Annual Report 2017

Pragati Insurance Ltd. achieved “AAA” in the Credit Rating. Photo shows Mr. Md. Asaduzzaman Khan, Man-
aging Director & CEO of National Credit Ratings Limited handing over the Certificate to Mr. Md. Rezaul
Karim, Managing Director & CEO of Pragati Insurance Limited. The senior officials of both the organizations
are also seen in the picture.
 Contents
05 • Letter of Transmittal 3
• Notice of the 32 Annual General Meeting 4
nd

• Company Profile 5

Company Profile
• Vision & Mission Statement 7
• Core Values 8

07 • Business Strategy
• Pragati Services
9
10

12 • Insurance Services
• Chairman’s Report
11
12
• Directors’ Profile 16
Vision & Mission • Executives 27
• Executives Images in Group 28
Chairman’s Report • Company’s Performance 35
• Value Added Statement
48
37
• Directors’ Report 38
• Directors’ Report to the Shareholders 47
• Corporate Governance 48
• Ownership Status 57
Corporate Governance • Compliance Report & Certificate 58
• Report of the Audit Committee 59

95 91 • Responsibility Statement of CEO And CFO 60

• Auditors’ Report 61
• Notes to the Financial Statements 74
• Fixed Assets 87
List of • Form ‘AA’ 88
Events Branches • Revenue Account 89
• Directors’ Certificate 90
• List of Branches 91
102 • Events 95
• Glimpses of 31st AGM 96
• Images of Board/Committee Meetings 98
• Our Achievements 102
Our Achievements • A view of the Mothjheel Area Branches 103
• Training activites of the Company 105
• Pragati Annual Picnic 106

2 Annual Report 2017

 Letter of Transmittal

All Shareholders;
Bangladesh Securities & Exchange Commission;
Insurance Development & Regulatory Authority;
Registrar of Joint Stock Companies & Firms;
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited

Sub: Annual Report for the year ended 31st December 2017

Dear Sir(s)
The undersigned has the privilege to forward a copy of Annual Report of Pragati Insurance Limited
together with the Auditors’ Report & Audited Financial Statements including Balance Sheet as at 31st
December, 2017 and Income statement ( Profit & Loss Account) & Cash Flow Statement for the year
ended 31st December 2017 along with notes thereon for your kind information and record.

Thanking you,

Yours Sincerely,

(Syed Anisul Hoque)

Company Secretary (CC)

Annual Report 2017 3

 Pragati Insurance Limited
Head office: Pragati Insurance Bhaban, 20-21,Kawran Bazar, Dhaka-1215.
Tel: PABX: 9133680-2 Fax: 880-2-55013694

NOTICE OF THE 32ND ANNUAL GENERAL MEETING

Notice is hereby given to all the shareholders of Pragati Insurance Limited that the 32nd Annual
General Meeting of the company will be held on Sunday,the 29th July, 2018 at 11.00 a.m. at the
BIAM Foundation, 63, New Eskaton, Dhaka-1000 to transact the following businesses.

1. To receive, consider and adopt the Directors’ Report and the Audited Financial Statements of the
company for the year ended 31st December, 2017 together with the Auditors’ Report thereon.
2. To declare Dividend for the year 2017 as recommended by the Board of Directors.
3. To retire, elect/re-elect Directors.
4. To consider & approve appointment of Independent Director.
5. To appoint Auditors for the year 2018 and fix their remuneration. By order of the Board of Directors

(Syed Anisul Hoque)

Dated Dhaka , the 24th June,2018
Company Secretary (CC)

Notes: -
1) The record date : 6th June, 2018.
2) Members of the Company whose names appear in the Register of members upto the record date will be entitled to
dividend for the year 2017 to be approved by the shareholders in the 32nd Annual General Meeting.
3) A member wishing to appoint a Proxy, must deposit the Proxy Form duly stamped to the Company’s Registered
Office at least 48 hours before the meeting.
4) Only the shareholders or their appointed proxies can attend the meeting. A proxy must be a member of the company.
5) Entry to the Annual General Meeting is reserved only for the shareholders or his/her Proxy. No guests & children
shall be allowed for entrance in the meeting.
6) Shareholders bearing BO IDs are requested to update their respective 12 digit E-TIN number through
their Depository Participant (DP)and shareholders those who are bearing Folio Numbers are requested to
submit their 12 digit E-TIN Number to the Share Department of the Company latest by 2nd July, 2018
failing of which income tax at source will be deducted@15% instead of 10% from the cash dividend.
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8) In compliance with the Bangladesh Securities and Exchange Commission’s Circular No. SEC/
CMRRCD/2009-193/154 dated October 24, 2013, no gift/ gift Coupon/ Food Box shall be distributed
at the 32nd AGM of the Company.

4 Annual Report 2017

 Company Profile

Incorporation January 27,1986

Commencement January 30,1986
Listing with DSE April 04,1996
Listing with CSE April 06,1996

Auditor
Hoda Vasi Chowdhury & Co
Chartered Accountants

Registered Office :
Pragati Insurance Bhaban
20-21, Kawran Bazar
Dhaka-1215 Bangladesh
Phone : PABX : 880-02-9133680-2
Fax : 880-2-55013694
E-mail : info@pragatiinsurance.com
www.pragatiinsurance.com

Annual Report 2017 5

6 Annual Report 2017
 Our Vision
Our vision is to be the leaders in non-life insurance industry in the
country by way of providing expeditious and courteous services
to all our clients; to operate by code of conduct motivated by a
value system that promotes integrity, performance and personal
growth, and to maintain our leading edge in the industry by
striving to boost our financial strength and profitability.

Our Mission
Our Mission is to provide innovative and cost effective non-life
insurance solutions to our clients and an acceptable return to our
shareholders through committed and professional staff.

Annual Report 2017 7

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8 Annual Report 2017

 Business Strategy
Our strategy is designed to achieve
sustainable and profitable growth for
all our stakeholders. To realize this,
our fundamental goal is to have a deep
understanding of our customer’s need and
provide them with high quality insurance
services. We believe that by attending this
vital goal the success will trickle down to
all our stakeholders.

Annual Report 2017 9

 Pragati
Services

10 Annual Report 2017

 Insurance Services
Fire Insurance
• Fire & Allied Perils Insurance
Motor Insurance
• Comprehensive Insurance
• Act Liability Insurance
Health and Accident Insurance
• Overseas Mediclaim Insurance
• Personal Accident Insurance
• Peoples Personal Accident Insurance
• Health Care & Hospitalization Insurance
Marine Insurance
• Marine Cargo Insurance
• Marine Hull Insurance
All Risk Insurance
• Industrial All Risk Insurance
• Erection All Risk Insurance
• Hotel All Risk Insurance
• Machinery Breakdown Insurance
• Electronic Equipment Insurance
• Boiler & Pressure Vessels Insurance
• Power Plant Insurance
• Deterioration of Stock Insurance
• Contractor’s All Risk Insurance
Aviation Insurance
• General Aviation Insurance
• Personal Accident Airline Insurance
• Air Travel Insurance
Miscellaneous Insurance
• Fidelity Guarantee Insurance
• Public Liability Insurance
• Products Liability Insurance
• Burglary & Housebreaking Insurance
• Cash-in-Safe Insurance
• Cash-in-Transit Insurance
• Cash-in-ATM Insurance
• Safe Deposit Box (Bank Lockers) Insurance
• Credit Shield Insurance Policy
• SME Insurance
• Tournament Insurance
• Replacement of Lost Card/Fraud Insurance
• Consquential Loss/Business Interrpution Insurance
• Workman’s Compensation Insurance
• Hotel All Risk Insurance
• Weather Index-Based Insurance

Annual Report 2017 11

Chairman’s Report

12 Annual Report 2017

Annual Report 2017 13
CHAIRMAN’S REPORT According to Swiss Re, 2017 was by far a year
of record breaking losses. Man-made disasters
A MESSAGE FROM THE CHAIRMAN
and natural Catastrophe cost USD 144 billion
Bismillahir Rahmanir Raheem in 2017. Among these were a cluster of back to
Assalamu Alaikum back cyclones (Harvey, Irma and Maria) which
caused huge destruction across the Caribbean
Dear Esteemed Shareholders,
Islands, Puerto Rico, Texas and the western part
With great honor, we present to you our of Florida. Furthermore in 2017, heavy and long
Company’s Annual Report for the financial year running rains during the monsoon season took its
ended 31 December 2017. This Report sets out a toll on lives and material damage in Bangladesh
general overview of our Company’s performance, India and Nepal.
objectives and goals for the forthcoming year.
2017 was a year full of challenges for the
Bangladesh economy in 2017
insurance sector. However, despite the severe
operating environment, we were able to endure According to Bangladesh Bureau of Statistics, our
and demonstrate resilience by improving on our economy (GDP) is predicted to be 7.65% in 2017-
2016 financial results. 18 fiscal year, which is up from 7.28% from the
previous year. This is heartening when coupled
with the fact that we have recently been upgraded
World economy in 2017
from low income country (LIC) to lower-middle
World economy continues to show broad-based income country (LMIC) as per the World Bank’s
momentum. International Monetary Fund (IMF) classification.
updated their Global growth forecast to 3.7%.
This growth has been triggered by a strong The services sector made the highest contribution
performance in the Eurozone, United States, to the GDP growth. It contributed 52.85% to the
Japan and China, which exceeded all expectation GDP and grew 6.33% in 2017 year, slightly down
in 2017. According to the report published in from 6.69% registered a year earlier.
April 2018, improvement in many other emerging
The industrial sector, whose contribution to the
Markets and developing economies is projected.
GDP is 33.71%, grew 11.99% against 10.22% in
The overall growth is attributed to the robust
fiscal 2016-17.
progress in investment and trade. The global
economic situation was volatile during fiscal Our agriculture sector, whose contribution to the
2017 with several key developments like the GDP is 14.10%, grew 3.06% in 2017, up from
United Kingdom’s decision to withdraw from the 2.97% in 2016.
European Union and the presidential elections in
the United States. The anticipated growth in 2018 Bangladesh Non-life Insurance Sector 2017
is credited largely due to the recently approved
U.S. tax policy changes. The overall industry-wise non-life insurance
premium statistics for 2017 are not yet available.
Global Insurance Industry in 2017 The gross premium of non-life private sector
Global Insurance Industry grew by 3% in 2017 insurance companies increased from BDT
and 3.1% in 2018, which is in tandem with the 24,307.85 million in 2015 to BDT 25,392.52
overall world economic growth. The insurance million in 2016, a growth rate of 4.46%. The
premium growth is projected to grow further in growth rate of premium of non-life insurance
the upcoming years with the Asian emerging companies was 1.98% in 2015.
markets share almost equaling that of Insurance
premium growth in Western Europe.

14 Annual Report 2017

 Looking forward I am extremely pleased to announce a cash
Even though the insurance industry has been dividend of 13% and a stock dividend of 5%,
privatized for more than 3 decades now, it is which I hope will get your ratification. A detailed
yet to find its true face in the financial sector in performance for the year, including the Directors’
Bangladesh. The challenges in the insurance sector Report, the Audited Financial Statements and
are many, among which the market saturation the Auditors’ Report for the year ended on
scenario imposes the biggest threat. Currently 31st December 2017 has been presented in the
there are 45 insurance companies operating in Annual Report.
a very small market i.e. BDT 25,392.52 million I express my sincere gratitude to all our
according to 2016 statistics. This has resulted in stakeholders and reiterate my deep appreciation
a cut throat competition, which has given birth to for the continuous guidance and support extended
myriad of bad business ethics and malpractices. to us by the Ministry of Finance, IDRA, Securities
The government’s decision to set up the Insurance and Exchange Commission, Dhaka Stock
Development and Regulatory Authority (IDRA) Exchange, Chittagong Stock Exchange, Sadharan
was much needed and, therefore, was welcomed Bima Corporation, our overseas Reinsurers and
by all at its formation a few years back. However, Brokers, Bangladesh Insurance Association,
IDRA, which became operational in January 2011 Local Banks, Insurance Companies and other
is severely understaffed to oversee the reforms in Financial Institutions.
the industry. It is therefore heartening to see the
USD65 million Insurance Sector Development I extend my sincere appreciation to the Managing
Project undertaking, signed recently between Director and to all the employees of the Company
the Government and the World Bank, which will for their tireless dedication, devotion and effort
help strengthen the regulatory and supervisory made to continually improve the Company’s
capacity of IDRA. performance.
I also take the opportunity to express my
Our Business Performance 2017 gratefulness to our discerning customers, business
Despite a challenging business setting in a small associates and stakeholders for their support and
market, I am happy to announce to you that inspiration. I sincerely thank my fellow members
the company was able to perform well and has of the Board of Directors for their wisdom and
registered growth in 2017. Our Gross Premium guidance.
earning stood at Tk.1664 million in 2017
corresponding to Tk.1542 million in 2016. This I would like to thank all our employees, our
constitutes a growth of approximately 8 percent. clients, our stakeholders, our directors and all of
you for being with us through these years and we
A summarized position of our Company’s are looking forward to sharing company’s success
operation in the year 2017 will help you appreciate with you all also in the future.
the performance of the company during the year
under review: Thank you to everyone who has been a part of our
development and for your steadfast support and
Million Taka trust which has strengthened the company to its
Particulars 2017 2016 Increase (+) present glory.
Gross Premium 1664 1542 +7.91%
Thank you.
Retained Premium (RP) 702 638 +10.03%
Claims- retained portion 76 93 (18.2%)
Underwriting Profit 124.89 93.6 +33.5%
Net Profit Gross 210.3 186.2 12.92% Syed M. Altaf Hussain
Chairman

Annual Report 2017 15

 Directors’

16 Annual Report 2017

 Chairman Vice Chairman

Syed M. Altaf Hussain Khan Mohammed Ameer

Syed M. Altaf Hussain is the present Chairman of
Mr. Khan Mohammed Ameer is the Vice Chairman
Pragati Insurance Ltd. He is one of the promoters and
of Pragati Insurance Limited. Mr. Ameer obtained
a sponsor Director of the company. He was elected
his Graduation degree from the Jagannath College,
Chairman of Pragati Insurance Ltd. in December,
Dhaka and then he started his business Career to
2015 and continuing this position. He represents
joined with his father’s printing business “The Art
Pragati Insurance Ltd. in the Bangladesh Insurance
Press”. Besides business he studied in Graphic
Association as its member. He has got a long and
Arts, Photography and Iscanner operation from Dr.
distinguished career in the fields of food grains, crop
Hell Institute, Kiel, Germany in 1967. Presently,
nutrition, business development, high-rise building
he is the Chairman and Managing Director of
development, technology, business operations and
Padma Group of Companies, Managing Director
financial institutions with over 36 years of experience.
of Eunoos Trade Center Limited, Padma Polly
He is a sponsor director and notably the founding
Cotton & Knit Fabrics Limited, Cheque Bureau
Chairman of Pragati Life Insurance Ltd. As Chairman
Centre Limited, Tex Print Limited, Padma Printers
and CEO of WW Grains Corp. representing Cargill
& Color Limited, Color Trade Limited, Padma
Inc., USA, he pioneered large-scale trading of food
Spintex Limited, Padma Real Estate Limited, Color
grains and fertilizer commodities over three decades.
Process Limited and Ameertex Limited. He is also
Through his work, he has spent considerable time
a Director of Pragati Life Insurance Limited. He is
traveling internationally and had the opportunity to
also associated with other Social and educational
attain an Engineering degree from the University
organizations. He is a widely travelled person and
of Texas as well as successfully completed Grain
has traveled all most all over the world for business
Marketing & Agroceutical courses from North
and other purposes.
Dakota State University and Harvard Business
School. Additionally, he holds the Chairman title
in the following businesses: Sonic Allied Industries
Ltd., WW Properties Ltd. and the editorial board
of ‘The Daily Janata’. He is also Co-Chairman of
Jamuna Resort Ltd. and was former Chief Advisor
of ATDP-II projects funded by the USAID. Several
social, governmental and educational institutions at
home and abroad have acknowledged his agro-based
expertise.

Annual Report 2017 17

 Director Director

Abdul Awal Mintoo Abdul Monem

Mr. Abdul Awal Mintoo is a Sponsor Director of Mr. Abdul Monem is a Sponsor Director of Pragati
Pragati Insurance Limited and past Chairman of the Insurance Limited. He was the former Chairman of
company. He obtained his B.Sc. and M.Sc. degree the Company. He is a leading business personality
from the State University of New York. He also in the country. He is the Chairman and Managing
obtained M.Sc. in Agricultural Economics from the Director of Abdul Monem Limited (AML), one of
University of London. Mr. Mintoo is a visionary man the leading business group of the country. Abdul
and leading business personality in the country. He is Monem Limited is specialized in the construction
the CEO of Multimode Group, Director of Dula Mia of Highways, Bridges, Airports and Flyovers.
Cotton and Spinning Mills, Kay & Que (BD) Limited, AML is the authorized bottler of Coca Cola,
Lal Teer Seeds Limited, North South Seeds Limited, manufacturer of IGLOO Ice Cream. Abdul Monem
M.F. Consumer Limited, NFM Limited, NFM Energy Sugar Refinery Limited a sister concern of AML.
Limited, A & A Investment Limited and Multimode He has keen interest in sports and was the former
Limited. He is also a Director of Heidelberg Cement President of Dhaka Mohammadan Sporting Club.
Bangladesh Ltd, United Hospital Limited and Pragati He is the Promoter of many Social and educational
Life Insurance Limited. He is the former Chairman institutions.
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 of reading and writing and has already
authored few books i, e, Bangladesh Anatomy of
change (Published by Athena press, London.) evsjv‡`kt
cwieZ©‡bi †iLvwPÎ, mšÍvb‡K-wcZvi K_vgvjv Ges evsjv‡`k ivRbxwZ
I ivR‰bwZK A_©bxwZ BZ¨vw`|

18 Annual Report 2017

 Director Director

Mohammed Abdul Awwal Alhaj Khalilur Rahman

Mr. Mohammed Abdul Awwal is a Sponsor Director Alhaj Khalilur Rahman is a Sponsor Director of
of Pragati Insurance Limited and the former Pragati Insurance Limited and Former Chairman
Chairman of the Company. He is a renowned of the Company. He is the Chairman and
shipping personality. Mr. Awwal joined business Managing Director of KDS Group, a renowned
business house in the country. He is the Chairman
from early 1968. He is the Chairman of MKR
of Pragati Life Insurance Limited. He is a Director
Group and Bengal Shipping Line Limited, Khalil of National Bank Limited.
and Sons Limited, Royal Bengal Shipping, Beacon
He is the Founder President of Chittagong
Shipping Lines Limited, Adam Garments Sourcing Metropolitan Chamber of Commerce and
Limited and Beacon Engineering Limited. He is Industries. He is the Chairman of Bangladesh
also a Director of Pragati Life Insurance Limited, CR Coil Manufacturer and Exporters Association
Jamuna Resort Limited and Padma Oil Limited. and is the Vice-President of Bangladesh Inland
He is the Member of Chittagong Club Limited Container Depot Association ( BICDA).He is the
and Gulshan Club Limited. He is the past District Life Member of Bhatiary Golf & Country Club,
Chittagong & a Member of Chittagong Club Ltd.
Governor of Rotary International, District-3280,
Bangladesh. Besides, he is associated with many As an Industrialist, Businessman and Entrepreneur,
Social and Professional Organizations. he achieved a good number of Awards in different
categories. He achieved President Gold Trophy 9
He is the Honorary Consul of the Republic of the
times for High Export of Ready Made Garments &
Philippines in Chittagong. he also achieved a number of awards.
He is the Founder Chairman of Southern
University Bangladesh. Besides he has set up a
number of social and educational institutions in his
native village in Chittagong i.e. Khalilur Rahman
Mohila College, Khalil Mir Degree College,
Khalilur Rahman Girls’ High School, Khalil Mir
Girls High School & Shaindair Al-Haj Abul Khair
Sunnia Senior Madrasha .

Annual Report 2017 19

 Director Director

Md. Syedur Rahman Mintoo Md. Sarwar Kamal

Mr. Md. Syedur Rahman Mintoo is a Sponsor Mr. Md. Sarwar Kamal is a Sponsor Director
Director and former Vice Chairman of Pragati of Pragati Insurance Limited and a former Vice
Insurance Limited. He is the Managing Director Chairman of the Company. He graduated in
of Pro-Star Group. He is the Chairman of K-Tex Economics from the North East Missouri State
Industrial Company Limited and Process Industrial University of USA and obtained Masters of
Company Limited. He is the Honorary Consul of Human Resource Management from the North
Laos People’s Democratic Republic. He is a member East Missouri State University of USA. He is
of Dhaka Club Limited, Gulshan Club Limited and the Managing Director of McDonald Bangladesh
Kurmitola Golf Club, Dhaka. He is associated with (Pvt.) Limited, McDonald Steel Building Products
many Social and Educational institutions. Limited, McDonald Seeds Limited, Polymer Agro
Industries Limited, One Steel Limited and he is also
an Independent Director of National Tea Company
Limited. He is the member of Kurmitola Golf Club,
Dhaka Club, Gulshan Club Limited, Uttara Club,
Dhaka and Army Golf Club, Dhaka. He is an active
Social worker engaged with various activities to
bring positive changes among under privileged
people.

20 Annual Report 2017

 Director Director

Mohammed A. Malek Tabith Mohammed Awal

Mr. Mohammed A. Malek is a Director of Pragati Mr. Tabith Mohammed Awal is a Director of Pragati
Insurance Limited. He graduated in Marine Insurance Limited and a member of the Directors’
Engineering from the Merchant Navy College, Audit Committee. He obtained a Bachelor of
London. He also obtained DTP Class-1 Marine Business Administration and Masters of Science
Engineering Certificate from England. Presently, from George Washington University, USA. He
he is engaged in Marine Technology Consultancy, is a Director of Multimode Group and presently
Ship Owning, Ship Management and Shipping serves as the Deputy Chief Executive Officer of
Agency. He is the Managing Director of Bengal Multimode Group. He is the Managing Director of
Shipping Lines Limited, Associated Traders and Kay & Que(BD) Limited and Jongboo Multimode
Marines Limited, ADAMS Garments Sourcing Chemicals Limited. He sits on the Board of all
Limited, Bencon Seatrans Limited and a Director Multimode Group and Associate Concerns. He is
of Khalil & Sons Limited. He is the Chairman also a Director of Pragati Life Insurance Limited.
of The New School, Dhaka. He was a freedom He has keen interest in Sports, Music and associated
fighter in Liberation War of Bangladesh in 1971. with many social and cultural Organizations. He
He is a member of Chittagong Club Limited and is the President of Soccer Club, Feni and also
Bhatiary Golf and Country Club, Chittagong. He elected the Vice President of Bangladesh Football
is associated with many Social and educational Federation Consecutive for two terms. Mr. Tabith
Organizations. Awal is an elected member of the Executive
Committee of the Metropolitan Chamber of
Commerce and Industry (MCCI) Dhaka, for three
Consecutive terms.

Annual Report 2017 21

 Director Director

A.S.M. Mohiuddin Monem Nasir Latif

Mr. A.S.M. Mohiuddin Monem is a Director of Pragati
Insurance Limited and a member of the Directors’ Audit
Mr. Nasir Latif is a Director of Pragati Insurance
Committee. He is one of the most successful industrialists of Limited and a member of the Directors’ Audit
Bangladesh. He represents the new generation of business Committee. He is the Chairman of Concord
leaders in Bangladesh. Mr. Monem received his Bachelor’s Pragatee Consortium Limited, the Concord Builders
degree in Industrial Engineering from North Eastern
University, Boston, USA in 1991 and Master Degree in
Limited, Cosmos Properties Limited, Engreen
Engineering Management from the same institution in Limited and Prudent Super Mall. He is associated
1994, where he graduated with Honors with CUMLAUDE. with many Social and educational Organizations.
After his graduation, Mr. Monem joined Abdul Monem
Limited (AML). Since then he has revolutionized the way
of doing business at AML. His dedication, commitment
and passion for business have transformed the fortune of
Abdul Monem Empire. Under his leadership, the business
process at AML has gained clockwork efficiency which has
been translated into unprecedented growth in Beverage,
Ice-Cream, Food, Sugar and Construction units. He is
also a Director of Pragati Life Insurance Limited. He has
a keen eye for identifying opportunities and transforming
them into profitable ventures. He has successfully set-
up the first USA-Bangladesh joint venture operation in
Information Technology sector through Service Engine,
where he serves as the Chairman. This is true reflection of
his remarkable business acumen. He has been awarded CIP
(Commercially Important Person)-Export in 2009 and 2011
by the Government of Bangladesh for his great contribution
to export in the Information Technology sector.
Mr. Monem is a great believer in community development.
He takes pride in taking the extra step to go beyond business
activities in order to become a Socially responsible citizen.
In this spirit, he has set-up AML foundation, a non- profit
organization with a view to helping the less privileged
people of the society with their education, healthcare and
other amenities.

22 Annual Report 2017

 Director Director

Md. Mushfiqur Rahman Ms. Nahreen Siddiqua

Mr. Md. Mushfiqur Rahman a Electrical Engineer
Ms. Nahreen Siddiqua is a sponsor Director of
by Profession is a sponsor Director of Pragati
Pragati Insurance Limited. She obtained her MSS
Insurance Limited. He is the Managing Director
Degree from the University of Dhaka. She joined
of Concord Pragatee Consortium Limited, the
her husband’s business and she hold the position
Concord Builders Limited, Cosmos Properties
of Chairperson of Purbachal Steel Mills Limited
Limited, Engreen Limited and Prudent Super
and Purbachal Exclusive Limited. She has much
Mall. He is associated with a number of social and
interest in Industry and share business. She visited
educational instutions.
many Countries of the World. She is associated with
a number of Social and Cultural Organizations.

Annual Report 2017 23

 Director Director

Nigar Jahan Chowdhury Ms.Tahsina Rahman

Mrs. Nigar Jahan Chowdhury is a Director of
Ms. Tahsina Rahman is a Director of Pragati
Pragati Insurance Limited. She is the wife of Alhaj
Insurance Limited. She obtained her BBA from
Younus Chowdhury of Chittagong, a renowned
USTC and MBA in IUB. She is a dynamic, results-
Industrialist. She is also a Director of Chowdhury P
oriented professional with experience and visible
& D Industries Limited, Chittagong and a Director
achievements in business development startup,
of Pragati Life Insurance Ltd. She is associated
strategic business, partnerships and emerging
with many social organizations.
markets including childcare arenas. Out-of-box
thinker with visionary leadership strengths, having
resourceful team player characterized by innovative
entrepreneurial spirit.
She is also associated with number of Social
Organizations.

24 Annual Report 2017

 Independent Director Independent Director

Md. Akbar Hossain Santosh Sharma

Mr. Md. Akbar Hossain is an Independent Director Mr. Santosh Sharma is an Independent Director
of Pragati Insurance Limited. and member of the of Pragati Insurance Limited and a Member of the
Directors Audit Committee. He is a Graduate. He Director’s Audit Committee. He obtained M.S.S.
is the Director of Dula Mia Cotton Spinning Mills degree in Political Science. He also obtained post
Ltd., Kay & Que (Bangladesh) Ltd. and also a graduate diploma in Journalism and secured First
Director of Pragati Life Insurance Ltd. Class First position .
He is a professional journalist and involved with
He is associated with many social and educational this profession more than 25 years. Presently he
institutions in his native village in Feni. He has is associated with the Daily Amader Shomoy as
keen interest in sports and social work. Managing Editor.
He is associated with number of professional ,
social and cultural organization.

Annual Report 2017 25

 Managing Director & CEO

Md. Rezaul Karim

Mr. Md. Rezaul Karim started his career in private
insurance sector with Pragati Insurance Limited as
Managing Director & CEO since 16th July,2017.
He obtained B.Com (Hon’s) and M.Com from
Dhaka University in 1976. He joined Sadharan
Bima Corporation, a state owned Corporation, in
1981 as Trainee Officer. He retired from Sadharan
Bima Corporation after completion of four terms as
Managing Director in 2016.
During his service in Sadharan Bima Corporation,
he worked in various departments such as
Underwriting, Claims & Re-insurance and gathered
vast knowledge and experience. He attended many
insurance related seminars, symposiums and
workshops. He participated in various professional
training courses at home and abroad. Mr. Karim is a
renowned insurance personality. Mr. Karim was the
Vice Chairman of Asian Reinsurance Corporation,
Bangkok.
Apart from insurance Industry, Mr. Karim is well
associated with various social organizations.

26 Annual Report 2017

 Pragati Insurance Limited
Executives
Office
Md. Rezaul Karim Mahtabuzzaman Chowdhury Nahid Akhter Chowdhury
Managing Director & CEO Executive Vice President & In-Charge of Vice President
Re-Insurance Department Branch Control Department, Head
Mr. Kaiser Rahman
Office, Dhaka
Deputy Managing Director & Head of Md. Manjur Hussain
Development Department Executive Vice President Branch Control S.M.Shaheen Akther
Department, Head Office, Dhaka Vice President
Syed Sehab Ullah Al-Manjur Branch Control Department, Head
Deputy Managing Director & Head of Kazi Nakibul Islam Office, Dhaka
Underwriting & Claim Department Executive Vice President Finance &
Accounts Department, Head Office, Mr. Md. Abdur Rahim
Major (Retd) S.M. Aminul Hasan Vice President (Underwriting)
Dhaka
Deputy Managing Director & Head of
VIP Road Branch
Administration & Human Resource Md. Abu Sufian Akhand
Department Senior Vice President & Head of IT Mr. Md. Akkas Ali
Department Vice President
Mrs. Papia Rahman ACII(UK) Administration Department, Head
Deputy Managing Director & Head Mostaque Ahmed
Office, Dhaka
of NT, Health, Training & PRD Senior Vice President
Department Claim Department, Head Office, Dhaka Mr. Golam Sabur Chowdhury
Vice President
Kabir Ahmed. Mamunul Hassan ACII(UK)
Re-Insurance Department, Head Office,
Assistant Managing Director & Head of Senior Vice President
Dhaka
Branch Control Department Special Underwriting, Head Office
Dhaka Mrs. Farida Akhter
Md. Shafiqul Islam Vice President
Chief Financial Officer
Md. Moniruzzaman Khan
Re-Insurance Department, Head Office,
Vice President & Head of Internal Audit
Kabir Ahmed Dhaka
Department
Sr. Executive Vice President & Head of Mr. A.N.M. Abul Quasem.
Legal Department
M. Abdullah
Vice President
Vice President
Bikash Chandra Pal Claim Department, Head Office, Dhaka
Underwriting Department, Head Office,
Executive Vice President Underwriting Dhaka
Department, Head Office, Dhaka

Marketing
Deputy Managing Director iv) Delwar Hossain
i) M. A. Hasan v) Humayun Kabir Majumder Vice President
ii) Sharif Mustaba vi) Md. Azizul Hoque i) S. M. Shamsul Alam
iii) Md. Nazrul Islam vii) Syed Saidul Islam ii) Md. Mojibur Rahman Salim
iv) SMB Shameem viii) Md. Habibur Rahman iii) Nazmul Alam Khan
v) Md. Golam Faruque ix) Murad Ahmed iv) Mahbubul Hoque Chowdhury
vi) Ali Fathker Kallol v) Amjad Hossain Talukder
vii) Md. Sirajul Islam Bhuiyan (Babu) Senior Vice President vi) Md. Belayet Hossain
i) Md. Mujtaba Ali Mahmood vii) A.S. M. Jubair
Sr. Executive Vice President ii) Md. Shakhawath Hossain viii) Md. Razzaqul Haider Chowdhury
i) Bahauddin Ahmed iii) Md. Abdul Mottaleb ix) Ekramul Hoque
ii) Ahmed Faruk iv) G.M. Saidur Rahman x) Md. Kamrul Ahsan Khan Himu
iii) Syed Anisur Rob Chowdhury v) Ashis Kumar Barua xi) Md.Kamrul Islam (Srabon).
vi) Abdul Alim Khan xii) Monwar Ahmed.
Executive Vice President vii) A.S.M. Emdadul Hoque
i) Abdus Salam Business Consultant
ii) Md. Kazi Golam Haider (Dablu) i) Md. Rafiqul Alam Chowdhury
iii) Md. Abu Sarwar Hossain

Syed Anisul Hoque

Company Secretary (CC)
Annual Report 2017 27
 Executives Images in Group

Management Team

28 Annual Report 2017

 Senior Management Team

All Female Officers and Employees of Head Office

Annual Report 2017 29

 Branch Managers, Dhaka City

Branch Managers, Chittagong City

30 Annual Report 2017

 Images of Departments-wise Officers
& Executive of Head Office

Admin & HR

Board Department

Development Department

Annual Report 2017 31

 Accounts & Finance

Audit

Underwriting

32 Annual Report 2017

 Claims

Re-insurance

IT Department

Annual Report 2017 33

 Branch Control

Special Underwriting

Training

34 Annual Report 2017

 COMPANY’S PERFORMANCE
5 Years at a glance
Taka in Millon
2017 2016 2015 2014 2013
Financial Performance
Gross premium 1,664.78 1,542.60 1,512.62 1,387.83 1,269.14
Net Premium 702.35 638.52 607.55 558.07 629
Net claim 82.48 76.72 92.59 136.72 143.02
Underwriting profit 124.89 93.66 23.63 1.2 104.45
Investment income 21.03 5.00 15.24 15.85 15.32
Income from financial service 48.13 63.54 58.32 81.34 68.4
Net profit before tax 210.33 186.27 121.71 109.31 197.66
Net profit after tax 117.78 84.48 48.41 53.1 82.79
Dividend in percent 13+5 10+5 10 10 12.5+5
(Stock) (Stock) (Stock)
Share Capital and Reserve
Paid up Capital 583.8 556.00 556.00 556.00 529.52
Total Reserves & Surplus 2600.17 2507.22 2326.69 2242.42 2242.78
Share Holders Equity 3183.97 3063.22 2882.69 2798.42 2772.3
Assets
Investment in Shares and Securities 416.66 407.66 409.89 394.11 396.97
Cash, FDR and Bank balance 586.92 552.38 582.35 528.65 562.55
Land and Building 2227.24 2205.57 2191.79 2174.56 2086.92
Total Assets 4310.59 4200.13 4065.18 3967.98 3647.11
Ratios
EPS 2.66 2.38 1.74 1.67 2.75
P/E (Times) 11.16 13.4 15.57 24.73 19.56
Solvency Surplus 2146.31 2143.12 2008 2484.41 2678.45
Net Asset Value Per Share 54.54 55.03 51.85 50.34 52.35
Net Cash Flow Per Share 0.54 0.08 0.20 0.18 1.17
Credit Rating
Long Term AAA AA1 AA1 AA1 AA1
Short Term ST1 ST1 ST1 ST1 ST1

Annual Report 2017 35

Growth of Capital
Year Amount
1986-1995 Sponsor’s Capital 30.00
1196 IPO of TK.31 million 61.00
1197 20% Stock Dividend 73.20
2001 30% Stock Dividend 95.16
2002 25% Stock Dividend 118.95
2003 27% Stock Dividend 151.07
2004 25% Stock Dividend 188.84
2005 15% Stock Dividend 217.16
2006 15% Stock Dividend 249.73
2007 35% Stock Dividend 337.13
2008 15% Stock Dividend 387.70
2009 10% Stock Dividend 426.47
2010 5% Stock Dividend 447.80
2011 10% Stock Dividend 492.58
2012 7.5% Stock Dividend 529.52
2013 5% Stock Dividend 556.00
2014 556.00
2015 556.00
2016 556.00
2017 5% Stock Dividend 583.80

Growth of Asset
Year Amount
1986-1990 260.35
1991-1995 495.23
1996-2000 1,014.53
2001-2004 1,380.25
2005 1,404.54
2006 1,546.01
2007 2,449.50
2008 2,662.46
2009 2,900.93
2010 3,012.47
2011 3,461.34
2012 3,459.61
2013 3,647.11
2014 3,967.98
2015 4,045.17
2016 4,200.13
2017 4,310.59

36 Annual Report 2017

 Value Added Statement

VALUE ADDED

Gross Premium 1,664.74

Commission on Reinsurance 58.64
Interest, Dividend & Other Income 115.56
Total 1,838.94

APPLICATION

Net Claim 8.25

Re-Insurance Premium 962.39
Management Expenses 295.98
Commission 221.09
Unexpired Risk Adjustment 36.28
Income tax to Government 3.61
Dividend for Distribution 11.77
Reserve & Surplus. 299.57
Total 1,838.94

Annual Report 2017 37

 Directors’

38 Annual Report 2017

 Directors’ Report 2017 cwiPvjK gÛjxi cÖwZ‡e`b 2017
Bismillahir Rahmanir Raheem wem&wgjøvwni ivngvwbi ivwng
Assalamu Alaikum Avmmvjvgy AvjvBKzg

Dear Shareholders, wcÖq †kqvi‡nvìvie„›`,

On behalf of the Board of Directors, I take this cÖMwZ BÝy¨‡iÝ wjwg‡U‡Wi 32Zg evwl©K mvaviY mfvq
opportunity to express our gratitude and welcome †Kv¤úvbxi cwiPvjbv cl©‡`i cÿ †_‡K Avcbv‡`i‡K Avgv‡`i
you all to the 32nd Annual General Meeting of Pragati K…ZÁZv I ¯^vMZ Rvbvw”Q| Avwg Avcbv‡`i m¤§y‡L †Kv¤úvbxi
Insurance Limited as we present before you the 2017 mv‡ji evwl©K cÖwZ‡e`b, wbixwÿZ wnmve weeiYx Ges
Directors’ Report along with the Audited Financial †Kv¤úvbxi Kvh©µ‡gi cÖwZ‡e`b Avcbv‡`i m`q we‡ePbv Ges
Statements and the Auditors’ Report for the year ended Aby‡gv`‡bi R‡b¨ Zz‡j aiwQ|
on 31st December 2017 for your prudent assessment
and approval.
Global Outlook wek¦ A_©bxwZi PvjwPÎ
A recent World Economic Update by the International AvšÍR©vwZK gy`ªv Znwe‡ji (AvBGgGd) GKwU mv¤úªwZK wek¦
Monetary Fund (IMF) shows that global economic A_©‰bwZK mgxÿvq †`Lv hvq †h, wek¦e¨vcx A_©‰bwZK Kvh©µg
activity continues to strengthen, with global output †Rvi`vi n‡”Q| 2017 mv‡ji g‡a¨ wek¦e¨vcx e„w×i AvbygvwbK
estimated to grow by 3.7% in 2017, or 0.1% quicker nvi 3.7% n‡Z cv‡i| A_ev cÖZ¨vkvi †P‡q 0.1% †ewk|
than expected. This growth has been mainly due to a
strong performance in the Eurozone, United States,
BD‡iv †Rvb, gvwK©b hz³ivóª, Rvcvb Ges Px‡b GKwU kw³kvjx
Japan and China, which was beyond all expectation. Kg©`ÿZvi Kvi‡b GB cÖe„w× n‡q‡Q| hv mKj cÖZ¨vkvi D‡×©|
Emerging markets & developing economies are D`xqgvb evRvi Ges Dbœqbkxj A_©bxwZ 4.6% G `vov‡Z
expected to grow at 4.6%, while advanced economies cv‡i e‡j Avkv Kiv n‡”Q, Z‡e DbœZ A_©bxwZ 2.2% G e„w×
are expected to grow at 2.2%. cv‡e e‡j Avkv Kiv n‡”Q|
The growth forecast for 2018 and 2019 shows stronger 2018-2019 mv‡ji cÖe„w×i c~ev©fv‡m †`Lv hvq †h, Gwkqvq
growth in advanced economies of Asia, including the DbœZ A_©bxwZ‡Z kw³kvjx e„w× NU‡e| cvkvcvwk Rvcv‡bI
growth forecast for Japan being revised up. Emerging ms‡kvwaZ e„w×i c~e©vfvm i‡q‡Q| D`xqgvb Ges Dbœqkxj
and developing Asia is estimated to grow at around Gwkqv‡Z cÖe„w×i nvi 6.5% aiv n‡q‡Q 2018-2019 mv‡j|
6.5% over 2018-19, the Update says, highlighting mv¤úªwZK mgxÿvq †`Lv hvq †h, G A‡ji A‡a©‡KiI †ewk
that the region continues to account for over half of wek¦ Dbœq‡bi Rb¨ G AÂjwU wn‡m‡e K‡i P‡j‡Q| Px‡b ax‡i
world growth. Development is expected to moderate ax‡i Dbœqb cÖZ¨vkv Kiv hvq fviZ‡K evQvB K‡i Ges G Dbœqb
gradually in China, pick up in India, and remain Avwkqvb - 5 A‡j we¯Í…Zfv‡e w¯’wZkxj _vK‡e|
broadly stable in the ASEAN-5 region.

Bangladesh Outlook evsjv‡`k A_©bxwZi wPÎ

According to a report by Bangladesh Bureau of evsjv‡`k cwimsL¨vb ey¨‡iv (weweGm) Gi GKwU cÖwZ‡e`b
Statistics (BBS), Bangladesh economy in terms of
Abyhvqx 2017-2018 A_©eQ‡i evsjv‡`k A_©bxwZ‡Z Avw_©K
GDP is expected to achieve a growth of 7.65% in the
FY2017-18, as opposed to the GDP growth of 7.28%
cÖe„w×i nvi wQj 7.65%| hv 2016-2017 A_©eQi wQj
in FY2016-17. This growth is observed to be broadly 7.18% GB e„w× e¨vcKfv‡e †mev Ges wkíLv‡Zi Ae`vb
contributed by service and industrial sectors. This is e‡j cwijwÿZ nq| GUv cici Z…Zxq eQi †h, A_©‰bwZK
the third consecutive year that the economic growth cÖe„w×i nvi wQj 7% Gi Dci hv A‡bK eQi a‡i 6% Gi
was above 7% after dwelling in the neighborhood of Av‡kcv‡k wQj|
6% for many years.
2017-2018 A_©eQi cÖe„wׇZ m‡ev©”P Ae`vb wQj †mev
The highest impact to the growth was made by the Lv‡Zi, hv A_©‰bwZK cÖe„wׇZ 52.85% Ae`vb iv‡L|
services sector, which contributed 52.18% to the GDP
A_©‰bwZK cÖe„wׇZ wkíLvZ 33.71% Ae`vb iv‡L| 2017-
in FY2017-18.
2018 mv‡j A_©‰bwZK cÖe„wׇZ Avgv‡`i K…wl Lv‡Z Ae`vb
The industrial sector contributed 33.71% to the GDP
wQj 14.10%|
in FY2017-18 while our agriculture sector contributed
14.10% to the GDP in 2017-18.

Annual Report 2017 39

Bangladesh’s remittance earnings slumped down to 2017 mv‡j evsjv‡`‡ki †iwg‡UÝ DcvR©b Qq eQ‡ii g‡a¨
a six-year low to $13.53 billion in 2017. Remittance me‡P‡q K‡g wM‡q 13.53 wewjqb BDGm Wjv‡i †b‡g‡Q|
inflows have been restrained recently due to fiscal
ga¨cÖv‡P¨ ivR¯^ GKÎxKiY Ges e„w×i MwZi Kvi‡b m¤úªwZ
consolidation and growth slowdowns in the Middle
East, which represents roughly half of remittances to
†iwg‡UÝ cÖevn wbqš¿‡Y P‡j‡Q| hv `wÿY Gwkqvi cÖvq A‡a©K
South Asia. †iwg‡U‡Ýi cÖwZwbwaZ¡ K‡i|
The work of various mega projects including the Av‡jvP¨ eQ‡i, cÙv †mZz Ges †g‡Uªv‡ijmn wewfbœ †gMv
Padma Bridge and metro-rail have advanced rapidly cÖK‡íi KvR `ªæZ GwM‡q Pj‡Q Ges miKvix I †emiKvix
and investment in both the public and private sectors LvZ Dfq †ÿ‡ÎB wewb‡qvM evo‡Q|
rose during the year.
According to a World Bank report it is estimated that wek¦e¨vs‡Ki GKwU wi‡cvU© Abyhvqx avibv Kiv n‡”Q †h, 2018-
the economic growth of Bangladesh will increase 2020 A_© eQ‡i evsjv‡`‡k A_©‰bwZK cÖe„w× e„w× cv‡e| Kg
in 2018-20 fiscal year, and the country will have a m~‡`i F‡Yi Kvi‡Y AeKvVv‡gv Dbœqb Ges wewb‡qvM e„w×
stronger export sector. Investment will also increase
cv‡e|
due to infrastructural development and low interest
rates for loans.
Non-Life Insurance Industry Outlook evsjv‡`‡k bb-jvBd exgv wk‡íi wPÎ
Although insurance industry statistics are not hw`I G ch©šÍ evsjv‡`‡k bb-jvBd exgvLv‡Zi cwimsL¨vb
published yet, it is assumed that a modest growth will cÖKvwkZ nqwb, Zvi ciI 2017 m‡b G Lv‡Z cÖe„w×i nvi
be achieved in 2017. mvgvb¨ n‡e e‡j Abygvb Kiv n‡”Q| e¨w³ gvwjKvbvaxb bb-
The gross premium of non-life private sector jvBd exgv Lv‡Z 2016 mv‡j MÖm wcÖwgqvg 25392.52 wgwjqb
insurance companies increased from BDT 24,307.85 Ges 2015 mv‡j MÖm wcÖwgqvg wQj 24307.85 wgwjqb G
million in 2015 to BDT 25,392.52 million in 2016, a †ÿ‡Î cÖe„w×i nvi 4.46%| Z_vwc GLv‡b 2015 mv‡j cÖe„w×i
growth rate of 4.46%. The growth rate of premium nvi wQj 1.98%|
of non-life insurance companies was 1.98% in 2015.
Company’s Performance Review AwR©Z djvdj
Amid stiff and competitive market environment, exgv Lv‡Z Aw¯’i I cÖwZ‡hvwMZvg~jK evRvi _vKv m‡Z¡I cÖMwZ
Pragati Insurance Limited achieved moderate BÝy‡iÝ wjt 2017 mv‡j fv‡jv DbœwZ K‡i‡Q| MÖm wcÖwgqvg MZ
success in 2017. The gross premium increased by eQ‡ii Zzjbvq 8% e„w× †c‡q‡Q|
8% to Tk. Tk.1664 million as compared to Tk. 1542 2016 m‡bi Zzjbvq 2017 m‡b AwR©Z djvd‡ji mswÿß
million in 2016. Company’s Retained premium rose Z_¨wPÎ wb‡¤œ †`Iqv n‡jvt
approximately 10% to Tk.702 million compared to
Tk.638 million in 2016.
A summarized position of your Company’s operation in
the year 2017 will help you appreciate the performance
of the company during the year under review:
Million Taka wgwjqb UvKvq
Particulars 2017 2016 Increase (+) weeiY 2017 2016 % (ZviZg¨)
Gross Premium 1664 1542 +7.91% MÖm wcÖwgqvg 1664 1542 +7.91%
Retained Premium (RP) 702 638 +10.03% bxU wcÖwgqvg 702 638 +10.03%
Claims- retained portion 82 76 (18.2%) bxU `vwe 82 76 (18.2%)
Underwriting Profit 124.89 93.6 +33.42% Ae‡jLb gybvdv 124.89 93.6 +33.42%
Net Profit Gross 210.33 186.26 12.94% bxU gybvdv 210.33 186.26 12.94%

Gross Premium Income MÖm wcÖwgqvg Avq

In 2017 Pragati Insurance Limited achieved significant bvbvwea cÖwZeÜKZv m‡Z¡I cÖMwZ BÝy¨‡iÝ wjwg‡UW 2017 m‡b
success in earning gross premium of Tk.1664 million. 1665 wgwjqb UvKv MÖm wcÖwgqvg Avq K‡i‡Q, hv G hver Kv‡ji
Gross premium income increased by Tk.122 million m‡ev©”P | G‡ÿ‡Î cÖe„w×i nvi 7.91%| Avgv‡`i Kg©KZ©v I
registering a growth of 8% compared to previous year. Kg©Pvix‡`i AvšÍwiK cÖ‡Póvi d‡j G AR©b m¤¢e n‡q‡Q |

40 Annual Report 2017

 CLASS WISE PREMIUM †kªYx Abyhvqx wcÖwgqvg
Fire Insurance AwMœ exgv
The Company had underwritten a total fire insurance G Lv‡Z 2016 m‡b 676.44 wgwjqb UvKvi wecix‡Z 2017
premium of Tk. 695.08 million in 2017 as against m‡b †Kv¤úvbx 695.08 wgwjqb UvKv MÖm wcÖwgqvg Avq K‡i‡Q|
Tk. 676.44 million last year, registering an increase G‡ÿ‡Î cÖe„w×i nvi 2.76%| wi-BÝy¨‡iÝ wcÖwgqvg, exgv `vwe
of 2.76% in this portfolio. After payment/provision Ges e¨e¯’vcbv e¨q wgwU‡q/mgš^q Kivi ci 2017 mv‡j
for re-insurance premiums, claims and management
Ae‡jLb ÿwZi cwigvY `vuwo‡q‡Q 25.87 wgwjqb UvKv †hLv‡b
expenses the company has incurred underwriting loss
MZ eQi ÿwZ wQj 38.95 wgwjqb UvKv|
of Tk.25.87 million against underwriting loss Tk.
38.95 million last year.
Marine Insurance †bŠ exgv
In the year 2017 gross premium earning in †bŠ exgv wefv‡M †gixb nvj mn MÖm wcÖwgqvg AwR©Z n‡q‡Q
Marine insurance including Marine Hull was Tk. 618.28 wgwjqb UvKv hv 2016 m‡b wQj 528.11 wgwjqb
618.28million against Tk.528.11 million of the UvKv| G‡ÿ‡Î cÖe„w×i nvi 17.07%| exgv `vex wgUv‡bvi ci
year 2016, registering an increase of 17.07% in this 2017 m‡b G Lv‡Z Ae‡jLb gybvdvi cwigvY 59.50 wgwjqb
portfolio. After providing for re-insurance and claims, UvKv hv MZ eQ‡i wQj 38.63 wgwjqb UvKv| wcÖwgqvg Avq
we have earned underwriting profit of Tk.59.50 Kgv m‡Z¡I G Lv‡Z G eQi Ae‡jLb gybvdv AvkvZxZ fv‡e
million against last year’s underwriting profit of e„w× †c‡q‡Q|
Tk.38.63 million.
Miscellaneous Insurance wewea exgv
From miscellaneous insurance business our total gross 2017 m‡b †Kv¤úvbx gUi I Ab¨vb¨ Lv‡Z MÖm wcÖwgqvg Avq
premium income in 2017 was Tk.351.37 million (both K‡i‡Q 351.37 wgwjqb UvKv hv 2016 m‡b wQj 338.04
in Motor and Miscellaneous departments) against wgwjqb UvKv| G‡ÿ‡Î cÖe„w×i nvi 3.94%| wi-BÝy¨‡iÝ
Tk. 338.04 million in 2016, registering an increase wcÖwgqvg, e¨e¯’vcbv e¨q Ges exgv `vwe wgUv‡bvi ci 2017
of 3.94% in this portfolio. After payment/provision m‡b G Lv‡Z Ae‡jLb gybvdvi cwigvb 91.25 wgwjqb UvKv,
for re-insurance premiums, claims and management hv MZ eQ‡i wQj 93.98wgwjqb UvKv|
expenses the company has incurred underwriting loss
of Tk.91.25 million against underwriting profit Tk.
93.98 million last year.
Investment Operation wewb‡qvM Kvh©µg
Pragati Insurance Limited has concentrated its focus cªMwZ BÝy¨‡iÝ wjwg‡UW wewb‡qvM Kvh©µg †Rvi`vi c~e©K G
on diversifying its investment portfolio. Despite Lv‡Z Avq e„w×i w`‡K g‡bvwb‡ek K‡i‡Q| weivRgvb I wewfbœ
facing all the odds the company has earned Tk.21.03 mg‡q D™¢zZ cÖwZK~jZv †gvKv‡ejv K‡i †Kv¤úvbx 2017 m‡b
million as capital gain out of share trading in 2017 g~jabx Avq Lv‡Z 21.03 wgwjqb UvKv Avq K‡i‡Q hv 2016
against Tk.0.50 million in 2016. m‡b wQj 0.50 wgwjqb UvKv|

Contribution National Exchequer miKvix †KvlvMv‡i cÖMwZi Ae`vb

During the year under report Pragati Insurance 1986 m‡b †Kv¤úvbxi ïiæ †_‡K cÖMwZ BÝy¨‡iÝ wjwg‡UW RvZxq
Limited has deposited Tk.272.97 million to the †KvlvMv‡i Rgvi †ÿ‡Î ¸iæZ¡c~Y© f~wgKv cvjb K‡i Avm‡Q|
Government Exchequer as Corporate Income Tax, Av‡jvP¨ eQ‡i K‡cv©‡iU BbKvg U¨v·, ÷¨v¤ú wWDwU Ges f¨vU
Withholding Tax, Stamp Duty and VAT. wnmv‡e cÖMwZ BÝy¨‡iÝ RvZxq †KvlvMv‡i †gvU 272.97 wgwjqb
UvKv Rgv w`‡q‡Q|
Income Distribution Avq e›Ub
Underwriting Profit of non- life insurance Company is mvaviY exgv Kvh©µg cwiPvjbv I Ab¨vb¨ †ÿ‡Î e¨q e„w×
not at desired level due to ever increasing operational cvIqvq Ae‡jLb Lv‡Z Kvg¨ mvdj¨ AwR©Z nq bvB| exgv
and other expenses. Growth of insurance company †Kv¤úvbxi msL¨v e„w×i I Amy¯’ cÖwZ‡hvwMZv cyuwR wewb‡qv‡Mi
is also dependent on in its investment income. It is
gva¨‡g gybvdv AR©‡bi †ÿ‡Î wKQzUv n‡jI AwbðZqZv m„wó
therefore important to explore all avenues to raise the
return from investment. However, due to increase in Ki‡Q| ZviciI †Kv¤úvbxi mKj cÖKvi e¨q wgUv‡bvi ci
income from share trading business and rental income †kqvi e¨emv †_‡K Avq e„w× Ges fvov †_‡K Avqmn 2017

Annual Report 2017 41

the company’s net profit before tax stood at Tk.210.33 m‡b Ki c~e©eZ©x bxU gybvdv n‡q‡Q 210.33 wgwjqb UvKv,hv
million in 2017 against Tk. 186.26 million in the year c~e©eZx eQ‡i wQj 186.26 wgwjqb UvKv| bxU gybvdvi Dci
2016. The net profit before tax has been proposed for cÖ¯—vweZ U¨v· wb¤œiƒc:
appropriation as follows: wgwjqb UvKv
Million weeiY UvKv
Particulars
Taka
A¯^vfvweK ÿwZi Rb¨ msiwÿZ Znwej 38.63
Reserve for Exceptional Losses 38.63
Provision for Income Tax 55.00
AvqK‡ii Rb¨ Znwej 55.00
Balance available for distribution 117.78 weZiY‡hvM¨ UvKvi cwigvY 117.78

Taking into consideration the financial position and cÖMwZ BÝy¨‡iÝ wjwg‡UW Gi cwiPvjbv cl©` †Kv¤úvbxi
working capital requirement for smooth running †kqvi‡nvìvi‡`i cÖwZ me©`vB kª×vkxj Ges Zviv hv‡Z Zv‡`i
of the company, and with the goal to have a steady wewb‡qv‡Mi Dci m‡ev©”P gybvdv jvf Ki‡Z cv‡i †mw`‡K
growth in per share dividend, the Board of Directors AZ¨šÍ m‡PZb| cÖMwZi cwiPvjbv cl©` 2017 m‡bi gybvdv
of Pragati Insurance Limited recommended 13% cash †_‡K †kqvi‡nvìvi‡`i Rb¨ bM` 13% K¨vk wWwf‡W›U Ges
dividend and 5% stock dividend to the shareholders 5% ÷K jf¨vsk cÖ`v‡bi mycvwik K‡i‡Qb| msw¶ß PvjwPÎwU
of the company for the year 2017. The whole scenario wb¤œiƒc :
will look as follows:
Particulars Taka weeiY UvKv
Divisible Profit 117,789,414.00 bxU gybvdv 2017 117,789,414.00
Less: Cash & Stock Dividend for the year 105,084,639.00 ev`t bM` I ÷K jf¨vsk 105,084,639.00
Balance to be carried forward for the next year 12,704,775.00 †gvU w¯’wZ cieZx© eQi 12,704,775.00

Credit Rating †µwWU †iwUs

Credit Rating of Pragati Insurance Ltd. was carried 2017-2018 m‡b cÖMwZ BÝy¨‡iÝ wjwg‡UW Gi †µwWU †iwUs G
out by National Credit Ratings Limited for the year National Credit Ratings Ltd. Gi g~j¨vqb wbgœiƒct
2017-2018 and their assessments are as follows:
Long Term AAA Long Term AAA
Short Term ST-1 Short Term ST-1
Apart from the above, the rating Agency also highlighted Zv Qvov cÖMwZ BÝy¨‡iÝ wjwg‡UW Gi wbgœwjwLZ ‰ewkó¸‡jv
the following salient features of the Company: D‡jøL K‡i‡Qt
• Steady increase in Gross Premium income • MÖm wcÖwgqvg Avq DˇivËi e„w×
• Capacity to meet claim demand of policyholder • cÖ‡qvR‡bi Zyjbvq AwaK mj‡fwÝ gvwR©b
• Decrease in claim due to Quality underwriting • exgv `vex cwi‡kv‡ai mÿgZv
expertise • Strong franchise value
• Strong reserve base • †Kv¤úvbxi Ae‡jL‡b ¸YMZ cwieZ©‡bi d‡j exgvi `vwe n«vm
• Introducing corporate governance issues and • my`„p wiRvf© KvVv‡gv
guidelines for compliance with the regulations of
• SEC Ges IDRA Gi wewa Abyhvqx K‡cv©‡iU Mf‡b©Ý
IDRA and BSEC.
cÖeZ©b I wbwðZ Kib
Board of Directors cwiPvjKgÛjx
In accordance with Articles 105, 106 & 107 of the †Kv¤úvbxi AvwU©‡Kjm Ae G‡mvwm‡qk‡bi 105, 106 Ges 107
company’s Articles of Association, the under-noted aviv Abyhvqx ÒGÓ MÖæ‡ci wb¤œwjwLZ D‡`¨v³v cwiPvjKe„›` G
Directors from Group-A shareholders shall retire eQi Aemi MÖnY Ki‡eb| Zviv mevB cybt wbe©vP‡bi †hvM¨ weavq
from the office by rotation and eligible for re- †Kv¤úvbxi ¯§viK ms‡Ni 107 aviv Abyhvqx Zviv cybt wbev©P‡bi
election : B”Qv cÖKvk K‡i‡Qb|
1. Mr. Khan Mohd. Ameer 1. Rbve Lvb †gvnv¤§` Avgxi
2. Mr. Md. Sarwar Kamal 2. Rbve †gvt miIqvi Kvgvj
3. Mr. Md. Mushfiqur Rahman 3. Rbve †gvt gykwdKzi ingvb

42 Annual Report 2017

 In accordance with the Article 107 the above †m Avbyhvqx cwiPvjbv cl©` Zv‡`i‡K cwiPvjK wn‡m‡e
mentioned 3(three) Directors are eligible for re- c~btwbe©vP‡bi Aby‡gv`b w`‡q‡Qb hv Avmbœ evwl©K mvaviY mfvq
election . P‚ovš— Aby‡gv`‡bi Rb¨ †ck Kiv n‡e|
Accordingly, this was placed before the Board
of Directors for their kind approval. The Board †Kv¤úvbxi AvwU©‡Kjm Ae G‡mvwm‡qk‡bi 105 Ges 106
already approved the same and this will be placed aviv Abyhvqx wb¤œwjwLZ cwiPvjKe„›` ÓweÓ MÖæc n‡Z G eQi
in the ensuing 32nd Annual General Meeting of the Aemi MÖnY Ki‡ebt
company for approval of the Group-A shareholders.
In accordance with Articles 105 &106 of the 1. Rbve †gvnv¤§` G gv‡jK
company’s Articles of Association, the under-noted 2. Rbve Zvwe` †gvnv¤§` AvDqvj
Directors from Group-B shareholders shall retire
from the office by rotation. Dc‡iv³ 2 Rb Aemi MÖnYKvixi k~b¨ ¯’vb c~i‡Yi Rb¨ exgv
• Mr. Mohammed A. Malek AvBb 2010 Ges BÝy¨‡iÝ iæj 1958 Gi aviv 15 we (3)
• Mr. Tabith Mohd. Awal Abyqvqx ÒcvewjK †kqvi‡nvìvi cwiPvjKÓ wbev©P‡bi Rb¨
The election to fill up the 2 (two) vacancies will be `yBwU ‰`wbK cwÎKvq weÁwß cÖKvk Kiv nq|
held on the day of the 32nd AGM ( i.e.29th July, wbw`©ó mg‡qi g‡a¨ 1) Rbve †gvnv¤§` G gv‡jK 2) Rbve
2018) of the Company. Zvwe` †gvnv¤§` AvDqvj ÓweÓ MÖæc cwiPvjK wbev©P‡bi Rb¨
As per Insurance Act 2010, Rules 1958 clause
bwg‡bkb cÎ `vwLj K‡ib| Ab¨ †Kn bwg‡bkb cÎ `vwLj bv
No.15B(3), the Election Notice has been published
in the two national dailies. Kivq D³ 2 (`yB) Rb AvMvgx 29 RyjvB,2018 Bs Zvwi‡L
The 2(two) shareholders i.e. (i) Mr. Mohammed AbywôZe¨ 32Zg evwl©K mvaviY mfvq cvewjK †kqvi‡nvìvi
A. Malek & (ii) Mr. Tabith Mohd. Awal submitted cwiPvjK wn‡m‡e wbev©wPZ e‡j MY¨ n‡eb|
their nomination papers within the stipulated time.
Since no-body else has submitted any nomination
papers other than above 2(two) candidates so, they
will be taken as elected Directors from Group-B
shareholders in the ensuing 32nd AGM schedule
to be held on 29th July, 2018 at BIAM Foundation,
Dhaka.
Board meeting and Audit Committee meetings †evW© wgwUs Ges AwWU KwgwU wgwUs
13(thirteen) meetings of the Board of Directors and Av‡jvP¨ eQ‡i †Kv¤úvbxi 13wU cwiPvjbv cl©` mfv Ges 4
4(four) meeting of the Director’s Audit Committee wU wbixÿv KwgwUi mfv AbywôZ nq| weMZ wZb eQ‡ii mfv
were held during the year 2017. Details are given mg~‡ni Zzjbvg~jK cÖwZ‡e`b wb‡¤œ †`qv n‡jvt
below in comparison to last 3 years.
Name of the Meeting 2017 2016 2015 mfvi bvg 2017 2016 2015
Board of Director’s 13 10 6 cwiPjbvi cl©` mfv 13 10 6
Directors Audit Committee 4 7 6 wbixÿv KwgwUi mfv 4 7 6

Audit Committee AwWU KwgwU

The Audit Committee of the company met 4 (four) Av‡jvP¨ eQ‡i AwWU KwgwU 4 (Pvi) wU mfvq wgwjZ n‡q‡Q
times during the year and reviewed the followings Ges cÖwZwU mycvwik ev¯Íevq‡bi Dci we‡kl ¸iæZ¡ Av‡ivc mn
with special emphasis on compliance of respective wbgœ wjwLZ welqvw` we‡klfv‡e we‡ePbv K‡i‡Qt
recommendations:
1. Audit and inspection Report(s) of the Audit Team 1. AwWU wUg I ewnt wbixÿ‡Ki AwWU I B݇cKkb wi‡cvU©|
and External Auditors. 2. †Kv¤úvbxi Avf¨šÍixb wbqš¿b I wbixÿv Kvh©µ‡gi wbqwgZ
2. Ensuring an effective Risk Management system cyYg©~j¨vq‡bi gva¨‡g †Kv¤úvbxi Kvh©Kwi SuywK e¨e¯’vcbv
of the Company through ongoing review of the wbwðZ Kib|
company’s internal control system. 3. ewntwbixÿK `j KZ…©K †Kv¤úvbxi 2017 m‡bi Avw_©K
3. The financial statements of the company for the weeiYxi Dci wbixÿv cÖwZ‡e`b|
year 2017 audited by the External Auditors.
Annual Report 2017 43
4. Stressing on the importance of the Compliance 4. †Kv¤úvbx‡Z mycvwik ev¯Íevq‡bi (Compliance)
Culture within the Company. cÖ‡qvRbxqZvi Dci ¸iæZ¡ Av‡iv‡ci Af¨vm M‡o †Zvjv|

This is to confirm that the company’s Audit Committee wmwKDwiwUR GÛ G·‡PÄ Kwgkb Gi mvK©yjvi bs
is constituted as per terms & condition of BSEC’S wmGgAviAviwmwW/2006-/158/cÖkvmb/4308 ZvwiL 7B
Circular# CMRRCD/2006-/158/Admin/4308 dated AvMó,2012 Gi wb‡`©kbv Abyhvqx †Kv¤úvbxi AwWU KwgwU
August 7, 2012. MwVZ n‡q‡Q|

Corporate Governance Compliance status K‡cv©‡iU Mf‡b©Ý cwicvjb cÖwZ‡e`b

Pursuant to the clause 7(ii)of the BSEC’s Notification weGmBwm †bvwUwd‡Kkb bs GmBwm /wmGgAviAviwmwW /2006-
No. SEC/CMRRCD/2006-/158/ 134/ Admin/44 15/134/GWwgb/44/ ZvwiLt AvMó 7, 2012-Gi K¬R 7 (ii)
dated August 7, 2012 we attached the company’s Abyhvqx †Kv¤úvbxi K‡cv©‡iU Mf‡b©Ý cwicvjb cÖwZ‡e`b
compliance status as annexure-1 (Annexure-1) G †`Lv‡bv nÕj|

Auditors wbixÿK
M/S. Hoda Vasi Chowdhury & Co., Chartered †Kv¤úvbxi 31Zg mvaviY evwl©K mfvq †gmvm© û`v fvwm †PŠayix
Accountants was appointed as External Auditors of GÛ †Kvs, PvU©vW© G¨vKvD‡›U›Um‡K †Kv¤úvbxi 2017 m‡bi
the company for the year 2017 at the 31st Annual
ewntwbixÿK wnmv‡e wb‡qvM cÖ`vb Kiv nq| Zvuiv 1jv Rvbyqvix
General Meeting. They have audited the books of
account for the period covering 1st January, 2017 to n‡Z 31‡k wW‡m¤^i, 2017 mg‡qi wnmve wbixÿv K‡i‡Q|
31st December 2017. This is the 1st year that Hoda †gmvm© û`v fvwm GÛ †Kvs, PvU©vW© G¨vKvD‡›U›Um Gi 2017 mb
Vasi Chowdhury & Co has audited the Financial wbixÿvi 1g eQi| †gmvm© û`v fvwm †PŠayix GÛ †Kvs 2018
Statements of the company. mv‡ji Rb¨ wbixÿK wn‡m‡e c~bt wb‡qv‡Mi Rb¨ B”Qv cÖKvk
M/S. Hoda Vasi Chowdhury & Co., Chartered K‡i‡Qb| †Kv¤úvbx AvBb 1994 Gi †mK&kb 210 (3) Abyhvqx
Accountants, have consented to continue in office and c~bt wb‡qv‡Mi †hvM¨ weavq Zv‡`i‡K wb‡qv‡Mi Rb¨ AvMvgx
being eligible, automatically qualify for reappointment
29 RyjvB, 2018B Zvwi‡L AbywôZe¨ †Kv¤úvbxi 32Zg evwl©K
under section 210 (3) of the Companies Act,1994. A
resolution will be placed at the ensuing AGM for their mvaviY mfvq Aby‡gv`‡bi Rb¨ †ck Kiv n‡e|
reappointment.

44 Annual Report 2017

 Acknowledgement K…ZÁZv ¯^xKvi
On behalf of the Board Directors, we humbly take this G g~û‡Z© Avwg †Kv¤úvbxi cwiPvjbv cl©‡`i cÿ †_‡K †`‡k
opportunity to express our heartfelt gratitude to all of - we‡`‡k Avgv‡`i mg¯Í m¤§vwbZ MÖvnK, †kqvi‡nvìvie„›`
our valued clients, shareholders and well-wishers I ïfvbya¨vqx‡`i wbKU Zv‡`i AvšÍwiK mn‡qvwMZvi Rb¨
in home and abroad for their wholehearted co- K…ZÁZv Rvbvw”Q| Avgiv we‡klfv‡e mKj miKvwi I †emiKvwi
operation. We are especially thankful to all e¨vsKmg~n mn Multimode Group, Beximco Group, KDS
Banks both in the private and public sector and Group, Abdul Monem Group, W & W Group, Square
the management of Multimode Group, Beximco Group, Bata Shoe (BD) Ltd, Novartis (Bangladesh)
Ltd, Heidelberg Cement Bangladesh, International
Group, KDS Group, Abdul Monem Group, W &
Television Channel Ltd (NTV), National Television
W Group, Square Group, Bata Shoe (BD) Ltd, Ltd (RTV), Maasranga Television, ICDDR,B,
Novartis (Bangladesh) Ltd, Heidelberg Cement Pacific Jeans Group of Companies, HKD Group of
Bangladesh, International Television Channel Companies, Jayson Group, Aristopharma Ltd, Karim
Ltd (NTV), National Television Ltd (RTV), Group, Square Air, DBL Group, MJL Bangladesh,
Maasranga Television, ICDDR,B, Pacific Jeans MJL (Mobil), Saad Musa Group, Grameen phone
Group of Companies, HKD Group of Companies, Ltd, Esquire Group, Mir Group, Pedrollo (NK) Ltd,
Jayson Group, Aristopharma Ltd, Karim Group, PHP Group, Rahimafrooz Group, Envoy Group,
Maksons Group, M.I. Cement Factory Ltd. (Crown
Square Air, DBL Group, MJL Bangladesh, MJL Cement), Olympic Group, Robintex Group, Shanta
(Mobil), Saad Musa Group, Grameen phone Group, T.K. Group, Healthcare Pharmaceuticals Ltd.
Ltd, Esquire Group, Mir Group, Pedrollo (NK) Khulna Power Company Ltd, Khan Jahan Ali Power
Ltd, PHP Group, Rahimafrooz Group, Envoy Co. Ltd, NEPC Consortium Power Ltd, Summit
Group, Maksons Group, M.I. Cement Factory Group, United Group, High-Speed Navigation Co.
Ltd. (Crown Cement), Olympic Group, Robintex Ltd, RZ Power, G.B.B Power Ltd, Desh Engergy
Group, Shanta Group, T.K. Group, Healthcare Ltd, Eurostar Shipping Ltd, Peoples Shipping
Ltd, Summit Shipping Ltd, Sealink Shipping Co,
Pharmaceuticals Ltd. Khulna Power Company
Poseidon Enterprise, Brave Royal Shipping, Central
Ltd, Khan Jahan Ali Power Co. Ltd, NEPC Navigation, Ace Bi Cycle (BD) Ltd, Denim Plus (BD)
Consortium Power Ltd, Summit Group, United Ltd, Excelsior Shoes Ltd, Jay Jay Mills (BD) Pvt Ltd,
Group, High-Speed Navigation Co. Ltd, RZ J & J Industries Ltd, Jemina Accessories Ltd, Luna
Power, G.B.B Power Ltd, Desh Engergy Ltd, Lite Co. (BD) Ltd, Mamiya Op (BD) Ltd, Meghna
Eurostar Shipping Ltd, Peoples Shipping Ltd, Accessories Ltd, Merim Co. Ltd, Mitali Textile
Summit Shipping Ltd, Sealink Shipping Co, Industries (BD) Ltd, Modern Towels (BD) Ltd, Multi
Safh Bags Ltd, MZM Textile Ltd, Padma Industries
Poseidon Enterprise, Brave Royal Shipping,
Ltd, Papella Shoe Ltd, Sanko Optical Co. (BD) Ltd,
Central Navigation, Ace Bi Cycle (BD) Ltd, U-Jin Led Co. (BD) Ltd, Van Green (BD) Ltd, Kadena
Denim Plus (BD) Ltd, Excelsior Shoes Ltd, Jay Sports Wear (BD) Ltd, Nawab Abdul Malek Jute
Jay Mills (BD) Pvt Ltd, J & J Industries Ltd, Mills (BD) Ltd, Quality Feeds Ltd, Grameen Shakti,
Jemina Accessories Ltd, Luna Lite Co. (BD) Ltd, National Polymer Industries Ltd, Paxar (BD) Ltd,
Mamiya Op (BD) Ltd, Meghna Accessories Ltd, Care Bangladesh, Bangladesh Edible Oil Ltd, CEAT
Merim Co. Ltd, Mitali Textile Industries (BD) Ltd, Bangladesh Ltd, Ruby Food Products, Ahad Jute
Spinners Ltd, State Bank of India, Embassy of the
Modern Towels (BD) Ltd, Multi Safh Bags Ltd,
United Arab Emirates, Alliance Francaise De Dhaka,
MZM Textile Ltd, Padma Industries Ltd, Papella Berger Paints (BD) Ltd, Asian Paints Bangladesh
Shoe Ltd, Sanko Optical Co. (BD) Ltd, U-Jin Ltd, Sanofi Aventis Bangladesh Ltd, Dhakarea Ltd.,
Led Co. (BD) Ltd, Van Green (BD) Ltd, Kadena EXSACO Ltd., Renata Ltd., Nuvista Pharma Ltd.,
Sports Wear (BD) Ltd, Nawab Abdul Malek Jute ECPV Chittagong Ltd., Modele De Capital Ltd.,
Mills (BD) Ltd, Quality Feeds Ltd, Grameen North South University, Al-Muslim Group, Energypac
Shakti, National Polymer Industries Ltd, Paxar Bangladesh, Independent Television, Paragon Group,
(BD) Ltd, Care Bangladesh, Bangladesh Edible Armana Group, IDLC, MGH Group, Pran Group,
Trendex Furniture Industries Ltd., etc цK Avgv‡`i
Oil Ltd, CEAT Bangladesh Ltd, Ruby Food
Dci Av¯’v I wek¦vm ¯’vc‡bi Rb¨ ab¨ev` Ávcb KiwQ|
Products, Ahad Jute Spinners Ltd, State Bank

Annual Report 2017 45

of India, Embassy of the United Arab Emirates, Avgiv MYcÖRvZš¿x evsjv‡`k miKvi, exgv Dbœqb I wbqš¿Y
Alliance Francaise De Dhaka, Berger Paints (BD) KZ…©cÿ, wmwKDwiwUR GÛ G·‡PÄ Kwgkb, XvKv ÷K G·‡PÄ,
Ltd, Asian Paints Bangladesh Ltd, Sanofi Aventis
PÆMÖvg ÷K G·‡PÄ, mvaviY exgv K‡cv©‡ikb, †Rbv‡ij
Bangladesh Ltd, Dhakarea Ltd., EXSACO
Ltd., Renata Ltd., Nuvista Pharma Ltd., ECPV BÝy¨‡iÝ K‡cv©‡ikb Ae BwÛqv (GIC), †e÷ wi-gvj‡qwkqv I
Chittagong Ltd., Modele De Capital Ltd., North Uªv÷ B›Uvib¨vkbvj wi-BÝy¨ivi Ges †Rwe †fv`v, †cªv‡UKmvb
South University, Al-Muslim Group, Energypac evnivBb, DBwjm wi-BÝy¨‡iÝ †eªvKvi mn Ab¨vb¨ wi-BÝy¨ivi
Bangladesh, Independent Television, Paragon I †eªvKvi‡`i‡K Zv‡`i mg_©b I mn‡hvwMZvi Rb¨ ab¨ev`
Group, Armana Group, IDLC, MGH Group, Pran
Rvbvw”Q| cwiPvjbv cl©` †Kv¤úvbxi wbixÿK †gmvm© û`v fvwm
Group, Trendex Furniture Industries Ltd., etc. for
reposing their confidence in the company. †PŠayix GÛ †Kvs, PvU©vW© G¨vKvD‡›U›Um‡KI ab¨ev` Ávcb
We would also like to convey our sincerest thanks Ki‡Q|
to Insurance Development and Regulatory Authority,
Bangladesh Securities and Exchanges Commission, e¨e¯’vcbv cwiPvjK‡K Ges Zuvi gva¨‡g †Kv¤úvbxi mg¯Í
Dhaka Stock Exchange, Chittagong Stock Exchange wbe©vnx, Kg©KZv© I Kg©Pvix‡`i‡K Zvu‡`i cÖksmbxq Kv‡Ri Rb¨
and Re-Insurers - Sadharan Bima Corporation,
cwiPvjbv cl©` ab¨ev` Ávcb Ki‡Q| Zv‡`i AvšÍwiK Drm‡M©i
General Insurance Corporation of India (GIC)
Best Re. Malaysia and Trust International and Re- g‡bvfve, Kg©wbôv, AK¬všÍ cwikªg, I †mevi gva¨‡g AvMvgx
Insurance Brokers- J.B. Boda, Protection Bahrain, w`b¸‡jv‡Z †Kv¤úvbx Av‡iv fvj djvdj AR©b Ki‡e e‡j `„p
Willis and others for their support and assistance. The cÖZ¨vkv e¨³ KiwQ| AvšÍwiK Ges cÖksmbxq K‡gv©`¨‡gi Rb¨
Board also expresses its appreciation to M/s. Hoda
Vasi Chowdhury & Co., Chartered Accountants, the mKj †kªYxi Kg©KZ©v I Kg©Pvixe„›`‡K Zv‡`i Kv‡Ri g~j¨vq‡bi
Auditor of the Company. wfwˇZ cwiPvjKgÛjx g~j †eZ‡bi mgcwigvb 2wU Drmvn
I wish to acknowledge the commitment and diligence †evbvm Aby‡gv`b K‡i‡Qb|
of my fellow Directors, the executive team and all
the employees of the Company for their hard work
and dedication throughout the year. The Board of Avgv‡`i m¤§vwbZ †kqvi‡nvìvie„‡›`i wbKU AvšÍwiK kÖ×v
Directors has been pleased to reward its staff including Ávcbc~e©K Zuv‡`i AvšÍwiK mn‡qvwMZvi gva¨‡g †Kv¤úvbxi
Executives, Officers and Employees 2(Two) Incentive
cÖe„w× Ae¨vnZ ivLvi `„p cÖZ¨q e¨³ KiwQ|
Bonus based on their individual performance to be
decided by the management.
Lastly, with best regards to all our valuable
shareholders, we promise to continue the growth of
the company with your continued support.

Thank you all. ab¨ev`

On behalf of the Board of Directors cwiPvjKgÛjxi c‡ÿ

Syed M. Altaf Hussain

ˆmq` Gg. AvjZvd †nvmvBb
Chairman
†Pqvig¨vb|

46 Annual Report 2017

 Directors’ Report to the Shareholders
(Under Section 184 of the Companies Act 1994)

We report that:

i. The financial statements prepared by the management of the company present fairly its
state of affairs, the result of its operations, cash flows and changes in equity.

ii. Proper books of account of the company have been maintained.

iii. Appropriate accounting policies have been consistently applied in preparation of the
financial statements and that the accounting estimates are based on reasonable and prudent
judgment.

iv. International Accounting Standards, as applicable in Bangladesh, have been followed in

preparation of the financial statements and any departure there from has been adequately
disclosed.

v. The system of internal control is sound in design and has been effectively implemented and
monitored.

vi. There are no significant doubts upon the company’s ability to continue as a going concern.

vii. There are no significant deviations from last year operating result of the company.
viii. During the year ended 31 December 2017 the Board of Directors held 13 (Thirteen)
meetings and the Directors serving on the Board attended in aggregate 52.56% of the total
number of meetings.

ix. At 31 December 2017, the pattern of shareholding are given below:

a) Shareholding of Parent/Subsidiary/ Associate companies and other related parties: Nil.

b) Shareholdings of Directors, CEO, Company Secretary, CFO and Head of Internal Audit
and their spouses and minor children: Nil.

Annual Report 2017 47

48 Annual Report 2017
 Compliance Report on SEC Notification
Annexure-I
Status of compliance with the conditions imposed by the Commission’s Notification No. SEC/ CMRRCD/ 2006-158/
134/ Admin/44 dated 7th August, 2012 .
( Report under Condition No.7.00)

Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
1.1 Board’s size
3 – _
( Shall not be less than 5(five) and more than 20 (twenty)
1.2(i) Independent Directors Complied as
(at least 1/5) of the total number of Directors in the 3 – per Insurance
company’s Board shall be independent Directors) Act 2010.
1.2(ii)(a) Independent Director means
(who either does not hold any share in the company or
3 – -
holds less than one percent (1%) shares of the total paid-up
shares of the company;)
1.2(ii)(b) who is not connected with the company’s any sponsor or
director or shareholder who holds one percent (1%) or more
shares of the total paid-up shares of the company on the
basis of family relationship. His/her family members also
3 – _
should not hold above mentioned shares in the company:
Provided that spouse, son, daughter, father, mother, brother,
sister, son-in-law and daughter-in-law shall be considered
as family members.
1.2(ii)(c) who does not have any other relationship, whether
pecuniary or otherwise, 3 – _
with the company or its subsidiary/associated companies;
1.2(ii)(d) who is not a member, director or officer of any stock
3 – _
exchange;
1.2(ii)(e) who is not a shareholder, director or officer of any member
3 – _
of stock exchange or an intermediary of the capital market;
1.2(ii)(f) who is not a partner or an executive or was not a partner
or an executive during the preceding 3 (three) years of any 3 – _
statutory audit firm;
1.2(ii)(g) who shall not be an independent director in more than 3
3 – _
(three) listed companies;
1.2(ii)(h) who has not been convicted by a court of competent
jurisdiction as a defaulter in payment of any loan to a bank 3 – _
or a Non-Bank Financial Institution (NBFI);
1.2(ii)(i) who has not been convicted for a criminal offence
3 – _
involving moral turpitude.
1.2(iii) the independent director(s) shall be nominated by the
board of directors and approved by the shareholders in the 3 – _
Annual General Meeting (AGM).
1.2(iv) the post of independent director(s) cannot remain vacant
3 – _
for more than 90 (ninety) days.
1.2(v) the Board shall lay down a code of conduct of all Board
3 – _
members and annual compliance of the code to be recorded.

Annual Report 2017 49

 Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
1.2(vi) the tenure of office of an independent director shall be for
a period of 3 (three) years, which may be extended for 1 3 – _
(one) term only.
1.3(i) Qualification of Independent Director ( ID)
Independent Director shall be a knowledgeable individual
with integrity who is able to ensure compliance with 3 – _
financial, regulatory and corporate laws and can make
meaningful contribution to business.
1.3(ii) The person should be a Business Leader/Corporate
Leader/ Bureaucrat/ University Teacher with Economics
or Business Studies or Law background/ Professionals like
Chartered Accountants, Cost & Management Accountants, 3 – _
Chartered Secretaries. The independent director must
have at least 12 (twelve) years of corporate management/
professional experiences.
1.3(iii) In special cases the above qualifications may be relaxed No such
subject to prior approval of the Commission – – deviation
occurred.
1.4 Chairman of the Board & Chief Executive Officer
(The positions of the Chairman of the Board and the Chief
Executive Officer of the companies shall be filled by
different individuals. The Chairman of the company shall
3 – _
be elected from among the directors of the company. The
Board of Directors shall clearly define respective roles and
responsibilities of the Chairman and the Chief Executive
Officer )
1.5(i) The Directors’ Report to Shareholders
(The directors of the companies shall include the following
additional statements in the Directors’ Report prepared
3 – _
under section 184 of the Companies Act, 1994) :-
Industry outlook and possible future developments in the
industry.
1.5(ii) Segment-wise or product-wise performance. 3 – _
1.5(iii) Risks and concerns. 3 – _
1.5(iv) A discussion on Cost of Goods sold, Gross Profit Margin
3 – _
and Net Profit Margin.
1.5(v) Discussion on continuity of any Extra-Ordinary gain or
No such item
loss.
exists.

1.5(vi) Basis for related party transactions- a statement of all

related party transactions should be disclosed in the annual
3 – _
report.

1.5(vii) Utilization of proceeds from public issues, rights issues

No such item
and/or through any others instruments. – –
exists.

1.5(viii) An explanation if the financial results deteriorate after the

No such event
company goes for Initial Public Offering (IPO), Repeat – –
occurred.
Public Offering(RPO), Rights Offer, Direct Listing, etc.

50 Annual Report 2017

 Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
1.5(ix) If significant variance occurs between Quarterly Financial
performance and Annual Financial Statements the No such event
– –
management shall explain about the variance on their occurred.
Annual Report.
1.5(x) Remuneration to directors including independent directors. 3 – _
1.5(xi) The financial statements prepared by the management of
the issuer company present fairly its state of affairs, the
3 – _
result of its operations, cash flows and
changes in equity.
1.5(xii) Proper books of account of the issuer company have been
3 – _
maintained
1.5(xiii) Appropriate accounting policies have been consistently
applied in preparation of the financial statements and that
3 – _
the accounting estimates are based on reasonable and
prudent judgement.
1.5(xiv) International Accounting Standards (IAS)/Bangladesh
Accounting Standards
(BAS)/International Financial Reporting Standards
(IFRS)/Bangladesh Financial Reporting Standards 3 – _
(BFRS), as applicable in Bangladesh, have been followed
in preparation of the financial statements and any departure
there-from has been adequately disclosed.
1.5(xv) The system of internal control is sound in design and has
3 – _
been effectively implemented and monitored.
1.5(xvi) There are no significant doubts upon the issuer company’s
ability to continue as a going concern. If the issuer company
3 – _
is not considered to be a going concern, the fact along with
reasons thereof should be disclosed.
1.5 (xvii) Significant deviations from the last year’s operating results
of the issuer company shall be highlighted and the reasons – – N/A
thereof should be explained.
1.5 (xviii) Key operating and financial data of at least preceding 5
3 – _
(five) years shall be summarized .
1.5 (xix) If the issuer company has not declared dividend (cash or
– – N/A
stock) for the year, the reasons thereof shall be given.
1.5 (xx) 13 meeting with
The number of Board meetings held during the year and
3 – average 52.56%
attendance by each director shall be disclosed.
attendance

Annual Report 2017 51

 Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
1.5 (xxi) The pattern of shareholding shall be reported to disclose
the aggregate number of shares (along with name wise 3 – _
details where stated below) held by:-.
(a) Parent/Subsidiary/Associated Companies and other
– – N/A
related parties (name wise details);
(b) Directors, Chief Executive Officer, Company Secretary,
Chief Financial Officer, Head of Internal Audit and their 3 – _
spouses and minor children (name-wise details);
(c) Executives; 3 – _
(d) Shareholders holding ten percent (10%) or more voting
– – N/A
interest in the company (name wise details).
Explanation: For the purpose of this clause, the expression
“executive” means top 5 (five) salaried employees of the
company, other than the Directors, Chief Executive Officer,
Company Secretary, Chief Financial Officer and Head of
Internal Audit
1.5(xxii) In case of the appointment/re-appointment of a director the
company shall disclose the following information to the 3 – _
shareholders:-
1.5(xxii)
a brief resume of the director; 3 – _
(a)
1.5(xxii)
nature of his/her expertise in specific functional areas; 3 – _
(b)
1.5(xxii) names of companies in which the person also holds the
(c) directorship and the membership of committees of the 3 – _
board.
2.1 Appointment of Chief Financial Officer (CFO), Head of
Internal Audit & Company Secretary (CS)
Appointment:
The company shall appoint a Chief Financial Officer (CFO),
3 – _
a Head of Internal Audit(Internal Control and Compliance)
and a Company Secretary (CS). The Board of Directors
should clearly define respective roles, responsibilities and
duties of the CFO, the Head of Internal Audit and the CS.
2.2 Requirement to attend the Board Meetings
The CFO and the Company Secretary of the companies
shall attend the meetings of the Board of Directors,
provided that the CFO and/or the Company Secretary shall 3 – _
not attend such part of a meeting of the Board of Directors
which involves consideration of an agenda item relating to
their personal matters.
3(i) Audit Committee:
The company shall have an Audit Committee as a sub- 3 – _
committee of the Board of Directors.
3(ii) The Audit Committee shall assist the Board of Directors in
ensuring that the financial statements reflect true and fair
3 – _
view of the state of affairs of the company and in ensuring
a good monitoring system within the business.

52 Annual Report 2017

 Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
3(iii) The Audit Committee shall be responsible to the Board
of Directors. The duties of the Audit Committee shall be 3 – _
clearly set forth in writing.
3.1(i) Constitution of the Audit Committee
The Audit Committee shall be composed of at least 3 3 – _
(three) members.
3.1(ii) (ii) The Board of Directors shall appoint members of the
Audit Committee who shall be directors of the company 3 – _
and shall include at least 1 (one) independent director.
3.1(iii) (iii) All members of the audit committee should be
“financially literate” and at least 1 (one) member shall have
accounting or related financial management experience.
Explanation: The term “financially literate” means the
ability to read and understand the financial statements like
Balance Sheet, Income Statement and Cash Flow Statement 3 – _
and a person will be considered to have accounting or
related financial management expertise if (s)he possesses
professional qualification or Accounting/ Finance graduate
with at least 12 (twelve) years of corporate management/
professional experiences.
3.1(iv) (iv) When the term of service of the Committee members
expires or there is any circumstance causing any Committee
member to be unable to hold office until expiration of the
term of service, thus making the number of the Committee
members to be lower than the prescribed number of 3
3 – _
(three) persons, the Board of Directors shall appoint the
new Committee member(s) to fill up the vacancy(i.e)
immediately or not later than 1 (one) month from the date
of vacancy(i.e) in the Committee to ensure continuity of
the performance of work of the Audit Committee.
3.1(v) (v) The company secretary shall act as the secretary of the
3 – _
Committee.
3.1.(vi) (vi) The quorum of the Audit Committee meeting shall not
3 – _
constitute without at least 1 (one) independent director.
3.2(i) Chairman of the Audit Committee
The Board of Directors shall select 1 (one) member of the
3 – _
Audit Committee to be Chairman of the Audit Committee,
who shall be an independent director.
3.2(ii) Chairman of the audit committee shall remain present in
3 – _
the Annual General Meeting(AGM).
3.3(i) Role of Audit Committee
Role of audit committee shall include the following:- 3 – _
Oversee the financial reporting process.
3.3(ii) Monitor choice of accounting policies and principles 3 – _
3.3(iii) Monitor Internal Control Risk management process. 3 – _
3.3(iv) Oversee hiring and performance of external auditors. 3 – _
3.3(v) Review along with the management, the annual financial
3 – _
statements before submission to the board for approval.

Annual Report 2017 53

 Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
3.3(vi) Review along with the management, the quarterly and half
yearly financial statements before submission to the board 3 – _
for approval.
3.3(vii) Review the adequacy of internal audit function. 3 – _
3.3(viii) Review statement of significant related party transactions
3 – _
submitted by the management.
3.3(ix) Review Management Letters/ Letter of Internal Control
3 – _
weakness issued by statutory auditors.
3.3(x) When money is raised through Initial Public Offering
(IPO)/Repeat Public Offering (RPO)/Rights Issue the
company shall disclose to the Audit Committee about
the uses/applications of funds by major category (capital
expenditure, sales and marketing expenses, working
– – N/A
capital, etc), on a quarterly basis, as a part of their quarterly
declaration of financial results. Further, on an annual basis,
the company shall prepare a statement of funds utilized for
the purposes other than those stated in the offer document/
prospectus
3.4.1(i) Reporting of the Audit Committee to the Board of
Directors
3 – _
The Audit Committee shall report on its activities to the
Board of Directors.
3.4.1(ii) The Audit Committee shall immediately report to the
No such event
(a) Board of Directors on the following findings, if any:- – –
occurred
report on conflicts of interests;
3.4.1.(ii) suspected or presumed fraud or irregularity or material No such event
– –
(b) defect in the internal control system; occurred
3.4.1(ii) suspected infringement of laws, including securities No such event
– –
(c) related laws, rules and regulations; occurred
3.4.1(ii) any other matter which shall be disclosed to the Board of No such event
– –
(d) Directors immediately. occurred
3.4.2 Reporting to the Authorities
If the Audit Committee has reported to the Board of
Directors about anything which has material impact on
the financial condition and results of operation and has
discussed with the Board of Directors and the management
that any rectification is necessary and if the Audit Committee No such event
– –
finds that such rectification has been unreasonably ignored, occurred
the Audit Committee shall report such finding to the
Commission, upon reporting of such matters to the Board
of Directors for three times or completion of a period of 6
(six) months from the date of first reporting to the Board of
Directors, whichever is earlier.
3.5 Reporting to the Shareholders and General Investors
Report on activities carried out by the Audit Committee,
including any report made to the Board of Directors under No such event
– –
condition 3.4.1 (ii) above during the year, shall be signed occurred
by the Chairman of the Audit Committee and disclosed in
the annual report of the issuer company.

54 Annual Report 2017

 Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
4(i) EXTERNAL/STATUTORY AUDITORS:
The issuer company should not engage its external/
statutory auditors to perform the following services of the
3 – _
company; namely:-

(i) Appraisal or valuation services or fairness opinions.

4(ii) Financial information systems design and implementation. 3 – _
4(iii) Book-keeping or other services related to the accounting
3 – _
records or financial statements.
4(iv) Broker-dealer services. 3 – _
4(v) Actuarial services. --- – N/A
4(vi) Internal audit services. 3 – _
4(vii) Any other service that the Audit Committee determines. 3 – _
4(viii) No partner or employees of the external audit firms shall
possess any share of the company they audit at least during 3 – _
the tenure of their audit assignment of that company.
5(i) SUBSIDIARY COMPANY:
Provisions relating to the composition of the Board of
Directors of the holding company shall be made applicable – – N/A
to the composition of the Board of Directors of the
subsidiary company.
5(ii) At least 1 (one) independent director on the Board of
Directors of the holding company shall be a director on the – – N/A
Board of Directors of the subsidiary company.
5(iii) The minutes of the Board meeting of the subsidiary
company shall be placed for review at the following Board
– – N/A
meeting of the holding company

5(iv) The minutes of the respective Board meeting of the holding

company shall state that they have reviewed the affairs of – – N/A
the subsidiary company also.
5(v) The Audit Committee of the holding company shall
also review the financial statements, in particular the – – N/A
investments made by the subsidiary company.
6(i)(a) DUTIES OF CHIEF EXECUTIVE OFFICER (CEO) AND
CHIEF FINANCIAL OFFICER (CFO):
The CEO and CFO shall certify to the Board that:-
(i) They have reviewed financial statements for the year
3 – _
and that to the best of their knowledge and belief:
a) these statements do not contain any materially untrue
statement or omit any material fact or contain statements
that might be misleading;
6(i)(b) these statements together present a true and fair view of
the company’s affairs and are in compliance with existing 3 – _
accounting standards and applicable laws.

Annual Report 2017 55

 Compliance Status
Condition Remarks
Title Put 3 in the appropriate column
No. ( if any)
Complied Not complied
6(ii) There are, to the best of knowledge and belief, no
transactions entered into by the company during the year
3 – _
which are fraudulent, illegal or violation of the company’s
code of conduct.
7(i) REPORTING & COMPLIANCE OF CORPORATE
GOVERNANCE:
The company shall obtain a certificate from a Professional
Accountant/Secretary (Chartered Accountant/Cost &
Management Accountant/Chartered Secretary) regarding
compliance of conditions of Corporate Governance
Guidelines of the Commission and shall send the same to
the shareholders along with the Annual Report on a yearly
basis. 3 – _
Explanation : Chartered Accountant means Chartered
Accountant as defined in the Chartered Accountants Act,
1949 ( Act No. XXXVIII Of 1949); Cost and Management
Accountant means Cost and Management Accountant
as defined in the Cost and Management Accountants
Ordinance, 1977 (Ordinance No. LIII of 1977); Chartered
Secretary means Chartered Secretary as defined in the
PvU©vW© †m‡µUvixR AvBb, 2010 (2010 m‡bi 25 bs AvBb)|
7(ii) The directors of the company shall state, in accordance with
the Annexure attached, in the directors’ report whether the 3 – _
company has complied with these conditions.

56 Annual Report 2017

 Ownership Status
Shares: 58,380,355 Nos.
Paid up Capital: Tk.583,803,550.00

Sl. Minor % of
Name of Director No. shares Spouse Total
No. Children share
1 Syed M. Altaf Hussain 1,691,883 11,997 N/A 1,703,880 2.92
2 Mr. Khan Mohd. Ameer 1,435,574 - N/A 1,435,574 2.46
3 Mr. Abdul Awal Mintoo 1,170,804 452,263 N/A 1,623,067 2.78
4 Mr. A. Monem 1,537,236 41,587 N/A 1,578,823 2.70
5 Mr. Khalilur Rahman 2,952,385 - N/A 2,952,385 5.06
6 Mr. Mohd. A. Awwal 1,272,351 425,075 N/A 1,697,426 2.91
7 Mr. Md. Syedur Rahman Mintoo 1,175,093 11,503 N/A 1,186,596 2.03
8 Mr. Md. Sarwar Kamal 1,213,886 340,999 N/A 1,554,885 2.66
9 Mr. Mushfiqur Rahman 1,167,675 - N/A 1,167,675 2.00
10 Mrs. Nahreen Siddiqua 1,168,711 - N/A 1,168,711 2.00
11 Mrs. N. J. Chowdhury 1,248,310 - N/A 1,248,310 2.14
12 Mr. Mohd. A. Malek 994,999 368,426 N/A 1,363,425 2.34
13 Mr. Nasir A. Latif 914,710 - N/A 914,710 1.57
14 Mr. Tabith Mohd. Awal 1,171,167 - N/A 1,171,167 2.01
15 Mr. ASM Mohiuddin Monem 144,697 - N/A 144,697 0.25

16 Ms. Tahsina Rahman 13,426 - N//A 13,426 0.02

( On behalf of KIY Steel Industries Ltd. )

17 Mr. Md. Akbar Hossain 37,605 - N/A 37,605 0.06

18 Mr. Santosh Sharma - - - - 0.00
19 Managing Director - - N/A - 0.00
20 Company Secretary - - N/A - 0.00
21 Chief Financial Officer - - N/A - 0.00
22 Head Of Internal Audit - - N/A - 0.00

Annual Report 2017 57

 Mahfel Huq & Co.
BGIC Tower (4th Floor)
34, Topkhana Road
Dhaka-1000, Bangladesh
Chartered Accountants Tel: +880-2-9553143
The first registered accounting firm in independent Bangladesh +880-2-9581786
Fax: +88-02-9571005
Email: info@mahfelhuq.com
An independent member firm of AGN International Web: www.mahfelhuq.com

Certificate on Compliance with Conditions of

Corporate Governance Guidelines to the Shareholders of
Pragati Insurance Limited

We have been engaged by Pragati Insurance Limited (the “Company”) to certify whether the company
has complied with the conditions of corporate governance guidelines issued by the Bangladesh Securities
and Exchange Commission (BSEC) under notification number SEC/CMRRCD/2006-158/134/Admin/44
dated 7th August, 2012 and subsequent amendment SEC/CMRRCD/2006 -158/147/Admin/48 dated 21st
July, 2013 as at 31st December, 2017.
The Management Responsibilities
Those charged with governance and management of the Company are responsible for complying with the
conditions of corporate governance guidelines as stipulated in the aforesaid notifications’ Those charged
with the governance of the Company are also responsible for reporting in the directors’ report whether
the Company has complied with the conditions of corporate governance guidelines.
Our Responsibilities
Our responsibility is to comply with the ethical and independence requirements, to examine the
Company’s status of compliance with the conditions of corporate governance and to certify thereon. Our
examination for the purpose of issuing this certificate were limited to the checking of the procedures
and implementations thereof, adopted by the Company for ensuring the compliance of conditions of
corporate governance and appropriate reporting of compliance status in the attached statement on the
basis of evidence obtained and representations received.
Conclusion
To the best of our information and according to the explanations given to us, we certify that the Company
has complied with the conditions of corporate governance guidelines stipulated in the above mentioned
BSEC notifications and reported thereon.

Date: Dhaka MAHFEL HUQ & CO.

31th May, 2018 Chartered Accountants

58 Annual Report 2017

 Report of the Audit Committee
The Audit committee of the Pragati Insurance Limited is a sub-committee of the Board of Directors appointed by the
Board of the company. The Audit Committee comprise of the following Directors:

1. Mr. Santosh Sharma Independent Director and Chairman of meeting

2. Mr. A.S.M. Mohiuddin Monem Co- Chairman and Director
3. Mr. Tabith Mohd. Awal Member and Director
4. Mr. Md. Sarwar Kamal Member and Director
5. Mr. Nasir Latif Member and Director
6. Mr. Akbar Hossin Member and Independent Director
The Committee operates according to the terms of reference approved by the Board and in compliance with section 3.00
of the Bangladesh Securities and Exchange Commission’s notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated
7th August, 2012. The committee is accountable for all audit activities and report to the Board of Directors of the company.
The key role of the Audit Committee is to monitor, review and examine the financial statements, corporate governance
practices, internal control systems and risk management activities related with the insurance.

Resolutions of the Audit Committee meeting

During the year 2017 under review 04 (Four) meetings of the Audit Committee were held and the Committee focused on
the following activities:

1. Reviewed the reliability and consistency of the financial statements of the company to ensure that the internal control
and compliance procedures are adequate to present a true and fair view of the company’s state of affairs for the year
2017.
2. Reviewed that draft annual financial statement of accounts for the year 2017 that audited by the external auditors.
Ensured that proper disclosure required under Accounting Standards as adopted in Bangladesh have been made and
also complied with the companies Act and various rules and regulations applicable to insurance business.
3. Reviewed the unaudited quarterly and half yearly financial statement of accounts for their proper presentation to the
shareholders and regulatory authorities.
4. Reviewed the various reports of the internal Auditor and their recommendations to take appropriate actions to the
management where needed.
5. Reviewed the audit plan 2017 and also approved the internal audit plan 2018 with appropriate directions to the
Internal Auditor.
6. Reviewed the appointment of external auditors.

Approval of Financial Statement

The Audit Committee reviewed and examined the annual financial statements 2017 prepared by the management and
audited by the external auditors and recommended the same before the Board for consideration.

Acknowledgement
The Directors Audit Committee expressed their sincere thanks to the members of the Board, management of the company
and the auditors for their support to carry out its duties and responsibilities effectively.

Chairman
Directors Audit Committee

Annual Report 2017 59

 Responsibility Statement of
CEO and CFO

The financial statements are prepared in accordance with Bangladesh Accounting Standards issued by the
Institute of Chartered Accountants of Bangladesh (ICAB) and in compliance with Insurance Act 2010,
Company Act 1994, the Securities and Exchange rules 1987 and the Listing Regulations of the Dhaka
and Chittagong Stock Exchanges.

We are responsible for establishing and maintaining proper internal control system. We have designed such
control or caused such control to be designed under our supervision, to ensure that material information
relating to the Company is made known to us and for safeguarding the Company’s assets and preventing
and detecting fraud and error.

We have evaluated the effectiveness of the Company’s internal control system and are satisfied that the
internal control system were effective as of the end of the period under review. Moreover significant
estimates and accounting policies that involve a high degree of complexity and judgment were discussed
with our external auditors and the audit committee of the Board.

We certify to the Board that:-

(i) We have reviewed financial statements for the year and that to the best of our knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b) these statements together present a true and fair view of the company’s affairs and are in compliance
with existing accounting standards and applicable laws.
(ii) There are, to the best of our knowledge and belief, no transactions entered into by the company during
the year which are fraudulent, illegal or violation of the company’s code of conduct.

Chief Financial Officer Managing Director

60 Annual Report 2017

 AUDITORS’
REPORT

Annual Report 2017 61

Hoda Vasi BTMC Bhaban (7th & 8th Floor)
Chowdhury & Co 7-9 Kazi Nazrul Islam Avenue
Chartered Accountants Karwan Bazar C/A Dhaka - 1215

INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF

PRAGATI INSURANCE LIMITED

We have audited the accompanying Financial Statements of Pragati Insurance Limited (the Company)
which comprise the financial position as of 31 December 2017 and the related revenue accounts as
well as the profit and loss account, profit and loss appropriation account, statement of changes in
share holders equity and statement of cash flows for the year then ended and a summary of significant
accounting policies and explanatory information.

Management’s responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting
Standards (BFRSs), the Companies Act (#18)1994, the Insurance Act 2010, the Bangladesh Securities
and Exchange Rules 1987, and other applicable laws and regulations and for such internal control as
management, determines is necessary to enable the preparation of these financial statements that are
free from material misstatement, whether due to fraud or error.

Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, auditors’ consider internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.

Opinion
In our opinion, the financial statements prepared in accordance with Bangladesh Financial Reporting
Standards (BFRSs), give a true and fair view of the state of the Company’s affairs as of 31 December

62 Annual Report 2017

 2017 and the results of its Operations and its Cash Flows for the year then ended and comply with
the Companies Act (#18) 1994, the Insurance Act 2010, and in some applicable cases. the Insurance
Act 1938, the Insurance Rules 1958, the Bangladesh Securities and Exchange Rules 1987 and other
applicable laws and regulations.

We also report that:

a) we have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far
as it appeared from our examination of those books;
c) the Company management has followed relevant provisions of laws and rules in managing the
affairs of the Company and proper books of account, records and other statutory books have been
properly maintained and (where applicable) proper returns adequate for the purpose of our audit
have been received from branches not visited by us;
d) as per section 63(2) of the Insurance Act 2010, we certify that to the best of our knowledge and
belief and according to the information and explanations given to us, all expenses of management
wherever incurred and whether incurred directly or indirectly, in respect of insurance business of
the company transacted in Bangladesh during the year under report have been duly debited to the
related revenue accounts and the statement of comprehensive income of the company;
e) as per regulation 11 of part 1 of the third schedule of the Insurance Act 1938 as amended, we report
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.
f) the Company’s statement of financial position and statement of comprehensive income and its
statement of cash flows dealt with by the report are in agreement with the books of account and
returns;
g) the expenditure incurred were for the purposes of the Company’s business;

Dated:
Dhaka, 30th April, 2018 Hoda Vasi Chowdhury & Co
Chartered Accountants

Annual Report 2017 63

 STATEMENT OF FINANCIAL POSITION
(BALANCE SHEET)
AS AT 31 DECEMBER, 2017
CAPITAL & LIABILITIES Note(s) 2017 2016
Authorised capital
200,000,000 Ordinary shares of Tk.10 each 2,000,000,000 2,000,000,000
Issued, Subscribed & Paid-up capital
583,803,55 Ordinary shares of Tk. 10 each 4 583,803,550 556,003,390

Reserve or Contingency account 2,600,169,569 2,507,225,263

Reserve for Exceptional Losses 5 796,704,685 758,075,593
Contingency Reserve for Insurance Guarantees and Tail ended 105,869,651 105,869,651
Insurance Business
Revaluation Reserve 7 1,412,133,735 1,412,133,735
General Reserve 8 243,578 243,578
Investment Fluctuation Fund (Fair Value Changes) 18.1.(i) 167,428,506 146,419,446
Profit & Loss Appropriation Account 9 117,789,414 84,483,260
Balance of fund & account 363,221,915 326,939,838
Fire Insurance Business 69,354,798 63,500,481
Marine Insurance Business 162,244,840 125,785,066
Misc. Insurance Business 131,622,278 137,654,291
Premium Deposit 10 4,664,409 16,878,346
Liabilities & provision 66,423,463 134,312,199
Estimated liabilities in respect of outstanding Claims whether due 11 57,026,144 77,856,514
or intimated.
Amount due to other persons or bodies for carrying on insurance business. 12 9,397,319 56,455,685
Loan from Bank 13 136,042,270 198,032,083
Sundry Creditors 14 124,667,628 84,145,921
Provision for Income Tax 15 414,254,453 359,254,453
Provision for Deferred Tax 16 17,340,000 17,340,000
4,310,587,254 4,200,131,492
Net Asset Value Per Share 34 54.54 55.09

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma

Managing Director Director

Dated: Dhaka, 30th April, 2018

64 Annual Report 2017

 STATEMENT OF FINANCIAL POSITION
(BALANCE SHEET)
AS AT 31 DECEMBER, 2017
PROPERTY & ASSETS Note(s) 2017 2016
Investment 416,658,212 407,668,020
Bangladesh Government Treasury Bond 17 25,106,960 25,086,755
Shares & debentures 18 391,551,252 382,581,265
Fair Value Changes Account 18.1.(i) 167,428,506 146,419,446

Amount due from other persons or bodies carrying on 19 452,169,839 467,397,010

insurance business
Interest, Dividend & Rent outstanding 20 576,426 576,426

Sundry Debtors 21 80,287,703 82,489,826

Premium Control Account 22 14,393,736 -

Advance Payment of Tax 23 289,643,031 253,548,640

Cash and Bank Balances 24 586,918,464 552,383,589

Fixed Deposit Accounts 434,676,850 425,246,850
STD & Current Accounts 140,284,091 117,185,665
Cash, Cheque in hand & Stamp 11,957,523 9,951,074

Other accounts 2,302,511,337 2,289,648,535

Land (freehold) 25 887,115,023 887,115,023
Holiday Homes 26 4,130,090 4,130,090
Fixed Assets(at cost less accumulated depreciation) 27 73,736,050 83,056,547
Building 28 1,302,008,743 1,283,666,113
Panthapath building (Under Construction) 29 33,982,698 30,660,452
Stock of printing materials 1,538,733 1,020,310

4,310,587,254 4,200,131,492

Tabith Mohd. Awal Syed M. Altaf Hussain

Director Chairman
Subject to our separate report of even date

Hoda Vasi Chowdhury & Co

Chartered Accountants
Annual Report 2017 65
 STATEMENT OF COMPREHENSIVE INCOME
(PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER, 2017

Particulars Notes 2017 2016

Expenses of Management
(not applicable to any fund or account) 8,843,480 7,035,765
Director Fees & Expenses 1,246,250 1,443,402
Registration Renewal Fee 32 6,225,741 6,088,333
Audit Fees 33 361,250 456,375
Depreciation Annex-A 13,427,779 12,792,077
Profit for the year transferred to Profit & Loss Appropriation Account 210,335,746 186,266,849

240,440,246 214,082,801

PROFIT AND LOSS APPROPRATION ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER, 2017

Particulars Notes 2017 2016

Reserve for Exceptional Losses 38,629,092 47,889,287
Provision for Income Tax 15 55,000,000 53,900,000
Balance transferred to Balance Sheet 117,789,414 84,483,260
211,418,506 186,272,547

Earning Per Share 35 2.66 2.38

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma

Managing Director Director

Dated: Dhaka, 30th April, 2018

66 Annual Report 2017

 STATEMENT OF COMPREHENSIVE INCOME
(PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER, 2017

Particulars Notes 2017 2016

Interest, Dividend and Rent
(Not applicable to any fund or account) 30 48,126,361 63,536,152
Interest received & accrued 25,400,862 35,953,475
Dividend and Debenture interest 22,725,499 27,582,677
Profit transferred from : 124,886,360 93,663,781
Fire revenue account (25,872,705) (38,953,579)
Marine revenue account 59,502,121 38,631,118
Misc. revenue account 91,256,945 93,986,242
Other income : 31 67,427,525 56,882,868
Sundry Income 808,812 589,076
Profit/(loss)on sale of investment (shares) 21,030,787 5,007,157
Building Rent 45,587,926 51,286,635
240,440,246 214,082,801

PROFIT AND LOSS APPROPRATION ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER, 2017

Particulars Notes 2017 2016

Net profit for the year transferred from Profit and Loss
Account 210,335,746 186,266,849
Balance brought forward from previous period 1,082,760 5,698

211,418,506 186,272,547

Tabith Mohd. Awal Syed M. Altaf Hussain

Director Chairman
Subject to our separate report of even date

Hoda Vasi Chowdhury & Co

Chartered Accountants
Annual Report 2017 67
 CONSOLIDATED REVENUE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER, 2017

Particulars Fire Marine Cargo Marine Hull Motor Misc Total 2017 Total 2016
Balance of Account at the
beginning of the year :
Reserve for unexpired risk 63,500,482 110,429,217 15,355,849 106,010,854 31,643,437 326,939,839 313,143,453
Premium, Less Re-
insurance 138,709,598 276,296,264 24,096,708 207,900,446 55,344,109 702,347,125 638,523,828
Commission on Re-
Insurance ceded 33,074,521 17,865,900 2,481,942 - 4,942,029 58,364,392 68,256,071
Total 235,284,601 404,591,381 41,934,499 313,911,300 91,929,575 1,087,651,356 1,019,923,352
Claim under policies less
Re-insurance :
Claim paid during the year 31,738,350 16,101,395 1,390,070 42,970,602 11,109,507 103,309,924 117,325,338
Total Estimated liability
in respect of outstanding
claims at the end of the year
under due or intimated 15,695,510 12,820,819 251,660 8,815,000 19,443,155 57,026,144 77,856,514
47,433,860 28,922,214 1,641,730 51,785,602 30,552,662 160,336,068 195,181,852
Less : Outstanding Claim
at the end of the previous
year 42,162,276 3,864,115 1,346,300 7,450,000 23,033,823 77,856,514 118,464,329
5,271,584 25,058,099 295,430 44,335,602 7,518,839 82,479,554 76,717,523
Expenses for management 109,535,345 108,148,419 6,843,414 48,218,131 23,231,517 295,976,826 309,511,810
Commission 76,995,578 79,742,720 4,690,837 41,494,839 18,162,725 221,086,699 213,090,399
Profit transfer to Profit &
Loss Account (25,872,705) 53,494,011 6,008,110 75,912,505 15,344,440 124,886,360 93,663,781
Balance on Account at the
end of the year as shown in
Balance Sheet :
Reserve for unexpired
risks being 50% of Fire,
Marine Cargo, Motor &
Misc. and 100% of Marine
Hull Premium income of
the year. 69,354,799 138,148,132 24,096,708 103,950,223 27,672,055 363,221,916 326,939,839
Total 235,284,601 404,591,381 41,934,499 313,911,300 91,929,575 1,087,651,356 1,019,923,352

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman
Independent Auditors’ Report
As per our report of same date
Dated, Dhaka, 30th April, 2018 Hoda Vasi Chowdhury & Co
Chartered Accountants

68 Annual Report 2017

 FIRE INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER, 2017

Particulars 2017 2016

Balance of account at the beginning of the year :
Reserve for unexpired risk 63,500,482 66,633,477
Premium less : Re-Insurance 138,709,598 127,000,964
Commission on Re-insurance ceded 33,074,521 38,153,973
235,284,601 231,788,414

Claims under policies Less : Re-insurance :

Paid during the year 31,738,350 22,934,305
Total estimated liability in respect of outstanding claims at the end of the
year whether due or intimated 15,695,510 42,162,276
47,433,860 65,096,581
Less : Outstanding claims at the end of the previous year 42,162,276 91,780,374
5,271,584 (26,683,793)
Expenses of management 109,535,345 138,900,043
Commission 76,995,578 95,025,261
Profit transferred to Profit & (Loss) Account (25,872,705) (38,953,579)
Balance of account at the end of the year as shown in Balance Sheet
Reserve for unexpired risks, being 50% of the fire premium income of the 69,354,799 63,500,482
year
235,284,601 231,788,414

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman
Independent Auditors’ Report
As per our report of same date
Dated, Dhaka, 30th April, 2018 Hoda Vasi Chowdhury & Co
Chartered Accountants

Annual Report 2017 69

 MARINE INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER, 2017
Total
Particulars CARGO HULL 2017 2016
Balance of Account at the beginning of the year :
Reserve for unexpired risk 110,429,217 15,355,849 125,785,066 112,483,462
Premium Less : Re-Insurance 276,296,264 24,096,708 300,392,972 236,214,283
Commission on Re-Insurance Ceded 17,865,900 2,481,942 20,347,842 25,749,780
404,591,381 41,934,499 446,525,880 374,447,525

Claims under Policies Less : Re-Insurance:

Paid during the year 16,101,395 1,390,070 17,491,465 36,953,372
Total estimated liability in respect of Outstanding 12,820,819 251,660 13,072,479 5,210,415
Claims at the end of the year whether due or
intimated
28,922,214 1,641,730 30,563,944 42,163,787
Less : Outstanding Claims at the end of the previous year 3,864,115 1,346,300 5,210,415 12,158,222
25,058,099 295,430 25,353,529 30,005,565
Expenses of Management 108,148,419 6,843,414 114,991,833 105,383,545
Commission 79,742,720 4,690,837 84,433,557 74,642,231
Profit transferred to Profit & (Loss) Account 53,494,011 6,008,110 59,502,121 38,631,118
Balance of Account at the end of the year as
shown in Balance Sheet :
Reserve for unexpired risks being 50% of the Marine
Cargo Premium income 100% of the Marine Hull
Premium Income of the year 138,148,132 24,096,708 162,244,840 125,785,066
404,591,381 41,934,499 446,525,880 374,447,525

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman
Independent Auditors’ Report
As per our report of same date
Dated, Dhaka, 30th April, 2018 Hoda Vasi Chowdhury & Co
Chartered Accountants

70 Annual Report 2017

 MISCELLANEOUS INSURANCE REVENUE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER, 2017
Total
Particulars MOTOR MISC. 2017 2016
Balance of account at the beginning of the year :
Reserve for unexpired risks 106,010,854 31,643,437 137,654,291 134,026,515
Premium less : Re-insurance 207,900,446 55,344,109 263,244,555 275,308,581
Commission on Re-insurance ceded (including profit
commission) - 4,942,029 4,942,029 4,352,318
313,911,300 91,929,575 405,840,875 413,687,414
Claims under policies
Less : Re-Insurance: paid during the year 42,970,602 11,109,507 54,080,109 57,437,662
Total estimated liability in respect of outstanding
claims at the end of the year whether due or
intimated 8,815,000 19,443,155 28,258,155 30,483,823
51,785,602 30,552,662 82,338,264 87,921,485
Less : Outstanding claims at the end of the previous
year 7,450,000 23,033,823 30,483,823 14,525,733
44,335,602 7,518,839 51,854,441 73,395,752
Expenses of management 48,218,131 23,231,517 71,449,648 65,228,222
Commission 41,494,839 18,162,725 59,657,564 43,422,907
Profit transferred to
Profit & (Loss) Account 75,912,505 15,344,440 91,256,945 93,986,242
Balance of account at the end of the year as
shown in Balance Sheet :
Reserve for unexpired risks being 50% of the motor
and misc. premium income of the year 103,950,223 27,672,055 131,622,278 137,654,291
313,911,300 91,929,575 405,840,875 413,687,414

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman
Independent Auditors’ Report
As per our report of same date
Dated, Dhaka, 30th April, 2018 Hoda Vasi Chowdhury & Co
Chartered Accountants

Annual Report 2017 71

72
PRAGATI INSURANCE LIMITED
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEAR ENDED 31 DECEMBER, 2017

Reserve for Contingency

Revaluation General Profit & loss
Share capital exceptional Reserve for Total equity
Particulars Reserve reserve appropriation
losses Insurance Gurantees
Taka Taka Taka Taka Taka Taka Taka
Balance at 1 January 2017 556,003,390 758,075,593 105,869,651 1,412,133,735 243,578 84,483,260 2,916,809,207
Dividend paid (Stock) 27,800,160 - - - - (27,800,160) -
Dividend paid (Cash) - (55,600,339) (55,600,339)
Transferred to Reserve for - 38,629,092 - - - 38,629,092
exceptional losses
Transferred to Revaluation reserve - - - - -
Transferred to profit & loss - - - - - 116,706,654 116,706,654
appropriation account
Balance at 31 December 2017 583,803,550 796,704,685 105,869,651 1,412,133,735 243,578 117,789,415 3,016,544,614

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman
Subject to our separate report of even date

Dated: Dhaka, 30th April, 2018

Hoda Vasi Chowdhury & Co

Annual Report 2017

Chartered Accountants
 STATEMENT CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER, 2017
Particulars 2017 2016

A. Cash Flow from operating Activities

Collection from Premium & Other income 1,700,771,241 1,591,314,924

Less: Payment for Expenses of Management, Re-insurance, Claim 1,633,343,355 1,569,060,433

and Commission etc.

Less: Tax paid/or deducted 36,094,391 17,681,187

Net Cash Flow From Operating Activities 31,333,495 4,573,304

B. Cash Flow from Investing Activities

Interest & other Income 26,209,674 36,542,551

Dividend Income 22,725,499 27,582,677

Rental Income 45,587,926 51,286,635

Purchase of Fixed Assets (1,549,767) (4,125,593)

Land & Building (21,664,876) (15,031,195)

Net Fund adjustment with Brokers house 49,483,082 (66,299,341)

Net Cash Flow From Investing Activities 120,791,538 29,955,734

C. Cash Flow from Financing Activities

Increase/(Decreased) of bank Overdraft (61,989,813) (8,900,889)

Dividend Paid (55,600,339) (55,600,339)

Net Cash Flow From Financing Activities (117,590,152) (64,501,228)

Increase/Decrease in Cash Flow(A+B+C) 34,534,881 (29,972,190)

Opening Cash In hand & At Banks 552,383,589 582,355,779

Closing Cash In hand & At Banks 586,918,464 552,383,589

Net operating cash flow per share 0.54 0.08

The annexed notes from 1 to 38 form an integral part of these financial statements.

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman

Dated, Dhaka, 30th April,2017 Hoda Vasi Chowdhury & Co

Chartered Accountants

Annual Report 2017 73

 PRAGATI INSURANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER, 2017

1.0 Background
The Company was incorporated as a public company on 27 January 1986 and obtained the Certificate of
Commencement i.e C-15249/815 of Business from the Registrar of Joint Stock Companies, Bangladesh
with effect from30 January 1986. The Company is listed with both Dhaka Stock Exchange and Chittagong
Stock Exchange Limited as a Public Limited Company. The primary objectives of the company are to
carry on all kinds of insurance, guarantee and indemnity business other than life insurance business.
1.1 Application of Standards
The following BAS and BFRS are applicable for the Financial Statements for the year under review:
BAS 7 Statement of Cash Flows
BAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS 10 Events After the reporting periods
BAS 12 Income Taxes
BAS 16 Property, Plant and Equipment
BAS 18 Revenue
BAS 19 Employees Benefits
BAS 21 Foreign exchanges gain or loss
BAS 23 Borrowing Cost
BAS 24 Related Parties Disclosers
BAS 33 Earning per share
BAS 37 Provision, Contingent liabilities and Assets
BAS 38 Intangible Assets
BFRS 7 Financial Instruments, Disclosers
2.0 Basis of presenting accounts and significant accounting policies
2.1 Basis of presenting accounts
a. These accounts have been prepared under Generally Accepted Accounting Principles (GAAP)
on historical cost convention. These statements are also prepared in accordance with applicable
Accounting Standards as adopted by the Institute of Chartered Accountants of Bangladesh and where
relevant with presentational requirement of the law.
b. The Balance Sheet has been prepared in accordance with the regulations contained in Part I of the
First Schedule and as per Form “A” as set forth in Part II of that Schedule and the Revenue Account
of each class of general insurance business has been prepared in accordance with the regulations as
contained in Part I of the Third Schedule and as per Form “F” as set forth in Part II of that Schedule of
the Insurance Act 2010 as amended.
2.2 Significant accounting policies
a) Premium Income:
The total amount of premium earned on various classes of insurance business underwritten during
the year, the gross amount of premium earned against various policies, the amount of re-insurance
premium due to Sadharan Bima Corporationand General Insurance Corporation of India (GIC), the
amount of re-insurance commission earned and the amount of claims less re-insurance settled during

74 Annual Report 2017

 the year have all been duly accounted for in the books of account of the Company and while preparing
the final accounts, the effect of re-insurance accepted and re-insurance ceded as well as the effect
of total estimated liabilities in respect of outstanding claims at the end of the year, whether due or
intimated have also been duly reflected in order to arrive at the net underwriting profit for the year.
b) Interest on Statutory and other Investments :
The interest received during the year from banks on STD account and FDR Accounts has been duly
credited to the Statement of Comprehensive Account.
c) Gain and Loss on Shares and Debentures
Gain and loss on sale of shares and dividend income earned during the year have been shown in the
Statement of Comprehensive Account and the tax relief as well as the concession on the rate of tax as
availed under the existing income tax law, have been given effect in the accounts.
d) Management Expenses
Management expenses as charged to Revenue Accounts amounting to Tk.295,976,826 represents
approximately 17.77% of gross premium of Tk.1,664,737,211.The expenses have been apportioned
@41.75% to Fire, 37.14% to Marine and 21.11% to miscellaneous business as per Management
decision.
e) Provision for Unexpired Risks
Before arriving at the surplus of each class of business necessary provision for unexpired risks have
been created at the rate of 50% on all business except on Marine Hull business for which the provision
was made @ 100% of the total premium for the year 2017.
f) Reserve for Exceptional Loss
Reserve for Exceptional Losses as appropriated out of current year’s profit before tax provision
amounts to Tk. 38,629,092 being 5.5% of the net premium earned during the year.
g) Depreciation on Fixed Assets
Depreciation on Fixed Assets has been charged on cost for full year as per Straight Line Method at the
following rates:
Category of Assets Rate of Depreciation
Furniture 10%
Fixtures 15%
Motor Vehicles 20%
Office & Electrical Equipment 15%
Miscellaneous Items 20%
h) Use of Estimate
Preparation of financial Statements in conformity with International Accounting Standards requires
management to make estimate and assumptions that affect the reported amounts of asset and liabilities
and disclosure of the contingent asset and liabilities if any at the date of the financial statements
and revenues and expenses during the year reported. Actual result could differ from those estimates.
Estimates are used in accounting for certain items such as depreciation, outstanding claims, taxes
reserve etc.
i) Operation
During the year under audit, the gross premium earned by the company amounted to Tk.1,664,737,211
including public sector business of Tk.48,973,726. After ceding for re-insurance premium the net
premium for the year amount to Tk.702,347,125 and after charging direct expenses therefrom the net
Underwriting profit stood at Tk. 124,886,360 as against Tk. 93,663,781 of previous year.
Annual Report 2017 75
 j) Public Sector Business
Public Sector Business up to June 2017 has been accounted for on the basis of statement received from
Sadharan Bima Corporation.
k) Taxation
Provision for income tax has been made @ 40% as per Finance Act 2017 of the profit made by the
company considering taxable add-back of income and disallowance of expenditure.
l) Tax Assessment Position
Management has filed appeals with the Hon’ble High Court Division of Supreme court against the
order of Tax Appellate Tribunal for the assessment year 2006-2007,2007-2008, 2008-2009, 2009-
2010, 2010-2011, 2011-2012, 2012-2013, 2013-2014 and 2014 2015.Tax authority filed appeal to the
High Court against Tribunal order for assessment year 2011-2012 which lying to Appellate Tribunal
and hearing completed but decision is pending. The Department has filed appeal against the assessment
order of Assessment Year 2013-2014 and 2014-2015 and Tribunal has given the order in favor of the
Department. Now the company has filed appeal to the Hon’ble High Court Division of Supreme Court
against the order. Assessment of Income year 2014 (assessment year 2015-2016) now pending with
the DCT. Sufficient provision made for excess imposed Taxes.
m) Foreign currency translation
Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates
on the respective date of such transaction as per BAS-21.
n) Basic Earnings per Share
This has been calculated by dividing the basic earning by the weighted average number of ordinary
shares outstanding during the year as per BAS-33.
o) Employees’ Benefit Scheme:
Pragati Insurance ltd provided employees’ benefit as per BAS-19 as under :
i) Gratuity Fund :
The company has a funded Gratuity scheme for all eligible employees who completed minimum
5 years of confirmed service with the company. The scheme is approved by the National Board of
Revenue (NBR) and administrated by an independent Board of Trustee.
ii) Contributed Provident Fund :
The company has a contributed provident Fund for its regular employee. The fund is approved by
Commissioner of Taxes.
iii) Other Benefit’s :
In addition to above, the company provides other benefits to its employees like group insurance
scheme, Incentive bonus, House building loan etc.
iv) Workers profit participation fund(WPPF):
The board refers the matter of provision for Workers Profit Participation Fund (WPPF) and like
to clarify as per provision of para (A to G) section 233 of Bangladesh Labour Amendments Act
2013,funtions of Non-Life Insurance companies are not similar to the functions of Industrial
relating workers’ as mention in the aforesaid section.
Therefore, provision for Workers Profit Participation and Welfare Fund (WPPF) is not applicable
for the company. It may be mentioned here that Pragati Insurance Ltd. has been maintaining
a recognized Employees Provident fund, Gratuity Scheme, Group Insurance Scheme (GIS),
performance bonus as per provision of BAS-19.

76 Annual Report 2017

 p) Related parties’ disclosure
Pragati Insurance in normal course of business carried out a number of transactions with other entities
that fall within the definition of related parties contained in Bangladesh Accounting Standard 24:
‘Related Parties Disclosers’. All transactions involving related parties arising the normal course
of business and on a arm’s length basis at commercial rates on the same terms and conditions as
applicable to the third parties. Details transactions with related parties and balances with them as at
December 31,2017 were as follows:
Net Premium
Amount
Nature of Premium Outstanding Claim Paid-
Name of the Client Relationship Realized
Business income upto 31-12- 2016
Subsequently
2016 2016
W & W Grains Corporation Common Director Insurance 1,628,114 Nil Nil -
Multimode Group Common Director Insurance 20,489,063 Nil Nil 998,666
Abdul Monem Ltd. Common Director Insurance 37,128,453 Nil Nil 1,133,466
KDS Group Common Director Insurance 58,300,611 Nil Nil 282,416
McDonaid Group Common Director Insurance 704,109 Nil Nil -
Prostar Group Common Director Insurance 1,977,944 Nil Nil 2,833,086
Armana Group Common Director Insurance 32,024,091 Nil Nil 1,568,500
Chowdhury Group Common Director Insurance 211,825 Nil Nil -
Concord Pragatee Consortium Common Director Insurance 751,466 Nil Nil -
MKR Group Common Director Insurance 60,308 Nil Nil -
Total 153,275,984 6,816,134

q) Others
Figures have been rounded off to the nearest Taka and previous year’s figures have been re-arranged
for comparison purpose where felt necessary.
3. Valuation of Assets
The value of all assets at 31 December 2017 as shown in the Balance Sheet and in the Classified Summary
of Assets on Form ‘AA’ annexed have been reviewed and the said assets have been set forth in the
Balance Sheet at amounts at their respective book values which in the aggregate do not exceed their
aggregate market value.

Annual Report 2017 77

 2017 2016
4 Share capital Taka Taka
Authorized:
200,000,000 ordinary shares of Tk 10 each 2,000,000,000 2,000,000,000
Issued, subscribed and paid up:
58,380,355 ordinary Shares of Tk 10 each Fully 583,803,550 556,003,390
6,100,000 Ordinary shares of Tk.10 each Fully paid up in cash 61,000,000 61,000,000
1,220,000 Ordinary shares of Tk.10 each Fully paid up as bonus
share(20%) allotted in 1997 12,200,000 12,200,000
2,196,000 Ordinary shares of Tk.10 each Fully paid up as bonus
share(30%) allotted in 2002 (out of general reserve as at 31st
December 2001) 21,960,000 21,960,000
2,379,000 Ordinary shares of Tk.10 each Fully paid up as bonus
share(25%) allotted in 2003(out of general reserve as at 31st
December 2002) 23,790,000 23,790,000
3,211,650 Ordinary shares of Tk.10 each Fully paid up as bonus
share(27%) allotted in 2004 (out of Share Premium) 32,116,500 32,116,500
3,776,650 Ordinary shares of Tk.10 each Fully paid up as bonus
share(25%) allotted in 2005 (out of Share Premium) 37,766,500 37,766,500
2,832,500 Ordinary shares of Tk.10 each Fully paid up as bonus
share(15%) allotted in 2006(out of Share Premium & General
reserve) 28,325,000 28,325,000
3,257,370 Ordinary shares of Tk.10 each Fully paid up as bonus
share(15%) allotted in 2007(out of Share Premium & General
reserve) 32,573,700 32,573,700
8,740,600 Ordinary shares of Tk.10 each Fully paid up as bonus
share(35%) allotted in 2008(out of net Profit) 87,406,000 87,406,000
50,570,600 Ordinary shares of Tk.10 each Fully paid up as bonus
share(15%) allotted in 2008(out of net Profit) 50,570,600 50,570,600
38,770,830 ordinary Shares of Tk 10 each Fully Paid up bonus
share (10%) allotted in 2009 (Out of General Reserve and Dividend
Equalization Reserve) 38,770,700 38,770,700
42,647,900 ordinary Shares of Tk 10 each Fully Paid up bonus
share (5%) allotted in 2010 (Out of Net Profit) 21,323,950 21,323,950
4,478,0295 ordinary Shares of Tk 10 each Fully Paid up bonus
share (10%) allotted in 2011 (Out of Net Profit & General Reserve) 44,780,350 44,780,350
3,694,374 ordinary shares of Tk.10 each fully paid up bonus
share(7.5%) allotted in 2012 (out of Net profit & General reserve) 36,943,740 36,943,740
2,647,635 ordinary shares of Tk.10 each fully paid up bonus
share(5%) allotted in 2013 (out of Net profit & General reserve) 26,476,350 26,476,350
2,780,016 ordinary shares of Tk.10 each fully paid up bonus
share(5%) allotted in 2016 (out of Net profit & General reserve) 27,800,160
583,803,550 556,003,390

78 Annual Report 2017

 2017 2016
Clarification of shareholding position of the Company at 31 December

Number of shareholders Percentage (%) of total holdings

Holding of shares
2017 2016 2017 2016
Less than 500 2,098 2,383 0.40 0.47
500 to 5,000 1,009 1,021 3.16 3.06
5,001 to 10,000 117 121 1.47 1.54
10,001 to 20,000 70 81 1.78 2.07
20,001 to 30,000 24 28 1.01 1.19
30,001 to 40,000 19 15 1.21 0.96
40,001 to 50,000 15 12 1.24 0.95
50,001 & above 102 112 89.73 89.76
3,454 3,773 100.00 100.00

5 Reserve for Exceptional Losses Tk. 796,704,685

Opening balance 758,075,593 710,186,306
Add: Addition during the year 38,629,092 47,889,287
796,704,685 758,075,593
6 Contingency Reserve for Insurance Guarantees & tail ended Insurance Business Tk.105,869,651
Reserve for unexpired Guarantees 87,080,441 87,080,441
Reserve against Tail ended insurance business 18,789,210 18,789,210
105,869,651 105,869,651
7 Revaluation Reserve Tk. 1,412,133,735
Opening balance 1,412,133,735 1,412,133,735
Closing balance 1,412,133,735 1,412,133,735
8 General Reserve Tk. 243,578
Opening balance 243,578 7,433,917
Less: Dividend paid - 7,190,339
243,578 243,578
9 Balance of Profit & Loss Appropriation Account Tk. 117,789,414
Underwriting Profit as per revenue Account 124,886,360 93,663,781
Interest Income & Dividend 48,126,361 63,536,152
Other Income(Including gain/(loss) on Sale of Share 67,427,525 56,882,868
240,440,246 214,082,801
Less: Expenses of Management (Not related to any fund or account) 30,104,500 27,815,952
Net profit for the year 210,335,746 186,266,849
less :Reserve for Exceptional losses(5.50% of Net Premium) Tax free 38,629,092 47,889,287
(In 2016 it was 7.5%) 171,706,654 138,377,562
Add: Surplus Brought forward: 1,082,760 5,698
172,789,414 138,383,260
Less: Tax provision 55,000,000 53,900,000
Surplus Carried forward 117,789,414 84,483,260

Annual Report 2017 79

 2017 2016
10 Premium deposits 4,664,409 16,878,346
Balance on this account represents premium received against cover notes which were not converted into
policy within 31 December 2017 because of the period of nine months from the dates of issue of cover notes
had not elapsed
11 Estimated liability in respect of outstanding claims whether due or intimated Tk. 57,026,144
Fire 15,695,510 42,162,276
Marine 13,072,479 5,210,415
Motor 8,815,000 7,450,000
Miscellaneous 19,443,155 23,033,823
57,026,144 77,856,514
All the claims of which the management is aware of as per intimation up to the year-end have been taken into
consideration.
12 Amounts due to other persons or bodies carrying on insurance business Tk: 939,7319
The following to the balance payable under co-insurance scheme for payment to other insurance companies
and other parties.
Co-insurers 9,397,319 10,199,886
Payable to other Parties - 46,255,799
9,397,319 56,455,685

13 Loan from Bank for office Building (Secured) 136,042,270 198,032,083

13.1 Sonali Bank Tk. 86,902,791
Opening Balance 151,593,831 142,389,795
Loan Taken during the year 75,367,421 119,449,294
Interest charged during the year 16,440,686 16,518,750
243,401,938 278,357,839
Less. Re-payment during the year 156,499,147 126,764,008
86,902,791 151,593,831
13.2 IFIC Bank Tk. (860,521)
Opening Balance 46,438,252 64,543,177
Loan Taken during the year 103,807,036 133,020,394
Interest charged during the year 4,043,127 5,737,304
154,288,415 203,300,875
Less. Re-payment during the year 155,148,936 156,862,623
(860,521) 46,438,252

13.03 IDLC 50,000,000 -

80 Annual Report 2017

 2017 2016
14 Sundry creditors (including provision for expenses and taxes) TK. 124,667,628
Payable against expenses 26,034,706 26,957,402
Provident fund deduction 2,298,981 2,142,116
Provident fund Loan 22,971 501,661
Income tax deduction(14.1) 217,818 221,612
Received against security 32,030,819 2,608,160
Tax deduction against Bill 350,050 186,154
VAT deduction against Bill 148,183 214,371
Un-paid dividend (14.2) 23,329,037 17,574,172
Vat payable (14.3) 10,917,360 9,402,742
Hospitalization Insurance Claim 569,312 634,136
Advance Rent Received 28,748,390 23,703,396
124,667,628 84,145,921
14.01 Income Tax deduction Tk. 217,818
Income Tax deduction at source amounting to Tk.217,818 including income tax deduction from salary during
the year which has been deposited into Bangladesh Bank subsequently.
14.02 Unpaid Dividend Tk.23,329,037
This represent the balance of unpaid dividend from year to year TK.23,329,037
14.03 VAT Payable Tk.10,917,360
VAT payable as Tk.10,917,360 represent the Vat for the month of December 2017 which has been deposited
into Bangladesh Bank subsequently.
15 Provision for Income Tax Tk. 414,254,453
The amount includes Tk. 55,000,000 being Income tax provision made for the accounting year ended on 31
December.2017(Assessment Year 2018-2019) in accordance with the best estimate of the management on
lump sum basis but without considering the admissible and inadmissible expenses
Opening Balance 359,254,453 305,354,453
Add. Provision made during the year 55,000,000 53,900,000
414,254,453 359,254,453
16 Provision for Deferred Tax Tk 17,340,000
Opening Balance 17,340,000 17,340,000

17 Bangladesh Government Treasury Bond 25,106,959.87 25,086,755.00

The amount represents 5 years Bangladesh Government Treasury Bond (BGTB) with a face value of Tk.
25,086,755 held with Bangladesh Bank as statutory Deposit under Insurance Act ,2010.
18 Shares and Debentures Tk. 391,551,252
Shares (18.1) 387,051,252 378,081,265
Debentures (18.2) 4,500,000 4,500,000
391,551,252 382,581,265

Annual Report 2017 81

 2017 2016
18.1 Break up of Share and debentures of 2017
Amra Net 1,426,450 3,699,606
BD Industrial Finance Ltd. 167,320 171,200
BD Submarine Cable 5,451,589 2,920,308
DELTA LIFE INSURANCE 11,739,688 6,534,656
DELTA SPEINER LTD 1,993,622 1,137,400
Eastland Insurance 662,203 409,098
ENVOY TEXTILE 2,073,990 1,544,807
Eastern Cables Limited 755,137 674,049
Family Tex 1,746,709 553,014
Golden son 8,176,157 2,352,000
HWA WELL TEXTILES BD LTD 2,279,081 1,855,000
Int. Leasing And FSL 2,746,580 1,765,238
KAY & QUE. 4,501,005 10,489,425
LAFSURCEML 7,573,510 4,893,000
LANKABANGLA FINANCE LTD 6,806,358 4,780,000
Mobile Jamuna BD Ltd. 4,955,823 4,364,000
Nahee Aluminum 62,246 502,570
Monno Fabrics 27,125 271,250
NATIONAL BANK 30,428,301 16,860,337
NCC BANK LTD 13,905,253 13,207,988
Olympic Industries Limited 24,416,449 23,064,000
OIMEX 64,800 464,745
PADMA OIL 8,741,421 7,989,531
Phoenix Finance 1,763,556 1,688,960
PRIME BANK LTD 7,668 8,220
Saif Powrtec 14,878,428 6,374,400
Samorita Hospital Ltd. 1,937,754 1,814,459
Square Pharmaceuticals Limited 3,713,851 4,562,914
Saiham Cotton Mills Limited 2,332,877 1,301,300
Southeast Bank 7,259,127 6,992,711
Shahjibazar Power Co. Ltd. (SPCL) 5,341,784 4,632,390
Unique Hotel & Resort 6,829,647 3,124,000
National Housing Finance & Investment Ltd 49,932,168 261,382,680
234,697,677 402,385,255
18.1.(i) Changes in fair value of the shares available for sale
Fair Value of the Investment 402,385,255 381,376,195
Fair value reserve as at December 31,2017 (234,956,749) (234,956,749)
167,428,506 146,419,446

82 Annual Report 2017

 2017
At cost 2016
Market Value
Non- Tradable
Central Depository Bangladesh. Ltd 3,138,890 3,138,890
Ind. & Infrastructure Dev. Finance Co. 31,183,820 31,183,820
Jamuna Resort Ltd. 43,900,895 43,900,895
United Hospital Ltd. 54,337,500 54,337,500
Non- Tradable 132,561,105 132,561,105
Total 367,258,782 534,946,360
Brokerage Balance 19,792,470 19,792,470
Total (Tradable+ Non-Tradable+ Brokerage balance) 387,051,252
The company has made investment in capital market in a large port folio and income generated from investment
(realized gain and dividend received) is credited to Statement of Comprehensive Income. Unrealized capital
gain if any is transferred to investment Fluctuation Fund subsequently. Investment in shares that do not
have any quoted market price in the active market and whose fair value can not be measured reliably, where
recognized at cost
18.2 Debentures 2017 2016
Bangladesh Luggage Industries Ltd 4,500,000 4,500,000
4,500,000 4,500,000
19 Amount due from other persons or bodies carrying on insurance business Tk452,169,839
Co-Insurance premium receivable 23,204,412 22,763,974
Co-Insurance claim receivable 15,967,935 16,601,015
Refund Co-Insurance premium receivable 3,870,342 3,865,537
Sadharan Bima Corporation 230,893,740 259,251,388
Overseas re-insurer 178,233,410 164,915,096
452,169,839 467,397,010
20 Interest, Dividend & Rent Outstanding Tk 576,426
Dividend (20.1) 51,426 51,426
Debenture Interest (20.2) 525,000 525,000
576,426 576,426
20.01 Dividend
Metro Spinning Mills Ltd. 510 510
Beximco Fisheries Ltd. 50,916 50,916
51,426 51,426
20.02 Debenture Interest
Bangladesh Luggage Industries Ltd 525,000 525,000
525,000 525,000
21 Sundry Debtors (including advances, deposits and prepayments and others) Tk. 802,877,039
Advance against Salary 3,879,429 2,930,773
Advance against Rent 17,849,839 6,105,088
Advance against Expenses 11,586,277 9,236,286
House Building Loan 1,623,268 3,389,433
Jamuna Resort Ltd. 20,229,708 12,223,656
Security Deposits 6,044,306 1,825,905

Annual Report 2017 83

 2017 2016
Group Insurance 2,920,984 1,457,591
Advance against Insurance Management Software 15,060,700 15,060,700
GA Adjuster receivable - 30,260,394
Rent Receivable 1,093,191 -
80,287,703 82,489,826
22 Premium Control Account TK. 14,393,736
Fire 4,114,789 -
Marine (Cargo & Hull) 9,413,183 -
Motor - -
Misc. 865,764 -
14,393,736 -
Total amount of premium control account was realized within February 2018.
23 Advance Payments of Tax Tk.289,643,031
Opening balance 253,548,640 235,867,453
Add: Advance Tax paid/Deduction at source during the year (23.1) 36,094,391 17,681,187
289,643,031 253,548,640
23.01 Advance Tax paid/Deduction at source during the year
Deduction At Source from FDR Interest 2,277,864 3,310,302
Deduction At Source from STD Interest 217,578 370,543
Deduction At Source from Dividend Income 4,545,068 5,210,700
Deduction At Source from office Rent 2,063,020 2,698,854
Tax against Motor Maintenance 60,691 90,787
Advance Income Tax Paid 26,930,170 6,000,000
36,094,391 17,681,187
24 Cash and Bank balances Tk. 586,918,464
In hand
Cash (Head Office and Branch) 11,462,782 9,532,378
Stamps 494,741 418,696
11,957,523 9,951,074
At banks
Fixed deposits (FDR) 434,676,850 425,246,850
Short term deposit (STD)& Current accounts 140,284,091 117,185,665
574,960,941 542,432,515
586,918,464 552,383,589
25 Land : Tk. 887,115,023
Opening balance 887,115,023 887,050,023
Add.: Sundry cost - 65,000
887,115,023 887,115,023
26 Holiday Homes: Tk. 4,130,090
Opening balance 4,130,090 4,130,090
4,130,090 4,130,090

84 Annual Report 2017

 2017 2016
27 Fixed Asset ; Tk. 73,736,050
Cost 215,909,621 221,317,854
Less: Accumulated depreciation 142,173,571 138,261,307
Written down value as per Annexure ‘A’ 73,736,050 83,056,547
28 Office Building : TK. 1,302,008,743
Head Office Building is yet to be registered in the name of the Company and hence no depreciation Charged
so far except electrical equipment.
Opening Balance 1,283,666,113 1,269,634,138
Add: Interest on Sonali Bank SOD A/C-32008293 16,440,686 16,459,492
Add. Other expenses 4,459,461 130,000.00
1,304,566,260 1,286,223,630
Less: Depreciation 2,557,517 2,557,517
Closing Balance 1,302,008,743 1,283,666,113
29 Panthapath Building (Under Construction) : TK. 33,982,698
Two Storied Commercial Building under construction at Panthapath land
Opening Balance 30,660,452 29,726,232
Add: Rate, legal & other expenses. 3,322,246 934,220
33,982,698 30,660,452
30 Interest and dividend income: Tk. 48,126,361
Interest on:
Fixed deposit receipts (FDR) 24,382,999 38,214,785
Short term deposit (STD) accounts 4,503,476 3,004,178
House Building Loan Interest 557,514 471,816
29,443,989 41,690,779
Less: Overdraft interest 4,043,127 5,737,304
25,400,862 35,953,475
Dividend received during the year 22,725,499 27,582,677
48,126,361 63,536,152
31 Other income : Tk. 67,427,525
Profit on sale of Investment 21,030,787 5,007,157
Building Rent 45,587,926 51,286,635
Sundry Income 808,812 589,076
67,427,525 56,882,868

32 Registration Renewal Fee 6,225,741 6,088,333

The balance represents the amount deposited to Bangladesh Bank against renewal of registration for car-
rying on fire, marine and miscellaneous insurance business as per Section- 3A of Insurance Act-2010. Such
expense amounts to Tk. 6,225,741

33 Audit fees Tk. 361,250

Statutory audit fee (Including Vat) 361,250 456,375
361,250 456,375

Annual Report 2017 85

 2017 2016
34 Net Asset Value
(Total Asset-Current Liabilities) 3,183,973,119 3,063,228,653
Number of Share 58,380,355 55,600,339
Net Asset Value per share 54.54 55.09
Total Asset-Current Liabilities 3,183,973,116 3,063,228,652
Total Assets 4,310,587,254 4,200,131,492
Current Liabilities 1,126,614,138 1,136,902,840

Fire Insurance Business 69,354,798 63,500,481

Marine Insurance Business 162,244,840 125,785,066
Misc. Insurance Business 131,622,278 137,654,291
Premium Deposit 4,664,409 16,878,346
Estimated liabilities in respect of outstanding Claims whether due 57,026,144 77,856,514
or intimated
Amount due to other persons or bodies for carrying on insurance 9,397,319 56,455,685
business
Loan from Bank 136,042,270 198,032,083
Sundry Creditors 124,667,628 84,145,921
Provision for Income Tax 414,254,453 359,254,453
Provision for Deferred Tax 17,340,000 17,340,000
35 Earning Per Share
Profit after Tax 155,335,746 132,366,849
Number of Share 58,380,355 55,600,339
Basic Earning Per Share 2.66 2.38
36 Number of Employees
The number of permanent employees of the company drawing salaries below and above TK.3,000 per
month is as under:
a) Salaries drawing above TK.3,000 526 Nos.
b) Salaries drawing Below TK.3,000 Nil
37 Payments/ perquisites/ to Directors/Officers during the year
Directors’ Fees 1,246,250 1,443,402
MD’s Salary & Emoluments 4,200,000 3,600,000
Officers Salary 173,986,222 183,866,279
Meeting Fees 1,143,341 739,248
38 Post Balance Sheet Events
There was no significant event that has occurred between the balance sheet date and the date when the Financial
Statements are authorized for issue by the board of Directors of Pragati Insurance Ltd in its 266th meeting
held on 30th April ,2018 other than the fact that it has recommended Cash Dividend @ 13% and Stock
Dividend @ 5% out of surplus subject to approval of shareholders in the 32nd Annual General Meeting.

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman

Dated: Dhaka, 30th April, 2018 Hoda Vasi Chowdhury & Co

CHARTERED ACCOUNTANTS
86 Annual Report 2017
 Fixed Assets
(at cost less accumulated depreciation)

Annual Report 2017

Cost Depreciation WDV WDV
Additions Disposal Closing Charged Closing as at 31 as at 31
Particulars Opening Rate Opening
during the during the balance during the Disposal balance December December
balance balance 2017 2016
year year 31.12.2007 year 31.12.2007
1 FURNITURE & FIXTURE 31,734,081 194,884 31,928,965 10% 28,706,201 621,097 - 29,327,298 2,601,667 3,027,880
2 FIXTURE (PLISTIC SIGN) 1,990,128 36,950 2,027,078 15% 1,960,617 64,961 2,025,578 1,500 29,511

3 MOTOR VEHICLE 99,050,771 324,273 6,958,000 92,417,044 20% 49,040,059 2,122,171 44,204,230 50,010,712
6,958,000 48,212,814
4 ELECTRICAL EQUIPMENT 62,452,788 916,210 63,368,998 15% 45,201,481 6,175,580 - 51,377,061 1,991,937 17,251,307
5 OFFICE EQUIPMENT 3,182,220 27,350 3,209,570 15% 3,182,221 - - 3,182,221 27,349 -
6 CURTAIN & CARPETS 679,018 - 679,018 20% 679,018 - - 679,018 - -
7 BI-CYCLE 23,175 - 23,175 20% 23,175 - - 23,175 - -
8 TELEPHONE (INTERCOM) 492,093 - 492,093 20% 492,093 - - 492,093 - -
9 OFFICE DECORATION 21,713,580 50,100 21,763,680 10% 8,976,444 1,886,453 - 10,862,897 10,900,783 12,737,137
TOTAL : TAKA 221,317,854 1,549,767 6,958,000 215,909,621 138,261,309 10,870,262 6,958,000 142,173,571 73,736,050 83,056,547
Building:
ELECTRICAL EQUIPMENT 25,575,170 2,636,778 - 28,211,948 10% 11,253,136 2,557,517 13,810,653 11,764,517 14,322,034
Total : Taka 2017 246,893,024 4,186,545 6,958,000 244,121,569 149,514,445 13,427,779 6,958,000 155,984,224 85,500,567 97,378,581

Total : Taka 2016 245,237,431 4,125,593 2,470,000 246,893,024 139,192,367 12,792,076 2,470,000 149,514,443 97,378,581 106,045,066

87
 FORM ‘AA’
CLASSIFIED SUMMARY OF ASSETS AS AT 31 DECEMBER, 2017

2017 2016

Bangladesh Government Treasury Bond 25,106,960 25,086,755

Shares - at cost 387,051,252 378,081,265
Debenture(At Cost) 4,500,000 4,500,000
Fixed deposit, STD and current A/C with Banks 574,960,941 542,432,515
Cash in hand and Stamp in hand 11,957,523 9,951,074
Amount due from other persons or bodies carrying on insur- 619,598,345 613,816,456
ance business
Accrued interest 576,426 576,426
Debtors (including advances, deposits and prepayments) 80,287,703 82,489,826
Stock of Printing material 1,538,733 1,020,310
Land 887,115,023 887,115,023
Holiday homes 4,130,090 4,130,090
Fixed Asset 73,736,050 83,056,547
Building 1,335,991,441 1,314,326,565
4,006,550,487 3,946,582,852

Md. Rezaul Karim Santosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman

88 Annual Report 2017

 REVENUE ACCOUNT
FOR THE YEAR ENDED 31st DECEMBER, 2017
Summarized position of net underwriting profit earned during the year 2017 is as follows.
MOTOR &
Particular FIRE MARINE 2017 2016
MISC

Premium Income
A) Gross Premium 695,081,411 618,277,907 351,377,893 1,664,737,211 1,542,602,305
B) Re-insurance premium 556,371,812 317,884,936 88,133,338 962,390,086 904,078,477
C) Net Premium (A-B) 138,709,599 300,392,971 263,244,555 702,347,125 638,523,828

Direct Expenses
D) Commission (Net of Re-insurance
43,921,057 64,085,715 54,715,535 162,722,307 144,834,328
Accepted and Ceded)
E) Claim Settled & provide 5,271,584 25,353,536 51,854,501 82,479,621 76,717,524
F) Management Expenses 109,535,345 114,991,833 71,449,648 295,976,826 309,511,810
G) Allocation Of Management Expenses 43.85% 34.24% 21.91% 100% 100%
H) Total Direct Expenses (D+E+F) 158,727,986 204,431,084 178,019,684 541,178,754 531,063,662
I) Adjustment Fund Balance for
Un-expired risk (Opening Balance Less (5,854,317) (36,459,774) 6,032,014 (36,282,077) (13,796,386)
closing Balance)
Net Underwriting Profit (C-H+I) (25,872,704) 59,502,113 91,256,885 124,886,294 93,663,780

Commission(Net)
Commission paid on Direct Business 76,995,578 84,433,557 59,657,564 221,086,699 213,090,399
Commission paid on Re-insurance
76,995,578 84,433,557 59,657,564 221,086,699 213,090,399
Accepted
Less: Commission earned on re-insur-
33,074,521 20,347,842 4,942,029 58,364,392 68,256,071
ance ceded
Net Commission 43,921,057 64,085,715 54,715,535 162,722,307 144,834,328

Claim Settled
Gross Claim 195,105,914 116,444,256 99,983,194 411,533,364 602,687,587
less. Salvage received - - - - -
195,105,914 116,444,256 99,983,194 411,533,364 602,687,587
Less : Re-insurance claim Recovery 163,367,564 98,952,784 45,903,025 308,223,373 485,362,248
Paid During The Year 31,738,350 17,491,472 54,080,169 103,309,991 117,325,339

Add: Outstanding Claim at the end

of the year whether due or Intimated 15,695,510 13,072,479 28,258,155 57,026,144 77,856,514
(Company’s Share)
47,433,860 30,563,951 82,338,324 160,336,135 195,181,853
Less: Outstanding claim at the end of
42,162,276 5,210,415 30,483,823 77,856,514 118,464,329
the previous Year
Net Claim 5,271,584 25,353,536 51,854,501 82,479,621 76,717,524

Annual Report 2017 89

 Directors’ Certificate
As per regulations contained in the first schedule of the Insurance Act, 2010 as amended and as per
section 40 of the said Act we certify that :-

The value of investment in shares and debentures have been taken at cost and the quoted value thereof
mentioned wherever available.

The value of all assets as shown in the Balance Sheet and as classified on Form AA annexed have been
duly reviewed as at 31st December, 2017 and in our belief, the said assets have been set forth in the
Balance Sheet at amount not exceeding their realisable or market value under the several headings as
enumerated in the annexed form.

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

Md. Rezaul Karim Shantosh Sharma Tabith Mohd. Awal Syed M. Altaf Hussain
Managing Director Director Director Chairman

90 Annual Report 2017

 List of Branches
Branch Incharge Name &
Sl.No. Branch Offices Contact No.
Designation
Dhaka Division
Mob : 01819238198
Elephant Road Branch Tel : 9661349
Sharif Mustaba
1 299, Elephant Road,
Deputy Managing Director Fax : 58616023
Pearsons Tower, Dhaka-1205
E-mail : er@pragatiinsurance.com
Biman Bhaban Branch, Mob : 01730441936 /01911351699
S.M.B.Shameem
2 “ WW Tower” 11th Floor Tel : 9570424,9587652
Deputy Managing Director
68, Motijheel C/A, Dhaka-1000. E-mail : biman@pragatiinsurance.com
Malibagh Branch, Mob : 01711566735
Manhattan Tower, Tel : 48321844
Md.Golam Faruque
3 83, Siddeswari, Circular Road,
Deputy Managing Director Fax : 9351265
Malibagh,
Dhaka-1217. E-mail : malibagh@pragatiinsurance.com
Mob : 01713002412
Motijheel Branch, Tel : 9556415 /47115066
Ali Fathker (Kallol)
4 “ WW Tower” 11th Floor
Deputy Managing Director Fax : 9556415
68, Motijheel C/A, Dhaka-1000.
E-mail : motijheel@pragatiinsurance.com
Gulshan Branch, Mob : 01711696341
House No.55, Road No.17 Bahauddin Ahmed Tel : 9886151
5
Kamal Ataturk Avenue Sr. Executive Vice President Fax : 9886151
Banani C/A, Dhaka-1213. E-mail : gulshan@pragatiinsurance.com
Mob : 01791728428
Sadarghat Branch, Tel : 47113066
Ahmed Faruk
6 32/Ka, Johnson Road Fax : 9583619
Sr. Executive Vice President
Dhalikhal, Dhaka. E-mail : sb@pragatiinsurance.com
: faruk@pragatiinsurance.com
Savar Branch, Mob : 01775538552
‘Hashem Plaza’, 1 Floor
st
Abdus Salam Tel : 7790262
7
DEPZ Gate, Ganak Bari Executive Vice President Fax : 7790262
Savar, Dhaka E-mail : savar@pragatiinsurance.com
Uttara Branch, Mob : 01711901553,01554344748
House # 18 (4th Floor) Tel : 55080229
Md. Abu Sarwar Hossain
8 Sonargaon Janapath,
Executive Vice President Fax : 55080230
Sector # 9, Uttara, Model
Town, Dhaka-1230 E-mail : uttara@pragatiinsurance.com

Bangabandhu Avenue Mob : 01911344900

Branch, Delwar Hossain Tel : 9566389,9557772
9
“ WW Tower” 11th Floor Executive Vice President Fax : 9566911
68, Motijheel C/A, Dhaka-1000. E-mail : bangabandhu@pragatiinsurance.com

Annual Report 2017 91

 Branch Incharge Name &
Sl.No. Branch Offices Contact No.
Designation
Mob : 01712296516
Dilkusha Branch Tel : 9567861
Humayun Kabir Majumder
10 “ WW Tower” 11th Floor
Executive Vice President Fax : 9551685
68, Motijheel C/A, Dhaka-1000.
E-mail : dilkusha@pragatiinsurance.com
Mob : 01552382814,01766146660
Imamgonj Branch Tel : 57319818
Syed Saidul Islam
11 31, Mitford Road
Executive Vice President Fax : 57319818
Imamgonj, Dhaka.
E-mail : imamgonj@pragatiinsurance.com
Tejgaon Branch Mob : 01711696343
Pragati Insurance Bhaban Tel : 48110073/9117671
Abdul Alim Khan
12 (8th Floor),
Senior Vice President Fax : 9117671
20-21, Kawran Bazar,
Dhaka-1215. E-mail : tejgaon@pragatiinsurance.com
Mob : 01711155185
VIP Road Branch Tel : 48321796,9341840
69/1, Purana Paltan Lane A.S.M Emdadul Hoque.
13 Fax : 48316354
Oriental Trade Centre, (3 Floor ) Senior Vice President
rd

Dhaka-1000. E-mail : vip@pragatiinsurance.com

: asm.emdadulhaque@pragatiinsurance.com
Mob : 01819458976
Hatkhola Branch Tel : 9560214
Md. Abdul Mottaleb
14 “ WW Tower” 11th Floor
Senior Vice President Fax : 9560214 / 9559410
68, Motijheel C/A, Dhaka-1000.
E-mail : hatkhola@pragatiinsurance.com
Tongi Branch Mob : 01842838694 / 01715100924
Ekramul Hoque
15 Jalil Market (2nd Floor) Tel : 9812888
Vice President
Tongi, Gazipur. E-mail : tongi@pragatiinsurance.com
Mirpur Branch Mob : 01711841175
House No.127, Senpara Md. Razzaqul Haider Tel : 9026587
16 Parbata, Begum Rokeya Chowdhury
Sharani, Vice President E-mail : mirpur@pragatiinsurance.com
Mirpur-10,Dhaka-1216.
Narsingdi Branch Mob : 01817404102
Bhuiyan Market, Md.Jasim Uddin Bhuiyan Tel : 9463009
17
(Bajeen More) Sadar Road Assistant Vice President Fax : 9463009
Narsingdi-1600. E-mail : narsingdi@pragatiinsurance.com
Mob : 01715477641
Faridpur Branch Khandoker Zakir Hossain Tel : 063162691
18
169, Mujib Sarak, Faridpur. Assistant Vice President Fax : 063162691
E-mail : faridpur@pragatiinsurance.com
Pragati Sharani Branch Mob : 01552322986,01730710566
S.M. Bhaban (1st Floor) Md. Ruhul Amin Tel : 9861745
19
Cha-75/C, Pragati Sharani Senior Manager Fax : 9846805
North Badda, Dhaka-1212 E-mail : ps@pragatiinsurance.com
Narayanganj Branch Mob : 01711561368
150, B.B. Sarak Md. Abdul Wadud Tel : 7633646
20
Jibon Bima Bhabon Senior Manager Fax : 7633646
Narayanganj-1400 E-mail : narayangonj@pragatiinsurance.com
92 Annual Report 2017
 Branch Incharge Name &
Sl.No. Branch Offices Contact No.
Designation
Mob : 01712721794
Mymensingh Branch Tel : 091-64062
Md. Ashraful Hoque
21 10, Durgabari Road(1st Floor) Fax : 091-64062
Manager
Mymensingh-2200 mymensingh@pragatiinsurance.
E-mail :
com
Chittagong Division
Mob : 01711749274
Agrabad Branch Tel : 713227-8
Ayub Trade Center(5th Floor), M. A. Hassan Fax : 031-2511948
22
1269/B, Sheikh Mujib Road, Deputy Managing Director agrabadbranch@pragatiinsurance.
Agrabad C/A, Chittagong. E-mail :
com
: hassan@pragatiinsurance.com
Jubilee Road Branch Mob : 01711749273
EPIC Ittehad Point (5 Floor)
th
Md.Nazrul Islam Tel : 031-617844/616847
23
618, Nur Ahmed Sarak Deputy Managing Director Fax : 031-616022
Chittagong. E-mail : jr@pragatiinsurance.com
Feni Branch Mob : 01770966656,01819638626
Azizul Hoque
24 Sultan Mansion (2nd Floor) Tel : 0331-74313
Executive Vice President
Trunk Road, Feni. E-mail : feni@pragatiinsurance.com
Khatunganj Branch Mob : 01819320520
Ashis Kumar Barua
25 305, Khatunganj C/A Tel : 031-637051,031-636121
Senior Vice President
Chittagong. E-mail : khatungonj@pragatiinsurance.com
Chowmuhani Branch Mob : 01716390848
Golam Rahman Miar Building Md. Belayet Hossain Tel : 0321-52030
26
4th Floor, Feni Road Vice President chowmuhani@pragatiinsurance.
Chowmuhani. E-mail :
com
Comilla Branch Mob : 01817092502
Comilla Co-operative Super Tel : 081-76977
Md. Zahangir Hossain
27 Market, (2nd Floor)
Manager
Kandirpar, Main Road E-mail : comilla@pragatiinsurance.com
Comilla.
Chandpur Branch Mob : 01715044556
Aslam Mansion, (2nd Floor) Nemai Chandra Paul Tel : 0841-63290
28
J.M.Shengupta Road Manager Fax : 0841-63290
Chandpur-3600. E-mail : chandpur@pragatiinsurance.com
Cox’s Bazar Branch Mob : 01818449970
Ahmadia Mansion Jaber Hossain Tel : 0341-64101
29
Purba Bazar Ghata, Main Manager
Road, Cox’s Bazar. E-mail : cb@pragatiinsurance.com
Rajshahi Division
Rajshahi Branch Mob : 01710968633
78/2, Razia Tower Monowar Ahmed Tel : 721-775926
30
Miapara (Gonokpara) Vice President Fax : 721-775926
Shaheb Bazar, Rajshahi. E-mail : rajshahi@pragatiinsurance.com

Annual Report 2017 93

 Branch Incharge Name &
Sl.No. Branch Offices Contact No.
Designation
Mob : 01717087634
Bogra Branch Md.Saiful Islam Tel : 051-66189
31
Thana Road, Bogra Assistant Vice President Fax : 051-66189
E-mail : bogra@pragatiinsurance.com
Pabna Branch Mob : 01712021653
Maspo Sultana Center(4th Floor) Tel : 0731-66541
A.H.M.Raihan
32 Panch-Mathar More
Manager Fax : 0731-66541
Ataikula Road, Pabna Town
Pabna. E-mail : pabna@pragatiinsurance.com

Dinajpur Branch Mob : 01712138134

Northern Plaza (2nd Floor) Farid Hossain Sarker Tel : 0531-51105
33
Holding No.74/69 Senior Manager Fax : 0531-51105
Dinajpur Town, Dinajpur. E-mail : dinajpur@pragatiinsurance.com
Mob : 01819688697
Rangpur Branch Tel : 0521-62933
A.A.Salimur Reza Talukder
34 Baitus Syed Super Market
Assistant Manager Fax : 0521-62933
Central Road, Rangpur.
E-mail : rangpur@pragatiinsurance.com
Mob : 01718484412
Natore Branch Tel : 0771-66761
Priyotosh Kumar Guha
35 Kanai Khali
Branch In-charge Fax :
Dhaka Road, Natore.
E-mail : natore@pragatiinsurance.com
Khulna Division
Khulna Branch Md. Kazi Golam Haider Mob : 01711574966, 01926945313
36 G. M. Baksh Tower (Dablu) Tel : 041-720056, 723724
22, Sir Iqbal Road, Khulna. Executive Vice President E-mail : khulna@pragatiinsurance.com
Mob : 01711350349
Jessore Branch Tel : 0421-68896
G.M.Saidur Rahman
37 “Jess Tower” (2nd Floor)
Senior Vice President Fax : 0421-68896
M. K. Road, Jessore
E-mail : jessore@pragatiinsurance.com
Kushtia Branch Mob : 01721750886
Lovely Tower(5th Floor), Md.Mostafijur Rahman Tel : 071-62223
38
55/1, Sirajuddowla Road, Deputy Vice President
Kushtia-7000. E-mail : kushtia@pragatiinsurance.com
Barisal Division
Barisal Branch Mob : 01711185353
Sazrini Super Market (3 rd
Amjad Hussain Talukder Tel : 0431-64286
39
Floor), East Bogra Road Vice President Fax : 0431-64286
Barisal. E-mail : barisal@pragatiinsurance.com
Sylhet Division
Mob : 01723679315
Sylhet Branch Debasish Kumar Sinha Tel : 0821-715008
40
Laldighir Par, Sylhet. Deputy Manager Fax : 0821-715008
E-mail : sylhet@pragatiinsurance.com

94 Annual Report 2017

 Events

Annual Report 2017 95

 Glimpses of 31st AGM

Syed M. Altaf Hussain , Chairman of the

Company delivering his speech at the
31st Annual General Meeting held on
14th June, 2017.

Photo shows the Honorable Directors

are on the dais in the 31st Annual
General Meeting held on 14th June, 2017

Photo shows the Honorable Directors

are on the dias in the 31st Annual
General Meeting held on 14th June, 2017

96 Annual Report 2017

 Shareholders doing their Registration in
the 31st Annual General Meeting held on
14th June, 2017.

Partial view of shareholders attending in

the 31st Annual General Meeting held on
14th June, 2017

Partial view of shareholders attending in

the 31st Annual General Meeting held
on 14th June, 2017

Annual Report 2017 97

 Partial view of Honorable Directors
and shareholders attending in the 31st
Annual General Meeting held on 14th
June, 2017.

Images of Board/Committee meeting

253rd Meeting of the Board of Directors’
of Pragati Insurance Ltd was held on
20th April, 2017 at the Head office of the
Company at 20-21, Kawran Bazar, Dhaka.
Photo shows Syed M. Altaf Hussain
Chairman of the Company presiding
over the meeting. Besides. former
Chairmen Mr. Abdul Awal Mintoo, Mr.
Mohammed A. Awwal, Vice-chairman
Khan Mohd. Ameer; Independent
Director Mr.Santosh Sharma; Mr. Md.
Manirul Islam, Managing Director of
the Company are also seen in the picture
and other Directors also present in the
meeting.

254th Meeting of the Board of Directors’

of Pragati Insurance Ltd was held on
14th May, 2017 at the Head office of the
Company at 20-21, Kawran Bazar, Dhaka.
Photo shows Syed M. Altaf Hussain
Chairman of the Company presiding over
the meeting. Besides. former Chairmen Mr.
Abdul Awal Mintoo, Mr. Mohammed A.
Awwal, Mr. Khalilur Rahman; Directors
Mr. Md. Syedur Rahman Mintoo, Mr.
Mohammed A. Malek, Mr. Tabith Mohd.
Awal; Independent Director Mr.Santosh
Sharma; Mr. Md. Manirul Islam, Managing
Director of the Company are also seen in
the picture and other Directors also present
in the meeting.

98 Annual Report 2017

 Syed M. Altaf Hussain , Chairman of
the Company presiding over the 256th
Meeting of the Board of Directors held
on 14th June, 2017 . Photo shows Past
Chairman, Mr. Abdul Awal Mintoo, Mr.
Mohammed Abdul Awwal, Mr.Khalilur
Rahman and Directors Mr. Md. Syedur
Rahman Mintoo, Mr. Nasir Latif.

A partial view of the 256th meeting of

the Board of Directors held on 14th
June, 2017. Photoshows Syed M. Altaf
Hussain , Chairman of the Company
presiding over the Meeting of the
Board of Directors and Past Chairman,
Mr. Abdul Awal Mintoo, Mr. Mohammed
Abdul Awwal, Mr.Khalilur Rahman
and Director, Mr. Md. Syedur Rahman
Mintoo at the meeting

Syed M. Altaf Hussain , Chairman of

the Company presiding over the 259th
Meeting of the Board of Directors held
on 21st Sept, 2017 at the Board Room
of the Head Office. Photo shows Past
Chairman, Mr. Abdul Awal Mintoo, Mr.
Mohammed Abdul Awwal and Directors
Mr. Md. Syedur Rahman Mintoo, Mr.
Nasir Latif at the meeting.

Annual Report 2017 99

Syed M. Altaf Hussain , Chairman of
the Company presiding over the 260th
Meeting of the Board of Directors held
on 30th October, 2017 at the Board
Room of the Head Office. Photo shows
Past Chairman, Mr. Abdul Awal Mintoo;
Vice Chairman, Mr. Khan Mohd. Ameer,
Director, Mr. Nasir Latif and Independent
Directors, Mr.Md. Akbar Hossain and Mr.
Santosh Sharma, Mr. Md. Rezaul Karim,
Managing Director of the Company at the
meeting.

Syed M. Altaf Hussain , Chairman of

the Company presiding over the 261st
Meeting of the Board of Directors held
on 27th November, 2017 at the Board
Room of the Head Office. Photo shows
Past Chairman, Mr. Abdul Awal Mintoo,
Mr. Khalilur Rahman; Vice Chairman,
Mr. Khan Mohd. Ameer and Directors
Mr. Md. Syedur Rahman Mintoo, Mr.
Mohd. A. Malek, Mr. Md. Rezaul Karim,
Managing Director of the Company at the
meeting.

Syed M. Altaf Hussain , Chairman of

the Company presiding over the 262nd
Meeting of the Board of Directors held
on 14th December, 2017 at the Head
Office of the Company. Photo shows
Past Chairman, Mr. Abdul Awal Mintoo,
Mr. Khalilur Rahman, Mr. Mohammed
A. Awwal; Vice Chairman, Mr. Khan
Mohd. Ameer; Director Mr. Nasir
Latif and Independent Director Mr.
Santosh Sharma, Mr. Md. Rezaul Karim,
Managing Director of the Company at the
meeting.

100 Annual Report 2017

 Al-haj Khalilur Rahman, Director and
Chairman of the Committee presiding
over the meeting of the Directors Finance
and Development Committee. Photo
shows Chairman of the Company Syed
M. Altaf Hussain; Past Chairman Mr.
Abdul Awal Mintoo, Vice Chairman, Mr.
Khan Mohd. Ameer; Directors Mr. Md.
Syedur Rahman Mintoo, Mr. Mohd. A.
Malek, Mr. Md. Rezaul Karim, Managing
Director of the Company at the meeting.

The Honorable Chairman Syed M. Altaf

Hussain greeted Mr. Abdul Awal Mintoo
Esq. by flower bouqut for achieving
the “AAA” Award from the American
Alumni Association.

Photo shows Managing Director Mr. Md.

Rezaul Karim working at his office

Annual Report 2017 101

 Our Achievements

Al-haj Khalilur Rahman, Chairman of Pragati Insurance Mr. Abdul Awal Mintoo, Chairman of Pragati Insurance Ltd.
Ltd receiving International Star Award, Geneva – 2007. Mr. receiving The World Quality Commitment Award, Paris –
AKM Rafiqul Islam, Former Managing Director of Pragati 2008. Mr. AKM Rafiqul Islam, Former Managing Director
Insurance Ltd. is also seen in the picture. of Pragati Insurance Ltd is also seen in the picture.

Mr. Jalalul Azim, Former Managing Director of Pragati

Insurance Ltd. receiving International ARCH of Europe
Award in Germany- 2012.

Pragati Insurance Ltd achieved Certificate of Best Accounts Pragati Insurance Ltd achieved ICAB National Award -
& Reports – 2002 awarded by ICAB. 2003, the Best Published Accounts & Reports.

102 Annual Report 2017

 A view of the Motijheel Area Branches
of the Company

Annual Report 2017 103

 A view of the Motijheel Area Branches
of the Company

104 Annual Report 2017

 Training Activites of the Company

The Managing Director Mr. Md. Rezaul

Karim distributed Certificate to the
participants for "Basic Training Course
on Non-life Insurance" held on 28th-30th
November 2017.

Photo shows Participants and Resource persons on the "Training on Fire Insurance Underwriting" held on 26th-28th
February 2018.

Photo shows Managing Director Mr.

Md. Rezaul Karim and guest spiker
noted Insurance Personality Mr. AKM
Azizul Huque are also seen along
with Participants of the "Workshop on
Liability Insurance Underwriting" held
on 4th April 2018.

Annual Report 2017 105

 Annual Picnic of Pragati Insurance Ltd.

Photo shows Mr. Md. Rezaul Karim,

Managing Director, Pragati Insurance Ltd.
greeted the Honorable Chief Guest Mr.
A K M Mozammel Huq MP, Minister for
Liberation War Affairs by giving flower
bouquet.

Photo shows the Honorable Chief Guest

Mr. A K M Mozammel Huq MP, Minister
for Liberation War Affairs delivering his
speech at the Annual Picnic

Photo shows guest taking their lunch in the

Annual Picnic

106 Annual Report 2017

 Annual Picnic of Pragati Insurance Ltd.

Photo shows guest taking their lunch in

the Annual Picnic

The Managing Director, Mr. Md. Rezaul

Karim is giving prize of Raffle Draw at
the company’s Annual Picnic.

Honorable Chief Guest Mr. A K M

Mozammel Huq MP, Minister for Liberation
War Affairs is giving prize of Raffle Draw
at the company’s Annual Picnic.

Annual Report 2017 107

108 Annual Report 2017
Notes

Annual Report 2017 109

Notes

110 Annual Report 2017

 PRAGATI INSURANCE LTD.
Pragati Insurance Bhaban, 20-21, Kawran Bazar, Dhaka-1215, Bangladesh
PROXY FORM

I / We ........................................................................................................................................................................................................
of ...............................................................................................................................................................................................................
being a member of Pragati Insurance Ltd. and entitled to vote, hereby appoint
Mr./Mrs./Miss......................................................................................................................................................................................of
.................................................................................................................................... another member of the Company as my/our
Proxy to attend and vote for me/us and on my/our behalf at the 32nd Annual General Meeting of the Company to be held
on the 29th July, 2018 at any adjournment there of.
Signed this ......................................................................... day of .................................................................... 2018

Signature of the Shareholder (s) Signature of the Proxy

No. of Shares held :.................................................................................................

Folio No./Bo. No.

Folio No./Bo. No.

N.B : A member entitled to attend and vote at the meeting may appoint another member his/her proxy to attend and vote
on his/her behalf.
A Proxy must be a member of the Company
Form of Proxy, duly stamped and signed must be deposited at the Company’s Registered Office not later than 48 hours
befor time appointed for the meeting. In default, forms of proxy will not be treated as valid.

Signature Verified
Revenue
Stamp
Taka 10.00
Authorised Signature

PRAGATI INSURANCE LTD.

Pragati Insurance Bhaban, 20-21, Kawran Bazar, Dhaka-1215, Bangladesh

ATTENDANCE SLIP
I hereby record my attendance at the 32nd Annual General Meeting of Pragati Insurance Limited on the 29th Jul, 2018 at
11.00 a.m. at BIAM Foundation at 63, New Eskaton, Dhaka-1000.

Name of Member/ Proxy Signature Verified

Signature of the Proxy

Mobile No. Authorised Signature of the Company

N. B. : Please complete the attendance slip and hand it over at the entrance of the meeting hall.