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PROGRESLIF

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PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): the maturity claim and survival benefit shall be settled as per condition of policy contract. For instance the policy of Ms. Chhabi Rani Kundu (Policy no- 01096180) was commenced on April 10, 2006 and matured on April 10, 2018 but the claim was paid on January 02, 2019. The policy of Mr. Md. Panjab Ali Mollah (Policy no- 01092017) was commenced on December 28, 2005 and matured on December 28, 2017 but(cont.12)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): (One crore eighty-one lac sixteen thousand three hundred and twenty taka only), Tk. 28,381,263 (Two crore eighty-three lac eighty-one thousand two hundred and sixty-three taka only) and Tk. 253,698,909 (Twenty-five crore thirty-six lac ninety-eight thousand nine hundred and nine taka only) respectively. The deadline of settlements of death claims is 90 days as per provision of section 72 of the Insurance Act 2010 and (cont.11)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): 8. The note 9 to the financial statements of the company includes an amount of Tk. 304,187,412 (Thirty crore forty-one lac eighty-seven thousand four hundred and twelve taka only) as estimated liability in respect of outstanding claims whether due or intimated. The outstanding balances include death claim, survival benefit, and maturity claim amounting Tk. 18,116,320(cont.10)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): these petty cash balance BDT 9,142,890 (Ninety-one lac forty-two thousand eight hundred and ninety taka only) are lying with the respective agents of closed service cells, which they are trying to recover. But no provision has been maintained against BDT 9,142,890 (Ninety-one lac forty-two thousand eight hundred and ninety taka only) in the audited financial statements as per IAS 37, para 14; (cont.9)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): 7. Petty cash balance of BDT 9,142,890 (Ninety-one lac forty-two thousand eight hundred and ninety taka only) from 47 closed service cells have been shown in the consolidated petty cash balance of BDT 42,024,147 (Four crore twenty lac twenty-four thousand one hundred and forty-seven taka only). As per management of the Company the above mentioned 47 service cells have been closed between 2011 to 2019 and (cont.8)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): of such provision; 6. The company has a flat in Chittagong at a cost price of Taka 34,707,416 (Three crore forty-seven lac seven thousand four hundred and sixteen taka only) ownership of which is disputed, and legal proceeding is in process. The Company could not take over any possession as yet but included in land and building deviating the principle of capitalization as IAS 16 Property, Plant, and Equipment; (cont.7)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): 5. No computation has been made for current tax as per Schedule IV of the Income Tax Ordinance, 1984. As disclosed in note 10.01 in the accompanying financial statements. Income tax provision has been made on lump sum basis. As the amount of provision could not be calculated in accordance with the provision of Schedule IV of the Income Tax Ordinance, 1984, hence profit may be overstated or understated to the extent (cont.6)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): Whereas as per IDRA guideline the company can made provision for renewal income up to 30 days as grace period; 4. The company has incurred an excess amount of Tk. 87,900,450 (Eight crore seventy-nine lac four hundred and fifty taka only) as management expense in the year 2019 from allowable limit mentioned in Section 62 of the Insurance Act, 2010 and Rule 39 of The Insurance Rules, 1958; (cont.5)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): non-compliance of the IFRS 15 (Revenue from contract with customers) and the IFRS 4 (Insurance contract), the premium income is not confirmed; 3. The amount of Tk. 59,061,070 (Five crore ninety lac sixty-one thousand and seventy taka only) was shown as outstanding premium in the Balance Sheets (note 18) of the company for the provided renewal premium for the month of November and December of 2019. (cont.4)

PROGRESLIF 06-Dec-2020

(Continuation news of PROGRESLIF): Tk. 466,397,243 (Forty-six crore sixty- three lac ninety-seven thousand two hundred and forty-three taka only) was shown as a premium income from first year premium and renewal premium respectively in the Life Revenue Account of the Financial Statements of the Company. For our further verification we were not supplied with premium income from database of policy management system of the company and due to(cont.3)

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