BSEC to appoint special auditor at Prime Islami Life Insurance

The stock market regulator has decided to appoint a special auditor in the public interest to review Prime Islami Life Insurance's financial statements of four years until 31 December, 2020.

Bangladesh Securities and Exchange Commission (BSEC) offered quotations to auditors in this regard last week.

The auditor will review the balance sheets, including assets, liabilities, equity, earnings, and operating cash flows of the company during the said period with true and fair values.

It will also identify sponsors, promoters, and shareholder directors to make full disclosure of transactions between Prime Islami Life Insurance and the related parties for the last 10 years.

The auditor will especially identify loans, advances, and investments to any related party, either an individual or a controlling shareholder of the entities, and the current condition of those loans and advances.

It will examine all term deposits of the company and changes in those accounts, reliability, and integrity of all payments of the term deposits over the last 10 years. 

The auditor will review investments in lands and land development and other items of property, plant and equipment. It will identify the transactional parties, their independence, and will do a fair assessment of those assets.

It will examine the role of the board of directors, the audit committee, and the top management in the overall governance of the company and also submit evidence of unlawful related party transactions.

According to the January-September 2020 report of the company, its consolidated life revenue accounts decreased by Tk85.30 crore. During this period, its consolidated total life revenue account stood at Tk796.73 crore.

In July-September 2020, its consolidated life revenue account decreased by Tk24.47 crore.

Prime Islami Life Insurance is a third-generation Islamic insurance company that was established in July 2000. It has been engaged in the Islamic life insurance business since 22 April, 2002.

It offers a wide variety of insurance policies that fulfil the requirements of all segments of the society. It provides individual ordinary Islamic life policies, micro takaful schemes, and group takaful schemes.

The company was listed on the stock exchanges in 2007. Its paid-up capital is Tk30.52 crore.

The last trading price of each of the company's shares at the Dhaka Stock Exchange was Tk79 on Sunday.

Until July last year, sponsors and directors jointly held 38.08% of the shares while institutional investors owned 43.68%, foreign investors 0.06%, and general investors 18.18%.