Green Delta Insurance

Financial Performance analysis of Green Delta Insurance Company Limited
Financial Performance Analysis of

Green Delta Insurance Company
Limited
Taskin Ara Orni

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Page I
Internship Report On
Financial Performance Analysis of Green Delta Insurance
Company Limited
Submitted To:Sayla Sowat Siddiqui

Lecturer
BRAC Business School
BRAC University
Submitted By:Taskin Ara Orni

10304088
BRAC University
Date of submission: 15th June, 2014
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Letter of Transmittal
15th June, 2014
Ms. Sayla Sawat Siddiqui
Lecturer
BRAC University
Subject: Submission of Internship Report.
Dear Madam,
With due respect, I would like to inform you that, it is a great pleasure for me to submit the
internship report on Financial Performance Analysis of Green Delta Insurance Company
Limited as a requirement for the completion of BBA program. I have tried to make the report a
comprehensive one within the given 3 months of time. I earnestly thank you for your guidance
during the preparation of this report. Any sort of suggestion regarding the report will be greatly
acknowledged and I will be gratified if our report serves its purpose.
I therefore, request you to accept this report and give me proper suggestion to work in my
professional life and I pray and hope that the mistakes, the report may have will be kindly
excused.
Lastly, I beg your kind consideration for evaluating this report.
Yours faithfully,
..
Taskin Ara Orni
10304088
BRAC University
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Acknowledgement
First of all I would like to express gratitude to almighty Allah. Then all the people who were
involved both directly and indirectly in the preparation of this report. I apologize to the people
whose names that I have not mentioned, and their contribution is highly appreciated by me. At
first, I would like to thank my academic supervisor Ms. Sayla Sawat Siddiqui, Lecturer, BRAC
Business School, BRAC University, for guiding me and for giving me the opportunity to initiate
this report. More specifically, I would like to thank him for imparting his time and wisdom.
I was placed in Internal Audit Department of Green Delta Insurance Company Limited,
Mohakhali Corporate Head Office to work as an intern from February 16h to May 16st 2013. I
want to thank all the officials of Green Delta Insurance Company Limited that were involved. I
would especially like to thank Gazi Safiqur Rahman (Internal Audit officer), MD. Jahangir Islam
(EVP), for giving me time and sharing their thoughts. I would like to thank them for giving me
the required information to commence this report and for providing the permission to do the
required analysis work.
I also would like to give my gratitude to a very important person who has made it all happen for
me at Green Delta Insurance Company Limited - Ms. Farzana Chowdhury (Managing Director &
CEO). Finally, I would like to thank my parents and my brother whose influence and inspiration
has enabled me to complete thesis report.
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Table of Content
Content
Page No.
Part 1: Introductory part

1.1 Introduction
1.2 Origin of the report
1.3 Objective of the report
1.4 Scope of the report
1.5 Methodology
1.6 Limitation of the report
Part 2: Organization
2.1 Background and Overview of the Company
2.2 Vision
2.3 Mission
2.4 Strength
2.5 Belief
2.6 Core Values
2.7 Corporate Chronicle
2.8 Company Information
2.9 Products & Services
2.10 Shareholding Structure
2.11 Subsidiary Operations
2.12 Organizational Hierarchy
Part 3: Internal Audit Department
3.1 Overview of Internal Audit
3.2 Key Functions
3.3 Main Functions of Audit Department
3.4 Branch Audit Procedure
3.5 Branchs Report Presentation
3.6 Risk Assessment Procedure
Part 4: Internship experience
4.1 Introduction
4.2 Responsibilities and Learning outcome
4.3 Personal Observation
4.4 Recommendation
14
12
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3
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4
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5 19
5
5
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69
9 11
11 14
15 16
17
17 18
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20 26
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27 29
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Part 5: Project part

5.1 Summary
5.2 Objective of the project
30 71
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Content
Page No.
5.3 Methodology
5.4 Limitations
5.A. Description and Requirement of Product and Services
5.B. Industry Analysis
5. B.1 Profitability or Return on Investment Ratios
5. B.1.1 Net profitability
5. B.1.2 Return on assets
5. B.1.3 Return on investment 1
5. B.1.4 Return on investment 2
5. B.1.5 Earnings per share
5. B.1.6 Investment turnover
5. B.2. Liquidity Ratios
5. B.2.1 Current ratio
5. B.2.2 Quick ratio (or "acid test")
5. B.2.3 Cash to total assets
5. B.2.4 Cash turnover
5. B.3. Leverage Ratios
5. B.3.1 Debt to equity ratio
5. B.3.2 Debt ratio
5.C. Stock Valuation
5.C.1 Assumptions and Adjustments
5.C.2 Dividend distribution
5.C.3 Growth rate
5.C.4 Beta Coefficient
5.C.5 Required Rate of Return
5.C.6 Intrinsic Value
5.C.7 Probable reasons for overvaluation of stock
31
31
32 - 47
48 - 67
48 - 56
50
51 - 52
52 - 53
53 - 54
54 - 55
55 - 56
56 - 63
58 - 60
60 - 61
61 - 62
62 - 63
63 - 67
64 - 65
66 - 67
68 - 71
68 - 69
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70
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Part 6: Scenario of Insurance Company in Bangladesh

Part 7: Recommendations
Part 8: Conclusion
Part 9: References
Appendix 1
72 - 77
78
79
80
81 - 88
Appendix 2
89 - 91
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Executive Summary
This internship report is based on my internship program and financial statements of 2008, 2009,
2010, 2011 and 2012 of Green Delta Insurance Company Limited. In my internship period, I
worked in Internal Audit Department. It was a great opportunity to experience and gather
knowledge different types of insurance operations. My faculty supervisor helped me to choose
the topic- Financial Performance Analysis of Green Delta Insurance Company Limited.
In this report the overall scenario of GDIC has been discussed. Then, the functions of each of the
department have been given. After that, as an intern of internal audit department the overall
scenario and functions of internal audit department are discussed with the details.
The main key of existence of insurance company is its business. For that reason, it has different
insurance products and services with each of its specific criteria and requirement. GDIC has too
and in this report the details of it have been discussed.
In the new competitive business era, Insurance sector is getting more competitive in Bangladesh.
In this sector the most used financial statements are the balance sheet and profit and loss account
where the balance sheet shows the financial position and profit and loss account shows the net
profit or net loss of an insurance company. Ratio Analysis deals with these statements.
In this report, the industry analyses are done through ratio analysis of three different companies
of Green Delta Insurance Company Limited, Reliance Insurance Company Limited and Agrani
Insurance Company Limited. By doing industry analysis one can easily compare the financial
performance of the companies. Ratio analysis helps a company to take necessary steps regarding
the conditions, finding the loop holes of the company and then the necessary steps can be taken
to prevent the condition. Then the stock valuation is done with the help of market information
and then found out whether the stock price of GDIC is undervalued or overvalued and found out
the probable reasons of specific condition.
Furthermore, the overall condition, problems, prospects and the recommendations of insurance
companies or insurance sector have been discussed.
Then, the recommendations for GDIC have been found out so that it can take a look of those and
develop its condition to develop its existence in the insurance industry.
At the end, it can be said that GDIC is one of the leading non-life insurance companies in the
insurance industry. It has own reputation and market. For sustaining in the insurance industry it
needs to compete with other companies. For that reason it should focus on the innovation and
development by competing itself so that it can uplift its own standard from the previous standard.
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Part 1: Introductory Part

1.1 Introduction
Insurance is a system of spreading the risk of one to the shoulders of many. It is a contract
whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the
insured against losses arising out of certain specified unforeseen contingencies or perils insured
against.
Insurance is not a new business in Bangladesh. Almost a century back, during British rule in
India, some insurance companies started transacting business, both life and general, in Bengal.
Insurance business gained momentum in East Pakistan during 1947-1971, when 49 insurance
companies transacted both life and general insurance schemes. These companies were of various
origins British, Australian, Indian, West Pakistani and local. Ten insurance companies had their
head offices in East Pakistan, 27 in West Pakistan, and the rest elsewhere in the world. These
were mostly limited liability companies. Some of these companies were specialized in dealing in
a particular class of business, while others were composite companies that dealt in more than one
class of business.
The government of Bangladesh nationalized insurance industry in 1972 by the Bangladesh
Insurance (Nationalization) Order 1972. By virtue of this order, save and except postal life
insurance and foreign life insurance companies, all 49 insurance companies and organizations
transacting insurance business in the country were placed in the public sector under five
corporations. These corporations were: the Jatiya Bima Corporation, Tista Bima Corporation,
Karnafuli Bima Corporation, Rupsa Jiban Bima Corporation, and Surma Jiban Bima
Corporation. The Jatiya Bima Corporation was an apex corporation only to supervise and control
the activities of the other insurance corporations, which were responsible for underwriting. Tista
and Karnafuli Bima Corporations were for general insurance and Rupsa and Surma for life
insurance.
The basic idea behind the formation of four underwriting corporations, two in each main branch
of life and general, was to encourage competition even under a nationalized system. But the
burden of administrative expenses incurred in maintaining two corporations in each front of life
and general and an apex institution at the top outweighed the advantages of limited competition.
Consequently, on 14 May 1973, a restructuring was made under the Insurance Corporations Act
1973. Following the Act, in place of five corporations the government formed two: the Sadharan
Bima Corporation for general business, and Jiban Bima Corporation for life business.
After 1973, general insurance business became the sole responsibility of the Sadharan Bima
Corporation. Life insurance business was carried out by the Jiban Bima Corporation, the
American Life insurance Company, and the Postal Life Insurance Department until 1994, when a
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change was made in the structural arrangement to keep pace with the new economic trend of
liberalization.
The Insurance Corporations Act 1973 was amended in 1984 to allow insurance companies in the
private sector to operate side by side with Sadharan Bima Corporation and Jiban Bima
Corporation. The Insurance Corporations Amendment Act 1984 allowed floating of insurance
companies, both life and general, in the private sector subject to certain restrictions regarding
business operations and reinsurance. Under the new act, all general insurance businesses
emanating from the public sector were reserved for the state owned Sadharan Bima Corporation,
which could also underwrite insurance business emanating from the private sector. The Act of
1984 made it a requirement for the private sector insurance companies to obtain 100%
reinsurance protection from the Sadharan Bima Corporation. This virtually turned Sadharan
Bima Corporation into a reinsurance organization, in addition to its usual activities as direct
insurer. Sadharan Bima Corporation itself had the right to reinsure its surplus elsewhere outside
the country but only after exhausting the retention capacity of the domestic market. Such
restrictions aimed at preventing outflow of foreign exchange in the shape of reinsurance
premium and developing a reinsurance market within Bangladesh.
The control over insurance companies including their functions relating to investments, taxation,
and reporting is regulated mainly by the Insurance Act 1938 and the Finance Acts.
1.2 Origin of the report

Internship Program of BRAC University is a Graduation requirement for the BBA students,
which is also a partial requirement of the Internship program of BBA curriculum. The main
purpose of internship is to get the student exposed to the job world. Being an intern the main
challenge was to translate the theoretical concepts into real life experience.
The internship program and the study have following purposes:
To get and organize detail knowledge on the job responsibility.

To experience the real business world.
To compare the real scenario with the lessons learned in the University
To fulfill the requirement of BBA Program.
To accomplish the internship, I was placed at in Green Delta Insurance Company Limited
(Mohakhali, Corporate Head Office), under the guidance of Ms. Sayla Sowat Siddiqui, my
academic supervisor. The report topic was approved by the supervisor to satisfy the
organizational requirements and fulfillment of the internship program. As a requirement of the
completion of the internship program, I had to submit this report, which includes an overview of
the organization and Industry Analysis of Green Delta Insurance Company Limited, Reliance
Insurance Company Limited, Agrani Insurance Company Limited; Stock Evaluation of GDIC,
Product and Service Description and those requirements.
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1.3 Objective of the report

The objective of the report can be viewed in two forms:
General Objective
Specific Objective
1.3.1 General Objective

This internship report is prepared primarily to fulfill the Bachelor of Business Administration
(B.B.A) degree requirement under the Department of BRAC Business School, BRAC
University.
1.3.2 Specific Objective

More specifically, this study entails the following aspects:
To provide a brief overview of Green Delta Insurance Company Limited and their
historical background.
To analyze the Industry analysis of General Insurance Company in the last five
years.(2008-2012)
To Evaluate Stock Overpriced or underpriced
To know the product and services of General Insurance company and those
description
To present my observation and suggestion to the Insurance Company.
1.4 Scope of the report

The report plots a chronicle outline of Green Delta Insurance Company Limited and its
operation. The information consists of the observation and the job experience acquired
throughout the internship era. The report also particularizes the internship research focus,
financial performance of Green Delta Insurance Company. This report has been prepared
according to extensive analysis of financial statements and review of literatures. Also, the report
has been prepared by the analysis of general insurance industry. Market information are
considered for the Stock evaluation.
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1.5 Methodology
In order to generate this report only secondary data has been used. The source that have been
used to gather and collect data is given below1.5.1 Secondary Sources
Annual Report of Green Delta Insurance Company Limited, Reliance Insurance

Company Limited, Agrani Insurance Company Limited( 2008-2012)
Brochures of Green Delta Insurance Company Limited
Different written document of Green Delta Insurance Company Limited
Website of DSE and Stock Bangladesh
Newspaper
Website of Green Delta Insurance Company Limited, Reliance Insurance Limited,

Agrani Insurance Company Limited( 2008-2012)
1.6 Limitation of the report

It was a great opportunity for me to work in Green Delta Insurance Company Limited as an
Intern and a make a report on the overview of the organization and Industry Analysis of Green
Delta Insurance Company Limited, Reliance Insurance Company Limited, Agrani Insurance
Company Limited; Stock Evaluation of GDIC, Product and Service Description and those
requirements. However, there were surely some limitations while making this report. They are
Getting the information and interpreting it, on the basis of my understanding and then
implementing it.
Also, for the first time I have made report on insurance company and industry so it
was quite difficult for me to understand the financial terms.
There were several departments for that reason I faced difficulties while collecting
information from those departments
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Part 2: Organization
2.1. Background and Overview of the Company:
Green Delta Insurance Company Limited (GDIC) is one of the leading private non life insurance
companies in Bangladesh. GDIC was incorporated in December 14, 1985 as a public limited
company, under the Companies Act 1913. Actual operations started on 1st January 1986, with a
paid up capital of BDT 30.00 million. Now, Green Delta Insurance Company Ltd. is amassed
about BDT 637.875 million with a credit rating of AA1 and ST1. GDIC holds the proud
distinction of being the first ever company to raise its paid up capital to such a level. This is also
the 1st Insurance Company in Bangladesh to have equity partnership with IFC. With a presence
in the strategically important parts of the country, which includes 38 branches, Green Delta
Insurance Company Ltd. has established its prominent presence with equity participation in
Delta BRAC Housing Ltd., Progressive Life Insurance Co Ltd, United Hospital Ltd. FinExcel
Ltd. and BD Venture Ltd. Green Delta Capital Ltd. and Green Delta Securities Ltd. are two of
the direct subsidiaries. GDIC provides stock brokerage services through Green Delta Securities
Ltd. (GDSL) and investment supports through Green Delta Capital Ltd. (GDCL).
Under the charismatic leadership of Mr. Nasir A Choudhury, Founder Managing Director and
Advisor, Green Delta Insurance Company Ltd. has been leading the winds of change in the
insurance industry of the country in terms of service standard, innovative products and legislative
restructuring. After 28 years of glorious journey in the Insurance sector, Green Delta Insurance
Company Limited has now become a big family of 14 respected board members, 600+
committed staff, numerous valued clients and thousands of esteemed shareholders. By now,
Green Delta has been able to uphold the brand image as a prompt claim settler, superior service
provider, and diversified product supplier almost like a one stop solution provider in the non
life insurance sector in the country.
2.2. Vision
Its vision is to mature into a sustainable, coherent organization, raise competitiveness to the
highest level in the insurance industry, maintain high profitability & balanced quantitative
growth and exceed customers expectations by offering legendary services, embrace a new
corporate identity and creative corporate culture.
2.3. Mission
Its mission is to create shareholders value through customers satisfaction and employees
commitment to excellence.
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2.4. Strength
Constant pursuit of suitable strategies has made the company the leading insurer of Bangladesh
for over two decades.
2.5 Belief
It believes that client must stand at the center of our all activities. It has the ability to optimally
fulfill the clients needs based on risk management with minimum cost and personalized
services.
2.6. Core Values

Customer First Always:
Give first priority to customer needs. Look to build enduring relationships with customers internal and external. Differences should be communicated in the spirit of relationship building.
Organization above Self:

We believe that individual, team and department actions will be driven by organization goals.
Trust:
We believe that there cannot be teamwork without mutual trust. Trust is fundamental to our
business and will guide all internal and external interactions.
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High Standards:
We believe that excellence can be achieved only by setting benchmarks that challenge our full
potential as an organization and as individuals.
Shared Ownership:
We believe that ownership of success or failure in achieving organizational or team goals is
shared by all.
Spirit of Adventure:
Uncertainty is our business and we believe in continuous innovation and creativity to meet
challenges head-on.
Respect for Diversity:
We believe that diversity is our strength and it needs to be nurtured. We recognize that team
members have varying backgrounds, competencies and ideas and constructive action results only
when opinions are aired and understood.
Code of Conduct:
This code of conduct is based on the values of the company. The purpose is to ensure that all
employees, managers and executives within Green Delta Insurance Company Limited, will live
an act in accordance with these values and principles. The code is designed to give a broad and
clear understanding of the conduct expected from all our employees everywhere we do business.
Green Delta Insurance Company Limited is committed to conduct its business in an ethical,
legal, and responsible manner. Green Delta Insurance Company Limited, therefore, has
established this Social Responsibility. Code of Conduct as an application and is committed to
ensuring that this code is respected in all its facilities, all over Bangladesh. Recognized standards
as the Universal Declaration of Human Rights (UDHR) or the International Labor Organization
(ILO) conventions were used as references in preparing this code. The principles there below
refer to these standards.
Legal Compliance:
All business activities of Green Delta Insurance Company Limited must conform to all
applicable national and international legal requirements. Green Delta Insurance Company
Limited shall also comply with applicable anti-bribery/ anti-corruption rules and regulations in
all their business activities.
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Prohibition of Discrimination and Harassment:

Green Delta Insurance Company Limited shall not engage in any discriminatory practices.
Discrimination means any distinction, exclusion or preference limiting equality or opportunity of
treatment in employment or occupation, which may be based on color, sex, religion, political
opinion, age, national, social or ethnic origins, family obligations or any other considerations in
this matter. Green Delta Insurance Company Limited also commits to a workplace free of any
kind of harassment.
Compensation & Benefits:
The company ensures that no wage is lower than the applicable legal minimum. Green Delta
Insurance Company Limited does not deduct or withhold pay for disciplinary reasons or force
terms and conditions for employment. Compensation paid to employees shall comply with all
applicable wage laws, including those relating to minimum wages, overtime hours and legally
mandated benefits.
Working hours:
Green Delta Insurance Company Limited ensures that applicable legal restrictions on working
hours are met. The maximum allowable working hours in a week are as denied by national law
and the corresponding standards of the International Labor Organization. Overtime is restricted
according to local legal and contractual obligations. Employees have two days off each week,
apart from exceptional circumstances and for a limited period of time. The work organization
provides for rest breaks as necessary, in order not to affect the safety and health of the
employees.
Prohibition of Forced Labor:
Green Delta Insurance Company Limited does not use forced or compulsory labor, meaning all
work or service which is exacted from any person under the menace of any penalty and for
which the said person has not offered him voluntarily. Also retention of identity documents from
personnel upon commencing employment is forbidden.
Freedom of Association and Collective Bargaining:
Green Delta Insurance Company Limited recognizes and respects employees freedom of
association and their right to freely choose their representatives and ensures that employee
representatives do not suffer any discrimination. The company also recognizes employees right
to collective bargaining.
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Health & Safety at Work:

The company ensures that the workplace and its environment do not endanger the physical
integrity or health of employees. Action to reduce the causes of accidents and improve working
conditions is the object of ongoing programs. Training related to safety and health in their work
occupation is provided to employees. Employees must have access to drinking water, sanitary
equipment and social rooms, built and maintained in accordance with applicable legal
requirements. The workplace and environment has to provide for emergency exits, ire protection
equipment and proper lighting. Additionally adequate protection for non-smokers has to be
provided.
Environment:
Procedures and standards for waste management, handling and disposal of chemicals and other
dangerous materials, emissions and effluent treatment shall at least meet legal requirements or
exceed them.
2.7. Corporate Chronicle
December 14, 1985

January 01, 1986
January 02, 1986
August 19, 1989
December 31, 1989
January 12 1990
January 14 1990
October 21, 1995
October 22, 1995
October, 1997
May 05, 2004
May 10, 2004
July 18, 2004
October 30, 2004
June 30, 2005
December 31, 2005
June 12, 2005
May 11, 2005
May 12, 2005
October 13, 2005
January 31, 2006
November 28, 2006
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Incorporation of the Company

Commencement of business
Signing of First Insurance business
Received consent from SEC for issuance of Public Share of BDT
30 million
Increase of paid up capital to BDT 60 million
Listing with Dhaka Stock Exchange Limited
First trading at Dhaka Stock Exchange Limited
Listing with Chittagong Stock Exchange Limited
First trading at Chittagong Stock Exchange Limited
Investment in Delta Brac Housing as equity share holders
Issuance of Right Share
Agreement sign with CDBL
Start up of Demat Settlement
Awarded A category insurance Co. By CRISL
Issuance of first Bonus Share
Capital increased to BDT 108 million
Formation of Green Delta Aims Limited, a joint venture
construction firm
Launching of Islamic Takaful Insurance
Dhaka Stock Exchange Membership Purchased
Incorporation of Green Delta Financial Services Limited
Investment in BRAC Bank Preferred Share
Investment in United Hospital
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June 30, 2006

July 1, 2006
December 31, 2006
February 15, 2007
June 26, 2008
September 17, 2008
December 31, 2008
June 20, 2009
August 20.2009
March 30,2010
June 30,2010
October 31,2010
December 1,2010
December 20, 2010
December 20, 2010
December 22, 2010
December , 2010
April-2011
August-2011
November-2011
November-2011
November-2011
November-2011
April-2012
September-2012
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Issuance of Bonus Share

Startup of the Operations of Green Delta Financial Services
Limited
Capital increased to BDT 151.20 million
Startup of the Construction of own building named Green Delta
Aims Tower a joint venture Project with Mr. Mainul Islam
Capital increased to BDT 200 million.
Awarded AA2 rating in the long term and ST-1 rating in the
short term by CRAB
Raising of Paid up capital to BDT 408.24 million
Donation of 550 wheel chairs among the war wounded freedom
fighters
MOU Signing with LR Global Bangladesh AMC Ltd.
Approval for Green Delta Mutual Fund for BDT 150.00 crore
Authorized capital increased to BDT 100.00 crore
Change in the denomination of Face Value (BDT 10/-) and
Market Lot (from 10 to 100)
Approval of Merchant Banking license in the name of the
subsidiary Green Delta LR Financial Services Ltd.
Has been accredited T.Q.M Aptitude seal for high quality
performance and best customer satisfaction
Has been selected for Platinum Technology Award for Quality
and Best Trade Name
Awarded "AA1" rating in the long term and "ST-1" rating in the
long term and short term respectively by CRAB
First Prize winner of Best Published Accounts in the 10th
ICAB National Awards 2009(Non Banking Category-Insurance
Sector)
Has been awarded for The Platinum Technology Award for
Quality & Best trade name by Association Other Ways in Berlin
Awarded
The
BIZZ
Award-2011
by
World
Business Confederation of Business, USA for Leadership and
Excellence in management, Quality and Marketing.
Awarded " THE DIAMOND EYE AWARD FOR QUALITY
& EXCELLENCE " by BID OTHERWAYS
November-2011 = Awarded " INTERNATIONAL QUALITY
CROWN AWARD " by BID INTERNATIONAL IN LONDON
First Prize in ICMAB Best Corporate Award-2011 in
Insurance category.
Conferred the Certificate of Meritfor the Best
Presented Accounts Award 2010 in the category Insurance
Sector by the South Asian Federation of Accountants (SAFA).
Moved to new Head Office (Green Delta AIMS Tower) at 51-52
Mohakhali C/A, Dhaka
Invested in BD Venture Limited, countrys first Venture Capital
company
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October-2012
November-2012
March-2013
May-2013
October-2013
December-2013
December-2013
Introduced Peoples personal Accident Policy for the students of

South-East University, the first of its kind in Bangladesh
short term respectively by CRAB.
Equity Partnership with International Finance Corporation (IFC)
of World Bank Group, First Foreign Direct Investment of IFC in
the Insurance Sector of Bangladesh
Launch of Nibedita on pilot basis, a comprehensive insurance
scheme solely for women for the first time in Bangladesh.
Farzana Chowdhury officially takes over as the Managing
Director and CEO of GDIC becoming the first ever female MD
in the insurance sector of Bangladesh.
short term respectively by CRAB.
Officially launched Cellular phone insurance for the first time
in Bangladesh signing deal with Rialto Technologies.
2.8. Company Information

Registered Office
Green Delta Insurance Company Ltd.
Green Delta AIMS Tower (6th floor)
51-52 Mohakhali C/A, Dhaka
Corporate Website
www.green-delta.com
Email: info@green-delta.com
Hot line # 01730074299
Nature of Business
All kinds of non-life insurance business
Subsidiaries
Green Delta Securities Ltd.
Corporate Office Address:
Green Delta AIMS Tower (2nd floor)
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Green Delta Capital Ltd.

Head Office Address:
Green Delta AIMS Tower (3rd floor)
Auditor
S.F Ahmed & Co.
Chartered Accountants
Panel Lawyer
1. Barrister Abdur Razzaque. Abdur Razzaque & Associates.
2. Barrister Junayed Ahmed Chowdhury, Vertex Chambers
3. Barrister Rezwana Yusuf, Amicus Curiae
4. Barrister Tanjib-ul-Alam, Tanjib-ul-Alam& Associates
5. Barrister Farzana Begum, Law Shift
6. Barrister Tanzim Karim Chowdhury,
7. Barrister Syed Jawad Quader
8. Barrister Syed Ridwan Husain
9. Advocate Syed Qudrat Ali
10. Advocate Mohammed FaizUllah
11. Advocate Shah Shahidul Alam
Principal Bankers
Pubali Bank Limited

BRAC Bank Limited
Commercial Bank of Ceylon
Standard Chartered Bank
The Hongkong and Shanghai Banking Corporation Ltd.
The City Bank Limited
Islami Bank Bangladesh Limited
Mercantile Bank Ltd.
Standard Bank Ltd.
Membership
Bangladesh Insurance Association

Bangladesh Association of Publicly Listed Companies
International Chamber of Commerce-Bangladesh
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Metropolitan Chamber of Commerce & Industry

Bangladesh German Chamber of Commerce & Industry
Bangladesh Malaysian Chamber of Commerce & Industry
Bangladesh Employer Federation International Network Partner
United Nation(s) Global Compact
Dhaka Chamber of Commerce and Industry
Network Partner of Overseas Insurers/Reinsurers
Royal & SunAlliance, London

Zurich Insurance Co.
AXA Corporate Solutions Assurance Ltd.
ACE Group
Mitsui Sumitomo Insurance Co. Ltd., Japan
IF PNC, Sweden
Allianz Global Corporate and Specialty
Sompo, Japan
Branches:
It has 38 branches all over the country
Board of Directors
A.Q.M. Nurul Absar - Chairman

Dilruba Chowdhury - Vice Chairperson
Kamran Idris Choudhury
Shamsun Nahar
Razia Rahman
Dr. Niaz A Choudhury
Mesbah Dilwar Rahman
Asif A. Chowdhury
Iqbal Khan (Jamal)
Arif A. Choudhury
Khurshida Chowdhury
Abdul Hafiz Chowdhury
Marufa Anwar
Nurul Husain Khan
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Senior Management Team

Advisor and Founder Managing Director - Nasir A. Choudhury
Managing Director & CEO - Farzana Chowdhury
Senior Additional Managing Director - Farid A. Choudhuri
Additional Managing Director - Golam Mustafa
Consultant - A. S. A. Muiz
Deputy Managing Director and Company Secretary - Syed Moinuddin Ahmed
Deputy Managing Director Finance, Accounts, HR & Admin - Nazim Tazik Chowdhury
Senior Executive Director Nazrul Islam , Jafar Ahmed , Md. T.H. Forhad , Mursalin
A.Chowdhury, Syed Kaiser Ahmed
Head of Brokerage and CEO, Green Delta Securities Ltd. - Wafi Shafique Menhaz Khan
Chief Investment Officer, Green Delta Capital Ltd. - Md. Rafiqul Islam
Director (Public Relation) - Mr. Md. Mahfuzur Rahman Siddique
Director (Public Relation) - Mr. Md. Mahfuzur Rahman Siddique
Executive Director - Kabir Ahmed Chowdhur
Local, National, or Cross-border network(s) or Association(s) Link:
National:
Member, Bangladesh Insurance Association.

Member, Bangladesh Insurance Academy
Member, Metropolitan Chamber of Commerce and Industry- Bangladesh (MCCI)
Member, Bangladesh Employers Federation
Member, International Chamber of Commerce-Bangladesh
Member, Bangladesh Malaysian Chamber of Commerce and Industry-Bangladesh
(BMCCI)
Member, Bangladesh Association of Public Listed Companies, Bangladesh
International:
Member, United Nation Global Compact

Global Compact International Yearbook
Member, Federation of Afro-Asian Insurers & Reinsurers (FAIR)
Associate Member, East Asian Insurance Congress (EAIC)
Member, International Union of Arospace ACE Insurer
Member, Association of Insurers and Reinsurers of Developing
(AIRDC)
Member, World Islamic Economic Forum
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Countries
Page 14
2.9. Products & Services

2.9.1. Corporate
Risk Management
Industrial All Risk Insurance including Machinery Insurance and Business Interruption
Property All Risk Insurance including Business Interruption
Electronic Equipments and Computer Insurance
Professional Indemnity Insurance
Comprehensive Machinery Insurance
Comprehensive General Liability (CGL)
Product & Public Liability Insurance
Directors and Officers Liability (D&O)
Fire and Allied Perils Insurance
Marine Cargo and Hull Insurance
2.9.2. Financial
Cash-in-safe, Cash-in-transit & Cash-on-counter Insurance

Portfolio Cover
Credit Card Indemnity Insurance
Bankers Blanket Insurance
Bank Lockers Insurance
A.T.M. Booth Insurance
Banc assurance
2.9.3. Retail & SME
Fire and Allied Peril Insurance

Marine Cargo and Hull Insurance
Personal Accident
Health Insurance
Overseas Mediclaim Insurance
Micro Insurance
Micro Health Insurance
Nibedita-Comprehensive Insurance Policy for Women
Household Insurance
Motor Insurance
Peoples Personal Accident Policy
Comprehensive Travel Insurance
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2.9.4. Conventional
Aviation Insurance
Automobile Insurance
Workmen Compensation Insurance
Miscellaneous Insurance
Engineering Insurance (Erection all Risk, Contractors all
Risk, Deterioration of Stock & Boiler & Pressure Vessel
Insurance, business intemiption
Crop Insurance
Weather Index Based Insurance
2.9.5. Investment & Portfolio Management
Underwriting
Pre-IPO placement Syndication
Trusteeship
Green Delta Insurance is known for its innovation and services. Todays competitive insurance
market is driving the market to think and Winovate now products and services and GDIC has
been doing with its authentic. Beside the Traditional insurance portfolio GDIC introduced
following personal line of products In last year and some them are in pipeline:
Health Insurance
Household Insurance
Cellular Phone Contingency Insurance
Weather Index Based Insurance
Personal Accident Insurance Policy for Migrant workers
It is matter of great pride that GDIC has introduced an insurance product first time ever in
Bangladesh which is designed only for the females named as Nibedita-Comprehensive Insurance
Policy for Women. GDIC has also designed first ever Weather Index Based Insurance for the
farmers of Bangladesh which will be launched shortly.
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2.10. Shareholding Structure
2.11. Subsidiary Operations

2.11.1. Green Delta Securities Limited,
a wholly owned subsidiary of Green Delta Insurance Company Ltd., has posted a growth of
136.07% in profit before tax against a revenue increase by 161.82% when compared with 2008.
In 2009, GDFSL has opened a branch in the citys prime location Gulshan. At present there are
six (06) branches and having around 1.5% of the average daily market share. A detail of the
business operation has been given at the later segment of this report.
Green Delta Securities Ltd. is part of the reputed Green Delta group and is a well capitalized
brokerage house GDSL is a 100% subsidiary of Green Delta Insurance Company Limited and
offers full-fledged international standard brokerage services for retail and institutional clients.
Initially Green Delta Securities Ltd. offered brokerage account services only to high net-worth
individuals, but now this criteria has been relaxed and credit facility for trading is available to
experienced investors.
Green Delta Securities Limited (hereby known as GDSL) an 8 (eight) years old company in
capitalized brokerage business. We have around 7 branches in different divisions in the
country. Green Delta Securities is a 100% subsidiary of Green Delta Insurance Company
Limited and offer full fledged international standard brokerage services for retail and
institutional clients.
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2.11.2. Green Delta Capital Limited GDCL, a fully owned subsidiary of Green Delta
Insurance Company, is one of the emerging Investment Banks in Bangladesh. GDCL got its
license in December 2010 from Security and Exchange Commission and embarked on operation
from July 2011 with the vision to provide one stop investment banking solution of global
standards. The company is committed to provide not only the traditional merchant banking
services but also aims to bring in advance financial solutions for the local corporate to uplift the
business sector to a new dimension.
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2.12. Organizational Hierarchy
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Part 3: Internal Audit Department

3.1. Overview of Internal Audit:
Internal auditing is an independent, objective assurance and consulting activity designed to add
value and improve an organization's operations. It helps an organization accomplish its
objectives by bringing a systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control, and governance processes. Internal auditing is a
catalyst for improving an organization's governance, risk management and management controls
by providing insight and recommendations based on analyses and assessments of data and
business processes. With commitment to integrity and accountability, internal auditing provides
value to governing bodies and senior management as an objective source of independent advice.
Professionals called internal auditors are employed by organizations to perform the internal
auditing activity.
The scope of internal auditing within an organization is broad and may involve topics such as an
organization's governance, risk management and management controls over:
efficiency/effectiveness of operations (including safeguarding of assets), the reliability of
financial and management reporting, and compliance with laws and regulations. Internal auditing
may also involve conducting proactive fraud audits to identify potentially fraudulent acts;
participating in fraud investigations under the direction of fraud investigation professionals, and
conducting post investigation fraud audits to identify control breakdowns and establish financial
loss.
Internal auditors are not responsible for the execution of company activities; they advise
management and the Board of Directors (or similar oversight body) regarding how to better
execute their responsibilities. As a result of their broad scope of involvement, internal auditors
may have a variety of higher educational and professional backgrounds.
Internal auditors work for government agencies (federal, state and local); for publicly traded
companies; and for non-profit companies across all industries. Internal auditing departments are
led by a Chief Audit Executive ("CAE") who generally reports to the Audit Committee of the
Board of Directors, with administrative reporting to the Chief Executive Officer
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3. 2. Key Functions:
Confirm
Internal
Control
System
Regular
Checkin
g of
Payment
Internal Audit
Department
Departmen
t wise
Audit
Regular /
Routine
Branch
Audit
3.3. Main Functions of Audit Department

To confirm adequacy of internal control system such as:
Overall system review with departmental operational procedure.
Financial statement, books of accounts, financial power delegation and advances.
Investment & share
Asset register, depreciation, disposal & Its control.
Procurement policy
Stock & store
Insurance agent appointment, license, register maintenance as per Insurance Act.
Insurance stamp purchase, supply with documentation.
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All kinds of expenses i.e. management exp. business development exp., agent
commission & other payment Procedures with documentation.
Premium collected amount reconciliation with bank statement.
Premium collection, premium deposit, premium refund, discount on premium, premium

outstanding, deposit premium, register maintenance etc.
Bank deposit /collection, bank reconciliation.
TDS & VAT collection & deposit, Company Tax Payment.
Management Information Systems (MIS) statement
Claim payment procedure, payment mode, surveyors appointment, register maintenance,

documentation etc.
Amount due/payable to co-insurer & Reinsurance treaty/limit.
3.4. Branch Audit Procedure

Employees Attendance/ Movement
Office Environment
Documentation
Security Papers
Unused Printing Stationary
Inventory
Business / Underwriting
Bank Statement
Income & Expenditure
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3.5. Branchs Report Presentation

Internal Audit Team conducts branch audit as per year visit plan on the overall activities of
branch.
Mainly two types of activities are involved comprising the following Materials:
a) Operational activities:
Attendance/Movement register, Policy/Cover note/ Addendum/ Endorsements/Certificate
register, Assets Inventory, Security of documents, Stamp register, Money Receipts,
Documentation.
b) Financial activities:
Premium income, Premium Target & Achievement, Claims paid, Petty cash expenses, Agency
commission.
Department wise Audit
Internal Audit team conducts department wise Audit:
Finance & Accounts Department
Human Resources & Admin. Department
Underwriting Management Department
Claims Department
Re-insurance Department
Share & Investment Department
Information Technology Department
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3.6. Risk Assessment Procedure

Internal Audit Team conducts department wise audit by adopting the following procedure for
risk assessment & management.
3.6.1 Finance & Accounts Department:
Cash Counter
Pre Payment & Post Payment Voucher
Bank Voucher(Refund/CO-Ins/Advance/Re-Ins)
Bank Reconciliation
Premium income & Others Investment Income
Financial Statement (Trial Balance, Ledger, Journal, Double entry system)
Fixed Assets Disposal & Depreciation
FDR & others Investment.
Tax & Vat Deduction, Provision & Payment
Other Reserve & Provisions
3.6.2. Human Resources & Admin. Department:

Appointment/Pay Roll/Benefits (Provident Fund, Gratuity, Bonus, Loan & Advances )
Personnel Policies & Service Rule (Attendance, Leave, Training)
Purchase/Quotation/Approval
Pricing/Quality
Budget/Fund Utilization
Deductions on Bills ( AIT, VAT)
Fixed Assets/Printing Stationary/Inventory
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3.6.3. Underwriting Management Department:

Document Check as per Premium Register (Branch Wise)
Tariff Rate Terms Condition & CRC Correspondence
Surveyor Appointment & Report Review
Risk Control Compliance
Premium Collection, Refund , Commission
Co-insurance payment , Receivable/ Payable
Stamp Duty As Per Document & Register
Compliance of IDRA Directives
System Generated Reports
3.6.4. Claims Department:

Loss Intimation Letter
Acknowledgement & Surveyor Appointment
Register Entry
Premium Collection Confirmation
Survey Report & Relevant Documents
Scrutiny of Documents
Review & Approval
Settlement
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3.6.5. Re-insurance Department:

Re-insurance Treaty
Payment of Re-insurance Premium
Receivables under Re-insurance Arrangements
Quarterly Bordereaux
Profit/ Loss Payment Statement
3.6.6. Share & Investment Department:

Share holding position
Right & Bonus Share
Dividend Announcement and Disbursement
Tax deduction on Dividend
Price Sensitive Information
Financial Discretion
3.6.7. Information Technology Department (IT) :

Security Policy of IT Department
Insurance Software Implementation
Results
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Part 4: Internship experience

4.1 Introduction
I felt myself very much privileged to get an opportunity to work as an intern in Green Delta
Insurance Company Limited (Mohakhali, Corporate Head Office). Green Delta Insurance
Company Limited is renowned for its quick services and good performance. When I started my
internship in this branch I was overwhelmed by knowing that I am a part of this renowned
company for three months. The duration of my internship was from 16th February to 16th May. I
enjoyed myself working over there a lot because the environment was immensely friendly and all
of the employees are very much co-operative with each other. As an intern every day I had to
report to the Internal Audit department and the officers of audit department named Gazi Safiqur
Rahman (Internal Audit officer), MD. Jahangir Islam (EVP), Parvin Akter( FSVP) , supervised
me all through my whole internship period in the Green Delta Insurance Company Limited
(Corporate Head Office).
4.2 Responsibilities and Learning outcome

4.2.1 Learning
The main functions of the Internal Audit Department may be summarized as follow and as a part
of this department I have learned the following things:
Learn to review whether the accounting, financial, budgetary and operating control are
adequate and have been efficiently applied.
Learn how to examine whether receipts of the company on account of premium or
otherwise have been correctly assessed and realized as per prescribed tariffs, rules,
regulation and orders; whether they have correctly accounted and promptly deposited in
Bank; whether all sums of money paid into the banks in cash or by cheques / pay
order/draft have been credited to Companys accounts; and whether there is effective
follow-up for recovery of arrears.
Learn how to examine whether payments by way of claims, commission and other
expenses have been made due regularly and propriety after proper sanction accorded by a
competent authority and have been duly vouched correctly classified and recorded in
accounts.
Learn to ensure that the companys assets are properly accounted and safeguarded from
the losses of all kinds, and that there is a periodical physical verification to check the
accuracy of the quantity balances in the books.
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Learn to examine whether instructions and procedures are given in the companys manual
and Head Office circular (including rules, regulations, and guidelines etc., issued by the
Company) are strictly followed;
Learn to examine whether financial and administrative power exercised by officials are
strictly in accordance with the delegations or guidelines laid down from time to time .
Learn to examine whether returns / statement / reports required to be furnished by each
office/ department to different authorities are correctly complied and sent within
stipulated time
Learn how to test the accuracy of accounting and other data developed in the office /
Department inspected.
Learn how to examine the delay in issue of documents and settlement of claims
Learn to spot out missing links, if any in the chain of operations which may give room for
financial irregularities, misappropriations, frauds etc.
Learn how to review the register of complaints to see that all companies have been
disposed off within a reasonable time and the machinery set up for the purpose is
adequate and efficient.
4.2.2 Responsibilities:
Assist the internal audit department in doing the branch audit of Principal Branch Dhaka.
Where I checked the movement of register, stock of revenue stamp, stock of cash
insurance stamp, money receipt, security papers, Inventory, no of documents issued,
Unused printing stationary of individual department of FIRE, FIRE, MARIN CARGO,
MARIN HULL, MOTOR, and MISSELINIOUS
Assist the internal audit department in doing the audit of Claim department. Where I
checked claim paid register of FIRE, MARIN CARGO, MARIN HULL, MOTOR, and
MISSELINIOUS
I have checked the petty cash which come to internal audit department for checking the
validity. Petty Cash Custodian(s) and Front Desk Personnel are responsible for their
cash, their petty cash transactions, maintenance of the proper records, and the
reconciliation of such. I was responsible for acquiring and validating:
1. Original Receipt
2. Signatures
3. Account Keys
4. IDs of recipient
5. Allow ability of purchase
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I have checked the paper of commission paid against the premium collected
I have checked the software of reconciliation whether the copy from branch given and the
record provided by the software both match or not.
Write down some letters under the instruction of the supervisor.
I have checked the Bank statement with software.
4.3 Personal Observation

During this internship period, my overall observations are as following:
The environment of Internal Audit Department of Green Delta Insurance Company

Limited is very friendly and cooperative.
Work is never left pending for the next day unless it is absolutely necessary.
It has own transportation facility which makes the life of employees easy
It provides lunch to the employee in a dinning where the employee can be intimated with
others. And the women can be more benefited by providing lunch.
I felt that there are more than enough employees and the salary range of GDIC is not
good enough which create dissatisfaction among the employees
The behavior of other departments toward internal audit department is not cooperative.
I felt manipulation of seniors of other department.
The work load of GDIC is very low. For that reason I have seen so many employees have
no works to do.
4.4 Recommendation
To recommend the company there are certain areas where things can be improved. First of all the
work force are not well enough to cooperate the organization for achieving their goal and they
have so many employees who are not productive. For overcoming this it they need to cut down
employee and hire qualified employees. Also, I believe the reporting to the direct top level
committee should be increased so that the management body makes a proper understanding
about the employees and the issues. Another recommendation from my side is to upgrade the
computers, operating systems and software so that the work process could be faster and better.
Green Delta Insurance Company Limited has a bright future and they should move forward with
improving technology and methodology so that they can keep their standards of excellence in
insurance company.
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Part 5: Project part

Financial Performance analysis of Green Delta
Insurance Company Limited
5.1. Summary:
The project consists with three different parts. They are given below
Project Part A: In the project part A the description of each of the insurance is given with the
detail requirement of each of them so that after reading it anyone can get a overall idea of the
product and services given by the GDIC.
Project Part B: In the project part B the industry analysis is given. For doing industry analysis
three insurance companies have been chosen. Those are Green Delta Insurance Company
Limited. Reliance Insurance Company Limited, Agrani Insurance Company Limited. After that,
those profitability ratios, liquidity ratios and leveraged ratios have been analyzed with the
findings and recommendations.
Project Part C: In the project part C the stock valuation of GDIC is given. For doing this the
portfolio market return, risk free rate have been found out. After that, the beta, face value of
stock, required rate of return, intrinsic value, growth rate of cash dividend of GDIC have been
found out. Then, after doing the comparison of intrinsic value and market price of GDICs stock,
whether the stock price of GDIC is overpriced or underpriced is found out. At the end the
probable reason for overpriced or underpriced has been discussed.
5.2. Objective of the project

More specifically, this study entails the following aspects:
To analyze the Industry analysis of General Insurance Company in the last five
years.(2008-2012)
Finding the recommendations to the GDIC on the basis of analyzing the financial
ratios.
To Evaluate Stock Overpriced or underpriced
Finding the intrinsic value of the GDIC stock
Finding the probable reason for overpriced or underpriced of stock
To know the product and services of General Insurance company and those
description
To present my observation and suggestion to the Insurance Company.
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5.3. Methodology
In order to generate the project part of this report only secondary data has been used. The source
that have been used to gather and collect data is given belowSecondary Sources
Annual Report of Green Delta Insurance Company Limited, Reliance Insurance

Company Limited, Agrani Insurance Company Limited( 2008-2012)
Brochures of Green Delta Insurance Company Limited
Different website on financial ratios like Investopedia ,
Website of Dhaka Stock Exchange (DSE) and Stock Bangladesh
Website of Green Delta Insurance Company Limited, Reliance Insurance Limited,

Agrani Insurance Company Limited( 2008-2012)
5.4. Limitations
It was a great opportunity for me to work in Green Delta Insurance Company Limited as an
Intern and a make a project on the Industry Analysis of Green Delta Insurance Company
Limited, Reliance Insurance Company Limited, Agrani Insurance Company Limited; Stock
Evaluation of GDIC, Product and Service Description and those requirements. However, there
were surely some limitations while making this report. They are
Getting the information and interpreting it, on the basis of my understanding and then
implementing it.
Also, for the first time I have made report on insurance company and industry so it
was quite difficult for me to understand the financial terms.
There were several departments for that reason I faced difficulties while collecting
information from those departments
Finding the actual market information was quite difficult
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Project Part 5.A

Description and Requirement of Product and Services
5.A.1. Fire Insurance
5.A.1.1. Basic cover:
Fire
Lightning
Explosion(domestic)
5.A.1.2. Damage during or immediately following
Fire caused by smoke, scorching,
Falling walls, water used for extinguishing
Fire, blowing up building for preventing
Spread of fire.
This coverage can be extended to include other perils by the additional premium;
Riot, Strike
Terrorism
Storm, Flood
Subsidence
Landslide
Aircraft damage
Bursting or overflowing of tanks.
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5.A.1.3. Exclusions
Fire due to
Explosion except boiler used for domestic purpose
Spontaneous combustion
Earthquake fire
Subterranean fire
Own fermentation or heating
Flood & Cyclone
5.A.1.4. Specific Exclusions
Riot, Civil Commotion, War, Invasion, Act of Foreign Enemy, Civil War, Rebellion,
Revolution, Insurrection etc.
Radioactive Contamination
5.A.1.5. Basic Elements of Fire Rating from Tariff:

1. Interest
2. Construction
3. Occupation
4. Location
5.A.2. Burglary Insurance

5.A.2.1. Scope of Cover
5.A.2.1.1. Lost by burglary
Housebreaking following upon an actual forcible and violent entry into or exit from the
premises by the person or persons .
Then the company will pay to the extent of such loss to the extent of the intrinsic value of
the descriptive value of the insured.
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5.A.2.1.2. Exclusions
Theft by persons lawfully on the premises.
Any legal liability,
Loss or damage during the progress of or following upon fire or explosion.
Earthquake, war, Riot, Civil war, Invasion etc.
5.A.2.2. Uncoverable property
Deeds, bonds, stamp collections, bank or currency.
Theft by persons lawfully on the premises.
Any legal liability,
Loss or damage during the progress of or following upon fire or explosion.
Earthquake, war, Riot, Civil war, Invasion etc
5.A.1.3. Marine Insurance
The oldest branch of insurance.
Comprises:
a. Cargo Insurance.
b.
Hull Insurance.
Lloyds is the famous worlds Marine insurance market.
Marine Insurance Act 1906.
5.A.3.1. Types of Marine Insurance

5.A.3.1.1. Hull Insurance
Concerns the insurance of ships.
Hull, machinery etc.
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5.A.3.1.2. Cargo Insurance
Plays an important role in domestic trade as well as international trade.
Provides insurance cover in respect of loss of or damage to goods during transit by rail,
-road -sea -air
5.A.3.2. Types of Marine Policy
Time Policy
Voyage Policy
Mixed Policy
5.A.3.3. Institute Cargo Clauses (C)

a) Fire or explosion.
b) Vessel or craft being stranded, grounded, sunk or capsized.
c) Overturning or derailment of land conveyance.
d) Collision or contract of vessel, craft or conveyance with any external object other than
water.
e) Discharge of cargo at a port of distress.
f) General average sacrifice.
g) Jettison.
5.A.3.4. Institute Cargo Clauses (B)
Provides cover under ICC ( C )
Additional risk
a) Earthquake, volcanic eruption or lightning.
b) Washing overboard.
c) Entry of sea, lake or river water into vessel.
d) Total loss of any package lost overboard or dropped whilst loading or unloading from
vessel.
5.A.3.5. Extraneous Risks
Can be added on payment of extra premium to ICC (B)

a) Theft, pilferage and / or non-delivery.
b) Fresh water and rainwater damage.
c) Hook and / or oil damage.
d) Heating and sweating.
e) Damage by mud, acid and other extraneous substances.
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f) Breakage.
g) Leakage.
h) Busting / tearing of bags
5.A.3.6. Institute Cargo Clauses (A)
Provide cover for all risks of loss or damage.
All risks means losses which are caused by accidental circumstances.
Under ICC (C) and (B) the risks covered are specified.
5.A.3.7. Exclusions
Loss caused by willful misconduct of the insured.
Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear.
Loss caused by inherent vice or nature of the subject matter.
Loss caused by delay.
Loss arising from insolvency or financial default of owners of the vessel.
Loss or damage due to inadequate packing.
War, riot, strike, lock-out, civil commotions and terrorism.
5.A.4. Health Insurance
The health policy provides for reimbursement of hospitalization/domiciliary

hospitalization expenses for illness/disease suffered or accidental injury sustained during
the policy period.
Under this scheme the expenses for treatment in a hospital for an illness or injury are
insured.
It does not cover for any expenses in respect of domiciliary or outdoor treatment.
5.A.4.1. Covers
Hospitalization due to accident or illness.
Ancillary services like ICU/CCU room, post-operative room, blood transfusion, special
investigations, etc.
Labor room services.
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Intensive care facility.
Oxygen therapy.
Skilled nursing services.
Blood transfusions.
Ambulance services.
Dressing while in confinement and test other than the routine investigations.
5.A.4.2. Three plans
Basic Plan
Standard Plan
Super Plan
The total maximum amount of cover shall limited to BDT 25,000/- for each year.
Costs, charges and fees per confinement in Amount payable
respect of :
Hospital accommodation (including all room Actual cost (maximum BDT 600/- per day)
services and telephone charges)
Consultants fee
Actual cost (maximum BDT 300/- per day)
Routine investigations
Actual cost (maximum BDT 1,000/-)
Medicine &
Consultant
drugs
prescribed
Intervention for :
Major surgical operation
Intermediate surgical operation
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the Actual cost (maximum BDT 2,000/-*)

Actual cost (maximum BDT 15,000 per case)
Page 37
80% of the total amount (maximum BDT 3,000)

Ancillary services as follows:
Labor room services, post-operative care
facilities, Oxygen therapy, skilled nursing
services, intensive care facility, blood
transfusions, ambulance service, dressing,
tests other than routine investigations
Amount payable
Costs, charges and fees per confinement in
respect of :
Hospital accommodation (including
room services and telephone charges)
all Actual cost (maximum BDT 1,200/- per day)
Consultants fee
Medicine & drugs prescribed by the Actual cost (maximum BDT 4,000/-*)
Consultant
Intervention for :


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Amount Payable
Costs, charges and fees per confinement in
respect of:
Hospital accommodation (including
room services and telephone charges)
all Actual cost (maximum BDT 1,500/- per day)
Consultants fee
Medicine & drugs prescribed by the Actual cost (maximum BDT 6,000/-*)
Consultant
Intervention for :


5.A.5. All Risk Insurance

Specially suitable for covering jewellery, valuables, curios, antiques and other works of art,
paintings, watches, cameras and other similar articles.
5.A.5.1. Exclusions:
Wear & Tear
Repairing
Breakage of glass of watches etc.
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5.A.6. Personal Accident Insurance
To provide compensation in the event of an accident causing death or injury
The purpose of personal accident insurance is to pay fixed compensation for death or
disablement resulting from accidental bodily injury.
Personal accident and sickness policies are renewable annually and if a claim has
occurred which could be of a recurring nature, the cover may be restricted at renewal or
in severe cases renewal may not be offered
It is against accident happening at anytime and anywhere including flying as a ticket

holding passenger in an aircraft operated by an Air Transport organization providing
scheduled air services.
5.A.6.1. Three types of Table:

5.A.6.1.1. Table A
Death permanent and temporary disablements.
5.A.6.1.2. Table B
Death permanent total and partial disablements.
5.A.6.1.3. Table C
Death only.
5.A.6.2. Compensation Scale

Table A
Table B
Table C
CLASS 1
TK.30.00
TK 12.50
TK 8.50
CLASS 2
TK.40.00
TK.16.00
TK.11.00
CLASS 3
Tk.50.00
Tk.21.00
Tk.15.00
Annual Premium for Sum Insured of Tk.10, 000.
For Ages between 16 and 65 years.
Larger compensation medical expenses can be included under Table "A" at an additional
premium @10% of basic premium.
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5.A.6.3. Group Personal Accident Policy

Issued where there is some common relationship among the persons to be insured.
5.A.6.4. Peoples Personal Accident Insurance
Same as personal accident policy.
Sum-insured is limited Tk.1, 00,000/-
Premium very low Tk.60/-
5.A.7. Cash-In-Transit & Cash-In-Safe

5.A.7.1. Scope of cover:
Loss of money under the heading Cash, Bank Notes, Currency notes and cheques, postal
orders or Money Orders by cause occurring during the period of insurance stated in the
Schedule of the policy.
Dishonesty of an employee.
Willful destruction by the authorities.
Shortages due to error or omission.
Any loss which is covered under a specific policy.
5.A.8. Overseas Medical Insurance / Travel Insurance

Consequent upon an unforeseen event happening during the course of a journey away from the
Usual Country of Residence, the Company will provide the Insured with immediate material
assistance as specified under the Benefits set out in Sections (1) and (2) of this policy, provided
that the event does not occur outside the Geographical Limits.
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The company will not be liable to provide any assistance which arises directly or indirectly from:
a. Fraudulent acts by any Insured or any other person seeking to claim under this policy.
b. Consequential loss of any kind.
c. Extraordinary phenomena such as floods, earthquakes, volcanic eruptions, unusual
cyclone storms, falling astral bodies or meteorites.
d. Terrorism, civil unrest or riots.
e. Actions by the armed forces, security forces or other organizations.
f. Nuclear radioactivity.
g. The participation by any Insured in:
i.
Competitions, rallies, or contests.
ii.
Sports.
iii.
Criminal conduct.
iv.
Wagers or challenges.
h. The deliberate act of the Insured.

i. Illnesses or pathological states produced by voluntary consumption of alcohol, drugs,
toxic, substance, narcotics, or medicines acquired without medical prescription.
j. Any pre-existing medical condition, suicide or attempted suicide, mental illness,
pregnancy or childbirth.
k. Prostheses, glasses conduct lenses, hearing aids or artificial limbs.
l. An aesthetic treatment a cure, a counter indication of traveling or of holidays, the
impossibility of continuing in certain places with the advised preventive medical
treatment, the voluntary interruption of pregnancy.
m. Mental illnesses, depressions, any dental illness.
n. Epidemics. Pregnancy complication.
o. Aids, HIV
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5.A.9. Loss of Profit Insurance

This cover in summary will cater for;
Standing charges such as salaries
Increased cost of working
5.A.9.1. Exclusions
Loss of goodwill
Failure to recover debts due to loss of records
Depreciation of undamaged stock
5.A.10. Erection All Risk Policy (EAR)

An erection all risk policy is designed to cover the risks associated with the installation of
machines/equipments or composite projects.
The policy is normally designed to meet the requirements of those involved in the
erection of a project either as a principal, contractor or sub-contractor.
Risks associated with construction of Factory sheds, plants, warehouses, runways,

bridges, dams, buildings, hangers, air-taxiways etc can be covered.
5.A.10.1. Scope of Cover- EAR Policy

i.
Location risks - Fire, Lightning, Theft, Burglary etc.
ii.
Handling risks- Collision, failures of cranes or tackles, impact of falling objects.
iii.
Testing & Commissioning Risks: Failure of safety devices, short Circuit, Explosion.
iv.
Risk of Human Element: Carelessness, negligence, faults in erection, Strike & riot,
Malicious damage, Terrorism.
v.
Acts of GOD: Flood, Storm, Tempest, Inundation, Landslide, Earthquake.
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Loss due to faulty design, defective material, or casting and or bad workmanship.
Loss or damage due to erection machinery and equipment due to mechanical/electrical

breakdown.
Loss or damage due to willful act or willful negligence
Loss or damage due to war
Loss or damage due to nuclear reaction
5.A.11. Contractors All Risk Policy
5.A.11.1. Coverage is extended to:
Civil Engineering Contractors in the matter of works under construction.
Covers projects like Buildings and Civil Engineering Projects such as office buildings,
hospitals, schools, theatres, etc. factories, Power Plants, Roads and Railway facilities,
airports, bridges, dams, tunnels, etc.
War Risks.
Normal Wear & Tear.
Rust, Corrosion, Erosion.
Inventory Losses.
Willful acts, Willful negligence.
Consequential losses.
Defective Material / Workmanship, Faulty Design.
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5.A.12. Industrial All Risk policy

All industrial risks having overall Sum Insured of BDT 50 crores shall be under Industrial all risk
policy.
Policy covers,
1. Material damage only
2. All risks/perils other than those which are specifically excluded.
5.A.12.1. Conditions
a. 10% self insurance applicable.
b. Additional 10% self insurance for more than one recoverable loss within past 3 years.
c. Deductible of 10% loss but minimum 5 lac EE irrespective of perils.
d. All project above 5 crore Sum insured to be surveyed.
Damage to the property caused by faulty or defective design materials or work manship,
inherent vice, latent defect etc.
Collapse or cracking of building
Corrosion rust extremes or changes in temperature,
Acts of fraud or dishonesty
Mechanical or electrical break down or derangement of machinery or equipment.
Bursting, overflowing, discharging or water tans apparatus or pipes when the premises
are empty or disused.
Any willful act or willful negligence on the part of the insured or any person acting on his
behalf.
Damage occasioned directly or indirectly in consequence of war, invasion act of foreign

enemy, hostilities or warlike operations.
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5.A.13. Professional Indemnity

5.A.13.1. Scope of cover:
Any error/omission/negligence/on the part of the permanent employees and directors.
Dishonest or fraudulent act or omission on the part of the permanent employees and
directors.
5.A.13.2. Exclusions
a. The insolvency of an insurance company.
b. Libel or slander
c. Loss of or damage to computer system and their records.
d. Dishonest, fraudulent criminal or malicious act or omission of the insured.
e. Terrorist activities
f. Loss of or damage due to earthquake, volcanic eruption, flood, typhoid, hurricane,
cyclone.
g. Claims arising out of personal Liability, Employers liability, Product liability etc
5.A.14. Contractors Plant & Machinery Policy (CPM)

The policy provides a comprehensive cover against unforeseen and sudden physical damage to
property by any cause not specifically excluded:
5.A.14.1. Hence covers:
Location risks-Fire/lightning/theft/burglary
Impact from falling objects-collision
Risks of human element-Carelessness/fault material/riot/strike/malicious

damage/terrorism
Act of GOD: Storm/tempest/Hurricane flood/landslide etc.
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5.A.14.2. Exclusions
Electrical or mechanical breakdown.
Explosion of any boiler or pressure vessel.
Loss or damage due to wear and tear corrosion
Loss of damage while in transit from one location to other.
War perils, civil commotion, nuclear perils etc
5.A.14.3. Public Liability:

a. Chemical exhaust or residue which is/are pollutant(s)
b. Fumes as a result of R&D
c. Testing on animals (rats etc.) possible claim by Animal Rights activists.
5.A.14.4. Employers Liability:
Liability on employer as a result of injury to employees during discharging their duty.

This could be Vicarious Liability as well.
5.A.14.5. Worksmen Compensation
Cover for employees for injuries which are work related.
5.A.14.6. Product Liability:

a. Negligence
b. Strict Liability
c. Inability to recall
d. Design Defects
e. Product Withdrawal & Crisis Management Expense
f. Emergency Medical Expenses for bodily injury in case of human clinical trials including
trial related athletic activities.
g. Employees who voluntarily participate should not be excluded.
h. Vendors Extension
i. Technical Collaborators Extension.
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Part 5: Project Part

Project Part 5.B
Industry Analysis
5.B.1. Profitability or Return on Investment Ratios:
Profitability ratios provide information about management's performance in using the resources
of the small business. Many entrepreneurs decide to start their own businesses in order to earn a
better return on their money than would be available through a bank or other low-risk
investments. If profitability ratios demonstrate that this is not occurringparticularly once a
small business has moved beyond the start-up phasethen entrepreneurs for whom a return on
their money is the foremost concern may wish to sell the business and reinvest their money
elsewhere. However, it is important to note that many factors can influence profitability ratios,
including changes in price, volume, or expenses, as well as the purchase of assets or the
borrowing of money. Some specific profitability ratios follow, along with the means of
calculating them and their meaning to a small business owner or manager.
PROFITABILITY OR RETURN ON
INVESTMENT RATIOS
1. Net profitability: Net
Income/Net Sales
GDIC
Reliance
Agrani
2. Return on assets: Net

Income/Total Assets
GDIC
Reliance
Agrani
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2012
2011
2010
2009
2008
0.51
50.62%
0.58
58.42%
0.24
24.16%
0.44
43.90%
0.62
62.21%
0.20
19.68%
0.74
73.56%
0.69
69.16%
0.20
19.81%
0.74
74.19%
0.70
69.73%
0.18
17.71%
0.62
62.23%
0.69
68.55%
0.14
13.86%
0.04
4.17%
0.05
4.62%
0.08
8.25%
0.03
3.13%
0.05
4.86%
0.07
6.88%
0.13
13.48%
0.05
4.73%
0.08
8.26%
0.09
8.84%
0.06
6.37%
0.06
6.40%
0.08
7.98%
0.07
7.35%
0.05
4.78%
Page 48
3. Return on investment
1: Net Income/Owners'
Equity
0.06
5.87%
0.06
6.38%
0.14
14.20%
0.05
5.44%
0.06
6.43%
0.12
11.71%
0.18
18.20%
0.06
6.20%
0.14
13.98%
0.14
14.03%
0.13
12.57%
0.11
11.04%
0.13
12.92%
0.16
15.68%
0.1
9.74%
-0.51
-0.52
0.97
-0.16
-51.10%
-0.06
-52.10%
-0.41
96.89%
0.3
-15.74%
0.51
-6.11%
0
0.00%
-41.25%
-0.9
-89.70%
29.77%
0.06
5.58%
50.94%
0.02
2.23%
1.26
125.84
%
2.14
214.38
%
0.17
17.13%
GDIC
5.29
3.83
15.66
8.42
124.68
Reliance
4.32
5.37
71.55
51.17
59.97
Agrani
2.04
1.59
18.43
13.78
11.9
GDIC
0.08
0.07
0.18
0.12
0.13
Reliance
0.08
0.08
0.07
0.09
0.11
Agrani
0.34
0.35
0.42
0.36
0.35
GDIC
Reliance
Agrani
4.Return on investment
2: Dividends +/- Stock
Price Change/Stock Price
Paid
GDIC
Reliance
Agrani
5. Earnings per share:

Net Income/Number of
Shares Outstanding
6. Investment turnover:
Net Sales/Total Assets
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5.B.1.1. Net profitability:

Net Income/Net Sale
It measures the overall profitability of the company, or how much is being brought to the bottom
line. Strong gross profitability combined with weak net profitability may indicate a problem with
indirect operating expenses or non-operating items, such as interest expense. In general terms,
net profitability shows the effectiveness of management. Though the optimal level depends on
the type of business, the ratios can be compared for firms in the same industry.
80%
70%
60%
73.6%
58.4%
50%
40%
62.2%
69.2%
74.2%
69.7%
68.5%
62.2%
43.9%
GDIC
50.6%
30%
20%
10%
RELIANCE
24.2%
19.7%
19.8%
AGRANI
17.7%
13.9%
0%
2012
2011
2010
2009
2008
Findings
From 2008 to 2009 GDIC had an increasing trend of net profitability. After that in 2010 it
decreased slightly and then in 2011 was decreased in a huge percentage. Though from 2011 to
2012 it had an increasing trend it was not a well sign for GDIC because compared to Reliance
the condition was not good. However, the performance of Reliance was far better than other two
companies if we consider the consistency and the higher profitability. On the other hand, the
condition of Agrani was not good at all as it had the lowest net profitability ratio than other two
companies.. In 2012 the performance of Reliance was better in consideration of net profitability
than other two companies. In 2009 and 2010 the performance of GDIC was good.
Recommendation:
After considering the scenario it could be recommended that GDIC has some problems with its
indirect operating expenses or non-operating items, such as interest expense so it should be
focused on it for the sake of effectiveness of the company.
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5.B.1.2. Return on assets:

Net Income/Total Assets
Return on assets indicates how effectively the company is deploying its assets. A very low return
on asset, or ROA, usually indicates inefficient management, whereas a high ROA means
efficient management. However, this ratio can be distorted by depreciation or any unusual
expenses.
ROA tells you what earnings were generated from invested capital (assets). ROA for public
companies can vary substantially and will be highly dependent on the industry. This is why when
using ROA as a comparative measure, it is best to compare it against a company's previous ROA
Numbers or the ROA of a similar company.
The assets of the company are comprised of both debt and equity. Both of these types of
financing are used to fund the operations of the company. The ROA figure gives investors an
idea of how effectively the company is converting the money it has to invest into net income.
The higher the ROA number, the better, because the company is earning more money on less
investment.
14%
13.5%
12%
10%
8.3%
8%
6%
4%
4.6%
4.2%
6.9%
4.9%
3.1%
8.3%
4.7%
8.8%
6.4%
6.4%
8.0%
7.4%
4.8%
2%
GDIC
RELIANCE
AGRANI
0%
2012
2011
2010
2009
2008
Findings
From year 2008 to 2010 GDIC and Agrani has an increasing trend of ROA whereas Reliance has
a decreasing trend of ROA. In those 3 years GDIC has higher ROA than other two companies.
Besides, in 2011 GDICs has drastically decreased from 13.5% to 3.1%. Again in 2012 it was
increased to 4.2%. However, Reliance has increased from year 2010 to 2011 and again it has a
decreased trend from year 2011 to 2012. Also, in 2011 the ROA ratio of Agrani is decreased
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from 8.3% to 6.9% and in 2012 it was increased to 8.3%. By this it can be said that from year
2011 to 2012 GDICs condition in consideration ROA is bad compared to other two companies.
Recommendation:
For being efficient company GDIC should avoid depreciations and unusual expenses for getting
higher ROA to improve the condition of company.
5.B.1.3. Return on investment 1:
Net Income/Owners' Equity
It indicates how well the company is utilizing its equity investment. Due to leverage, this
measure will generally be higher than return on assets. ROI is considered to be one of the best
indicators of profitability. It is also a good figure to compare against competitors or an industry
average. Experts suggest that companies usually need at least 10-14 percent ROI in order to fund
future growth. If this ratio is too low, it can indicate poor management performance or a highly
conservative business approach. On the other hand, a high ROI can mean that management is
doing a good job, or that the firm is undercapitalized.
20%
18.2%
15%
14.2%
11.7%
10%
5%
5.9%
5.4%
6.4%
6.4%
15.7%
14.0% 14.0%
12.6%
12.9%
11.0%
9.7%
6.2%
GDIC
RELIANCE
AGRANI
0%
2012
2011
2010
2009
2008
Findings
From year 2008 to 2010, GDIC had an increasing rate of return on investment; in 2010 it was
very tremendous. Agrani also had an increasing figure. On the other hand, Reliance faced a bad
situation because it had a decreasing rate. In the year 2011, the Agrani and GDICs ratio had
been decreased which is a negative side. However in the year 2012 those companies ratio had
been slightly increased. On the other hand, in 2011 the Reliances ROI had been increased little
bit and in 2012 it was constant.
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Recommendation:
So, it can be said that. Though 2012 has a growing rate but still it need to be improved because
high ROI means good management of the company. Here, the return on the investment is not up
to the mark so it should be increased.
5.B.1.4. Return on investment 2:
Dividends +/- Stock Price Change/Stock Price Paid
From the investor's point of view, the calculation of ROI measures the gain (or loss) achieved by
placing an investment over a period of time.
250%
214.4%
200%
150%
50%
0%
-50%
-100%
125.8%
96.9%
100%
0.0%
-6.1%
2012
2011
-51.1% -52.1%
-41.3%
GDIC
50.9%
29.8%
5.6%
2010
-15.7%
2009
RELIANCE
17.1%
2.2%
AGRANI
2008
-89.7%
Findings
Here it can be found that, the return on investment of the three companies is not good. As, in
2012, 2011 and 2009 GDIC faced negative ROI. In year 2008 it was very good and in 2010 it has
high ROI though it was less than the year 2008. In 2012 the condition of Agrani had a zero figure
which was better than other two companies as other two companies had a negative figure and
GDIC had the lowest percentage among other companies. In 2008, the condition of three
companies was better compared to other four years.
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Recommendation:
From the investors perspective it can be said that the ROI is not good enough of GDIC to invest
here. So, for being in a good position GDIC should be focused on the issues by which they can
increase their dividend and how they can increase their stock price by improving those qualities.
5.B.1.5. Earnings per share:

Net Income/Number of Shares Outstanding
EPS states a corporation's profits on a per-share basis. It can be helpful in further comparison to
the market price of the stock. EPS is the portion of the companys distributable profit which is
allocated to each outstanding equity share (common share). EPS is a very good indicator of the
profitability of any organization, and it is one of the most widely used measures of profitability.
The earnings per share is a useful measure of profitability, and when compared with EPS of
other similar companies, it gives a view of the comparative earning power of the companies. EPS
when calculated over a number of years indicates whether the earning power of the company has
improved or deteriorated. Investors usually look for companies with steadily increasing earnings
per share.
Growth in EPS is an important measure of management performance because it shows how
much money the company is making for its shareholders, not only due to changes in profit, but
also after all the effects of issuance of new shares (this is especially important when the growth
comes as a result of acquisition).
There is no rule of thumb to interpret earnings per share. The higher the EPS figure, the better it
is. A higher EPS is the sign of higher earnings, strong financial position and, therefore, a reliable
company to invest money. For a meaningful analysis, the analyst should calculate the EPS figure
for a number of years and also compare it with the EPS figure of other companies in the same
industry. A consistent improvement in the EPS figure year after year is the indication of
continuous improvement in the earning power of the company.
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140
124.68
120
100
80
71.55
60
51.17
40
20
0
GDIC
5.29 4.32
15.66 18.43
2.04 3.83
5.37 1.59
8.42 13.78
2012
2011
2010
2009
59.97
RELIANCE
AGRANI
11.90
2008
Findings
GDIC has a higher EPS in the year 2008 but after that the condition of GDIC was falling but in
year 2010 it was slightly increased but again it decrease in year 2011 and then in year 2012 it
was slightly increased. In year 2012 GDICs EPS was best among three companies. In year 2011,
2010 and 2009 the reliance was best and in 2008 GDIC was best compared to other
Recommendation:
For getting higher EPS GDIC should focused on the issues by which the can increase their net
income. They can increase it by reducing their cost and increase their revenues. Also they can
take steps to reduce their tax payment. Higher the EPS means the condition of that company is
better.
5.B.1.6. Investment turnover:

It measures a company's ability to use assets to generate sales. Although the ideal level for this
ratio varies greatly, a very low figure may mean that the company maintains too many assets or
has not deployed its assets well, whereas a high figure means that the assets have been used to
produce good sales numbers.
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1
0.42
0.35
0.34
0.36
GDIC
0
0
0.35
0.18
0.08 0.08
0.07
0.08
0.07
RELIANCE
0.12
0.09
0.13
0.11
AGRANI
0
2012
2011
2010
2009
2008
Findings
After considering the scenario it can be said that among three companies Agrani has a very good
investment turnover ratio over the five year. In the year 2010 the condition of GDIC was good.
After 2010, in 2011 the ratio was decreased and again in 2012 the ratio is slightly increased.
Compared to other companies the GDIC was in the second position in the perspective of
investment turnover ratio. The condition of Reliance was almost similar as GDIC but it was less
than GDIC. The condition of GDIC is not good in investment turnover ratio.
Recommendation:
GDIC should utilize its total assets in order to increasing it sales. It should be focused on that
whether it is using more assets than it is actually needed. If doing so, it should take steps to
reducing its use of assets less to produce high amount of sales.
5.B.2. Liquidity Ratios

Liquidity ratios demonstrate a company's ability to pay its current obligations. In other words,
they relate to the availability of cash and other assets to cover accounts payable, short-term debt,
and other liabilities. All small businesses require a certain degree of liquidity in order to pay their
bills on time, though start-up and very young companies are often not very liquid. In mature
companies, low levels of liquidity can indicate poor management or a need for additional capital.
Any company's liquidity may vary due to seasonality, the timing of sales, and the state of the
economy. But liquidity ratios can provide small business owners with useful limits to help them
regulate borrowing and spending. Some of the best-known measures of a company's liquidity
include:
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LIQUIDITY RATIOS
1. Current ratio: Current
Assets/Current Liabilities
2. Quick ratio (or "acid

test"): Quick Assets (cash,
marketable securities, and
receivables)/Current
Liabilities
3. Cash to total assets:

Cash/Total Assets
4. Cash turnover: Net

Sales/Net Working Capital
(current assets less current
liabilities)
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2012
2011
2010
2009
2008
GDIC
5.35
8.87
12.23
8.25
7.66
Reliance
1.51
1.50
1.32
1.49
1.43
Agrani
4.55
3.90
4.57
5.32
3.33
GDIC
5.35
8.87
12.23
8.25
7.66
Reliance
1.51
1.50
1.32
1.49
1.43
Agrani
4.55
3.90
4.57
5.32
3.33
0.0006
0.0004
0.0002
0.0001
0.000
2
Reliance
0.28
0.19
0.17
0.40
0.41
Agrani
0.43
0.39
0.41
0.46
0.54
GDIC
0.19
0.10
0.19
0.17
0.18
Reliance
0.58
0.67
0.94
0.39
0.49
Agrani
0.58
0.66
0.60
0.46
0.51
GDIC
Page 57
5.B.2.1. Current ratio:

Current Assets/Current Liabilities
It measures the ability of an entity to pay its near-term obligations. "Current" usually is defined
as within one year. Though the ideal current ratio depends to some extent on the type of
business, a general rule of thumb is that it should be at least 2:1. A lower current ratio means that
the company may not be able to pay its bills on time, while a higher ratio means that the
company has money in cash or safe investments that could be put to better use in the business.
The current ratio is an indication of a firm's market liquidity and ability to meet creditor's
demands. If the current ratio is too high, then the company may not be efficiently using its
current assets or its short-term financing facilities. This may also indicate problems in working
capital management. Low values for the current or quick ratios (values less than 1) indicate that a
firm may have difficulty meeting current obligations. Low values, however, do not indicate a
critical problem. If an organization has good long-term prospects, it may be able to borrow
against those prospects to meet current obligations. Some types of businesses usually operate
with a current ratio less than one. For example, if inventory turns over much more rapidly than
the accounts payable become due, then the current ratio will be less than one. This can allow a
firm to operate with a low current ratio.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months,
would consider a high current ratio to be better than a low current ratio, because a high current
ratio means that the company is more likely to meet its liabilities which fall due in the next 12
months. One should view the relation between the operation cycle period and the current ratio
Current ratio is a measure of liquidity of a company at a certain date. It must be analyzed in the
context of the industry the company primarily relates to. The underlying trend of the ratio must
also be monitored over a period of time.
Generally, companies would aim to maintain a current ratio of at least 1 to ensure that the value
of their current assets cover at least the amount of their short term obligations. However, a
current ratio of greater than 1 provides additional cushion against unforeseeable contingencies
that may arise in the short term.
Businesses must analyze their working capital requirements and the level of risk they are willing
to accept when determining the target current ratio for their organization. A current ratio that is
higher than industry standards may suggest inefficient use of the resources tied up in working
capital of the organization that may instead be put into more profitable uses elsewhere.
Conversely, a current ratio that is lower than industry norms may be a risky strategy that could
entail liquidity problems for the company.
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Current ratio must be analyzed over a period of time. Increase in current ratio over a period of
time may suggest improved liquidity of the company or a more conservative approach to
working capital management. A decreasing trend in the current ratio may suggest a deteriorating
liquidity position of the business or a leaner working capital cycle of the company through the
adoption of more efficient management practices. Time period analyses of the current ratio must
also consider seasonal fluctuations.
Current ratio is the primary measure of a company's liquidity. Minimum levels of current ratio
are often defined in loan covenants to protect the interest of the lenders in the event of
deteriorating financial position of the borrowers. Financial regulations of various countries also
impose restrictions on financial institutions to lend credit facilities to potential borrowers that
have a current ratio which is lower than the defined limits.
14
12.2
12
10
8.9
8
6
8.3
4.6
4
2
0
1.5
2012
3.9
GDIC
7.7
5.4
RELIANCE
5.3
4.6
3.3
1.5
2011
1.3
2010
1.5
2009
AGRANI
1.4
2008
Findings
Here, if the condition among three companies is considered than GDICs condition is best among
others. However, GDIC as individual is considered then the present condition of GDIC is not
good as it can be noted that though from the year 2008 to 2010 the current ratio was increasing
by the year, but from the year 2010 to 2012 this trend is decreasing which is not good for the
company. Also, it can be said that GDIC wants to reduce its current asset to meet creditors
demand and wants to invest those current asset in somewhere else where it could generate more
profit. Also, the condition of other two companies is not bad. As those have to maintain a certain
standard.
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Recommendation:
As GDICs position is better than other two companies so GDIC should compete with itself as
the current ratio trend of GDIC is year by year decreasing. It needs to sustain its growth and for
that reason it should reduce its debt burden as well as should increase its current assets amount.
Also, it can sustain its position to meet creditors demand as the ratio is not bad.
5.B.2.2. Quick ratio (or "acid test"):

Quick Assets (cash, marketable securities, and receivables)/Current Liabilities
It provides a stricter definition of the company's ability to make payments on current obligations.
Ideally, this ratio should be 1:1. If it is higher, the company may keep too much cash on hand or
have a poor collection program for accounts receivable. If it is lower, it may indicate that the
company relies too heavily on inventory to meet its obligations.
Quick ratio is an indicator of solvency of an entity and must be analyzed over a period of time
and also in the context of the industry the company operates in.
Generally, companies should aim to maintain a quick ratio that provides sufficient leverage
against liquidity risk given the level of predictability and volatility in a specific business sector
among other considerations. The more uncertain the business environment, the more likely that
companies would maintain higher quick ratios. Conversely, where cash flows are stable and
predictable, companies would seek to keep quick ratio at relatively lower levels. In any case,
companies must achieve the right balance between liquidity risk arising from a low quick ratio
and the risk of loss resulting from a high quick ratio.
A quick ratio that is greater than industry average may suggest that the company is investing too
many resources in the working capital of the business which may more profitably be used
elsewhere. If a company has too much spare cash, it may consider investing the surplus funds in
new ventures and in case company is out of investment options it may be prudent to return the
excess funds to shareholders in the form of increased dividend payments.
Acid test ratio which is lower than the industry average may suggest that the company is taking
too much risk by not maintaining an appropriate buffer of liquid resources. Alternatively, a
company may have a lower quick ratio due to better credit terms with suppliers than the
competitors.
When analyzing the quick ratio over several periods, it is important to take into account seasonal
variations in some industries which may cause the ratio to be traditionally higher or lower at
certain times of the year as seasonal businesses experience irregular bursts of activities leading to
varying levels current assets and liabilities over time.
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14
12.2
12
10
8.9
8.3
8
6
4.6
4
2
0
7.7
5.4
1.5
2012
3.9
GDIC
RELIANCE
5.3
4.6
3.3
1.5
2011
1.3
2010
1.5
2009
AGRANI
1.4
2008
Findings
Here, if the condition among three companies is considered than GDIC has higher quick ratio
among others. However, the condition GDIC as individual is considered then from the year 2008
to 2010 the current ratio was increasing by the year, but from the year 2010 to 2012 this trend is
decreasing. If the condition of Reliance is considered then it is very close to standard so it is
better than other two companies
Recommendation:
GDIC is investing too many resources in the working capital like cash, marketable securities and
receivables of the business which may more profitably be used elsewhere.
5.B.2.3. Cash to total assets:

Cash/Total Assets
It measures the portion of a company's assets held in cash or marketable securities. Although a
high ratio may indicate some degree of safety from a creditor's viewpoint, excess amounts of
cash may be viewed as inefficient.
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1
0.54
0.43
0
0
0.0006
2012
0.46
0.41
0.40
0.28
0
0
0.39
0.41
GDIC
RELIANCE
0.19
0.0004
2011
AGRANI
0.17
0.0002
2010
0.0001
2009
0.0002
2008
Findings
GDIC has very low cash to total assets compared to other two companies over the five years.
Agrani has highest cash to total assets compared to other two companies.
Recommendation:
GDIC should sustain this position. Also they need to be assured that it has proper safety of cash.
Also, it should not increase the percentage because it will indicate inefficiency
5. B.2.4. Cash turnover:
Net Sales/Net Working Capital (current assets less current liabilities)
It reflects the company's ability to finance current operations, the efficiency of its working
capital employment, and the margin of protection for its creditors. A high cash turnover ratio
may leave the company vulnerable to creditors, while a low ratio may indicate an inefficient use
of working capital. In general, sales five to six times greater than working capital are needed to
maintain a positive cash flow and finance sales.
High cash turnovers can mean that a company is going through its cash cycles quickly. While
this could mean that your company is being efficient with its cash (i.e. able to replenish it
quickly and use cash toward better uses), it could also potentially mean a company is low on
cash and may need short-term financing in the future (i.e. a company with a high amount of
revenues and a low amount of cash would have a high cash turnover, but not potentially be in a
Good
situation).
Companies that often make sales based on credit will have higher cash turnover ratios, cash
turnover ratios here would have be investigated more in-depth.
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1
0.94
1
1
0.58
0.58
0.66
0.67
0.60
0.51
0.46
0
0.19
0.10
0.19
0.39
0.17
0
2012
2011
2010
2009
0.49
GDIC
RELIANCE
AGRANI
0.18
2008
Findings
GDIC had almost similar cash turnover ratio over the year. In 2011 it was decreased from .19 to
.10. Again in 2012 it was increased to .19. It should sustain its growth. So, for grabbing the
creditors it was a positive side. The condition of Reliance and Agrani were same in cash turnover
ratio. Though in 2010, the ratio of Reliance increased in a huge amount. If the conditions of three
companies are compared the cash turnover ratio of GDIC is less than the other two companies.
Recommendation:
GDIC should increase its sales so that it can get more cash for its future operation. Also, need to
be focused on that it should give emphasis on most on cash sales rather than credit sales so that it
can generate more cash from its sales.
5.B.3. Leverage Ratios

Leverage ratios look at the extent to which a company has depended upon borrowing to finance
its operations. As a result, these ratios are reviewed closely by bankers and investors. Most
leverage ratios compare assets or net worth with liabilities. A high leverage ratio may increase a
company's exposure to risk and business downturns, but along with this higher risk also comes
the potential for higher returns. Some of the major measurements of leverage include:
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LEVERAGE RATIOS
1. Debt to equity ratio:
Debt/Owners' Equity
GDIC
Reliance
Agrani
2. Debt ratio: Debt/Total

Assets
GDIC
Reliance
Agrani
2012
2011
2010
2009
2008
0.40824
40.82%
0.38018
38.02%
0.72
72.06%
0.73898
73.90%
0.32190
32.19%
0.7
70.15%
0.61583
61.58%
0.31108
31.11%
0.69
69.27%
0.6044 0.67135
60.44% 67.14%
0.97418 1.13299
97.42% 113.30%
0.72
1.04
72.37% 103.57%
0.28989
28.99%
0.27545
27.55%
0.42
41.88%
0.42495
42.50%
0.24351
24.35%
0.41
41.23%
0.45332
45.33%
0.23727
23.73%
0.41
40.92%
0.33249
33.25%
0.49346
49.35%
0.42
41.99%
0.36183
36.18%
0.53117
53.12%
0.51
50.88%
5.B.3.1. Debt to equity ratio:

Debt/Owners' Equity
It indicates the relative mix of the company's investor-supplied capital. A company is generally
considered safer if it has a low debt to equity ratiothat is, a higher proportion of ownersupplied capitalthough a very low ratio can indicate excessive caution. In general, debt should
be between 50 and 80 percent of equity.
A high debt/equity ratio generally means that a company has been aggressive in financing its
growth with debt. This can result in volatile earnings as a result of the additional interest
expense.
If a lot of debt is used to finance increased operations (high debt to equity), the company could
potentially generate more earnings than it would have without this outside financing. If this were
to increase earnings by a greater amount than the debt cost (interest), then the shareholders
benefit as more earnings are being spread among the same amount of shareholders. However, the
cost of this debt financing may outweigh the return that the company generates on the debt
through investment and business activities and become too much for the company to handle.
This can lead to bankruptcy, which would leave shareholders with nothing.
Lower values of debt-to-equity ratio are favorable indicating less risk. Higher debt-to-equity
ratio is unfavorable because it means that the business relies more on external lenders thus it is at
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higher risk, especially at higher interest rates. A debt-to-equity ratio of 1.00 means that half of
the assets of a business are financed by debts and half by shareholders' equity. A value higher
than 1.00 means that more assets are financed by debt that those financed by money of
shareholders' and vice versa.
An increasing trend in of debt-to-equity ratio is also alarming because it means that the
percentage of assets of a business which are financed by the debts is increasing.
1
104.0%
113.3%
1
1
1
40.8%
73.9%
72.0%
70.0%
69.0%
61.6%
97.4%
60.4%
72.0%
67.1%
RELIANCE
38.0%
32.2%
GDIC
AGRANI
31.1%
0
2012
2011
2010
2009
2008
Findings
Here, the condition of GDIC was not good during the year 2008 to 2011 because of higher
percentage of debt to equity ratio. After 2011, the condition of GDIC became good as the
percentage reduced to 40.8%. In the year 2012 to 2010 the condition of Reliance was good
because of lower percentage of ratio whereas the condition of Agrani was not good as it had a
high debt to equity ratio which indicates it was more risky than other two companies. Lastly the
conditions of the three companies were not so bad as the percentage are below than 100%, which
means, those companies had more equity financing than debt financing over the five years.
Recommendation:
The cost of this debt financing may outweigh the return that the company generates on the debt
through investment and business activities and become too much for the company to handle.
This can lead to bankruptcy, which would leave shareholders with nothing. So the GDIC should
focus on that issue. It will be better to sustain the condition.
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5.B.3.2. Debt ratio:

Debt/Total Assets
It measures the portion of a company's capital that is provided by borrowing. A debt ratio greater
than 1.0 means the company has negative net worth, and is technically bankrupt. This ratio is
similar, and can easily be converted to, the debt to equity ratio.
A company's debt ratio of a company offers a view at how the company is financed. The
company could be financed by primarily debt, primarily equity, or an equal combination of both.
If a company has a high debt ratio (above .5 or 50%), then it is often considered to be highly
leveraged" (which means that most of its assets are financed through debt, not equity).
Conversely, if a company has a low debt ratio (below .5 or 50%), this indicates that most of their
assets are fully owned (financed through the firm's own equity, not debt).
In some instances, a high debt ratio indicates that a business could be in danger if their creditors
were to suddenly insist on the repayment of their loans. This is one reason why a lower debt ratio
is usually preferable. To find a comfortable debt ratio, companies should compare themselves to
their industry average or direct competitors.
The higher the ratio, the greater risk will be associated with the firm's operation. In addition, high
debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the
firm's financial flexibility. Like all financial ratios, a company's debt ratio should be compared
with their industry average or other competing firms.
1
1
42.5%
0
0
42.0%
29.0%
45.3%
41.0%
41.0%
49.3%
42.0%
33.2%
51.0%
53.1%
36.2%
27.5%
24.4%
GDIC
RELIANCE
23.7%
AGRANI
0
0
2012
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2011
2010
2009
2008
Page 66
Findings
Here, the condition of GDIC is good as the debt ratio is below 50% over the five year. Reliance
had high debt ratio in the year 2008 to 2009 among other two companies whereas in 2010 to
2012 it had the lowest debt ratio among other two companies. However, Agrani has the debt ratio
below 50% expect the year 2008. The rate was almost constant from the year 2009 to 2012.
Recommendation:
GDIC should sustain that position because the higher the ratio, the greater risk will be associated
with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing
capacity of a firm, which in turn will lower the firm's financial flexibility. Like all financial
ratios, a company's debt ratio should be compared with their industry average or other competing
firms.
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Part 5: Project Part

Project Part 5.C
Stock Valuation
5.C.1. Assumptions and Adjustments
Face Value: The face value of the respective stocks is assumed TK. 100. Recently the
face value of all the stocks enlisted with the Dhaka Stock Exchange has been changed to
Tk. 10. However, since the dividend growth rate is based on the dividends from 2004
through to 2013, this report assumes face value at Tk.10.
Constant Growth: The dividend discount model of common stock valuation assumes a
constant dividend growth rate. This means that dividend paid has grown at a constant rate
over the year.
Risk Free Rate: The risk free rate is assumed to be 7.99% this is based on the Treasury
Bills rate offered by the Government of the Peoples Republic of Bangladesh.
Return on Market Portfolio: Return on market portfolio has been calculated in the
following way:
I.
Firstly, need to collect the market information of trade date and individual DSEX
index amount of those trade date
II.
Secondly, need to find the market return by using the following formula.
Market Return =
Present dates DSEX index Previous dates DSEX index
Previous dates DSEX index
III.
IV.
Then, need to find out the average of those returns of the previous formula and
then need to multiply with the days of 112. As we have taken the trade date from
1st January till 22nd April, 2014
Then, the Return on Market Portfolio (Rm) has been found out
Return on Market Portfolio (Rm) = 11.8140429%
Dividend Growth: The dividend Growth rate is calculated based on the cash dividend
paid from the year 2004 to the year 2013. And the cash dividends years are only
considered in this case
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Beta: From the stock Bangladesh website the beta of GDIC has been found out of
1.21880654651
5.C.2. Dividend distribution

Year
Dividend rate (%)
Dividend Taka
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
10.00,30%B
40%B
30
15%, 35%B
100%B
25
40
25%B
15.00, 15%B
15.00, 15%B
1
0
3
1.5
0
2.5
4
0
1.5
1.5
The dividends are calculated on the Face value of Tk. 10per share.
5.C.3. Growth rate

Future Value = Present Value * Future Value Interest Factor
FV = PV*(1+g) ^n
1.5 = 1*(1+g) ^7
(1+g)^ 7= 1.5/1
(1+g)^7 = 1.5
1+g = 1.0596
g = .0596 or 5.96%
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5.C.4. Beta Coefficient

GDIC has a beta co-efficient 1.21880654651 which means that the security's risk will be high
than the market. Beta is higher than market beta 1 that indicates company might be offering a
high rate of return to compensate the risk.
5.C.5. Required Rate of Return

Risk Free Rate (Rf) = 7.99%
Return on Market Portfolio (Rm) = 11.8140429%
Required Rate of Return = Rf + (Rm-Rf)
RRR = 7.99% + (0.118140429%-.0799%) 1.21880654651
RRR = 12.6348809%
5.C.6. Intrinsic Value

Value = Latest Dividend/(Required Rate Of Return - Growth Rate)
Value = (Do (1+g))/(RRR-g)
Value = (1.5(1+.0596))/(.126348809-.0596)
Value = 23.81166Tk
Intrinsic Value = 24tk

Market Current value= 85tk (22rd April,2014)
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5.C.7. Probable reasons for overvaluation of stock:

From the calculation it has been found that the intrinsic value is BDT 24 is below than the
market value BDT 85. From this, it can be said that Green Delta Insurance Company Limiteds
stock price is overvalued. Reasons for overvaluation might include:
The confidence in the company may be high as a result the stocks may be overvalued in
the market.
The stocks of the company might be traded in an enormous amount, causing prices to be
substantially high, even higher than the intrinsic value.
The companys high dividend and high percentage of bonus shares when the company is
not giving cash divided may encourage more and more investors to invest in the company
and causing the stock to be overvalued
Price increasing: Price of the stocks may have increased unexpectedly.
Market position: The experts predictions and the current Market situation are not similar.
Investors movement: People are more interested investing in the purchasing stocks, so
more money is finally flowing into stocks.
Information: The Company might be using misleading information to value their stocks.
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Part 6: Scenario of Insurance Company in

Bangladesh
6.1. Role of Insurance Companies in the Economic Development of

Bangladesh:
6.1.1. Formation of Capital & Increase of Investment:
Insurance companies receive premiums from insured persons. These premiums increase national
capitals. By investing these capitals, national productions increase.
6.1.2. Reduce of hindrance of risk:

Every sorts of business consists of risks. These risks are more hazardous in Bangladesh.
Insurance companies minimize these risks by giving privileges on loss.
6.1.3. Maintenance of National Wealth:

Insurance companies not only secure financial facts, but also influence people to take necessary
steps to avoid risks.
6.1.4. Distribution of Risks:

Insurance companies deal with lots of insured people. So risks are being distributed among them.
6.1.5. Extension of Business:

By taking all uncertain business risk insurance companies extended the field of business in our
country. Insurance gives the assurance of indemnity and help to collect the capital to launch a
new business and expand the existing business.
6.1.6. Increase of Awareness:

As the maximum people of our country are illiterate so they have not much knowledge about the
future life and what will do to enhance the living standard. Different types of advertisement,
publicity and others awareness activities of insurance company which helps to increase the
awareness of general people
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6.2. Problems of Insurance Company in Bangladesh

6.2.1. Poor Knowledge of Agents:
The marketing of insurance is greatly hampered in the remote village of Bangladesh where the
agents are appointed from respected locality. This is because; educated young people are seemed
to be reluctant to become insurance agents. Such agents cannot play efficient role in convincing a
prospective policyholder.
6.2.2. Illiteracy:
Mass illiteracy is another factor that adversely affects the marketing of insurance. Majority of the
population is floating in the sea of ignorance. Illiteracy leads one to think that the insurance is
deception; it is no value in life. They cannot think rationality because they do not know what is
insurance and what its importance as security for future.
6.2.3. Religious Superstition:

Religious attitude of the people also stands against efficient insurance. The religious people
believe that the future is uncertain, it is in the hand of Allah and they do not think it necessary to
buy life insurance policy for them.
6.2.4. Low Awareness:

Insurance awareness is poor. Agents are not skilled enough. These agents cannot perform their
job properly to make the people aware of life insurance.
6.2.5. Low Savings:

People of Bangladesh have a very small saving potentially and thus have less or no disposable
income. Almost the whole of the income is exhausted in the process of maintaining the day-today life. Thus they are left with little amount, which may not deemed to sufficient for the
payment of premiums. This factor discourages many to buy life insurance policy.
6.2.6. Shortage of Fund:

Most of the policyholders cannot continue their policies owing to price spiral and shortage of
fund.
6.2.7. Insufficient Service:

In Bangladesh insurance company people failed to provide better service to the mass people
thats why the people who want to take the insurance policy they loss their interest from
insurance. At same time in foreign country insurance workers goes to customers house and
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offices regularly to aware themselves and influence them to take insurance policy. In thats case
Bangladesh insurance company people are not that much expert.
6.2.8. Lack of Marketing Policy:

One of the major problems in insurance company is lack of marketing policy. Management is not
taking initiative to increase their mark expansion. They provide tiny amount advertisement,
which is not sufficient for increasing business development.
6.3. Prospects of Insurance Business in Bangladesh

As well as the problems mentioned above, there are many good signs for the insurance business
in Bangladesh. The factors that can facilitate the insurance business in our country are discussed
below. These facts can be measured as the prospective fields for insurance business in
Bangladesh.
6.3.1. Higher GDP:

The GDP of our country is increasing than the previous years which results in increase of per
capita income. So this growing GDP and income holds bright prospects for insurance companies.
The major problem is the incapability of our people to pay the premium charged by the insurance
companies. . With the growth in the income more and more people are now willing to take an
insurance policy for safeguarding themselves from any danger.
6.3.2. Increased population:

There is a big opportunity lies ahead for the insurance companies as the population of our
country are increasing day by day. Although most of people of our country live under extreme
poverty level and want to avoid insurance policy number of potential policy holders in
Bangladesh is growing with growth of the population. There is somewhat relationship between
growing populations with the number of public vehicle. As we know all public vehicle must have
an insurance policy. So growing population also increase the motor insurance too. That is growth
in population opens greater scope for every kind of insurance business that results in growing
prospect for insurance companies.
6.3.3. New businesss individual insurance:

There are so many new businesses starting every day and manufacturing sector is booming with
global demand. Every business is insured under an insurance company to protect its company
from any kind of accident. Therefore growing industry, mill, factories are creating better scope
for the insurance companies to flourish their business.
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6.3.4. Developing mass awareness about insurance:

People are now much more conscious about their safety. So they are encouraged to take an
insurance policy for making their life free from any unexpected occurrence. Increase in literacy
rate is helping predominantly to create awareness among the people regarding taking insurance
policy. Besides this insurance companies are also trying to eradicate the negative attitude of
people towards the insurance company by organizing various programs such as seminars,
programs including social responsibilities etc.
6.3.5. Micro insurance:

Micro insurance can be a great prospective area for the insurance business in our country. Most
of the people of our country are unable to have costly and long term insurance policies. Micro
insurance can be provided to individual personnel or to small business owners against little
insurance premiums and with easy terms and conditions. When they will afford to minimize their
risks at a lower price, they will take that opportunity and they will become to get used to it. This
can cover a huge portion of the society who can be a prospective target market for this business.
6.3.6. Scope in non-traditional sector:

Nowadays, along with traditional insurance services, they can offer various non-traditional
insurance services to their customer. Target market of insurance company may expand and they
can offer different types of non-traditional insurance services such as health insurance, personal
accident insurance, travel insurance, burglary insurance and pension scheme.
6.3.7. Scope of investment:

Insurance companies can usually make more profit from investment activities than from their
regular insurance business. The private insurance companies are realizing this fact and playing
role in the financial market. Insurance companies are making large investment in government
bonds, ICB projects and in private sector business. There are opportunities to enhance profit
through effective and efficient money, management by employing capable and experienced
personnel. Scope of investment expansion persists in the areas leasing, housing, health and
money market.
6.3.8. Service diversification:

Insurance is not just a tool of risk coverage. It is also an attractive instrument of savings. The
mixture of risk coverage with savings gives the opportunity for innovative product designing
which means service diversification. In a dynamic insurance market one can expect to see new
products being promoted at regular intervals. So far very little efforts have been taken to
innovative and introduce need oriented insurance services in response to existing threats. The
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prospect of the insurance business in various sectors that affect our economy can be
differentiated in the following way.
6.3.8.1. Agriculture sector:
The economy of Bangladesh is predominantly an agrarian one, with most people engage in
farming and fishing. The uncertainty of agriculture due to crop failure caused by climate
variation, drought, cyclone, flood and pests affects farmer income as well as government revenue
.Furthermore, in the last few years commercialization has occurred in some sections of the
agricultural sector. Increase in investment in the agricultural sector is creating a new opportunity
for insurance industry. Various agricultural insurance services are becoming common these days.
Demand for insurance protection against crop loans, livestock loans, fisheries loans and
equipment loans are also increasing day by day.
6.3.8.2. Business sector:
Nowadays in Bangladesh the SME plays an important role in the economic development. But
they are deprived from taking loans from bank for large amount. If insurance business focuses
this section in Bangladesh they are able to contribute more in the economy .Thus insurance
business has a bright prospect in business sector in a developing country like Bangladesh
6.3.8.3. Education sector:
Insurance companies can provide different types of scheme to expand education plan insurance.
6.4. Recommendation for Insurance Business of Bangladesh

From the presiding discussions of the report, we can realize that the policy makers
within the government and the insurance company should adopt effective measures in order to
make good use of the opportunities and to tackle the threats for ensuring a healthy
development of the insurance industry. The following actions are suggested
The insurance companies of Bangladesh should practice marketing through the use of
promotional tools such as advertising, sales promotion, public relation and publicity,
personal selling and direct marketing.
In order to create the growth of insurance business in our country, insurance companies
should expand their target market by providing responsive services and establish efficient
departments to perform such task.
Government must minimize the restrictions on premium so that insurance companies can
fix their premium according to their demand. This will increase the profitability of the
insurance companies.
One of the basic requirements for the insurance industry to have sustained growth is to
enhance training facilities. Bangladesh Insurance Academy is providing training facilities
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and professional education to those engaged in insurance business in the country. The
syllabus, curriculum and training programs of the academy need to be modified to meet
the modern needs of the insurance industry.
To regain and maintain a positive public image the insurance companies should
overcome the dissatisfaction in regards to services and claim settlements and should
maintain a service standard.
The collected premium should be invested in large and beneficial sectors so that
insurance companies can return their clients expected return in timely.
Government should have a regulatory body for the surveillance on insurance companies
so that they must perform their business maintaining the ethical issues properly.
Insurance companies need to modify their recruitment strategies with increased focus on
the marketing and sales training because, insurance being a service marketing industry it
requires special attention.
In response to the opportunity of growing market the insurance companies can expand
their target market by identifying and providing responsive services. In order to do so
each compan y should established and effectively operate research and development
department.
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Part 7: Recommendations
There are some recommendations given below for Green Delta Insurance Company Limited on
the basis of the overall condition of it.
GDIC can introduce more subsidiary companies like Green Delta Securities and Capital
limited. By this their consolidated profit can be increased. For an example, they can
introduce bank so that it can take large portion of their facility from their own bank. By
this it can be benefited from getting facilities from its own bank .Besides, from bank it
can earn profit also.
GDIC can arrange seminars for the public and as well as for the employees so that the
employees can get a proper knowledge how to deal with customer and how to increase
their network and facility. Also, the perception of general people towards insurance can
be changed in a good way and people can feel interest to do insurance.
GDIC should focus on the investment on the employee like it can buy land for the
employees and the employees can repay the land price on installment basis by his the
employees can get accommodation facility in future and that will motivate them to work
more dedicatedly for the company.
GDIC should increase their online facility. By this it can give and take facilities by
setting in the desk.
GDIC should improve its technological facilities and it should reduce its paper pencil
works. By this the cost and time can be minimized. Also, work will be easier by the
advancement of technology.
GDIC should downsize the employees for minimizing the cost because if the employees
are not productive then it will increase the cost of the organization.
Employee Recruitment Process- should be done in a fare process so that appropriate

and talented employees are selected through the recruitment process and increase the
productivity and quality of the service.
The most important thing that has come to my mind concerning their promotional
activities is that they should go for print or broad cast media for advertisement to make
their customer aware about their range of services and make the strong place in the
customers mind.
They should increase the number of Branches in all over the country with the permission
of IDRA (Insurance Development and Regulatory Authority). Thus, the clients in every
city can enjoy their insurance facility from their own city.
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Part 8: Conclusion
In present insurance is too much important to the business and individual sector. Most of the
companies provide more or less same services. For this reason the competition is increasing
day by day between the insurance companies. On the other hand some new insurance
companies are going to start businesses in the competent market. BGIC need to develop their
some productive sectors. In present, a company cannot establish properly without developing
information technology. People search their desires requirement through Internet so, insurance
companies need to develop Web address to increase both foreign and local investors. So we have
discussed about both the problem and prospects of insurance business in Bangladesh. The
progress of insurance business depends on the progress of economic condition
.Insurance business also faces many problem. So if we develop economic condition as well as
overcome the problems, it will help a lot to flourish this business in our country. So, GDIC
should focus on those issues to develop its growth and faith from its customers. Green Delta is
proud to be a company that helps people in time of trouble. GDIC is a company that can and
does pull all steps when needed. Like the country we are young and have blended our youthful
vigor with specialized knowledge and experience. The Board of Directors of GDIC includes
veterans of insurance, trade & industry, doctors, chartered accountant, business professionals.
Our management team comprises of qualified professionals trained from UK, Switzerland,
Germany and many other advanced countries.
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Part 9: REFERENCES
To prepare this report I have collected data mainly from annual reports of Green Delta Insurance
Company Limited, Agrani Insurance Company Limited, and Reliance Insurance Company
Limited. , different books regarding ratio analysis, the websites of Bangladesh Bank, DSE, Stock
Bangladesh and Green Delta Insurance Company Limited, Agrani Insurance Company Limited,
and Reliance Insurance Company Limited. and others websites about ratio analysis. The
references are given below:
Annual Reports
Annual Report of Green Delta Insurance Company Limited 2012,2011,2010,2009,2008

Annual Report of Agrani Insurance Company Limited 2012,2011,2010,2009,2008
Annual Report of Reliance Insurance Company Limited 2012,2011,2010,2009,2008
Books
Stanley, B. b., & Geoffrey, A. H. (2008 - 2009). Foundation of Financial Management.

International: McGraw-Hill.
Brigham, E. F., & Gapenski, L. C. (1995). Intermediate Financial Management (Fifth
ed.). International: The Dryden Press.
Madura, J. (2008). Financial Market and Institution. USA: Thomson South- Western.
Websites
www.green-delta.com
http://www.reliance.com.bd
http://www.agraniins.com
http://www.bangladesh-bank.org/fnansys/bankfi.php
http://www.inc.com/encyclopedia/financial-ratios.html
http://www.investinganswers.com
http://www.investopedia.com
http://www.stockbangladesh.com
http://www.dsebd.org
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Appendix 1
Green Delta Insurance Company Limited
Profitability or
Return on
Investment Ratio
1. Net
profitability: Net
Income/Net Sales
2. Return on
assets: Net
Income/Total
Assets
3. Return on
investment 1: Net
Income/Owners'
Equity
4.Return on
investment 2:
Dividends +/Stock Price
Change/Stock
Price Paid
5. Earnings per
share: Net
Income/Number
of Shares
Outstanding
2012
2011
2010
2009
2008
Net Income
Net Sales
Net
Profitability
269,737,259.00
532,895,478.00
156,499,227.00
356,463,655.00
639,414,963.00
869,245,813.00
343,808,952.00
463,395,571.00
254,493,826.00
408,926,069.00
0.51
50.62%
0.44
43.90%
0.74
73.56%
0.74
74.19%
0.62
62.23%
Net Income
Total Assets
Return on
assets
269,737,259.00
6,466,208,411.00
156,499,227.00
4,998,793,295.00
639,414,963.00
4,741,790,044.00
343,808,952.00
3,889,757,247.00
254,493,826.00
3,188,871,015.00
0.04
4.17%
0.03
3.13%
0.13
13.48%
0.09
8.84%
0.08
7.98%
Net Income
Owner's Equity
Return on
Investment
269,737,259.00
4,591,682,221.00
156,499,227.00
2,874,547,800.00
639,414,963.00
3,514,136,539.00
343,808,952.00
2,451,058,857.00
254,493,826.00
1,969,425,349.00
0.06
5.87%
0.05
5.44%
0.18
18.20%
0.14
14.03%
0.13
12.92%
832,411.00
163,404,523.00
92,402,134.00
1,404,435.00
18,721,898.00
0.02
4.00
2.26
0.03
9.17
74.50
152.40
326.50
166.98
198.22
-77.90
152.40
-174.10
326.50
159.52
166.98
-31.24
198.22
106.39
91.83
-77.88
-170.10
161.78
-31.21
115.56
-0.51
-51.10%
-0.52
-52.10%
0.97
96.89%
-0.16
-15.74%
1.26
125.84%
269,737,259.00
156,499,227.00
639,414,963.00
343,808,952.00
254,493,826.00
51,030,000.00
40,824,000.00
40,824,000.00
40,824,000.00
2,041,200.00
5.29
3.83
15.66
8.42
124.68
Dividends
Dividends Per
Share
Market Value
Per Share(
Current)
Stock Price
change
Stock Price Paid
Dividends +
Stock Price
Changed
Return on
investment
Net Income
Number of
Shares
Outstanding
Earning per
Share
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Page 81
91.83
6. Investment
turnover: Net
Sales/Total
Assets
Net sales
Total Assets
Investment
turnover
532,895,478.00
6,466,208,411.00
356,463,655.00
4,998,793,295.00
869,245,813.00
4,741,790,044.00
463,395,571.00
3,889,757,247.00
408,926,069.00
3,188,871,015.00
0.08
0.07
0.18
0.12
0.13
Liquidity Ratio
7. Current ratio:
Current Assets/Current
Liabilities
2012
2011
2010
2009
2008
2,487,003,405
2,482,055,037
2,961,892,137
1,931,902,051
1,681,551,772
Outstanding premium
Amount due from
other persons or
bodies carrying on
insurance business
Sundry debtors
(Including advances
and deposits)
At banks on STD &
current account
121,285,123
420,395,893
229,395,808
162,393,139
121,727,026
279,402,044
233,412,642
218,150,591
278,371,381
251,218,999
368,068,199
669,699,970
1,074,110,625
560,678,049
434,474,736
209,981,792
250,148,569
458,869,952
196,040,751
95,471,919
Cash in hand
Stock of printing,
stationery and stamps
4,010,353
1,897,657
1,116,835
563,295
760,963
2,635,852
1,630,671
1,805,578
2,173,329
1,822,751
Preliminary expenses
291,425
291,425
750,117
163,938
218,584
3,472,678,193
4,059,531,864
4,946,091,643
3,132,285,933
2,587,246,750
611,830,245
433,236,871
386,431,503
363,275,784
314,564,232
37,048,098
24,628,543
18,102,700
16,282,624
23,180,097
Current Liabilities
648,878,343
457,865,414
404,534,203
379,558,408
337,744,329
Current Ratio
5.351817071
8.866212079
12.22663401
8.252447758
7.660370665
Quick Assets
3,472,678,193
4,059,531,864
4,946,091,643
3,132,285,933
2,587,246,750
Current Liability
648,878,343
457,865,414
404,534,203
379,558,408
337,744,329
Quick Ratio
5.351817071
8.866212079
12.22663401
8.252447758
7.660370665
4,010,353
1,897,657
1,116,835
563,295
760,963
6,466,208,411
4,998,793,295
4,741,790,044
3,889,757,247
3,188,871,015
0.000620202
0.000379623
0.00023553
0.000144815
0.000238631
Investment
Current Asset
Balance of fund
accounts
Premium deposit

test"):Quick Assets
(cash, marketable
securities, &
Liabilities

Cash/Total Assets
Cash
Total Assets
Cash to Total Assets
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Sales/Net Working
Capital (current assets
less current liabilities)
Net Sales
Net Working
Capital(Current
Assets - Current
liabilities)
532,895,478.00
356,463,655.00
869,245,813.00
463,395,571.00
408,926,069.00
2,823,799,850
3,601,666,450
4,541,557,440
2,752,727,525
2,249,502,421
Cash Turnover
0.18871574
0.098971868
0.191398177
0.168340516
0.181785121
2012
2011
2010
2009
2008
Debt
1,874,526,190
2,124,245,495
2,149,556,309
1,293,321,460
1,153,831,839
Owners' Equity
4,591,682,221
2,874,547,800
3,490,496,361
2,139,755,150
1,718,666,954
0.408243885
0.738984231
0.615831127
0.604424978
0.671352781
40.82%
73.90%
61.58%
60.44%
67.14%
Debt
1,874,526,190
2,124,245,495
2,149,556,309
1,293,321,460
1,153,831,839
Total Assets
6,466,208,411
4,998,793,295
4,741,790,044
3,889,757,247
3,188,871,015
Debt Ratio
0.289895727
0.424951657
0.453321697
0.332494132
0.361830828
28.99%
42.50%
45.33%
33.25%
36.18%
2009
2008
Leverage Ratio
Debt/Owners' Equity
Debt to equity ratio
12. Debt ratio:

Debt/Total Assets
Reliance Insurance Company Limited

Profitability or Return
on Investment Ratio
1. Net profitability: Net
Income/Net Sales
2. Return on assets: Net

Income/Total Assets
2012
2010
Net Income
203,926,505.00
220,342,401.00
217,640,681.00
119,746,076.00
107,937,850.00
Net Sales
349,050,630.00
354,165,592.00
314,683,573.00
171,722,080.00
157,462,001.00
Net Profitability
0.58
0.62
0.69
0.70
0.69
58.42%
62.21%
69.16%
69.73%
68.55%
Net Income
203,926,505.00
220,342,401.00
217,640,681.00
119,746,076.00
107,937,850.00
Total Assets
4,410,742,271.00
4,530,842,514.00
4,605,927,373.00
1,880,297,822.00
1,467,927,934.00
Return on assets
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2011
0.05
0.05
0.05
0.06
0.07
4.62%
4.86%
4.73%
6.37%
7.35%
Page 83
2007

3. Return on investment
1: Net Income/Owners'
Equity
Net Income
203,926,505.00
220,342,401.00
217,640,681.00
119,746,076.00
107,937,850.00
3,195,760,000.00
3,427,520,000.00
3,513,070,000.00
952,440,000.00
688,200,000.00
0.06
0.06
0.06
0.13
0.16
6.38%
6.43%
6.20%
12.57%
15.68%
50,011,489.00
0.00
0.00
0.00
22,500,000.00
1.06
0.00
0.00
0.00
12.50
94.80
102.10
173.80
133.93
88.73
-7.30
-71.70
39.87
45.20
56.53
102.10
173.80
133.93
88.73
32.20
-6.24
-71.70
39.87
45.20
69.03
-0.06
-0.41
0.30
0.51
2.14
-6.11%
-41.25%
29.77%
50.94%
214.38%
Net Income
Number of Shares
Outstanding
Earning per
Share
203,926,505.00
220,342,401.00
217,640,681.00
119,746,076.00
107,937,850.00
47,227,050.00
41,067,000.00
3,042,000.00
2,340,000.00
1,800,000.00
4.32
5.37
71.55
51.17
59.97
Net sales
349,050,630.00
354,165,592.00
314,683,573.00
171,722,080.00
157,462,001.00
4,410,742,271.00
4,530,842,514.00
4,605,927,373.00
1,880,297,822.00
1,467,927,934.00
0.08
0.08
0.07
0.09
0.11
Owner's Equity
Return on
Investment
4.Return on investment
2: Dividends +/- Stock
Price Change/Stock
Price Paid
Dividends
Dividend Per
Share
Market Value Per
Share( Current)
Stock Price
change
Stock Price Paid
Dividends +
Stock Price
Changed
Return on
investment
5. Earnings per share:

Net Income/Number of
Shares Outstanding
6. Investment turnover:
Total Assets
Investment
turnover
Liquidity Ratio
7. Current ratio: Current
Assets/Current Liabilities
2012
2011
2010
2009
2008
Current Asset
1,763,600,000.00
1,587,700,000.00
1,392,810,000.00
1,337,620,000.00
1,081,320,000.00
Current Liabilities
1,165,810,000.00
1,058,590,000.00
1,057,290,000.00
899,020,000.00
758,410,000.00
1.51
1.50
1.32
1.49
1.43
Current Ratio
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32.20

test"): Quick Assets (cash,
marketable securities, and
Liabilities
Quick Assets
1,763,600,000.00
1,587,700,000.00
1,392,810,000.00
1,337,620,000.00
1,081,320,000.00
Current Liability
1,165,810,000.00
1,058,590,000.00
1,057,290,000.00
899,020,000.00
758,410,000.00
1.51
1.50
1.32
1.49
1.43
Cash
1,228,740,000.00
864,800,000.00
791,880,000.00
759,870,000.00
598,820,000.00
Total Assets
Cash to Total
Assets
4,410,742,271.00
4,530,842,514.00
4,605,927,373.00
1,880,297,822.00
1,467,927,934.00
0.28
0.19
0.17
0.40
0.41
Net Sales
Net Working
Capital(Current
Assets - Current
liabilities)
349,050,630.00
354,165,592.00
314,683,573.00
171,722,080.00
157,462,001.00
597,790,000.00
529,110,000.00
335,520,000.00
438,600,000.00
322,910,000.00
Cash Turnover
0.58
0.67
0.94
0.39
0.49
2012
2011
2010
2009
2008
1,214,979,528
1,103,320,130
1,092,859,573
927,851,870
779,728,170
3,195,760,000.00
3,427,520,000.00
3,513,070,000.00
952,440,000.00
688,200,000.00
0.380184847
0.321900421
0.311083916
0.974184064
1.132996469
38.02%
32.19%
31.11%
97.42%
113.30%
1,214,979,528
1,103,320,130
1,092,859,573
927,851,870
779,728,170
4,410,742,271.00
4,530,842,514.00
4,605,927,373.00
1,880,297,822.00
1,467,927,934.00
0.275459198
0.243513238
0.237272428
0.493460057
0.531176056
27.55%
24.35%
23.73%
49.35%
53.12%
Quick Ratio

Cash/Total Assets

Sales/Net Working Capital
(current assets less
current liabilities)
Leverage Ratio
Debt/Owners' Equity
Debt
Owners' Equity
Debt to equity
ratio
12. Debt ratio: Debt/Total

Assets
Debt
Total Assets
Debt Ratio
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Agrani Insurance Company Limited

Profitability or
Return on
Investment Ratio
RATIOS
1. Net profitability:
Net Income/Net
Sales
2012
2011
2010
2009
2008
44,850,000.00
31,750,000.00
33,450,000.00
22,740,000.00
17,850,000.00
185,660,000.00
161,330,000.00
168,840,000.00
128,370,000.00
128,760,000.00
0.24
0.20
0.20
0.18
0.14
24.16%
19.68%
19.81%
17.71%
13.86%
Net Income
44,850,000.00
31,750,000.00
33,450,000.00
22,740,000.00
17,850,000.00
Total Assets
543,573,960.00
461,225,072.00
405,081,390.00
355,195,269.00
373,194,295.00
0.08
0.07
0.08
0.06
0.05
8.25%
6.88%
8.26%
6.40%
4.78%
44,850,000.00
31,750,000.00
33,450,000.00
22,740,000.00
17,850,000.00
315,910,000.00
271,060,000.00
239,310,000.00
206,060,000.00
183,320,000.00
0.14
0.12
0.14
0.11
0.10
14.20%
11.71%
13.98%
11.04%
9.74%
Dividends
0.00
0.00
0.00
79,089.00
10,500,000.00
Dividend Per Share

Market Value Per
Share( Current)
0.00
0.00
0.00
0.05
7.00
14.38
13.58
131.85
124.88
122.21
Stock Price change
0.81
-118.27
6.97
2.67
11.90
Stock Price Paid

Dividends + Stock
Price Changed
Return on
investment
13.58
131.85
124.88
122.21
110.31
0.81
-118.27
6.97
2.72
18.90
0.00
-0.90
0.06
0.02
0.17
0.00%
-89.70%
5.58%
2.23%
17.13%
44,850,000.00
31,750,000.00
33,450,000.00
22,740,000.00
17,850,000.00
21,961,500.00
19,965,000.00
1,815,000.00
1,650,000.00
1,500,000.00
2.04
1.59
18.43
13.78
11.90
Net Income
Net Sales
Net Profitability
2. Return on assets:
Net Income/Total
Assets
Return on assets
3. Return on
investment 1: Net
Income/Owners'
Equity
Net Income
Owner's Equity
Return on
Investment
4.Return on
investment 2:
Dividends +/- Stock
Price Change/Stock
Price Paid
5. Earnings per
share: Net
Income/Number of
Shares Outstanding
Net Income
Number of Shares
Outstanding
Earning per Share
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2007
165,470,000.00
110.31
1,500,000.00
Page 86
6. Investment
turnover: Net
Sales/Total Assets
Net sales
185,660,000.00
161,330,000.00
168,840,000.00
128,370,000.00
128,760,000.00
Total Assets
Investment
turnover
543,573,960.00
461,225,072.00
405,081,390.00
355,195,269.00
373,194,295.00
0.34
0.35
0.42
0.36
0.35
Liquidity Ratio
7. Current ratio:
Current
Assets/Current
Liabilities
2012
2011
2010
2009
2008
Total Assets
543,573,960.00
461,225,072.00
405,081,390.00
355,195,269.00
373,194,295.00
Fixed Assets
135,504,576.00
131,041,670.00
44,845,490.00
14,762,957.00
14,376,066.00
Current Asset
408,069,384.00
330,183,402.00
360,235,900.00
340,432,312.00
358,818,229.00
Debt
(-)Liabilities and
Provisions
227,657,353.00
190,161,915.00
165,769,303.00
149,131,768.00
189,869,537.00
138,056,100.00
105,448,523.00
86,951,795.00
85,144,819.00
82,111,119.00
89,601,253.00
84,713,392.00
78,817,508.00
63,986,949.00
107,758,418.00
4.55
3.90
4.57
5.32
3.33
408,069,384.00
330,183,402.00
360,235,900.00
340,432,312.00
358,818,229.00
89,601,253.00
84,713,392.00
78,817,508.00
63,986,949.00
107,758,418.00
4.55
3.90
4.57
5.32
3.33
Cash
231,721,321.00
178,610,811.00
164,496,740.00
162,848,720.00
200,573,435.00
Total Assets
543,573,960.00
461,225,072.00
405,081,390.00
355,195,269.00
373,194,295.00
0.43
0.39
0.41
0.46
0.54
161,330,000.00
168,840,000.00
128,370,000.00
128,760,000.00
318,468,131.00
245,470,010.00
281,418,392.00
276,445,363.00
251,059,811.00
0.58
0.66
0.60
0.46
0.51
Current Liabilities
Current Ratio
8. Quick ratio (or
"acid test"): Quick
Assets (cash,
marketable securities,
and
Liabilities
Quick Assets
Current Liability
Quick Ratio
9. Cash to total
assets: Cash/Total
Assets
Cash to Total Assets
10. Cash turnover:

Net Sales/Net
Working Capital
(current assets less
current liabilities)
185,660,000.00
Net Sales
Net Working
Capital(Current Assets
- Current liabilities)
Cash Turnover
Taskin Ara Orni

10304088
Page 87
Leverage Ratio
11. Debt to equity
ratio: Debt/Owners'
Equity
2012
2011
2010
2009
2008
Balance of Funds and

Accounts
65,772,283.00
56,165,252.00
56,475,227.00
44,315,746.00
43,059,675.00
Premium Deposits
20,159,886.00
24,178,939.00
18,076,996.00
16,663,490.00
19,421,618.00
Short Term loan

Liabilities and
Provisions
3,669,084.00
4,369,201.00
4,265,285.00
3,007,713.00
45,277,125.00
138,056,100.00
105,448,523.00
86,951,795.00
85,144,819.00
82,111,119.00
Debt
227,657,353.00
190,161,915.00
165,769,303.00
149,131,768.00
189,869,537.00
Owners' Equity
315,910,000.00
271,060,000.00
239,310,000.00
206,060,000.00
183,320,000.00
0.72
0.70
0.69
0.72
1.04
72.06%
70.15%
69.27%
72.37%
103.57%
Debt
227,657,353.00
190,161,915.00
165,769,303.00
149,131,768.00
189,869,537.00
Total Assets
543,573,960.00
461,225,072.00
405,081,390.00
355,195,269.00
373,194,295.00
0.42
0.41
0.41
0.42
0.51
41.88%
41.23%
40.92%
41.99%
50.88%
Debt to equity ratio
12. Debt ratio:

Debt/Total Assets
Debt Ratio
Taskin Ara Orni

10304088
Page 88
Appendix 2
Return on Market Portfolio of Stock Market
Date
Total
Trade
Total
Volume
Total Value
in Taka(mn)
Total Market
Cap. In Taka
DSEX Index
DSES
Index
DS30 Index
Return On
Market
1/1/2014
104826
100101844
4119.741
2657288.211
4286.15366
1478.38058
2/1/2014
103202
83894862
3708.383
2673976.87
4314.0945
1505.08033
6/1/2014
86277
71620720
3156.291
2668391.932
4296.34302
1506.03063
0.006518861
0.004114764
7/1/2014
111851
100215667
4561.291
2683991.994
4330.63056
1516.44132
0.007980634
8/1/2014
121997
117786690
5397.04
2712107.267
4391.27013
1543.47009
0.014002481
9/1/2014
116570
110326138
5175.864
2717362.08
4407.82597
1555.60669
0.003770171
12/1/2014
136051
128263146
6195.481
2734157.301
4437.818
1576.77756
0.006804268
13-01-2014
145662
144501232
6506.795
2740628.594
4454.83404
1571.09787
0.003834326
15-01-2014
152666
149143325
6930.145
2754034.33
4494.02476
1583.13834
0.008797347
16-01-2014
135211
146733455
6435.185
2768588.141
4519.35924
1592.78426
0.00563737
19-01-2014
150407
155963098
7080.761
2788888.333
4565.40324
1612.10082
20-01-2014
137268
139692101
6108.709
2780164.964
4550.47819
941.27986
1609.27338
0.01018817
0.003269164
21-01-2014
159037
153243294
7108.938
2797537.934
4584.62683
947.69534
1614.69727
0.007504407
22-01-2014
170405
177874456
8348.874
2826036.349
4640.55812
961.07627
1640.06507
0.012199748
23-01-2014
166067
201005808
8336.066
2859600.094
4702.6626
976.33729
1664.10488
0.013382976
26-01-2014
167553
213921062
8590.081
2880224.615
4758.37506
987.03299
1672.81769
27-01-2014
150609
174295140
6722.238
2868146.558
4751.61562
982.26284
1659.61052
28-01-2014
125300
147032429
5932.845
2849410.142
4706.5416
971.55041
1647.68067
0.011847003
0.001420535
0.009486041
29-01-2014
129192
141057305
6278.46
2870642.664
4748.51366
975.21096
1662.95898
0.008917813
30-01-2014
160255
187622912
8569.837
2875711.285
4753.17024
974.27286
1660.35554
0.000980639
2/2/2014
154140
180010225
6976.778
2886362.084
4787.66194
979.2819
1660.24355
0.007256567
3/2/2014
164410
199836615
8041.997
2901269.406
4826.51482
981.52367
1671.44037
4/2/2014
159958
212696667
7716.936
2892481.718
4809.54555
979.71249
1663.69363
0.00811521
0.003515843
5/2/2014
127511
132126638
6205.815
2894928.998
4811.49708
982.5215
1663.75578
0.000405762
6/2/2014
142246
145920088
7704.009
2919206.465
4845.08962
996.35851
1681.91129
9/2/2014
142174
133536867
6952.981
2914646.629
4822.71727
1002.9622
1698.66763
10/2/2014
121900
111725375
6034.883
2901693.469
4797.97117
995.72932
1691.04906
11/2/2014
108630
89835223
4905.856
2897063.326
4763.46519
990.74166
1682.59619
0.006981723
0.004617531
0.005131153
0.007191786
12/2/2014
112761
101051984
5724.01
2898118.193
4763.71105
996.60307
1693.43574
13-02-2014
112833
95886154
5339.061
2899333.268
4759.32706
995.7478
1696.65731
16-02-2014
84912
71007358
3902.992
2880361.303
4713.87695
985.42959
1680.68313
17-02-2014
75264
62308701
3440.666
2862945.761
4684.07065
977.30628
1662.08851
Taskin Ara Orni

10304088
5.16137E-05
0.000920289
0.009549693
0.006323097
Page 89
1655.71427
0.002669172
993.92634
1687.0173
0.016625904
995.27913
1688.02777
4727.44095
985.1442
1667.22724
0.002514913
0.007086492
2899967.606
4751.58408
991.75068
1686.29033
0.005107019
2907706.11
4756.88687
993.488
1689.68373
0.001116005
3962.931
2907395.829
4750.26281
992.53833
1688.74035
101048999
6465.43
2923122.954
4749.86891
1002.41092
1693.91415
121248
88875832
5744
2917658.966
4697.30004
1002.26641
1702.74659
3/3/2014
106967
81372799
5054.299
2908539.954
4687.19067
1001.5156
1702.25795
-0.00139252
-8.29217E05
0.011067436
0.002152166
4/3/2014
97200
83146727
4628.217
2902868.816
4703.87812
1006.02645
1694.8177
5/3/2014
79487
65013106
3546.957
2900181.979
4697.5401
1007.45756
1693.45156
6/3/2014
87474
68240494
4129.221
2909062.924
4699.62837
1011.34625
1690.12242
9/3/2014
109103
84159083
5106.499
2910475.587
4687.19606
1019.62491
1685.32843
10/3/2014
95432
76573051
4017.626
2891549.743
4665.56523
1012.75312
1681.25355
11/3/2014
81602
56221196
3360.999
2895135.267
4672.63628
1011.70448
1681.23769
12/3/2014
99169
73205749
4507.596
2895381.021
4660.52575
1015.15777
1681.76077
13-03-2014
89948
64072902
3534.637
2888337.805
4635.33883
1014.09514
1669.67708
16-03-2014
78087
57578832
2925.164
2870956.114
4591.17176
1009.29586
1655.72428
0.001515583
0.002591798
0.005404309
0.009528337
18-03-2014
83839
58061182
3226.722
2854528.698
4554.78094
995.01939
1635.98706
-0.00792626
19-03-2014
96975
60955478
3380.479
2838648.204
4519.02008
983.7011
1624.311
-0.00785128
20-03-2014
82182
53169424
2776.451
2856133.551
4558.93335
989.47849
1635.37973
23-03-2014
70970
47142514
2434.23
2836669.329
4519.54975
978.7449
1615.19732
24-03-2014
80946
55174943
2989.665
2809974.748
4466.08002
967.97169
1589.38043
0.008832284
0.008638775
0.011830765
25-03-2014
78056
53284969
3006.51
2829239.018
4498.77168
979.33914
1606.91144
0.00731999
27-03-2014
78330
59548182
2999.21
2835371.399
4508.05541
981.62924
1608.35228
0.002063614
30-03-2014
80518
57379556
2777.61
2822652.483
4478.68561
973.56979
1593.42735
-0.00651496
31-03-2014
71278
59067096
2872.608
2835371.857
4491.98393
975.96038
1603.53057
0.002969246
1/4/2014
74160
60024906
3152.939
2858509.053
4526.94479
987.59061
1618.50374
0.007782944
2/4/2014
89873
77524504
5003.967
2898373.068
4595.80704
1001.70354
1646.50485
0.015211639
3/4/2014
92763
77687603
5180.635
2913738.719
4621.22769
1008.46816
1670.15057
6/4/2014
86882
70821855
4613.411
2901705.758
4588.78982
1004.27264
1660.08225
0.00553127
0.007019319
7/4/2014
96671
70396789
5054.518
2930362.289
4608.29433
1019.67794
1682.24789
8/4/2014
122637
93350324
6266.515
2941746.632
4586.91054
1021.85178
1682.0757
9/4/2014
87120
82242900
5374.579
2937103.199
4594.33403
1019.89275
1674.79893
10/4/2014
86400
70989112
4208.129
2941625.406
4592.73414
1020.21946
1675.63449
18-02-2014
77262
71723477
3488.306
2854958.656
4671.56806
973.53107
19-02-2014
78452
93077770
3826.637
20-02-2014
89462
85647220
3998.014
2893140.408
4749.2371
2902350.393
4761.18102
23-02-2014
99282
79733821
4230.346
2886371.661
24-02-2014
112437
25-02-2014
111327
97593878
5273.629
91329762
5425
26-02-2014
95239
71223788
27-02-2014
127803
2/3/2014
Taskin Ara Orni

10304088
0.003560224
0.001347403
0.000444545
0.002645382
0.004614876
0.004250469
0.004640283
0.001618407
0.000348231
Page 90

0.004173274
13-04-2014
45181
34114926
2242.843
2942136.534
4573.5674
1020.96988
1677.68896
15-04-2014
95430
79889235
5471.479
2969603.663
4606.75618
1036.47581
1703.309
16-04-2014
102328
84846686
5305.343
2949387.952
4590.14779
1032.92662
1692.75257
0.00725665
0.003605224
17-04-2014
89205
77238899
4440.872
2947664.809
4598.91986
1034.93237
1703.15934
0.001911065
20-04-2014
90804
80896528
3991.547
2947734.962
4616.44006
1034.32321
1698.56791
0.003809634
Portfolio Market Return
0.118140429
11.814%
Taskin Ara Orni

10304088
Page 91

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Financial Performance analysis of Green Delta Insurance Company Limited

Financial Performance Analysis of

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Submitted To:Sayla Sowat Siddiqui

Submitted By:Taskin Ara Orni

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Subject: Submission of Internship Report.

Lastly, I beg your kind consideration for evaluating this report.

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Part 1: Introductory part

Part 5: Project part

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Part 6: Scenario of Insurance Company in Bangladesh

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Financial Performance analysis of Green Delta Insurance Company Limited

Part 1: Introductory Part

Financial Performance analysis of Green Delta Insurance Company Limited

1.2 Origin of the report

To get and organize detail knowledge on the job responsibility.

Financial Performance analysis of Green Delta Insurance Company Limited

1.3 Objective of the report

1.3.1 General Objective

1.3.2 Specific Objective

1.4 Scope of the report

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Annual Report of Green Delta Insurance Company Limited, Reliance Insurance

Brochures of Green Delta Insurance Company Limited

Different written document of Green Delta Insurance Company Limited

Website of DSE and Stock Bangladesh

Website of Green Delta Insurance Company Limited, Reliance Insurance Limited,

1.6 Limitation of the report

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

2.6. Core Values

Organization above Self:

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Prohibition of Discrimination and Harassment:

Taskin Ara Orni

Financial Performance analysis of Green Delta Insurance Company Limited

Health & Safety at Work:

2.7. Corporate Chronicle

December 14, 1985