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FEDERALINS

All Eps Dividend Board Agm Q1 Q2 Q3

FEDERALINS 16-Sep-2020

Mrs. Mamtaj Begum, one of the Directors of the Company, has further reported that she has completed her buying of 2,50,000 shares of the Company at prevailing market price through Stock Exchange as per declaration disseminated on 10.09.2020.

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): Note- 2.3.13.3 Worker Profit Participation Fund (WPPF): In the year 2013, an amendment has been made in section-232 of Labour Law-2006. Due to the amendment, the Company requires to maintain Workers Profit Participation Fund (WPPF). However, the company did not make provision for the years 2013 to 2019, amounting to Tk. 29,402,593. The company will make provision in forthcoming years in this regard. (end)

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): for this expected credit loss in forthcoming years. Note- 7.00 Gratuity: Balance of Gratuity was Tk. 1,000,000.00 as at 31 December 2019 and was Tk. 0 as at 31 December 2018. Estimated liability for Gratuity is amounting to Tk. 61,916,900 but the company made past service cost for defined employees benefit obligation (gratuity) Tk. 1,000,000 during the year. Rest of the provision Tk. 60,916,900 will be made in forthcoming years. (cont. 8)

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): Balance of Deposits & Prepayments was Tk. 80,360,843 and Tk. 81,061,744 as at 31 December 2019 and 31 December 2018 respectively. Deposit and Prepayments consists of long aged advances amounting Tk. 79,713,409 which is doubtful of recovery. The company made loss allowance for this expected credit losses of Tk. 700,000 and balance of this expected credit loss Tk. 79,013,409. The company will make loss allowance (cont. 7)

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): and Collection Control Account amounting Tk. 30,489,571) which is doubtful of recovery. The company made loss allowance for this expected credit losses of Tk. 1,000,000 and balance of this expected credit loss Tk. 218,276,027. The company will make loss allowance for this expected credit loss in forthcoming years. Note- 20.03 Deposit & Prepayments: (cont. 6)

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): Note- 20.02 Advance Against others: Balance of Advance Against Others was Tk. 363,438,072 and Tk. 348,724,612 as at 31 December 2019 and 31 December 2018 respectively. Advance against others consists of long aged advances amounting Tk. 219,276,027 (Advance Against Claim Payment: Misc. amounting Tk. 7,609,500, Agent Balance amounting tk. 181,176,956 (cont. 5)

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): Balance of Outstanding Premium up to 2018 was Tk. 0; Balance of Outstanding Premium as at 31 December 2019 was Tk. 32,890,022.00. No amount has subsequently been realized till March 30, 2020 and recoverability of this amount is doubtful. Hence the loss allowance for expected credit losses for the year for expected credit loss amounting Tk. 300,000 in this regard and the balance amount of Tk. 32,890,022 carried forward for the future loss allowance. (cont. 4)

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): quantitative information has been disclosed by the management in note 2.3.13.3 of the financial statements; 4. Tax assessments of the company were not finalized yet for the financial years 1998 to 2019. Which indicates additional tax liability may arise and it is not practicable to quantify the financial effect in this regard. Note-18.00 Outstanding Premium: Balance of Outstanding Premium up to 2017 was Tk. 33,190,022.00; (cont. 3)

FEDERALINS 15-Sep-2020

(Continuation news of FEDERALINS): 2. The company did not make past service cost for defined employees benefit obligation (Gratuity) as per IAS-19 and quantitative information has been disclosed by the management in note 7.00 of the financial statements but the company have been paying gratuity to the employees on retirement and resignation as per service rules; 3. The company did not make WPPF liability as per Section -232, The Bangladesh Labour Act, 2006 (Amended on 2013), (cont. 2)

FEDERALINS 15-Sep-2020

The auditor of Federal Insurance Company Ltd. has given the following "Qualified Opinion" in the audit report of the Company prepared for the year ended on December 31, 2019. Qualified Opinion: 1. The company did not make loss allowance for expected credit losses as per IFRS-9 against Outstanding premium, Advance against others and deposit & prepayments. Quantitative information has been disclosed by the management in notes 18, 20.02, and 20.03 of the financial statements respectively; (cont. 1)

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