C5), 2 Crief Financial Officer (CFO) and a Head of Internal Ault and Compliance (HIAC} sae “The positions ofthe Managing Director (MD) or Cref Executive Ofieer (CEO), Company ‘Secretary (CS), Chief Financial Officer (CFO) and Head ‘of Internal Audit and Compliance (HIAC) shall be filed by ‘ferent inavtouale; 3axe) “The MD oF CEO, C5, CFO and HIAC of @ Wsted company shall rot haid _any executive position in any ather company at te same time? saya) The Board shall clearly define respective roles, responsibilities and ities of the CFO, the HIAC ana the CS; sane) ‘The ND or CEO, C5, CFO and HIAC shall not be removed ffom their positon without approvel "of the Board well os. immediate {issemination tothe Commission and stock exchange(s), No such event ‘occurred 30) equremant io attend Sard of eto Meetings ‘The MD or CEO, CS, CFO and MAC ofthe company sal attend the meetings ofthe Boar Provided that the C5, CFO and/or the HIAC shall not attend such part ‘ofa meeting of the Board which Involves consideration of en agenda Item relating to their personal matters. Dates of Managing Oecor Dor Ce Ecce OF {EO} snd Ce ancl Oe (FO), 30,2000 Tha MD oF CEO and CFO shall ery to We Bowed Wat ey ave reviewed inane ststerents forthe ear an tt othe bestoft her lewnledge and bebe, ‘These statements do-not contain any materially untrue statement or ‘omit any material fact or contain” statements. that might be misleading; and saan) These statements together present a true and Tair view of the company’s affairs and. are in compliance with existing accounting Standards ond applieabie laws roe“The MD oF CEO and CFO shal also certify that there are, tothe best of knowledge and beliet, no transactions emtered into by the company AN PRAGATI LIFE INSURANCE UMITED a0 uring the year whieh are fraudulent, legal or in violation of the code (of conduct for the company's Board ots members; a “The certfeaton of the HD or CEO end CFO shall be Giscosed in the annual Report. For ensring good governance We corpany, te Board a «) hve atleast fotowingscbneommitees IRasit Committe an aa ‘Nomination ang Remuneration Committee, so ud Commitee Responsiy tothe dowd ofeecors scayie) “The company shal have an Audit Committee as a sub-committoe ofthe Board, The Audit Committee, shall assist the osrd in ensuring thst the sca financial statements reflec tle an fair view of the state of flrs oF the company and In ensuring 2 good monitoring system within the business) The Aualt Commitise shall be responsible to the Board; the duties of aXe) the Audit Committee shail be clearly set forth in writing sexe) ‘The Auait Committee shell be composed of at least 3. (three) rember “The Board shall appaInE lee OF the Audie Comnae who EhaT BE sexo) onvexecutve directors of the company excepting Chairperson of the Board and shall Include atleast 1 (one) independent director, fll members of the audit committee should be “financially literate se) ‘and at least 1 (ane) member shall have accounting or related financial ‘ranagement background ane 10 (ten) years of sueh experience} Vihen the term of service af any Committee member expires or there Is any circumstance causing any Convnitte rember to De unable t2 hola office before expiration of the term of service, hus mating the - rhumber of the Committee members to be lawer than te prescribed ‘ledpelicakin sexe fhummber ‘of 3 (three) persons, the Board. shall appoint the new :soelieeh Committee member to MI up the vacancy immediately or not later fran" (one) month ‘rom the date of vacancy in the Committee t0 ensure cortinuly of the performance of work of the Auclt Committe, seve) ‘The company secretary shal act s the secretary ofthe Committee; a0 The quorum of the Audie Commies meeting shall not consotite z vithout atleast 1 (ane) Independent directa. Ghasperson fhe Aus Cormien sco) “The Bosrd shall select 1 (ane) member of the Audit Committee to be Chairperson of the Audit Committee, who shall be an Independent ‘Stree Th the. absence of the Chairperson of the Audit Commitee, the Fomalning members may elect one of themselves as Chalrperson fer Pere} that particular meeting, in that cose there shall be no problem of Coasting 8 qlorum a6 requires under condition No. 5(2)(0) and the Feason of absence ofthe regular Chairperson shall be duly recorded In fhe minutes. ‘haiper son afte Aue Commis Wa reais pSeaTATS ‘annul Genel Mating (Ac Provided that In absence of Chairperson of the Audit Committee, any see) ther member rrom the Aucit commitize shall be selecred to be present In the annual general meating (AGM) and reason for ebsenee of the Chairperson of the Audit Committee shall be recorded in the finvkes ofthe AG estngofthe Aust Commie sana) Provided that any emergency meeting in addition to regular meeting may be convened at the request of any ane of the members of the Commitee “The quorum of the mesting of the Audit Committee shall be Pony constituted In presence of either two members or two-third of the members of the Ausit” Committee, whichever is higher, where Dresence of an Independent dlrector I a must. Role of Aud Comite s¢sy(e) The Aust Commitee sha Oversee the finanidal reporting process; 50) Monitor choice of accounting policies and principles; CorerOXY surance umireD Monitor Iotemal Ault and Compliance process to ensure that It l= adequately resourced, including epproval of the Internal Audit and ‘wall asa. policy for formal process of considering remuneration of Sexe) Compliance Plan and’ review of the Internal Audit and Compliance v TS) | oversee isng and performance of external auditors; v Told meeting with te external or statutory auditors Tor review ofthe sisxte) | snnual“fnorel "statements before submission tothe Soare Yor |v Snorora or adopcon, Review slong with the manaerent, the enna Ananda statements 5600 before submission the Bond or approval v review slong wth the menagemen, the QUARETy an Wal Year stS)(@) financial statements before submission to the Board for approval; wt SSN ___| Review the adequocy of interna aut function: v a0 Ter Raroporerts Deion ae Anata bos aaoaraT™ |v a Revo steer a eed pry worsens BMIRCT HY ey so) | Rey MEST RET oF La Ta CT wea ‘Gversse te cetrminaton of audi fees bated on scope and 565)0) ‘magnitude, level of expertse deioyes and éme required for eecive | ¥ {uotand evaluate Ue performance of extemal suitors ond Orenee wheter te procerss raed twoush Ital Ble ‘tein OP) erkapent Pic onoeng WO) re sae ter hve bee aed os er the pune edn rant fersoumenorpr oxpecth appre byte commnion: ‘rovided tot the management tel lactose to te Auclt Commitee Shout the user or appieavors oF the proceeds by major catagory No such event sisyim | {Cantal sxpencure, sales and marketing expenses, working epta, ‘oaurea in Se), ane quarery basis, m8 port oftheir quarry ecloration of oie fratell reua: Provided further that onan enruel bass the company shal prepare @ atement of te proceeds Weed for the puposes other than those Stated in the offer document or prospectus for publeston In the anual Reperstong with the comments ofthe Aust Commitee ry Repti ofthe Act Corie steven) epsing oe ame of Deca > ‘The Aut Commie sel report ons activites to the Bord Te Ao Conmie sal tly ep tothe Board on No nuen sconaycincsy | tetalonne tndres ene incgence arose Report on conf ofrerests Suspected. 0” presumed. traud_or Wregulanly_or_materar defect — scenenantsy | ented in the ternal audit 2nd comphance process Or nthe inet financial statements sconrennce | Secinnes related awa, rules and regions; end" Incidence arose ‘ny ether matiar which the Aude Commitee deems necessary thal No such SO (0)0NG | Sesecosed to the Board meaty Incidence arose eporing tte Aomies "oe nude Commitee has reported to the Board about anyeing thi ha material Impact on the nancial condivan and rest of peration and has diacaeed withthe Board end the management thet stoyey _| soy recheavon is necessary and Ite Aualt Commitee Aras thot uo such teh"“fecueation ‘hasbeen "unresserably ignored, the Aut inccence arose Smits’ sll report such fnang. te. the ‘Commision, vpon reporting of such matters fo the Board for tree trees of corpleton ots period af & (9x) months Irom the gate ffs reporting tothe Soar unienever scorer Tepring the Sela on Gea veo ‘Report on aces eared out by the Audit Commie, Including any 50 ‘port made to the Saerd under conatlon Nox S(O0(H)sbove suing | the year, shall bo aigned by the Chelrperson of te Aude Committee nd delosed nthe anal Feporof the nave compar. Norinton rd emineon Commie NR. oe fesponsity tN barr brea 9122) | The company shal ave a Nomination and Remuneration Commitee | ¥ {WRC} 948 sub-commitie of he Boor: “The NRE shal asst the Board In formulation of the nomination itera or polly for determining quaications, postive atbute, cry _| epenienes and ndependence of arector and top level exeatve ss | V ‘rectors, top level executives roeaye) The Terms of Reference (ToR) of the NRC shall be Geary set forth in vriting covering the areas stated atthe condition No. 6(5) (b). PRAGATI LIFE INSURANCE UNAITED. 2,2) Gonattton afte NAC ‘The Committee shall comprise of atleast three members including an Independent sirector DBL All members of the Committee shall be nen-oxecut «aney directors ‘Members of the Committee shall be nominated oné appointed by the Board; ‘(2y(d) “The Board shall have authOrIy Wo Femove and BDpOInE any Member OF {he Commitee; aye) Th case of death, resignation, aisqualification, or removal of any ‘member of the Committee or in any other eates of vacancies, the ‘are shall fil'she vacancy wrtnin 120 (one hundred elghty) days of ‘ecurring such vacancy In the Committe; (Not Applicable ane “The Chairperson of te Committee may appoint or co-opt any extemal expert andor member(s) of staf to the Commitise 22 advisor Who Shall be non-voting mamber, if te Chairperson feels that advice or Suggestion rom such external expert andor member(s) of staf shall be required or valuable forthe Committee Not Applicable Ow) “The company secretary shall act. as the secretary of the Commitee; canim) The quorum of the NRC meeting shall not constitute without attendance of atleast an independent director No mesting held as yet eax) ‘No member of the NRC shall receive, ether drecly or Indirealy, any remuneration for any advisory er consultancy role or otherwise, other than Director's fees or honorsflum from the company. ‘No meeting held'os yet 6(2)(2) Charpeson of he NRC: “The Board shall select 4 (one) member of the NRC to be Chairperson cof the Committee, who shall bean Independent director; 62,(0) Tn the absence of the Chalrperson ofthe NRC, the remaining members may elect one of themselves as Chairperson for that particular ‘esting, the reason of absence of the regular Chairperson shall be uly recorded in the minutes: 1 aise, wil be complied ene “The Chairperson of the NRC shall sttend the snnual General meeting (AGH) to answer the queries of tie shareholders: Provided that In absence of Chairperson of the NRC, any other rember from the HRC shall be selected to be present in the sara ‘General meeting (AGM) for answering the shareholder's queries. nd Feason for absence of the Chalperson of the NRC shall be recorded In the minutes ofthe AGM. willbe complied ay) esting of be NRC: “The NRC shall conduct at lenst one meeting in.» financial year ‘No mesting held os yet 64900) “The Chairperson of the NRE may convene any emergency meeting upon request by any membar of the NRC, ‘No meeting held os yet x0) “The quorum of the mesting of the NRC shall be constituted ia presence of either two members of two third of the members of the Committee, whichever Is higher, where presence of en independent rector Is must as required under conattion No. 6(2)(h); No meeting held'as yet ays) “The proceedings of each meeting of the NRC shall culy be recorded Th the minutes and such minutes shal Be confirmed in the next meeting of tne NRC, ‘No meeting held'as yet «5)(0) Role ofthe NAC INRC shall be independent and responsible or accountable tothe Board tnd to the Shareholders ‘5«5)(0X19N@) Fesmulting fe ce for detenrning qualcatons ponte buts and independence of a rector end recommend & poly to the Board rsting to the remuncrate, of the recto top level eecutve, considering lowing “The level and composition of remurteration fs easonable and sumicent torattrac, retain and motivate sullable rectors to run the company successful willbe complied 35 no ‘meeting hel vet ‘6sy(o.ND) ‘The relationship of remuneration to performance is dear and moots appropriate performance benchmarks) and willbe complied as no ‘meeting held 4S)(0NKE) Remuneration to directors, top level executive involves ® balance between ‘fixed end incentive pay reflecting short and long-term Performance objectives eppropriste to the worklng of the company Bnd ts goals; willbe complied as 90 meeting held vet sy(on) Devising a policy on Boar's diversity taking into consideration age, ‘ender, experience, ethnicity, educational background and nationality; Will be complied as no meeting hela vetAN PRAGATI LIFE 4X3 insurance unre Coo) Identifying persons who are qualified to become directors and who ‘may be appointed in top level executive position in accordance with hd recommend ther appointment and removal ‘Will be complied a5 no resting held yet 6¢syox9) Formulating the criteria for evaluation of performance lof independent sirectors and the Board, witb complad a5 no ‘meeting held 65x") ‘Identifying the company’s needs for employees at diferent levels and sclon, transfer oF replacement and. promotion Wi be complied a5 no resting held ese) Developing, recommending and reviewing annually the company's human resourees and training polices; yet Wil be complied as no resting held vet 60 ‘The company shall dsciase the nomination and remuneration policy ang the evaluation criteria and activites of NRC during the Year a2 ‘lance nits annual report. ‘Will be complied as no eating held vet ‘Eee Staton Audion: 7a The Sst company shall nor engige 1 eral or attory susors to perform the foloung tenes oF the company. ramy ‘appraisal or valuation services or fairness opinions; 7a Finandial Information Systems design and implementation; 7am) ‘Book-keeping or other services related tothe accounting records or financial statements; 7a, Broker desler services 7a) ‘Actuarial services; 7} Tnternal audit services ar special avait services 733) ‘Any service thatthe Audit Comittee determines; encod “Auditor carification services on compliance of corporate governance; ne 7000) ‘Any other service that creates confet of interest. 72) Te parer or employer oF te oneal suai Fins shal posts any share of the company they aud at last du ‘he tenure ofthe aut asin nt ofthat company his or het fomiy meres as shal net old any shares in the Sad Provided that spouse, son, daughter, father, mother, brother, sister, son-in-law and daughter-in-law shall be “considered as’ family members. 703) Representative of external or statutory aualtors shall remain present In the Shareholders" Meeting (Annual General Meeting or Extraorcinary General Meeting) to answer the queries ef the sharenoiders intaring a webte by be Company aay The cormpany shall have an official website inked with Be website of the stoce exchange ae) “The company shall Keep the wabsite fundlonal fom the date of listing, 8) The cafipany shall make avaliable the detaled isdosures on Ve website as required Under the listing regulations of the concerned Stock exchange(e). Reporting and Complancs of Coporte Gavemance say ‘The compar shal obtain o cerieate fom a practicing Professional ‘Accountant. or Secretary (Chartered “Accountant or Cost. and Management Accountant” or Chartered Secretary) other then Its statutory auditors or audit frm on yearly bass regarding compliance ‘of conditions of Corporate Governnee Code of the Commission and Shall suen certificate shall be disclosed in the Annus! Report. sey “The professionsl who wil provide the cerfiate on compliance OF This Corporate Governanee Cote shal be appointed by the sharenolders In fhevannual general messing. Tobe: appointed in ‘ext AGM, 93) The directors of the company shall state, 1h accordance with the Annexure: attached, In the directors” report whether the company has complied with these conditions or net. roePRAGATI LIFE Key Financial Indicator Amount in million BDT unless otherwise stated PT) 2014 2016 | 2017 1_|First Year Premium Income. 322.36| 418.91| 579.37| 649.90 2_|Renewal Premium Income e77.07| _770.73| _799.63| 823.90 3- [Group & Health insurance Premium 656.09] 800.14] 825.97| 845.76 4. |Gross Premium 1,655.52| 1,989.78) 2,204.98| 2,319.56 5 [Reinsurance Premium 33.97 13.45) 27.27 28.58 6 [Not Premium (4-5) 1,621.55] 1,976.34] 2,177.70| 2290.97 7__ [Retention Ratio (6/4) % 98% -99%| 99%| 98.7% 8 _|First Year Premium Income growth (%) 147% 30%| _38%| 12.17% 9 |Renewal Premium Income growth (%) -3%| 14% 4%| 3.03% 10 |Gross Premium Income growth (%) 16%| 20%) 11% 5.20% 11 First Year Commissions paid for acquisition to7s3| 12008/ 15505 168.87 cflife insurance business 12 [Second Year Commissions paid for acquisition) —996| 43.20 49.30| 27.90 of life insurance business 43 | Third and Later Year Commissions paid for ‘aa2| aoz0| sass] 25.98 ‘acquisition of life insurance business 44, [Total Commissions paid for acquisition Fehon | Steels 20770| 22018 of life insurance business (11+12413) 15 [First Year Commissions/First Year Premium (%) | 33.36% | 28.66% | 26.90%| 25.98% ‘Second Year Commissions/Second Year 16 Renewal Premium (%) 12.08%) 150%] 927%) s80% 17 Mndlate you Prowian () nn na Noar | 6.73%! 6.15%) 5.52%] 4.68% 18 |Management Expenses 688.31| 745.28| 799.02| 861.70 19 [Allowable Management Expenses 521.90| 648.50 800.81| 867.33 20 |Excess Management Expenses(18-19) 166.41 96.78 1.79 563 21 |Excess Management Expenses Ratio (%) 31.89% | 14.92%| -0.22%| -0.65% 22 |Overall Management Expenses Ratio (%) 41.58% | 37.46%| 36.24%| 37.15% 23. [Renewal Expenses Ratio (%) 39.60% | 27.56%] 14.78%| 14.94% 24 [Claims paid 898.79) 1142.42) 1202.76| 1275.05 25 [Claims / Gross Premium (%) 54.29% | 57.41% | 54.55%| 54.97% 26 | Total Commission Expenses/ Gross Premium (%)| 9.30% | 8.73%| 9.42%| 9.58% 27 [Investment income 336.07| 344.08| 370.79| 383.19 28 [Investment Income/Gross Premium (%) 20.30% | 17.20%| 16.82%| 16.52%A\, PRAGATI LIFE EX surance umreo Amount in million BDT unless otherwise stated CPT 2014 | 2015 29 | Yield on Life Fund (%) 9.44%| — 8.82%| 8.57%| 7.99% 30_| Conservation Ratio (%) 82.03%| 77.12%| 67.22%| 59.75% ‘Second Policy Year Lapse Ratio (%) by number 31 of policies 69.26% | 67.17%] 66.14%| 69.83% 3g | Tht Policy Year Lapse Ratio (%) by number ee re ee of policies 13g | Fourth Policy Year Lapse Ratio (%) by number zr92%| e214%| 73.31%| 66.26% of policies Fifth Policy Year Lapse Ratio (4) by number 84.69%| 63.67% 34 of policies 81.72%| 81.40% 3gg| Sth Poly Year Lapse Ratio (4) by number srgex| ssz7%| 2476%| 74.30% of policies 13g | Sev2nd Poly Year Lapse Ratio (1) by 3.00%! se.0s%| 42.62%| 72.00% Premium Amount 337 | Third Policy Year Lapse Ratio (%) by 84.10%| 62.51%] 60.79%] 23.19% Premium Amount Fourth Policy Year Lapse Ratio (%) 38 by Premium Amount 78.33%) 86.22%) 54.53%] 49.11% 3g | Fith Policy Year Lapse Ratio ( ean, | Sa by Premium Amount ° : Riess) 62.81% go | Sx Poly Year Lapse Ratio (1) 73.67%| 84.88%| 80.77%| 80.72% by Premium Amount 41_| Market Price Per Share (in BDT) at year end 100.50 113.50| 101.20] 113.60 42 _| Dividend yield (7) 2.19%" | 0.00%" | 247" | 2.20% 43_| Outstanding Premium as al 31st December 5649) 62.55] 78.04| 85.36 44 | Toll investment as on 31st December 3,649.40| 3,632.64 4,102.77| 4,679.37 46 | Life Fund as at 31st December 3,886.87 | 4,260.15| 4,761.13| 5,216.45 ‘46 | Total Assets as at 31st December 3,794.23| 4,126.79| 4,738.38] 5416.94 47_| Paid up capital as at 31st December 98.78) 103.72| 103.72| 121.36 48 | Paid up Capital Total asset (%) 2.60%) _2.51%| _2.19%| 2.24% 49 | Net Gash flow from operating activities 94.97) 6864 126.53] 32.58 ‘50 | Net Cash flow from investing activities 80.31) -68.84| 203.21| 323.79 ‘51 | Net Cash flow from financing activities ~13| -15.60 36 B15 '52_| Net change in cash and cash equivalent 14.53| _-15.80| 329.38| 348.22Q\ PRAGATI LIFE 2% insurance umTeD 53.First Year and Renewal Premium Income First Year Premium Income Renewal Premium out of the policies in 2014 Renewal Premium out of the policies in 2015 Renewal Premium out of the policies in 2016 Renewal Premium out of the policies in 2017 321.86 | 417.34 | 577.13 | 643.35 2014/ NA | 115.54 | 89.08 | 79.22 2015| NA | NA | 210.27 | 108.40 2016| NA | NA | NA | 109.91 2017| NA NA NA NA NA= Not Applicable *Single premium not included 54, Number of First Year and Renewal Policies (At Actual) 39,838 | 45,655 | 52,832 52,225 | 48,768] Number of new policies issued 2014| N.A [13,246 11,288| 9,127 | 20,448| Number of policy renewed out of the polices issued in 2014 2015 N.A_|_N.A_|15,554] 11,705] 27,659| Number of policy renewed out of the polices issued in 2015, 2016| NA | NA | NA | 15,939] 41,317| Number of policy renewed out of the policies issued in 2016 2017| NA | NA |_N.A_|_N.A_| 27,517|Number of policy renewed out of the polices issued in 2017 NA= Not Applicable *Single premium not included “Dividend declared in 2014 from actuarial surplus in 2013 & 2014. ‘***Dividend did not declared in 2015 due to non availability of Actuarial Valuation Report. “Dividend declared in 2016 from actuarial surplus in 2015 & 2016. Actual Vs Allowable Management Expenses 1000.00 1800.00 1 Actual Management 0000 Expenses p00) Allowable Management 200.00 Expenses 00 2014 2015 2016 2017 2018 + Some important aspects of financial affairs of the Company are portrayed in the Directors Report. oePRAGATI LIFE insurance uMireD Pragati Life Insurance Limited Declaration by CEO and CFO Date: 18 June 2019 ‘The Board of Directors Pragati Life Insurance Limited 20-21, Kawran Bazar (2nd -6th & Sth Floors) Dhaks-1215, Bangladesh, ‘Subject: Declaration on Financial Statements for the year ended om 31December 2018, Dear Sirs, Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/Asmin/80 ‘Dated 03 June 2018 under section 2CCof the Securities and Exchange Ordinance, 1969, we do hereby declare that: (1) The Financial Statements of Pragati Life Insurance Limited forthe year ended on 31 December 2018 have been prepared in compliance ‘with Intemational Accounting Standards (IAS) ot Intemational Financial Reporting Standards (IFRS), as epplcable in the Bangladesh and any departure there from has been adequately disclosed; (2) The estimates and judgments related tothe financial statements were made ona prudent and reasoneble basis, inorder forthe financial statements to reveal a tr and fair view; G) The form and substance of transactions and the Company's state of affairs have been reasonably and fairly presented in it financial statements; @) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance of accounting records; (6) Our intemal auditors have conducted periodic audits to provide reasonable assurance thatthe established policies and procedures of the Company were consistently followed; and (© The managements use ofthe going concem bass of accounting in preparing th financial statements is appropriate and there exists no ‘material uncertainty related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concer, Tn this regard, we also certify that (@ We have reviewed the financial statemens forthe year ended on 31 December 2018 and that to the best of our knowledge and belief: (@) These statements do not contain eny materially untruestatement or omit any material facto contain statements that might be misleading; (©) These statements collectively present true and fir view of the Company's afairs and are in compliance with existing accountng standards and spplicale laws. Gi There ar, tothe best of knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal orn violation ofthe code of conduct fr the company's Board of Directors or its members. Sincerely yours, Chief Executive Officer (CEO) Chie Financia Officer (CFO) rer)Auditors’ ReportAN PRAGATI LIFE OX} insurance unite. To ‘The Shareholders Pragati Life Insurance Limited Pragati Insurance Bhaban (6th floor) 20-21 Kawran Bazer, Dhaka-1215 Bangladesh INDEPENDENT AUDITORS’ REPORT & AUDITED FINANCIAL STATEMENTS of PRAGATI LIFE INSURANCE LIMITED FOR THE YEAR ENDED 31 DECEMBER 2018 Cer)A\, PRAGATI LIFE XY insurance unite. Independent Auditors’ Report To the Shareholders of Pragati Life Insurance Limited Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Pragati Life Insurance Limited (the Company), which comprise the Balance Sheet as at 31 December 2018, Revenue Account, Statement of Changes in Equity and Statement of Cash Flows for the year then ended and a summary of significant accounting policies and explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2018, its financial performance and its cash flows for the year then ended in accordance with applicable International Financial Reporting Standards (IFRSs) and International Accounting Standards(IASs), the Companies Act (#18) 1994, the Insurance Act 1938 (as amended in 2010), the Bangladesh Securities and Exchange Rules 1987 and other applicable laws and regulations. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical respon- sibilities in accordance with those requirements We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibility described in the Auditors’ Responsibilities for the audit of the Financial Statements section of our report, including in relation to those matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements. CoCr)PRAGATI LIFE Key Audit Matter ‘How our audit addressed the key audit matter Contingencies relating to income tax (refer to note 3.06.01 of the financial statements) Contingent Tiabilities are current or possible obligations arising from past events and whose existence is due to the occurrence or non-occurrence of one or more uncertain future events which are not within the control of the Company. The company has pending tax assessments for the assessment year 2012-2013, 2013-2014, 2014-2015 and 2015- 2016. The aggregate claim is Tk. 179,465,443. The Company is contesting the case in different stages of appeal in the tax office and confident that the verdict will be jin their favor. The Company has paid advance tax (AIT) of Tk. 208,738,968 standing as on 31 December 2018 (refer note-18.01). Our audit procedures included: * Understanding the process of estimating, recording and reassessing tax provision and contingencies. © Analyzing the reports on open tax assessments prepared by the company’s tax advisors to understand the position and conclusions made by the Company. ‘* Inspecting the correspondence with tax authorities, where available. © We also assessed the adequacy of the Company's financial statements disclosure in respect of the tax positions and contingent liabilities, | Provision for income tax (refer to Revenue Account and note 8 of the financial statements) Provision for income tax requires consideration of incomes from both ‘actuarial surplus’ and ‘gross external incomings’ in accordance with the 4" Schedule of the Income Tax Ordinance (ITO 1984). For this purpose after the year-end, the appointed Actuary of the Company provides a summary and valuation of the policies as per ‘Form H’ as stated in the Insurance Act 1938 (as amended in 2010). Policy liability (as per actuarial valuation) amount in excess of the ‘Life Fund as reported in the Financial Statements’ is referred to as ‘actuarial surpluses. Also the income from ‘gross external incomings less. management expense’ is derived. As per the ITO 1984, tax has to be calculated on the higher base comparing between the incomes from ‘actuarial surplus’ and ‘gross external incomings’ at the rate applicable considering the allowable deductions as per the 4" Schedule of the said Ordinance. In the financial statements company has made provision for income tax of Tk. 20,000,000 for the current year. ‘We reviewed the tax calculation work flows and telated details. To be specific, our substantive testing procedures included the following: * We made sure that tax was calculated on the higher base comparing between the incomes from actuarial surpluses and “gross external incomings’. © Actuarial surplus was derived properly taking into consideration the approved Form H by the appointed Actuary. ‘* Incomes from ‘gross extemal incomings’ were derived properly. © Deductions as allowable by the 4" Schedule of ITO 1984 were applied duly. Cee) INSURANCE LIMITEDA\, PRAGATI LIFE ON insurance uated Valuation of outstanding claims (refer to note 6 of the financial statements) ‘Outstanding claims include outstanding death claim, outstanding maturity claim and outstanding survival benefit, which is due to or intimated during the period. As disclosed in Note 3.09 claim cost consists of the policy benefit amount and claim settlement cost, where applicable. Death claims are accounted for on receipt of intimation. Annuity benefits and Maturity benefits are accounted when due. Surrenders are accounted for on the receipt of consent from the insured to the quote prescribed in the policy deed provided by the Company. To test the valuation of the insurance contract liabilities, we performed the following audit procedures: ‘+ We evaluated and tested controls around the claim handling and reserving. + To test the reasonableness of the Company’s estimation process, or a sample of claims, we ‘compared actual claim payments in the year to the prior year claims estimate provisions and no material differences were noted. + Verified the validity of claims outstanding by testing on sample basis of claims with the available supporting documents. Re-insurance and other recoveries (refer to note 7 of the financial statements) ‘The company has extensive re-insurance arrangements with Munich Re-insurance company designed to protect its aggregate exposure to risky claim events. Our audit procedures included amongst others: © Testing, for a sample of contracts, how the re-insurance claims accounted for including their processing. © Evaluating a sample of the transactions processed relating to the re-insurance contracts, we tested the consistency of the contract terms to the criteria for the recognition of the transaction contained in those requirements. Revenue Recognitions (refer to note 3.01) Revenue is one the key areas of audit, It is significant by nature. There are various risks involved in manipulation of revenues. The Company followed applicable IFRS in revenue recognition and carefully maintained internal controls over the recording of the revenue in the books of account. The work that we performed to address this key audit matter included the following procedures: © We assessed whether the revenue recognition policies complied with IFRS and tested the implementation of those policies. * We evaluated the relevant revenue recognition systems and tested the operating effectiveness of the internal controls over the recording of the revenue in the current period. '* We also tested a risk based sample of journal entries posted to revenue accounts to identify any unusual and irregular items. Cocos)Q\ PRAGATI LIFE INSURANCE UNITED Going Concern | (refer to note 2.07) Financial Statements have been prepared on going concern basis. As per management assessment there is no material uncertainty related to events or conditions which may cast significant doubt upon Company’s We have reviewed carefully the Company's such assumptions and disclosures and do not have any adverse comments to make. Our conclusions are based on the audit evidences ability to continue as a going concern, obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concer. ‘Management’s Responsibility on Other Information, Management is responsible for the other information. The other information comprises all of the information in the Annual report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not and shall not express any form of assurance conclusion thereon. Responsibilities of Management and Those Charged with Governance for the Financial State ments and Internal Controls Management is responsible for the preparation and fair presentation of the financial statements in accordance with applicable International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), the Companies Act (#18) 1994, the Insurance Act 1938 (as amended in 2010), the Bangladesh Securities and Exchange Rules 1987 and other laws and regulations applicable for the life insurance companies in Bangladesh and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concer basis of accounting unless management either intends to liquidate the Company or to ‘cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with applicable International Standard on Auditing (ISAs) will always Coe)PRAGATI LIFE 2X3 insurance unreD detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. ‘As part of an audit in accordance with ISAs, we exercise professional judgment and maintain profes- sional skepticism throughout the audit. We also; * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrep resentations, or the override of internal control. + Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, + Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. + Conclude on the appropriateness of management's use of the going concem basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern, If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclo sures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report, However, future events or conditions may cause the Company to cease to continue as a going concern. + Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit, We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to comnmunicate with them all relationships and other ‘matters that may reasonably be thought to bear on our independence, and where applicable, related safe- guards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Coe)A\ PRAGATI LIFE ENN insurance unwed Report on other Legal and Regulatory Requirements In accordance with the Companies Act (#18) 1994, the Insurance Act 1938 (as amended in 2010), the Securities and Exchange Rules 1987 and relevant notifications issues by Bangladesh Securities and Exchange Commission, we also report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof; b) Inour opinion, proper books of accounts, records and other statutory books as required by law have been kept by the Company so far as it appeared from our examinations of those books and proper returns adequate for the purpose of our audit have been received from branches not visited by us; ©) As per section 62(2) of the Insurance Act 1938 (amended in 2010), in our opinion to the best of our knowledge and belief and according to the information and explanation given to us all expenses of ‘management wherever incurred directly or indirectly, in respect of insurance business of the Com- pany transacted in Bangladesh during the year under report have been duly debited to the Revenue Accounts of the Company; d) The information and explanations required by us have been received and found satisfactory; ©) As per the Insurance Act 2010, we certify that to the best of our information and as shown by its books, the company during the year under report has not paid any person any commission in any form outside Bangladesh in respect of any of its business re-insured abroad apart from commission arising out of the re-insurance treaties.; £) The Balance Sheet and Revenue Account, Statement of Changes in Equity and Statement of Cash Flows of the Company dealt with by the report are in agreement with the books of account and returns; g) The expenditure was incurred for the purpose of the Company’s business; and h) The company has complied with relevant laws and regulations pertaining to reserves. Ao ola Vora Chy Lew Hoda Vasi Chowdhury & Co Dated: Dhaka, 20 June 2019 Chartered Accountants Annual Report 2018Financial StatementsPRAGATI LIFE INSURANCE LWITED a ‘gemecmy a) 10200 or EE ahora pan np fos mo sy om, om so seams a A, a sao wind at ‘oun uns fo ey a0 mt SA OPIN | my NZ ap, soty shy unpay pan [= Tae es oper 9) yom bs Usvmsoe — Gcwer wor samy fer RE pr > . one syne nds 1 roe seu wou yemeaaaniead pie | oseerice cas OO "SNVIVENAYA GRY SV swore awe uisroies —parvorerss 0s vin ev . over Poa Gps 29 Pp ana av aaTNOSASaAISST orci ae waren gun ee Gs "USTISUANT Tara — “aaron peor 9 oo ocxcose suns ori es pau og og HO “Gasinonuy RT od SURSVORVITRTION SE] ITN [SUTTEVIT ANY TITIES THVT s10z equa re: LGHS TONY (ALINE AONYUNSNE AIT ALY V Coe)PRAGATI LIFE INSURANCE LPAITED Levey socwsveey ‘wre eurear ee secsscone nuyeccieet sscvoiut || escrive: WHE vr ot sive ove rd (@apoond () sugar Supa snes urge) sms pur soe () (Comm 9 99 897) soy oneness () sess) ound esos, am dtosy sa eg sam spun pas Sus ‘eX SONYanSNTeRH SFT COALYIRLLNT id ONIGYDND SaDNIOUwHANASKIVD | reeveNICY —_LUISy9IES RON | ar vavd | STON ‘uot fn ‘8107 s9qma20q 1¢ popED 4969p 0K INDODOV ANIA (ALIN 3DNVOSNI AAT LVR 02412990 say pur cpu SL can 0 SONVHNSNT SSH NINA Coo)INSURANCE LIMITED PRAGATI LIFE A saemaney pL 0 9 Kamgpang 9 HH, a hrnp yy ‘an es foods mo dy swan sora aman yO MHEHKE PMD amanos avin.) emo, i ¢ Hy Foon og aii ‘somos pune fo ued so wo ws 20ftuny Sm, Pe APPS‘ ARN 0 | SON OIE AL ‘09019, 90g -oy sie moped Tene rarer wotsvanes Tae erm vgs ame “ 2p pm 0 pea Jo OEE voces pra soon sesso, smd 20 ‘sone prune, tama Son “omy, oy 924 NRRL yada 9 seg apo eek eet some HOW REL meng 24 0X sag PMU TEC 8 8 song, mg eons seopaugns 9 9 |= E A Mg duns respacao 9 dams sang |] = : emg ‘so tou wean Suda) snk m04 ‘ores badd sg mA AL e UPON sso | Liesince 3805 pond Seed moa sunveg2394 and 2 4 ou pera eg RONEN NE] SHON IROOM vt 102 ‘8107 s9qu99q 1 PAPLD 19K 9 10 ANAODDY aQNHAT ALINE ADNVUASNT ATT LV VU Annual Report 2018AN PRAGATI LIFE IX insurance united PRAGATI LIFE INSURANCE LIMITED FORM-"AA" (Classified Summary of the Assets in Bangladesh As at 31 December 2018 BOOK VALUE MARKET VALUE CLASS OF ASSETS Taka Taka REMARKS Loans On insurer's Policies within their surrendar value 34444 058 26,028,790 Realizable Value Investment Statutory Deposit with Bangladesh Bank 19,000,000 19,000,000 Atcost ‘Bangladesh Govt. Treasury Bond 1,834,000,000 1,834,000,000 Atcost Investment in Shares 173,474,413 481,527,971 | Market Value VIPR Accelerated Ineome Unit Fund 9,973,550 9,475,250 | Market Value UFS-Pragati Life Unit Fund 10,000,000 9,890,000 | Market Value HEAML Unit Fund 9,999,765 10,210,065, Atcost Investment in Bond 294,383,245 294,383,245 Atcost 950,830,973 2,658,486,531 Cash, Bank & Other Balances: On Fixed Deposit with Banks & Financial Institutes 7,961,908,787 T,961,908,747 | Realizable Value Cash in Hand, STD & Current Account with Banks 336,285,376 336,285,376 | Realizable Value Interest, Dividends & Rents accrued but not due 134,768,937, 134,768,937 | Realizable Value 2,432,963,060 2,432,963, 060 Other Assets: ‘Stamps, Printing & Stationery in Hand 172,652 3.172.652] At Average Cost Ouistanding Premium 183,877,825 183,877,825 | Realizable Value Advances & Deposits 281,274,359 281,274,359 | Realizable Value Sundry Debtors 88,943,338 88,943,338 | Realizable Value Fixed Assets (At cost less depreciation) 73,397,273 73,397.273 | Depreciated Value Intangible Assets (At cost less amortisation) 1.133,996 1,133,996 | Amortized Value (636,799,443 636,199,443 6,055,037 534 784377 824 1. Independent Auditors’ Report- Pages 74 t0 80. 2. The annexed Notes 1 10 43, "Annexure-1", "Schedule-1" and "Directors! Certificate" form an integral part ofthese Financial statements. & ‘Company Secretary Chiet Executive Officer Dated: Dhaka, 20 June 2019 rrr)AN PRAGATI LIFE NY insurance unten PRAGATI LIFE INSURANCE LIMITED. ‘Statement of Life Insurance Fund ‘As at 31 December 2018 “Annexure-t" BDeels B-DeelT ASSETS: Notes TAKA, TAKA Loans on Insurers' Policies within their Surrendar Value u 38S 058 26,028,790 ‘Statutory Deposit with Bangladesh Bank 2 19,000,000 19,000,000 Investment. Bangladesh Govt. Treasury Bond B 1,834,000,000 | _1,819,700,000 Investment in Shares 1s 481,527,971 || $17,848,042 ‘UFS-Pragati Life Unit Fund 9,890,000 10,000,000 HFAML Unit Fund 9,999,765 - VIPB Accelerated Income Unit Fund 9,415,250 9973550 Investment in Bonds 4 204,383,245 || 382,069,857 Outstanding Premium 16 183,877,825 85,356,407 Interest, Dividends & Rents accrued but not due 0 134,768,937 || 130,198,704 Advances & Deposits 18 281,274,359 || 335,166,976 ‘Sundry Debtors 19 88,943,338 81,461,174 Cash & Bank Balances 2,298,194,123 || 1,906,349,447 ‘Stamps, Printing and Stationery in Hand 8,172,652 8,846,799 Fixed Assets (at cost les depreciation) Schel 73397273 83,187,038 Intangible Assets (At cost less amortisation) Schel 1,133,996, 1,752,906 5762,482,792__ $,416,939,690 LESS: LIABILITIES “Amount due to other persona or bodica carrying crying on indurmoe 1 SAAS || oTRTTONS Estimated liabilities in respect of outstanding claims whether due or 6 7,064,352 1157,65 Sundry Creditors 8 295,742,992 || 231,369.950 Premium Deposits 9 1o,88i.797 ||__ 15327384 —_S139,606, 32247904 GROSS FUND (Asset - Liabilities) 5 390,348,188 594,466,786 Less: Shareholders’ Capital (Pad-up Capital) 4 153491750 121,356,140 |Add: Fair Value Change Account 10 292,554,742 243,340,431 Life Insurance Fund as on 31 December 2018 3519.406,180_ —5216451,077 "Note: Accretion to Life Insurance Fund during the year was Tk. 332,955,103 1. Independent Auditors' Report- Pages 74 to 80. 2. The annexed Notes I 10 43, "Annexure-I", "Schedule-1" and "Directors' Cerrtficate" form an integral part of these financial statements. Company Secretary Chief Executive Officer Director Director Dated: Dhaka, 20 June 2019 rrr)PRAGATI LIFE 2 insurance unre PRAGATI LIFE INSURANCE LIMITED Statement of Cash Flows For the year ended 31 December 2018 2018 2017 NOTES TAKA TAKA A. CASH FLOW FROM OPERATING ACTIVITIES : Collection from Premium 2AG1,378,953 | [_2,312,242,066 Other Income received 1,712,756 1,452,395 Payment for Claims (1,664,001,692)| | (1,319,120,033) Payment for management expenses, commission, re-insurance and others (795,826,734)] | (941,148,307) Source Tax (Income Tax) deducted (19,354,329)] |__(20,847.225) ‘Net Cash Flow from operating activities 16,091,046) 32,578,896 B. CASH FLOW FROM INVESTING ACTIVITIES = Acquisition of Fixed Assets (11,651,990) [| 21,859,012) Disposel of Fixed Assets 1,162,145 3,025,092 ‘Loan against Policies paid (Net of Realization) (8,415,268) (8,156,285) Investments made 51,100,907 (35,507,396) Interest, Dividends and Rents Received 393,449,356 || 386,286,140 ‘Net Cash Flow from investing activities 425,645,149 323,788,539 C. CASH FLOW FROM FINANCING ACTIVITIES : Dividend Paid 17,709,427) $152,077 [Net Cash Flow from financing activities (07,709,427) (8,152,077) D. Net increase in cash and cash Equivalents (A+B+C) 391,844,676 348,215,358 E, Cash and Cash Equivalents at the beginning of the year 1,906,349,447 _1,558,134,089 F. Cash and Cash Equivalents at the end of the year (D+E) 2298194123 1906349487 1 Independent Auiitors' Report. Pages 74 10 80. 2 The annexed Notes Ito 43, "Annexure-I”, "Schedule-1" and "Directors' Cerrificate" form an integral part ofthese Financial statements. oo ar Poole doapySesiey aoe Dated: Dhaka, 20 June 2019 roe)AN PRAGATI LIFE EX insurance uate PRAGATI LIFE INSURANCE LIMITED Statement of Changes in Shareholders’ Equity For the year ended 31 December 2018 General | Retained | Other Particulars Share Capital |Share Premium) O° | tarnings| Reserve | Tal [Balance as on 01 January 2018 121,356,140 : : = : 121,356,140 [Bonus Share for the Year 2017 12,135,610 : : : 5 12,135,610 [Balance as on 31 December 2018 | 133,491,750. = = z = 133,491,750. [Balance as on 01 January 2017 103,723,200 : - - : 103,723,200 lBonus Share for the Year 2016 17,632,940 : : - : 17,632,940 [Balance as on 31 December 2017 | _ 121,356,140 : - : : 121,356,140 1. Independent Auditors’ Report- Pages 74 to 80. 2. The annexed Notes 1 10 43, "Annexure-1", "Schedule-I" and "Directors' Cerrtificate” form an integral part of these ‘Financial statements. We nasi Qh Company Seeretary Tee Diner Dated: Dhaka, 20 June 2019 rer)A\. PRAGAT! LIFE 1.00 1.01 1.02 2.00 2.01 INSURANCE LIMITED PRAGATI LIFE INSURANCE LIMITED NOTES TO THE FINANCIAL STATEMENTS As at and for the year ended 31 December 2018 LEGAL STATUS AND NATURE OF BUSINESS, Legal Status Pragati Life Insurance Limited is a third generation life insurance company established on 30" Jamuary 2000 as a public limited company under the Companies Act (#18) 1994 and registered under the Department of Insurance on 11" April 2000. The Company went for public issue in November 2005 and its shares are listed in both Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. The registered office of the Company is situated at Pragati Insurance Bhaban, 20-21 Kawran Bazar (2nd, 3rd, 4th, 5" and 6th floor) Dhaka-1215 Nature of Business The Company is engaged in the business of providing life insurance, pension and health insurance business since its incorporation. The Company offers a wide variety of insurance products which fulfils the requirements of our present and prospective policy holders. The product portfolio of the Company feeds the following insurance lines: a) Individual Life Insurance ) Group Insurance ©) Urban Project 4d) Micro-Insurance (Rural Insurance) ¢) Islami Jibon Bima (Takaful) £) Islami Deposit Pension Scheme (IDPS) BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE ‘Statement of Compliance These financial statements have been prepared in accordance with + Insurance Act 1938 (As amended in 2010), + Insurance Rule 1958, + The Companies Act (#18) 1994, + Bangladesh Securities and Exchange Rules 1987, + Listing Regulations of Dhaka and Chittagong Stock Exchanges, + Income Tax Ordinance 1984, + Income Tax Rules 1984, * The Value Added Tax Act 1991, + The Value Added Rules 1991, + International Financial Reporting Standards (IFRS) which comprise; (i) Intemational Financial Reporting Standards (ii) International Accounting Standards (iii) Interpretations royAN. PRAGATI LIFE EX surance ume Any other laws, regulations, covenants, conventions and practices prevailing with the life insurance industry in Bangladesh, The titles and format of these financial statements have been prepared as prescribed in the Insurance Act 1938 (as amended in 2010), Insurance Rules 1958 and Bangladesh Securities and Exchange Commission Rules 1987. Where the requirement of the Companies Act (#18) 1994, The Insurance Act 1938 (as amended in 2010), Bangladesh Securities and Exchange Commission Rules 1987 differ with the requirements of these standards, the requirements of the Companies Act (#18) 1994, The Insurance Act 1938 (as amended in 2010), Bangladesh Securities and Exchange Commission Rules 1987 shall take precedence. Application of International Financial Reporting Standards (IFRS) The Accounting and Financial reporting Standards that are applicable for the preparation of these fi IAS-1 TAS-2 IAS-7 IAS-8 IAS-10 IAS-12 IAS-16 IAS-19 IAS-21 IAS-24 IAS-32 IAS-34 IAS-36 1AS-37 IAS-38 IAS-39 IFRS-4 IFRS-7 IFRS-9 IFRS-L IFRS-1 inancial statements for the year under review, include the following. Presentation of Financial Statements. Tnventories Statement of Cash Flows ‘Accounting Policies, Changes in Accounting Estimates and Errors Event After the Reporting Period Income Taxes Property, Plant and Equipment Employee Benefits The Effect of Changes in Foreign Exchange Rates Related Party Disclosure Financial Instruments: Presentation Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Financial Instruments: Recognition and Measurement Insurance Contracts Financial Instruments: Disclosures Financial Instruments 3 Fair Value Measurement 5 Revenue from contracts with customers New Standards and amendments to Standards adopted by the Institute of Chartered Accountants of Bangladesh subsequent to 31 December 2018 that ate applicable to the Company will be taken in to consideration in due course. Material departures from the requirements of IFRS is as under: Valuation of Equity Shares: IFRS: As per requirements of [AS 39 investment in shares and securities generally falls either under “ change ‘at fair value through profit and loss account” or under “available for sale” where any in the fair value (fair value is the lowest of the quoted closing price at the balance sheet rrr)AN. PRAGATI LIFE OX insurance unateD date) at the year end is taken to profit and loss account or revaluation reserve respectively. As per IDRA circular no. 4/2012 dated 11 June 2012, unrealized gains/losses arising due to changes in the fair value of the listed equity shares should be taken under Fair Value Change Account. 2.02 Basis of Presentation Financial Statements have been prepared under the historical cost convention on accrual basis (except Statement of Cash Flows) and except as disclosed in the accounting policies mentioned below. 2.03 ‘The Functional and Presentation Currency The financial statements are prepared in Bangladeshi Taka, which is the Company’s functional currency. All amount presented in these financial statements have been rounded off to the nearest taka, 2.04 Use of Critical Accounting Estimates and Judgments ‘The preparation of financial statements requires management to make judgments, estimates and assumptions that effect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. The estimates and assumptions used in these financial statements are based upon management's evaluation of the relevant facts and circumstances on the date of the financial statements. Actual result may differ from the estimates. Any revision to the accounting estimate is recognized prospectively. The estimates and underlying assumptions are reviewed on an ongoing Basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised. The arcas ‘here required assumptions and estimates are significant to the Company's financial statements ‘or where Judgment was exercised in application of accounting policies are as follows: a) Useful life of depreciable assets. ) Impairment of assets. ¢) Re-insurance recoveries against outstanding claims. 4) Provision for income taxes. e) Estimated liabilities and provisions. {On insurances’ policies within their surrender value. 2) Accrued income and accrued expenses. However, assumptions and judgment made by management in the application of accounting policies that have significant effect on the financial statement are not expected to result in material adjustment to the carrying amount of assets and liabilities in the next year. 2.05 Reporting Period The financial period of the company cover one year from 01 January to 31 December every year and is followed consistently. These financial statements cover one year from 01 January to 31 December 2018. Corer)2.06 2.07 3.00 3.01 3.01.01 3.01.02 A\, PRAGATI LIFE 4X8 insurance unre Components of the Financial Statements The Financial Statements include the following components: a) Balance Sheet, ») Life Revenue Account, ¢) Statement of Cash Flows, 4) Statement of Changes in Shareholders’ Equity, ¢) Statement of Life Insurance Fund, 4) Classified Summary of the Assets (Form AA), g) Accounting policies and Explanatory Information (including, annexure and schedule), h) Director's Certificate. Going concern The company has adequate resources to continue its operation for foreseeable future. As per management assessment there is no material uncertainty related to events or conditions which may cast significant doubt upon the Company's’ ability to continue as a going concern, For this ‘reason the financial statements have been prepared on going concern basis. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ‘The accounting policies adopted in preparation of these financial statements have been applied consistently over the years. Significant accounting policies adopted in preparation of these financial statements are set out below: Revenue Recognitions The Company followed "IFRS 15: Revenue from Contracts with Customers” in revenue recognition and carefully maintained internal controls over the recording of the revenue in the books of account. Revenue is net of VAT and it represents all business arising in Bangladesh. Premium ‘An insurance premium is the amount of money that an individual or business must pay for an insurance policy. Premium is the principal source of revenue for insurance companies. Individual Life Policies i. Individual life first year, renewal and single premiums are recognized once related policies are issued/renewed against receipt and realization of premium. ii, Premium outstanding as at 31 December 2018, for which the grace periods has not been expired as on Balance Sheet date and collected subsequently by 31 January 2019 are also recognized as revenue. iii, Uncollected premium from lapsed policies are not recognized as income until such policies are revived. rrr)SN PRAGATI LIFE ENS insurance umTeD 3.01.03 Group Insurance Policies The premiums of Group policies are recorded after receipt of the premiums. However, Provision for outstanding premium for the accounting year represents premium receivable as on 31 December 2018 for which grace periods did not expire as on Balance Sheet date. The entire amount of outstanding premium has been realized subsequently. 3.02 Reserve for Unexpired Risk-Group Business Gross premium proportionate to the unexpired duration of the period for which the respective premium have been billed and received are held as reserve for unexpired risk. 3.03 Interest, Dividend and Rents i. Interest income is recognized on accrual basis (except project loan) for the number of days these are held taking into account effective yield on the instruments, unless otherwise stated, ii, Dividend income is recognized when the dividend is received iii, Rental income is recognized on accrual basis, except the cases that are under litigation. iv. Accretion of discount and amortization of premium in respect of debt securities and other fixed income securities are amortized over the remaining period to maturity of such instruments on straight line basis. vv. Profit/ (loss) arising on the sale of listed equity shares is recognized on the basis of the settlement date, vi. Policy loans against the security of life insurance policies are allowed to the policy holders to the extent of 90% of surrender value of the respective policy provided the policy has been in force for not less than two years. vii Interest on policy loans are accounted on cash receipt basis. viii, Realized gains and losses in respect of financial instruments, such as, equity securities, units of mutual funds, and corporate bonds listed in the stock exchange are calculated as the difference between the net sales proceeds and their cost using the weighted average method, that is, profit or loss on sale of the listed financial instruments are recognized in the income statement on cost basis. ix. Income on debenture is recognized at prescribed rates except recovery is considered doubtful, in which case the income is recognized on a receipt basis. x, Interest incomes on bank deposits (FDR) are recognized on accrual basis. xi, Interest and tax) idend income are accounted at gross value (before deduction of income Annual Report 20183.04 3.05 3.06 3.06.01 3.06.02 3.07 A\, PRAGAT! LIFE 23% insurance unired Re-insurance premium The Company, since its inception maintains re-insurance arrangement with Munich Reinsurance, a German Company. The net retention of the company for individual life is Tk. 2 lac per policy and for Group life Tk. 10 lac per person of risk. Re-insurance premium is recorded as an expense evenly over the period of the reinsurance contact and off-set against the premium income of respective year. Provision has been made on the Basis of best available information. Commission received on re-insurance ceded is recognized as income, and net off against ‘commission paid, in the period in which insurance premium is ceded. Provisions A provision is recognized at the balance sheet date if, as a result of past events, the Company has a present legal or contractual obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions have been made against the loans and advances with small prospect of recovery. Provisions have not been made against the loans and advances for which legal cases instituted but remained pending for decision at the balance sheet date. Contingencies and Commitments Contingencies Contingencies arising from claim, litigation, tax assessment, fines, penalties, ete. are recognized when it is probable that the obligation has been incurred and the amount can be reasonable measured. Contingent liabilities are current or possible obligations arising from past events and whose ‘existence is due to the occurrence or non-occurrence of one or more uncertain future events which are not within the control of the Company. The company has pending tax assessments for the assessment year 2012-2013, 2013-2014, 2014-2015 and 2015-2016. The aggregate claim is Tk. 179,465,443. The Company is contesting the case in different stages of appeal in the tax office and confident that the verdict will be in their favor. The Company has paid advance tax (AIT) of Tk. 208,738,968 standing as on 31 December 2018 (refer note-18.01). Commitments Bank guarantees of Tk. 28,12,679.30 has been given in respect of Small & Medium Enterprise Foundation, Grameen Phone Ltd, BD Steel & Engineering Corporation and National University. The bank guarantee will expire on 04/04/2019, 31/12/2019, 28/02/2020, 30/04/2020 and 03/07/2021 respectively. Pret 1m Deposit Premium deposit represents premium received but risk has not yet been accepted because of the pending underwriting decision as at 31 December 2018, roe)