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(1)

Company Overview

Padma Islami Life Insurance Limited (hereafter called Padma Life or the Company) was incorporated on April 26, 2000. It was formerly known as Padma Life Insurance Co. Ltd. The rename was effected from 29th September 2010. The principal activities of the Company are to carry out life insurance business throughout the country based on Islami Shariah. The paid up capital of the Company was BDT 30.0 million against authorized capital of BDT 10.0 million as of 31st December 2010. The Company is not listed in the capital market. Presently, the Company has 298 branches across the country. Besides its 18 zonal head office, the Company has 637 other delivery channels to sell and provide service to the policy holders.

Mission:

Abide by Shahriah Principles in day to day life Insurance business affair Build a dynamic, sound and professional management team Conduct business in a responsible manner Develop innovative products Enhance good governance Faster Quality Management System

Vision:
To become the best private life Insurance company in Bangladesh and South-East Asia through maintaining high degree of integrity, responsibility and transperency.

Objective:
To provide ethical highest standard service that uphold the values of Islam.

Goal:
To Serve humanity for its well being in the present and the world hereafter by providing financial and moral gains through utmost good faith, good conduct, mutual trust, sincerity, integrity and personalized service.

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Plan & Products

Product mix & Distribution:

Currently the company has eleven different types of life insurance products. These are Ekak Bima, Takaful Bima Prokalpa, Islami Sanchayee Bima Prokalpa, PDPS insurance, Takwah insurance, AlInsaf insurance, Al-amanah insurance and Baitul mal Insurance, group insurance and nontraditional micro insurance. Individual life insurance products are the traditional life insurance products available in the country. All products of Padma life are prepared and maintained based on Islami Shariah. Generally, the Company sells all its insurance products through insurance agents. For the last five years, average cost of premium collection to 1st year premium was 93.3% (2010: 99.4%) which includes agency commission and allowances. Table 1 shows that the contribution of 1st year premium to gross premium is decreasing, while contribution of renewal premium is increasing. In 2010, 63.3% of gross premium was generated from renewal premium and the rest from first year premium. According to the existing rule, 95% of 1st year premium is allowed as management expense whereas only 19% of the renewal premium is allowable in this regard (for companies of seventh to tenth years of operation). Therefore, life insurance companies having higher renewal premium are more profitable. The Companys performance in case of renewal premium income is changing on that direction.
Table 1 Premium Distribution of the Company (Mil. BDT) 2010 First Year Premium 657.9 Renewal Premium 1,132.6 Gross Premium 1,790.5 First Year Premium as % of Gross Premium 36.7 Renewal Premium as % of Gross Premium 63.3 --Year ended December 31-2009 2008 2007 562.1 607.9 413.1 1,055.4 580.0 258.2 1,617.4 1,187.9 671.3 34.8 51.2 61.5 65.2 48.8 38.5 2006 581.9 278.3 860.2 67.6 32.4

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OPERATIONAL REVIEW
Growth Analysis:
In 2010, 1st year premium of the Company increased by 17.1% and reached BDT 657.9 million from BDT 562.06million in 2009. Growth of renewal premium in 2010 (7.3%) was lower compared to its previous period (2009:82.0%). Growth of net premium was 11.4% in 2010. The growth of net claim was higher for the last two years as some of policies became matured. Life fund of the Company grew by 41.8% in 2010. Total asset of Company was BDT 2,383.6 million registering a growth of 44.7%.

Key Performance Indicator 2010 2009

1st year premium Renewal premium Net premium Net claim Life fund Total assets amount 657.9 1,132.6 1,791.8 243.4 2,037.1 2,383.6 growth 17.1 7.3 11.4 91.8 41.5 44.7 amount 562.1 1,055.4 1,608.8 126.9 1,436.4 1647.1 growth (7.5) 82.0 35.8 87.7 93.2 89.7

2008
amount 607.9 580.0 1,184.4 67.6 743.4 868.1 growth 47.1 124.6 76.5 42.6 73.4 57.0

Market Share:

Market share position reflects the ability to exercise underwriting and pricing discipline as well as the risk management effectiveness of a company in managing its business growth. However, life insurance companies in Bangladesh are facing stiff competition mainly because of similar type single distribution channel to acquire business as well as similar type of product. Due to the unavailability of Industry data for the year 2010, market share cannot be calculated for the period. In 2009, Padma Life acquired 3.8% (11th position) and 3.4% (8th position) market share for 1st year premium and renewal premium respectively. In 2009, the market share of the Company in respect of net premium was 3.5% which placed the Company in 8th position in the industry. The market share of life fund and total asset were insignificant compared to those of the industry till 2009; however the growth of life fund and total asset showed a positive trend from 2009.

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Distribution Channel:
The Company has a wide distribution channel across the country which was 655 at the end of 2010. To reduce management expense, the management reduced total distribution channel to 655 in 2010 from 755 in 2009. However, no of offices other than branch office increased during the same period. These channels, comprising of more than 31,000 insurance agents offer door to door insurance services to its customers. The selection of location for expanding the distribution network depends on products, customer segments. Details of the channels are given below: Particulars Zonal Head Quarter Zonal Office Servicing Center Upazila Office Branch Office Sangathanic Office Total 2010 18 72 55 166 298 46 655 2009 6 44 18 86 566 35 755

Policy Lapse:
The behavior of policy lapses from its issue year to subsequent year are as follows:

Lapse ratio Figures in % 2010 2009 2008 2007 2006

1st Year 8.07 9.04 3.01 4.16 14.67

2nd Year 38.38 22.43 21.89 46.03

3rd Year 12.86 7.95 24.43

4th Year 3.7 5.2

Total 8.07 47.42 38.30 37.65 90.35

It is revealed form the analysis that on an average 7.8% of the policies were lapsed in the 1st year of issuance. Policy lapse rate is very high in the 2nd year of issue. Around 32.2% of total policies lapsed in the 2nd year of issuance. Lapse trend of the Company for the last five years shows that on an average 52.5% of the policies were lapsed within the three years from issuance. It is also observed that lapse ratio is higher in micro insurance than that of Ekak insurance policy. Low lapse ratio helps the insurance companies to grow life fund rapidly. However, high policy lapse is very common in the life insurance industry in Bangladesh. The management of the Company has informed that they have a plan to reduce the number of lapse policies in the future.

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Plan No 1
Convertible Endowment Assurance (With Profits)

At the end of the term full Sum Assured with bonuses are payable. On death of the full Sum Assured with Accrued bonuses are payable. Available at the end of 5 year of the original policy into an Endowment Assurance Plan with a selected policy term. Premiums are payable Annually, Half-Yearly & Quarterly throughout the term or until death if earlier.

Plan No 2
Endowment Assurance Plan (With Profits)

At the end of the term full Sum Assured with bonuses are payable On death of the full Sum Assured with Accrued bonuses are payable. Premiums are payable Annually / Half-Yearly /Quarterly throughout the term or until death if earlier.

Plan No 3
Anticipated Endowment Assurance Plan-3 stage (With Profits)

At end of 1/3rd of the term 25% of Sum Assured. At end of 2/3rd of the term 25% of Sum Assured. At end of the term 50% of Sum Assured with bonuses At death of the life Assured with in the term but before the date of Maturity full Sum Assured with Accrued Bonuses. Premiums are payable Annually / Half-Yearly / Quarterly throughout the term or until death if earlier.

Plan No 4
Convertible Endowment Assurance (With Profits)

At end of 1/4th of the term 25% of Sum Assured. At end of 2/4th of the term 25% of Sum Assured. At end of 3/4th of the term 25% of Sum Assured. At end of the term 25% at Sum Assured with bonuses. At death of the life Assured with in the term but before the date of Maturity full Sum Assured with Accrued Bonuses. Premiums are payable Annually, Half-Yearly & Quarterly throughout the term or until death if earlier

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Plan No 5
Child Protection Assurance (With Profits)

On survival of the beneficiary child at the end of the term full Sum Assured with bonuses are payable. Premiums are payable Annually / Half-Yearly / Quarterly throughout the term or until death of the payor or the beneficiary child if earlier.

Plan No 6
Pension Assurance (With Profits)

The Assured pensioner or his/her assign(s). At death of the Assured pensioner before the date of commencement of pension amount due per special provision appearing hereinafter or within 10 (ten) years from the said date yearly pension for the remainder at the period of 10 (ten) years from the date of such death to nominee(s). On death of the Assured pensioner before the date of commencement of pension this policy shall be determined and an amount equal to ten times the yearly pension shall be payable. Annual premiums are payable in advance up to the end of the term or until death of the Assured whichever is earlier.

Plan No 7
Single Premium Endowment Assurance (With Profits)

On survival of the Assured at the end of the term double the Sum Assured will be payable. On death of the Assured during the term double the Sum Assured will be paid. Only one premium at the beginning of the term is payable.

Plan No 8
Hajj/Omrah Assurance- Takaful (With Profits)

On maturity if the policyholder survives full sum assured with accrued bonuses with be paid. Premiums deposited will be refunded with profits if any plus premiums payable up to maturity date from the date of death will also be refunded

Plan No 9
Marriage/Moharana Assurance- Takaful (With Profits)

Premiums deposited will be refunded with profits if any plus premiums payable up to maturity date from the date of death will also be refunded. On maturity if the policyholder survives full sum assured with accrued bonuses with be paid.

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Plan No 10
Biennial Assurance- Takaful (With Profits)

Premiums deposited will be refunded with profits if any plus premiums payable up to maturity date from the date of death will also be refunded. If the policy holder survives and the policy continues following benefits will be payable. For 10 years term 10% of sum assured will be paid after 4th, 6th and 8th years respectively and balance of the 40% sum assured with accrued bonuses will be paid on maturity. For 10 years term 10% of sum assured will be paid after 4th, 6th, 8th , 10th and 12th years respectively and balance of the 25% sum assured with accrued bonuses will be paid on maturity. For 10 years term 10% of sum assured will be paid after 4th, 6th, 8th , 10th, 12th , 14th , 16th, and 18th years respectively and balance at the 10% sum assured with accrued bonuses will be paid on maturity. Premiums are payable Annually / Half-Yearly / Quarterly throughout the term or until death if earlier.

Plan No 11
Anticipated Endowment Assurance-5 Stage (With Profits)

At death of the life Assured with in the term but before the date of Maturity full Sum Assured with Accrued Bonuses. At end of 1/5th of the term- 10% of Sum Assured. At end of 2/5th of the term- 10% of Sum Assured. At end of 3/5th of the term- 10% of Sum Assured At end of 4/5th of the term- 25% of Sum Assured At end of the term- 30% of Sum Assured with accrued bonuses

Plan No 12
Deposit Pension Scheme (With Profits

For a Tk. 100 per month premium payable throughout the term of the policy or earlier death of assured following benefits are payable. Survival Benefit: On survival to maturity date (and of the term). Bonuses if any would be added to the above guaranteed sum assured. On death during the term of the policy Sum Assured with accrued bonuses are payable. Whole or part of the Sum Assured may be used to secure monthly.

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Plan No 13
Premium Refund Term Assurance (With Profits)

On survival all deposited premiums will be refunded On death of the Assured during the term Sum Assured will be paid. Premiums are payable in advance up to the end of the term or until death of the Assured if earlier.

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Competitors Overview

There are some strong competitors exists at the field of Padma islamy life insurance company. Some of them are given below: o o o o o o o o o o o o o Meghna life insurance Delta life insurance ALICO Popular life insurance National life insurance Prime Islami life insurance Homeland life insurance Fareast islami life insurance Golden life insurance Pragati life insurance Rupali life insurance Sandhani life insurance Sunflower life insurance

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Description of Business

1. Corporate status
The Company was incorporated on 26th April 2000 under the Companies Act 1994 as a public company limited by shares for carrying out life insurance business and was granted Certificate of Commencement of business on 26th April 2000. Date of commencement of commercial operation is May 25, 2000. The Company obtained the Certificate of Registration from the Chief Controller of Insurance, Insurance department on 30th April 2000. The company engaged in life insurance business and has no subsidiary.

2. The information in respect of its business

Since its establishment on 26th April 2000 the company has within a short span of time established itself as one of the most reputed and trustworthy Islami life insurance companies in private sector of the country. Selective customer service, underwriting of liabilities and prompt settlement of claims have contributed towards building up a very respectable image of the company within the business community.

3. Principal product /services:

a) Prokalpa:
Individual Life Micro Insurance

b) Product:
Convertible Endowment Assurance Endowment Assurance Anticipated Endowment Assurance-3 Stage Anticipated Endowment Assurance-4 Stage Child Protection Assurance Hajj/Omrah Assurance Marriage/Mohrana Assurance Biennial Assurance Single Premium Endowment Assurance Anticipate Endowment Assurance-5 Stage Pension Assurance

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Group Insurance Deposit pension Scheme Premium Refund Term Assurance

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Managerial Figure

a) Board of Director:

Chairman
Dr. A.B.M Zafar Ullah Dr. A.B.M ZAFAR Ullah, son of Late Md. Habib Ullah hails from Begumgonj, Noakhali. After completion of his medical degree, he started business. He is also Managing Director of South Coast Agro Fisheries Complex Ltd and Wonderland Holding Ltd.

Vice Chairman
Mr. Zainal Abedin Zafar Zainal Abedin Zafar, son of Mr. Rafique Ahmed Bhuiyan hails from Chagolnaiya, Feni. He has partnership in AL- Islam Overseas (Recruiting Agency) and AL- Islam Training & Educational Institute (ATEL). He is also Director of AL- Manar Hospital (Pvt.) Ltd, Greenland Pharmaceuticals (Pvt.) Ltd, Fast Remit Son. Bhd Kualalampur, Malaysia and AL-Jesour General Contracting WLL Abu Dhabi, U.A.E. (Holding U.A.E Residence with the status as INVESTOR).

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Director
Mr. Abu Taher Abu Taher, son of Late Al-Haj Muzaffar Ahmed hails from Noakhali. He is also the Director of Private Equity Management Co. Ltd, Timex International Ltd and TMM Knitting Mills Ltd. Savar, Dhaka. He is the Vice Chairman of Khalilur Rahman High School, Sonaimuri, Noakhali and a member of Lion Club of Dhaka.

Director
Mr. A.F.M Obaidur Rahman A.F.M Obaidur Rahman, son of Mokhlesur Rahman hails from Feni. He graduated with Honours in Commerce and obtained a Master of Commerce degree from the University of Dhaka in 1967. Mr. Rahman has wide experience in Corporate Management of several Multinational Companies and currently is Chairman of Media Arts & Technology Ltd. He is a former director of Dhaka Chamber of Commerce & Industry (DCCI) and Bangladesh Computer Samity (BC).

b) Sariah Board:

Syed Kamal Uddin Jafree(Chairman)

Chairman, Central Shariah Council for Islami Insurance of Bangladesh. Adviser, ATN Bangla, Islamic Scholar. Founder & Chairman, Bangladesh Islamic University. Principal, Jamiya Kasemia Kamil Madrasha, Narsingdi

Prof. Moulana ABM Masum Billah(Member of sectaray)

Secretary General,Central Shariah Council for Islamic Insurance of Bangladesh. Founder & Secretary General, Allama Saleh(Rh) Complex, Baufal, Patuakhali.

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Alhajj Mowlana Zalal Uddin Al-Kadri(Member)

Principal, Jamiya Ahmadia Sunnea Alia Madrasha, Chittagong.

Mufti Sayed Ahmed Muzaddade(Member)

Grand Mufti-Darussalam madrasha,Mirpur,Dhaka.

Human resource management:

The human resource strength of the Company reached 2,033 in 2010 (2009: 1,492), whereas total number of development employees reached 31,739. Administrative employees are paid on salary basis, development employees are paid on both salary and commission basis. Different trainings are arranged to increase the efficiency of the entry and mid-level executives. The Company follows a structured service rules and pay scale for its workforce. Performance appraisal of different employees is measured once a year according to the decision of management.

Management Information System:

The Company has established separate IT department to provide information to the management. Specialized software for life insurance business has been installed to manage micro insurance and individual life policy rated information. Around 2500 branches of the Company were facilitated with computers and 78 branches were under network coverage at the end of 2010. IT department generates statements and report that are necessary for the management.

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Branches

Barisal Zonal Head Quarter

Name of Incharge: Mr. MD: Abu Saleh, Divisional Coordinator Code No: Address: Cell No: Phone Number: 7021 Zyfia plaza(1st Floor), House No : 60/61, Nobogram Road, Bottola. Barisal 01725729234 04312176375

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Bogra Zonal Head Quarter

Name of Incharge: Code No: Address: Cell No: Email: Mr. Farid Ahmed Sarkar, Divisional Coordinator 7007 Kafil Uddin Plaza,Holding no 173, Shahid Abdul jabbar Sarak. Village : Joleshori Tola, District : Bogra 01716224583

Phone Number: 03752001000

Chandpur Zonal Head Quarter

Nameof Incharge: Code No: Address: Cell No Phone Number: 01713621026 Mr. Rosul Amin Arif, Divisional Coordinator 7014 Municipality New Market(2nd Floor), Comilla Road, Kalibarir Moor, Po : Chandpur, Ps : Chandpur Sadar. District : Chandpur.

Chittagong Zonal Head Quarter (East)

Name of Incharge: Code No: Address: Cell No: Phone Number: Email: Mr. MD: Nasir Uddin, Divisional Coordinator 7015 House No : 49(2nd Floor) Cheragi Hill, Momin Road, Jamal Khan. Ps : Kotwali. District - Chittagong 01819848021

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Dhaka Mahanagar Zonal Head Quarter

Name of Incharge: Mr. MD: Humayun Kabir Apon, Divisional Coordinator Code No: Address: Cell No: Phone Number: 7022 Noor Jahan Sharif Plaza(6th Floor), 34 Purana Paltan, Ps : Paltan. Dhaka-1000 01711127538

Dhaka Zonal Head Quarter

Name of Incharge: Code No: Address: Cell No: Phone Number: Mr. MD: Anwar Hossain, Divisional Coordinator 7003 Noor Jahan Sharif Plaza(4th Floor), 34 Purana Paltan, Ps : Paltan.Dhaka-1000 01818480218 03752001000

Jessore Zonal Head Quarter

Name of Incharge: Mr. MD: Habibur Rahman, Divisional Coordinator Code No: Address: Cell No: Phone Number: 7019 Rashid Center(3rd Floor),7/A R.N Road, Sadar. Jessore. 01716352023

Patuakhali Zonal Head Quarter

Name of Incharge: Mr. Emdadul Haque delwar, Regional Coordinator Code No: Address: Cell No: Phone Number: 60004 Saudia Mansion(2nd floor), House No : 17, Sadar Road,District : Patuakhali. 01916686000 044163928

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Financial Report

Capital Structure:
The capital structure of Padma Islami Life Insurance Ltd. before and after IPO will be as under: Authorized Capital 100,000,000 ordinary shares of Tk. 10 each Capital structure prior to IPO Issued, subscribed and paid up capital as on December 31, 2010 Capital raised after Balance Sheet date As per RJSC certificate dated April 21, 2011 Total paid-up capital before IPO Capital structure after IPO Issued, subscribed and paid-up capital prior to IPO Initial Public Offering (IPO) Total paid-up capital after IPO 180,000,000 120,000,000 300,000,000 150,000,000 180,000,000 30,000,000

1,000,000,000

* The face value of share of PILIL in their 3rd E.G.M. held on 20th September, 2011 has been changed from Tk.100 to Tk.10 each.

Underwriting Quality:
Underwriting quality is a very important for life insurance companies as it poses risk to long term volatility of a company. On the other hand, high competition in the market and first year premium affects the industry as a whole. Generation gap of the firms within the industry also affects the process. Underwriting process of the Company determines whether or not to accept a proposal for insurance and if accepted, the terms and conditions to be applied and the level of premium to be charged. The Company has a structured process for the identification of applicants who are eligible to be accepted at standard rates and conditions. However, there are scopes to strengthen in some areas to mitigate its underwriting risk assessment and devise monitoring tools, such as process for order to make the risk assessment of compliance issues; methods for monitoring compliance with underwriting policies and procedures such as reviews area heads or portfolio management, peer review of policies, in case of re-insurance, audit of the ceding compliance to ensure the reinsurance assumed is in accordance with treaties in place.

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Management Expenses
ALLOWABLE MANAGEMENT EXPENSES (Mil. BDT) 2010 Actual Management Expenses 1,030.5 Allowable Management Expenses 785.9 Excess Management Expenses 244.6 Excess Management Expenses as % of Allowable Expenses 31.1 2009 841.6 657.2 184.5 28.1 2008 839.9 604.1 235.8 39.0 2007 572.5 390.7 181.9 46.6

Management expense includes staff salary, agency commission and administrative expense. As per 39 of the Insurance Rules 1958, the Company was allowed to incur management expenses of BDT 785.9 million, whereas the Company incurred BDT 1,030.5 million which was 31.1% (2009: 28.1%) higher than the allowable management expenses. In 2010, actual management expense increased by 22.4%.

Investment Profile
As per Section 27(1) of the investment Act, the Company needs to invest BDT 2,004.1 million against which actualinvestment was BDT 1,187.3 million as of 31st December 2010. There was an investment shortfall BDT 816.8 million which was BDT 607.2 million in 2009. Generally, major assets of the life insurance companies are kept in liquid form as life insurance contracts frequently have embedded policyholder options that create uncertainty regarding the timing of the liability payout stream. Padma Life also concentrates its assets in high quality liquid assets There are some restrictions for life insurance companies to invest in different instruments. The above composition shows that the Company invested 27.0% of its total investment (BDT 320.6 million) in different Government securities against the regulatory requirement of at least 30% of total. BDT 602.4 million (500.7%) was kept as fixed deposit in different commercial banks which was very closed to the limit. 12.8% of total investment was in land assets which was recorded at cost price. Other investment of the Company consists of its investment in Al Manar hospital and accrued profit, rent etc. For the last three years, investment yield trend of the Company showed decreasing trend, from 6.5% to 4.6% mainly because of decrease in profit rate.

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Risk Analysis:

Investors should be aware of the risk factors for the investment in the capital of the company and the management perception about the risks. These risks may result in loss of the capital investment. The following are the external and internal risk factors and the managements perception thereon: (a) Interest Rate Risk : Changes in interest rates may negative affect its financial results in case of interest rate increase by lenders and also interest decrease on deposits by PILIL. The company has so far, not had to depend on debt financing. The management of PILIL will reduce these negligible risks by investing the fund in land and building according to Insurance Act, 2010. (b) Exchange Rate Risk: The change in currency exchange rates may influence the result of operations, in case of the companies who are involved in foreign currency transaction. Padma Islami Life Insurance Limited does not have any foreign currency transaction. Therefore no such risk would arise. (c) Potential changes in global policies: Any structural change in the international insurance business adversely affecting reinsurance operations may have negative impact on the profitability of the company.The history of insurance/re-insurance business for over two hundred years proves that any major structural change affecting our reinsurance business is unimaginable. Any such event would create a global destabilization that the major economies must not cause to happen (d) Non Operational risk: The company does not have any history of non-operation, so no such risk has arise in this respect. (e) Operational Risk The company may face poor financial conditions due to failure in future expansion of business or inefficient management capability. From the inception, the Company has a good reputation in the insurance business and progressing smoothly. The management of the Company has also proven its efficiency, which is clear from the previous positive track record of the Companys financial statements. (f) Industry Risk: Liberalization of permission to set up more insurance companies by government may result in severe competition amongst insurers reducing premium income and profitability. Though liberalization of insurance policy by government may be encouraging to new entrants resulting tough competition, Padma Islami Life Insurance Ltd. does not apprehend any loss of business due to its competent management team for quality services and expanding trend of

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insurance business in the country. The Company has already proved its leading role by its attractive earning performance. (g) Market and technology Related Risk: Although life insurance business is a relatively low tech industry, any sophisticated integrated software by other competitors any give them competitive edge on PILIL as far MIS and quality service is concerned. PILIL is continuously upgrading its technological levels and making it comparable to that of the other competitors in line with the insurance business. (h) Potential or Existing Government Regulation Government policy change in respect of imposing new tax, VAT, stamp duty and limitation of investment may also affect smooth functioning of life insurance business. Like all democratically elected governments, the government of Bangladesh also holds commitment for freedom from economic emancipation of the nation, which can be achieved through maintaining sustainable industrial growth. The government, which is the owner of Jiban Bima Corporation, is not expected to change policies relating to insurance requirements, affecting the income of the insurance companies. (i) Potential change in global and national policies: Any structural change in the international insurance business adversely affecting reinsurance operations may have negative impact on the profitability of the company. The history of insurance/re-insurance business for over two hundred years proves that any major structural change affecting our reinsurance business is unimaginable. Any such event would create a global destabilization that the major economies must not cause to happen

Description Of Properties:
(a) The company, provider of life insurance business operates its Head Office at Surma Tower (11th floor), 59/2, Purana Palton, Dhaka-100 and service cells all over Bangladesh on rented premises. However, the company owns the following properties and fixed assets located at Head Office, zonal offices and service cells.

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Description of land (As per Audited Accounts as on 31-12-2010)

SL# 01 Description Property at Laxmipur Khatian no: Sabek-36/6, MRR-29, Hal DP 826 Dag no: Sabek-1051 Hale 5536 Property at Laxmipur Khatian no: Sabek-36,36/6, MRR29 Hal DP-826,351, 2072 Dag no: Sabek-1051 Hale-5536 Property at Laxmipur Khatian no: MRR-29, DP-826 Dag MRR-1051, Hale-5536 Property at Comilla Khatian no: CS 91, SA103 & CS71, SA79 Dagno: 513, CS,SA658& 532, CS, SA661 Hale985 Property at Comilla Khatian no: CS159, SA 175 Hal DP404, 25, 444 Dag no: Sabek-316 Hale-(BS) 587,588,589 Property at Comilla Khatian :CS 15,91, SA19,103 HaleDP-242, 437 Khatian:CS159,114,115SA131,132,175 Dp24,25 Dag no: Sabek-658-657 Hale-983-982 Dag no: Sabek-316,312,315 Hale-586,586,581,580 Purchase Date 19-112008 05-112009 06-072010 10-052009 23-072009 09-072009 Deed no. (Dalil no.) 12360

(Amount in Taka)
Quantity 08 Dec Location Laxmipur Sadar Laxmipur Sadar Laxmipur

02

11470

40.86 Dec

03

7608

43.500 Dec 37 Dec

04

1710

Daudkandi, Comilla Daudkandi, Comilla Daudkandi, Comilla

05

2842

63 Dec

06

2612

105 Dec

07

08

09

10

11

12

13

14

Property at Comilla Khatian no: SA-9, Hal (BS) 59, Kariza-193 Dag no: Sabek-500/4 Hale (BS)-440 Flat at Chittagong Khatian no: 518 RS, 219 BS Dag no: 802, BS-15002 Property at Sylhet Khatian no: SA-466 DP-587 Dag- SA-3519, Hale-50032 Property at Sylhet Khatian no:SA465,466 HalDP-984, Kariza465/1, 2486, 2717, Dag no: Sabek-3563, 3519 Hale50030,50031 Property at Sylhet Khatian no: SA-466 Hal DP-1447, Kariza-2448,2718 Dag no: Sabek-3519 Hale-50032 Property at Sylhet Khatian no: SA-466 Hal DP-1447, Kariza-2448,2718 Dag no: Sabek-3519 Hale-50032 Property at Sylhet Khatian no: SA-466 DP-528 Dag- SA-3519, Hale-50031 Property at Bogra Khatian no: CS-543 MRR 2004, Hal DP-3637 Dag no: Sabek-7686, 7685 Hale-16083

22-042010 30-082009 10-122009 11-022010

5125

20 Dec

13470

1865 sqft

Comilla Sadar, Comilla Paslaish, Chittagong Khadim Para, Sylhet Khadim Para, Sylhet

19581

30 Dec

2802

60.88 Dec

10-022010 10-022010 23-122010 25-012010

2665

09 Dec

Khadim Para, Sylhet Khadim Para, Sylhet Khadim Para, Sylhet Bogra Sadar, Bogra

2664

16.22 Dec

22466

11.500 Dec 67 Dec

1884

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PADMA ISLAMI LIFE INSURANCE LTD. BALANCE SHEET AS AT 31 DECEMBER 2010 Particulars C A P I T A L AND L I A B I L I T I E S SHAREHOLDERS' CAPITAL Authorised 10,00,000 Ordinary Shares of Tk.100/- each Issued, Subscribed and Paid-up 3,00,000 Ordinary Shares of Tk. 100/- each Balance of Fund and Accounts Life Insurance Fund Sadaka Fund (Padma Welfare Fund) Amount due to other persons or bodies Carrying on Insurance Business Liabilities and Provisions Estimated Liabilities in Respect of Outstanding claims whether due or intimated. Sundry Creditors Loan from Bank (Secured) Total P R O P E R T Y AND A S S E T S Loan on Policies Within their surrender value Investments (At Cost) Profit, Dividend & Rent Accrued but not Due Advances, Deposits and Prepayments Capital Work in Process (Head Office Building) Sundry Debtors Initial Public Offer (IPO) Expenses Cash, Bank and Other Balances Fixed Deposit with Banks SND & CD with Banks Collection in Hand Cash in Hand Other Assets: Fixed Assets (At Cost Less Depreciation) Printing, Stationery & Stamps in Hand Total Notes 08 09 10 11 12 13 Amount in Taka Notes 2010 2009

100,000,000 03 30,000,000 2,037,081,563 22,652,060 04 -

100,000,000 30,000,000 1,436,378,684 15,880,029 7,259,837

05 06 07

52,222,226 70,511,204 171,159,589 293,893,019 2,383,626,642 2010 527,143 390,417,996 42,012,326 103,484,589 168,967,200 220,962,533 2,892,629 602,404,201 243,887,972 382,939,302 1,317,929 1,230,549,404 217,939,175 5,873,647 2,383,626,642

41,027,535 60,285,457 56,254,000 157,566,992 1,647,085,542 2009 393,087 117,349,346 33,065,118 105,850,634 95,567,200 165,728,487 1,962,800 566,360,471 375,977,950 26,063,009 1,160,624 969,562,054 151,881,956 5,724,860 1,647,085,542 As per our report of even date annexed Sd/Mahfel Huq & Co. Chartered Accountants

14

15

Annexed notes form an Integral part of these Financial Statements. Sd/Managing Director SD/Director Sd/Director Sd/Chairman

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Ownership of Company Securities:

A. Ownership of The Company Securities listed below:
Sl# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Name of Sponsors Mr. Abu Taher Mr. Zainal Abedin Zafar Mr. A.T.M Rafique A.F.M Obaidur Rahman Mr. A.B.M Taleb Ali Dr. A.B.M Zafar Ullah Mr. Abdul Mujib Chowdhury Mr. Nurul Alam Bhuiyan Hazi Mohd. Shahjahan Yousuf Wazed Ali Chowdhury Engr. Abul Basher Mrs. Nazmun Naher Mr. Nazim Uddin Ahmed Mr. A.T.M Anayet Ullah Dr. Nadera Saberin Dr. A.K.M Anwaruzzaman Mrs. Fatema Begum Mrs. Rahima Khanam Mrs. Anjuara Ahmed Mr. Md. Rifat Rahman Ms. Fariel Rahman Mili Mr. Md. Riad Rahman Position Chairman Addres s Managing Director Share s hel d 20,00,00 0 12,00,00 0 9,40,00 0 10,00,00 0 3,00,00 0 20,00,00 0 7,00,00 0 10,00,00 0 3,20,00 0 4,20,00 0 4,20,00 0 9,00,00 0 9,60,00 0 20,00,00 0 11,20,00 0 9,00,00 0 9,60,00 0 2,60,00 0 Amount (Taka ) 20,000,00 0 12,000,00 0 9,400,00 0 10,000,00 0 3,000,00 0 20,000,00 0 7,000,00 0 10,000,00 0 3,200,00 0 4,200,00 0 4,200,00 0 9,000,00 0 9,600,00 0 20,000,00 0 112,00,00 0 9,000,00 0 9,600,00 0 2,600,00 0 % 11.1 1 6.67 5.22 5.56 1.67 11.1 1 3.89 5.56 1.78 2.33 2.33 5.00 5.33 11.1 1 6.22 5.00 5.33 1.44 0.42 1.17 0.58 1.17 100 %

Timex International Ltd. 89, Motijheel C/A (1st floor) Dhaka. Vice 7/B Gaus Nagar, New Eskaton, Dhaka. Chairman Road # 32, House # 22/B, Director Dhanmondi, Dhaka. House # 12, Apartment-4/W, Road # 5, Block # Director K, Baridhara, Ashroy-1,2 Dhaka. Shareholder 14, North Road, Green Road Dhanmondhi, Dhaka. Director Director Director Shareholder House # 30, Road # 113, Gulshan-01, Dhaka. 1/8, Lalmatia, Block#A, Road# 5, Flat# B-5 Dhaka-1207. House No. 12, Road No. 1, Block-L, Halishahar Housing Estate, Chittagong. 12, Central Road, Dhaka.

Anamika Apartment Flat# 401, House#2/3 Road# Director 2, Block# 3, Mansurabd Sector # 04, Road # 17, R/A Mohammadpur, Director House # 19, Uttara, Dhaka. Dhaka-1207. Flat # C/5, House # 45, RoadShareholder 6/A, Dhanmondi, Dhaka. House No-63, Road No-5, OR Director Nizam Road, Chittagong. Managing Director Intramex Limited, House#115, RoadDirector 4, Block-B, Banani, Dhaka. House # 30, Road # 113, Shareholder Gulshan-1, Dhaka. Shareholder Director Shareholder Shareholder Shareholder Shareholder Shareholder Total 15, Sukrabad, Dhaka-1207. House No. 2, Road No. 27, Block-K, Banani, Dhaka. House No. 226/2, Road No. 10/A (New), 19 (old), West Dhanmondi, Dhaka. 55, North Dhanmondi, Building 2 (3rd floor), Dhaka. 55, North Dhanmondi, Building 2 (3rd floor), Dhaka. 55, North Dhanmondi, Building 2 (3rd floor), Dhaka. 55, North Dhanmondi, Building 2 (3rd floor), Dhaka.

75,00 750,00 0 0 2,100,000 2,10,00 0 105,00 1,050,00 0 0 2,100,000 2,10,00 0 1,80,00,000 180,000,000