Directors Report - 2018
Bismillahir Rahmanir Rahim
I have the pleasure to welcome you all on behalf of the board of directors of City General Insurance Company Limited in its 23rd Annual General meeting. I present before you the Directors Report, Audited Balance sheet, Profit & Loss Account, Profit & Loss Appropriation Account, Revenue Account together with Auditors report for the year ended December 31, 2018.
Business environment and Performance :
You know insurance market is competitive in Bangladesh and we do business at tough competition. Even in such situation, business performance in 2018 is satisfactory.
Honorable shareholders, you know, Department of insurance is entrusted with Ministry of Finance from Ministry of Commerce. Insurance Act 2010, Insurance Development & Regulatory Authority Act 2010 and Rules have been promulgated and insurance Development & Regulatory Authority started their operation since January 2011. Due to their specific principle and strong supervision, positive changes are seen in the insurance industry.
Honorable shareholders, you are acquainted with that insurance is a business in full of risk. Flood, Cyclone like natural climates and related to various accident, all ingredients are beyond of human control. In spite of this, due to our prudence underwriting, insurance claim is in our control.
Investment is in satisfactory position till 2018 which has been reflected in our Financial Statements.
Dear shareholders, considering the overall performance of the company, Board of Directors are very much sincere to allot fair percentage of dividend to you. The Board of directors has recommended 5% Cash Dividend out of net profit for the year 2018 to all shareholders including sponsor shareholders. Board of Directors also recommended Tk. 4,20,000,00.00 as reserve for exceptional losses out of net profit for claim payment at the quickest time.
Election of Directors :
(A) As per Article 112 of Articles of Association of the Company the following 02 (Two) Directors will retire from board by rotation at 23rd Annual General Meeting and being eligible as per Article 114 offer themselves for re- election.
1. Mr. Anwar Hossain
2. Mr. Harunoor Rashid
(B) As per Article 112 of Articles of Association of the Company the following 02 (Two) public shareholder Directors will retire :
1. Mr. Hossain Mehmood (Nominated by Anwar Cement Ltd.)
2. Mr. Hossain Khaled (Nominated by Anwar Landmark Ltd.)
Accordingly these posts will be filled by election. Necessary Notice related to election of Directors from all shareholders have already been published on 30 April 2019 in the “Dainik Banik Barta” and “The News Today”.
Appointment of Auditors :-
The existing statutory auditors M/s. MABS & J Partners Chartered Accountants will retire in the 23rd Annual General Meeting and being eligible, applied themselves in writing for Re-appointment for the year 2019. The Board of Directors recommended M/s. MABS & J Partners Chartered Accountants for further appointment for the year 2019 as auditors of the company and to fix their fees by the Annual General Meeting.
Appointment for Corporate Governance Compliance Certification :-
Ahmed Khan & Co. Chartered Accountants had conducted the audit work on compliance of the code of Corporate Governance of the company as issued by the BSEC Notification No. BSEC/CMRRCD/2006-158/107/Admin/80 dated 03/06/2018 for the year ended 31 December 2018. The Board of Directors of the company has recommended to re-appoint Ahmed Khan & Co. Chartered Accountants as the professional to provide the certification as to the compliance of the Corporate Governance Code issued by the BSEC Notification dated 03/06/2018. As per the condition 9(2) of the said Notification this will be placed at the 23rd AGM for due approved by the shareholders.
Corporate Governance :-
The Board of Directors of City General Insurance Company Limited firmly believes that practice of good Corporate Governance and transparency ensuring discipline are essential for a sustainable organization. The company designed the Corporate Governance systems and practices to ensure adequate internal control in operational process, transparency and accountability. Corporate Governance structure specifies the allocation of rights and responsibilities among the concerned executives and spells out the rules and procedures for making decisions on corporate affairs. The role of Regulatory Authority is very important regarding Corporate Governance practices. Mentionable, Notification No. SEC/CMRRCD/2006-158/207/Admin/80 dated June 03, 2018 has been complied with in order and shown in this report.
Our Aims :-
Honorable Shareholders, We assure you that by providing very high quality professional service to the clients and to increase continuous quality service, the company will always endeavor to that. Mentionable, by this time honorable clients have increased their confidence to the company.
I on behalf of the Board of Directors deeply appreciates the gracious co-operation to the activities of the company extended by the insured, well-wishers & patronage at the same time grateful to the ministry of Finance, Insurance Development and Regulatory Authority (IDRA), the Bangladesh Securities and Exchange Commission (BSEC), Registrar of Joint Stock Companies and Firms, Central Rating Committee , Dhaka & Chittagong Stock Exchanges, Sadharan Bima Corporation, Bangladesh Bank including all scheduled commercial Bank and Bangladesh Insurance Association (BIA) for their sincere support and co-operation.
I thank to higher Executives, all officers and staff for their hard work and effort.
At last, honorable shareholders I firmly request for having your support, co- ordination and valuable advice in future.
On behalf of the Board of Directors,