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PROGRESLIF

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PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): in the Joint 2nd District Judge, Chattogram vide case no. 62/12; Annexure A of note 14: Balance of Written Down Value of the flat in Chattogram, address # Zahura Tower, 1401 Sheikh Muiib Road, Agrabad C/A, Chattogram as on 31-12-2018 was Taka 34,707,416 and as on 31-12-2017 was Taka 34,707,416. b) As disclosed in note 19.01 to the financial statements that, PLICL has an investment amount in BDT 10,000,000 in (cont. 9)

PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): Emphasis of Matter: Without further modifying our opinion we draw attention to following notes to the financial statements: a) In Annexure A of note 14 of the financial statements, management has disclosed that, the flat in Chattogram, address # Zahura Tower, 1401 Sheikh Muiib Road, Agrabad C/A, Chattogram purchased at a price of Tk. 34,689,801 for which legal proceeding about ownership is under process (cont. 8)

PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): PLICL has declared and approved 10% dividend (i.e. 5% stock and 5% cash) for the year 2015 amounting to BDT 12,865,776 to its shareholders. But PLICL did not recognize this approved dividend in the financial statements for the year ended December 31, 2017 as per para 14 of IAS 37. (cont. 7)

PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): these petty cash balances of BDT 5,796,247 are lying with the respective agents of closed service cells, which they are trying to recover. According to IAS 37, para 14, no provision has been maintained against BDT 5,796,247 in the audited financial statements; and 5. According to the 153th Board meeting, dated July 25, 2019 and 16th AGM, dated September 12, 2019, (cont. 6)

PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): As a result, actual gain/loss arising from the de-recognition of above mentioned assets and carrying amount of Property, Plant and Equipment as at December 31, 2018 cannot be ascertained; 4. Petty cash balance of BDT 5,796,247 from 25 closed service cells have been shown in the consolidated petty cash balance of BDT 31,040,344. As per management of PLICL, the above mentioned 25 service cells have been closed between 2011 to 2017 and (cont. 5)

PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): Rule 39 of The Insurance Rules, 1958; 3. Proper source documents substantiating the acquisition of certain disposed items of property, plant, and equipment, i.e. 6 (six) Cars, 12 (twelve) Air Conditions and computer accessories sold at BDT 23,21,633, BDT 1,05,000 and BDT 29,000 respectively were not found. No disposal adjustment has been made on the fixed assets schedule (note 20) at the time of de-recognition of such assets. (cont. 4)

PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): of BDT 30,855,000 from Galaxy Capital Ltd.; Note 14.03 - Investment in equity shares of the companies: Balance of Investment in 51 % of Galaxy Capital Limited as on 31-12-18 was Taka 30,855,000 and as on 31-12-17 was Taka 36,566,810. 2. PLICL has incurred an excess of 67.43% management expenses in the year 2018 from allowable limit mentioned in Section 62 of the Insurance Act, 2010 and (cont. 3)

PROGRESLIF 23-Feb-2020

(Continuation news of PROGRESLIF): resulting in violation of that particular IFRS. If Galaxy Capital Ltd. had been consolidated, elements in the accompanying financial statements would have been materialy affected. In its Emergency Board Meeting no. 148, dated January 24, 2019, the board of PLICL has decided to withdraw its investment of BDT 30,855,000 from Galaxy Capital Ltd. Subsequently in 2019, PLICL has collected its entire investment (cont. 2)

PROGRESLIF 23-Feb-2020

Qualified Opinion: 1. As explained in note 14.03 of the financial statements, PLICL has 51% shareholding in its subsidiary company namely Galaxy Capital Ltd. and the investment in shares of this company was BDT 30,855,000. According to IFRS 10, para 04: "Consolidated Financial Statements", the subsidiary should have been consolidated because it is controlled by PLICL. PLICL has not consolidated the financial statements of subsidiary (Galaxy Capital Ltd.) (cont. 1)

PROGRESLIF 17-Feb-2020

DSE NEWS: The Stock Brokers and Merchant Bankers are requested to abstain from providing loan facilities to purchase security of Progressive Life Insurance Co. Ltd. in between 1st to 30th trading day after change of categorization, with effect from February 18, 2020 as per BSEC Directive No. SEC/CMRRCD/2009-193/177 and BSEC Order No. SEC/CMRRCD/2009-193/178 dated October 27, 2015.

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