Amãna Takaful (Maldives) PLC...Amãna Takaful (Maldives) PLC Annual Report 2012 7 Sustainability Initiatives At Amãna Takaful (Maldives) PLC, we have been mindful of our greater

Annual Report

2012

Amãna Takaful (Maldives) P

LC

Am

ãna Takaful (Maldives) PLC

Annual Report 2012C

RO

SS

ING

LINE

S

Amãna Takaful (Maldives) PLC3rd Floor, H. Mialani, Sosun Magu, Male’, Republic of Maldives

www.takaful.mv

Contents

01 Financial Highlights02 Chairman’s Message 05 Managing Director’s Review 08 Board of Directors 11 Management Team 12 Product Portfolio14 Sustainability Report 19 Corporate Governance 24 Annual Report of the Board of Directors on the Affairs of the Company28 Board Audit and Compliance Committee Report30 Risk Management Committee Report 32 Report of the Shari’ah Advisory Council

Financial Reports

34 Statement of Directors’ Responsibilities35 Independent Auditors’ Report36 Income Statement37 Statement of Financial Position38 Statement of Changes in Equity39 Statement of Cash Flow40 Segmental Analysis - Income Statement41 Segmental Analysis - Statement of Financial Position42 Notes to the Financial Statements

56 Share Information 57 Certification of Incurred But Not Reported (IBNR) Claims and

Liability Adequacy Test (LAT)

58 Glossary 59 Notice of Meeting

Form of Proxy Enclosed

Crossing lines… some were lines of focus... yet others were more of hurdles. The results speak for the success of our efforts. Both the top and the bottom lines improved significantly during the year. Achieving a market share of 13% within a relatively short span itself is no mean feat. During the year, we distributed 50% of the profits generated through the Shareholders’ Fund. All considered, we are pleased that we could ‘cross’ many a line in such a short period of time. We invite all stakeholders to savour these milestones of our journey to achieve one objective... serving one and all in the most mutually beneficial manner.

We will continue to cross many more lines in the years to come. Trust us. Take a line from our book!

Amãna Takaful (Maldives) PLC Annual Report 2012

1

Financial Highlights

2012 2011 Change

MVR MVR (%)

Revenue 74,355,407 45,039,116 65Net Profit/(Loss) before Tax 10,273,390 3,311,165 210Net Profit/(Loss) after Tax 8,701,855 3,220,676 170Earnings/(Loss) per Share 0.43 0.32 34

General Takaful FundGross Written Premium 71,466,628 43,085,959 66%Retakaful Expenses 31,771,106 15,679,735 103%Claims and Benefits 14,471,175 8,528,898 70%Surplus after Taxation 4,174,711 2,065,099 102%

Shareholders' FundWakala Fee (Management Fee) 15,253,331 10,757,565 42Total Expenses 11,022,289 9,697,354 14Profit from Operations 5,244,677 1,155,577 354

Total Investments 41,165,303 13,972,449 195Total Assets 60,737,709 46,920,814 29Issued Share Capital 26,314,583 26,314,583 –Total Revenue Reserves 10,725,963 3,358,747 219Net Assets Value Per Share 1.83 1.47 24


Chairman’s Message

2


3

Key contributing factors for our superlative performance have been our prudent risk assessment approach, forward-looking strategies and response to market requirements with customised solutions

Dear Shareholders,

In the name of Allah, the most merciful, the compassionate.

On behalf of the Board of Directors of Amãna Takaful (Maldives) PLC, I am delighted to present the Annual Report for the year ended 31st December 2012.

The financial year 2012 was the second year for Amãna Takaful (Maldives) PLC as an independent company. This year, the Company achieved rapid growth in terms of business volumes, investment income and the bottom line.

Economic BackgroundIn 2012, Maldives recorded a 4.1% growth in Gross Domestic Product (GDP), in which the tourist industry continued to grow. With notable progress in development, both in social and welfare, the insurance sector gained considerable momentum and despite envisaged challenges in 2013, the sector is expected to thrive due to prevailing demand.

Financial ReviewIn 2012, the Company reported over MVR 74.4 Mn as total revenue, thus recording a growth of 65%. The general business grew from MVR 43.1 Mn in 2011 to MVR 71.5 Mn in 2012 recording a 66% growth. Underwriting results for the FY 2012 at MVR 20.7 Mn is 61% ahead of 2011. Shareholders’ profits for the year recorded a significant MVR 5.2 Mn which is circa 360% growth compared to last year. Key contributing factors for our superlative performance have been our prudent risk assessment approach, forward-looking strategies and response to market requirements with customised solutions.

DividendsIn December 2012, at the end of the second year of operations as an independent company, Amãna Takaful Maldives declared an interim dividend of 2.5% on the face value of the share. Based on the audited profits in FY 2012, the Board has resolved to declare a further 7.5% as a final dividend. With this, the total dividend reward to our valued shareholders amounts to MVR 2.6 Mn or 10% of the face value of shares.

FutureWe expect our operations to gain further momentum through the implementation of prudent strategies, continuous improvement in our services, as well as operating standards, focused on driving shareholder value. We shall continue to strengthen our skills-set to arrive at improved efficiencies and diligent customer services that will help us deliver tangible results and generate real value. Our goals of achieving sustainable growth and increasing the fund position are based on prudent understanding and reach of market forces with a long term-view.

Growth Of Islamic Finance And Demand For TakafulThe worldwide impetus for Islamic Finance and investment instruments is gathering momentum, with Maldives being no exception. We note that authorities are working towards furthering this agenda and creating the potential for such engagement with the general public. Amãna Takaful Maldives, being the pioneer Takaful operator, is committed to such a cause and welcomes the accelerated development of the Islamic financial industry. The growth potential for Takaful is very promising globally, as per Ernst &Young’s ‘The World Takaful Report 2012’, with global Takaful contributions expected to cross USD 12 Bn by 2012. Although Takaful has not reached its fullest potential in the Maldives, Amãna Takaful (Maldives) PLC will continue to develop and improve on its products and service offering to all its customers by being innovative and creative.

Financial Highlights Chairman’s MessageManaging Director's Review


4

AppreciationOn behalf of the Board of Directors, I would like to express my sincere appreciation to our valued shareholders for their continued association with us and our brand. I wish to extend my gratitude to all our customers for their trust and confidence which has helped to further the concept of Takaful in this country.

I would also like to thank the management and the staff for their dedication and commitment in taking Amãna Takaful to greater heights with yet another super performance.

I record my appreciation to my fellow Board members for their guidance and invaluable contribution during the year under review.

Tyeab AkbarallyChairman

4th April 2013

Financial Highlights Chairman’s MessageManaging Director's Review


Managing Director's Review

5


6

It gives me immense pleasure to summarise and present the performance of Amãna Takaful (Maldives) PLC, now in its second year of operations as an independent entity listed in the Stock Exchange of the Republic of Maldives. The Company continues to deliver sustainable results in all aspects of the business. These achievements are a combination of commitment and will to succeed by every member of our staff by seizing the opportunities to tailor and target the right product and services which has come to be a hallmark of the way we operate. Notwithstanding the challenges and the noble traits of the Takaful concept in a market which is largely conventional, Amãna Takaful (Maldives) PLC is a major player in the insurance landscape of this country.

During the year, the Gross Written Premium increased to MVR 71.5 Mn from that of MVR 43.1 Mn in 2011. This encouraging growth of 66% is the highest on record since our first foray into the Maldivian Market in 2003. This growth came through from all classes, more particularly from Medical and Motor in which government regulation had a substantial influence. Claims and benefits nearly doubled to MVR 14.5 Mn in comparison to 8.5 Mn a year ago. The bulk of these claims are attributed to the medical Takaful class.

The Company’s consolidated profit of MVR 8.7 Mn is three times that of 2011. The profit on the shareholders fund in this consolidation improved four times in the same comparison.

Financial Performance 2012The Company reported a cumulative profit of MVR 4.5 Mn under the shareholders’ fund and a consolidated profit of MVR 8.7 Mn, the latter recording a growth of over 170% compared to the previous year.

The underwriting result of the Company, recorded at MVR 20.7 Mn is an increase of 61% over the previous year. This is the direct result of lower claims experience compared to the incremental level of sales.

Investment IncomeAmong objectives set for the financial year 2012, a primary target was to achieve an improved return on investments through a diversified portfolio. An investment income of circa MVR 1 Mn was realised through the limited opportunities available in Shari’ah compliant instruments. In addition to Shari’ah compliant deposits within the country, the Company has been investing in bullion investments overseas to optimise its investment yields. Returns on bullion took over 50% share of the total investment income. We are currently exploring various other structured Shari’ah compliant investment avenues within the country to maximise investment income. Such opportunities will receive careful scrutiny.

Human ResourceAmãna Takaful (Maldives) PLC has been continuously investing in training programmes to enhance knowledge and skills of the staff. During the year we made specific emphasis on four key areas;

Self-development at all levels in the organisation

Team development to work towards organisation’s goals

Leadership qualities to be competitively superior

Best in class client services

This unique training model designed and developed in-house, focused on building a high performance team in which creativity, innovation and productivity were the cornerstones. Furthermore, we encouraged our staff to take part in external seminars and training sessions to sharpen their technical skills and enhance Takaful knowledge. Meanwhile, exchange visits and programmes from our Parent Company, Amãna Takaful PLC continue unabated.

Of particular emphasis has been a well-equipped sales force, skilled and motivated for effective management of customer touch points. Being the front liners in our business we spare no pains to remunerate and reward them appropriately for their efforts.

During 2012, the Gross Written Premium increased to MVR 71.5 Mn from that of MVR 43.1 Mn in 2011. This encouraging growth of 66% is the highest on record since our first foray into the Maldivian Market in 2003

Chairman’s Message Managing Director's ReviewBoard of Directors


7

Sustainability InitiativesAt Amãna Takaful (Maldives) PLC, we have been mindful of our greater responsibility as a corporate citizen towards the Maldivian community in every way possible. As such, we teamed up with local companies and authorities to educate and inform the public on Islamic finance. Our contribution and engagement as a responsible corporate is detailed under the relevant head in this publication.

INSURANCE INDUSTRYThe Maldives Monetary Authority in its regulatory capacity of the insurance industry released industry data in respect of 2011. From an industry size of MVR 324 Mn, Amãna Takaful (Maldives) PLC took a 13% share of the market. In that year, the industry grew by 28% while our gross written premium grew by 10%. We are confident that with 66% growth recorded in 2012, ATM’s share of the market would improve significantly. With the improving aspirations in the Maldivian market both in terms of the social and economic sectors, there is optimism in the business outlook. The medical insurance climate and the mandatory motor covers are immediate examples in this direction.

GOING FORWARDThe optimism in the business environment and the sterling performance in 2012 compelled us to revisit our business plan. Accordingly we developed an agenda for the next three years through a series of workshops, deploying our key staff with the information at hand. We now have a challenging, well-resourced strategy to take advantage of our position through customised product offers and industry leading service standards to drive performance at an accelerated pace. The recognition and acceptance of our corporate brand will be further enhanced to drive our growth.

We also understand the dire need of enhancing our distribution channels to reach out to customers in the archipelago. Local partnerships and networking will be a key imperative in this endeavour.

On behalf of the Company, I wish to extend my thanks to our customers for their continued loyalty and support. We are determined to stay the course and provide services irrespective of size. To all our retakaful operators and brokers, I thank them for their immense understanding and partnership in furthering the Takaful concept in the Maldives. Our working relationships with the regulatory authorities transcend all barriers. We are beholden to them for their support, understanding and guidance. In the same vein, I appreciate the guidance and support from the learned members of the Shari’ah Advisory Council in the discharge of my duties.

I also wish to convey my gratitude to the Board of Directors for their guidance, advice and direction.

Last but not least, my salutations go out to each and every one of my colleagues for their ready response, unwavering commitment, zeal and enthusiasm.

We look forward to many more milestones and accomplishments in the years to come while upholding the noble concept of Takaful.

Hareez SulaimanManaging Director/CEO

4th April 2013

Chairman’s Message Managing Director's Review

Board of Directors

Mr. Muhammad Ehsan ZaheedDirector

Tyeab AkbarallyChairman

Mr. Hareez SulaimanManaging Director/CEO

Mr. Mohamed Haniffa Mohamed RafiqDirector


8

Board of Directors

Dato’ Mohd Fadzli YusofDirector

Dr. Abdullah Shiham HassanDirector

Mr. Osman KassimDirector


9

Managing Director's ReviewBoard of Directors

Management Team


10

Mr. Tyeab Akbarally - Chairman

Mr. Tyeab Akbarally is the Chairman of the Company. He has been appointed to the Board since its inception. He is also a Director of Akbar Brothers Ltd., the largest tea exporter in Sri Lanka. Mr. Akbarally’s business interests extend to many sectors of the economy including Travels, Hotels, Garments and Trading. He is also on the Board of several companies in the Akbar Brothers Group.

Mr. Osman Kassim - Director

Mr. Osman Kassim is one of the main promoters and the visionary behind Amãna Group of Companies. He has been actively involved right from the conceptualisation of Amãna Takaful PLC, Sri Lanka and takes an active role in determining and envisaging the strategic path of the group as a whole.

He is also the Chairman of the Expolanka Group of Companies, which has grown at a tremendous rate to rank among the largest conglomerates in Sri Lanka. Mr. Kassim is also the Chairman of the Asia Pacific Institute of Information (APIIT), Sri Lanka.

Dato’ Mohd Fadzli Yusof – Director

Dato’ Mohd Fadzli Yusof has been on the Board since its inception. He was the founder Chief Executive Officer/Director of Syarikat Takaful Malayisa Berhad, the first Takaful operator in Malaysia and Asia since its incorporation in 1984 until his retirement in 2005. He obtained the professional Diploma in Communication, Advertising and Marketing (CAM) from the CAM Foundation in the United Kingdom. He started his career in broadcasting, including six years with BBC in London. Currently, he is an independent member of the Board of Hei Tech Padu Berhad and MRC Data Sdn. Bhd. He is also a member of the Council for Islamic Religious Affairs for the State of Negeri Sembilan, Malaysia and a member of the Board of Trustees, the Sultan Mizan Royal Foundation. He is also the Academic Fellow, University College Insaniah in the State of Kedah, Malaysia.

Mr. Mohamed Haniffa Mohamed Rafiq – Director

Mr. M.H.M. Rafiq has been on the Board since its inception. He has been involved in the insurance industry for over four decades. His interests are extremely diverse and include Education, Healthcare and Real Estate, just to name a few. Mr. Rafiq, with his wealth of experience in the sphere of insurance, plays an active role in Amãna Takaful PLC, Sri Lanka.

Mr. Muhammad Ehsan Zaheed – Director

Mr. M. Ehsan Zaheed has been serving the Board since the inception. He is an Associate Member of The Institute of Chartered Accountants of Sri Lanka as well as the Society of Certified Management Accountants of Sri Lanka. He completed his articles at Ernst & Young. Having worked with several leading private sector financial bodies, Mr. Ehsan has had immense exposure in Sri Lanka and overseas.

Mr. Hareez Sulaiman - Managing Director/CEO

Mr. Hareez Sulaiman joined Amãna Takaful PLC in 2002 as the Internal Auditor and progressed through various positions. He currently serves as the Managing Director/CEO of Amãna Takaful (Maldives) PLC. He is an Associate Member of The Chartered Institute of Management Accountants (CIMA) - UK, and holds an Honours Degree in Accountancy from the International Islamic University of Malaysia.

Dr. Abdullah Shiham Hassan - Director

Dr. Abdullah Shiham Hassan was appointed to the Board on 20th March 2012. Dr. Shiham is a Senior Lecturer of the Faculty of Shari’ah and Law and the Head of the Law Department at Maldives National University. He is also a founder member of the Ministry of Islamic Affairs' Fiqh Academy of Maldives.

Additionally, he was an Advisor to the Maldives Monetary Authority (MMA) from 2008 to 2010, on the introduction of Islamic Finance in the Maldives. In 2009, he established the Institute of Islamic Finance Maldives (IIFM) and he is currently the Dean and a Lecturer of the institute.

Dr. Shiham holds a PhD in Law from the International Islamic University, Malaysia, specialising in Islamic Banking Regulation and Supervision. In addition to this, he also holds a Masters in Comparative Law from the International Islamic University, Malaysia, specialising in Islamic Insurance (Takaful) and attained his Bachelor of Law (Hons.) from the University of Tasmania, Australia.

Managing Director's ReviewBoard of DirectorsManagement Team


Management Team

11

Imran RamzanAssistant Manager - Marketing

Ifham SheriffManager - Sales and Distribution

Shakir MohamedSenior Accountant

Asif MuhammadhAssistant Manager - HR and Administration

Mohamed MushtaqSenior Executive - Underwriting

Rifaz AhamedAssistant Manager - Medical Takaful Operations


12

Product Portfolio

Amãna Takaful Travel PalAcross the seven seas and beyond nation states, this comprehensive solution for risks associated with international travel is specially designed for the globetrotter in you. From loss of luggage, documents and disrupted travel schedules to personal accident/medical. TAKAFUL Travel Pal will help to travel with absolute peace of mind with free access to airport lounge facilities at the Bandaranaike International Airport.

Amãna Takaful My HomeA home is more than a mere building. It is the showpiece of a lifetime decorated with memories of love, care and family. TAKAFUL My Home provides comprehensive cover for an array of potential risks, making sure that heart and home abide peacefully in each other. TAKAFUL My Home makes sure that your home is always in good hands.

Amãna Takaful Business CoverThe business you run needs to be up on its feet all the time. Getting things back on track after a loss is priority to keep up with the fast paced world of business. TAKAFUL Business Cover gives you and your business the green light to operate smoothly despite numerous unexpected calamities.

Amãna Takaful Total DriveThis is a motor insurance policy that cares not only for your vehicle, but also the ones you love and care about. Whilst giving you the benefits of the world’s most rewarding concept, TAKAFUL Total Drive makes sure that a part of your premiums are spent on initiatives making you a partner in the country’s efforts in building a better Maldives.

Amãna Takaful Easy MarineMaritime enterprise is fraught with all sorts of risks. TAKAFUL Easy Maritime is offered to you with speedy and efficient service ensuring a smooth sail for your business at any stage.

We let you relax whilst your goods are on the move.

Amãna Takaful Dhahanaa At a time where the cost of living is ever increasing and the less privileged in society distance themselves away from luxuries and are trying to meet their day’s end, we at Amãna Takaful developed TAKAFUL Dhahanaa to lend a helping hand. TAKAFUL Dhahanaa is Amãna Takaful’s Micro Product which offers the participant an annually reviewable death and disability cover.


13

Amãna Takaful Expatriate InsuranceThis cover is meant for expatriates working in the Maldives to support them at time of accident, sickness, illness or even unexpected surgeries could dent their plans and create additional stress. TAKAFUL Expat is designed to take care of all these possible setbacks and get them on the job as soon as possible.

Amãna Takaful Sailor Hull InsuranceMarine Hull Insurance covers loss or damage to hull and machinery. TAKAFUL Sailor is offered to you with two options Comprehensive and Total Loss cover for all types of hull with additional feature of passenger liability cover to travel peacefully. Also TAKAFUL Sailor provides specialised protection and indemnity cover for foreign going vessels for ship owners and charterers.

Management TeamProduct Portfolio

Sustainability Report


14

Sustainability Report

Amãna Takaful CaresAmãna Takaful Cares is our programme initiated to listen to the needs of the society around us and work with key partners in creating value. The programme draws its sense of direction from the solemn values of mutuality, partnership and contribution. This year too we strived to better than the last to help serve society.

Below are some of the activities we were involved in-

Blood Donation Camp

Often taken for granted, the value of blood in a human’s body cannot be priced. The thought of donating ones blood is sometimes faced with slight hesitation. However, this is not what we experience when a Blood Donation Camp was organised by Amãna Takaful (Maldives) PLC in collaboration with The National Blood Transfusion Services (NTBS) in November 2012. It was held at the Thalassemia Centre Building, Henveiru.

The camp was organised by Amãna Takaful (Maldives) PLC to reinforce the importance of ‘giving blood to help save lives’ together with harness awareness and support for the cause. It was launched based on feedback and encouragement received by blood donors. The event was more effective than expected attracting Maldivians and the expatriate community in large numbers that made this event a success.

Seminar on Investments

Amãna Takaful (Maldives) PLC believes in sharing, learning and insights with its clients. Although generally this confined to the topic of Risk Management, a unique project was under taken by the team in Maldives based on numerous requests by our clients. Amãna Takaful (Maldives) PLC organised value addition programmes for selected clients through sessions mainly focused on types of investments and how to engage in them. It was conducted by our senior staff members, who are specialist in investment and finance. Youth Challenge 2012 organised by the Maldives Monetary Authority and the Ministry of Human Resources, Youth and SportsContributing to the cause of educating the general public on financial institutes and their operations in the Maldives, Amãna Takaful (Maldives) PLC along with many other financial institutions took part in an event organised by Maldives Monetary Authority in ADh. Mahibadhoo island. Amãna Takaful (Maldives) PLC shared its expertise on the Takaful concept and its operational method with the participants and representatives of government ministries.


15

PromotionsThird Party Motor Takaful Promotion

Following the law passed in parliament making 3rd Party Insurance mandatory, Amãna Takaful (Maldives) PLC embarked on a campaign to educate the public and facilitate the issuance of the cover to customers for their ease.

Amãna Takaful (Maldives) PLC conducted various promotional activities and awareness programmes in Male’ and Hulhumale while stalls were opened in prominent locations to issue ‘3rd Party Stickers’ and provide information. These activities were continued for nearly a month to meet the demand.

Further, the Company extended its working hours till 10.00 p.m. during the second week of October for customer convenience.

Exhibitions and PromotionsAmãna Takaful (Maldives) PLC participated in exhibitions by having its stalls to mainly create awareness on the importance of insurance.

The events were extremely successful and many of the public were educated on the topic of insurance covers and particularly the impact of the law on 3rd Party Insurance.

SponsorshipsTeachers’ Day

OSED (Organisation for Students’ Education and Development) in collaboration with Student's Council of College of Islamic Studies organised an event to celebrate Teachers’ Day. This event was conducted to felicitate contributions made by teachers to society.

Amãna Takaful (Maldives) PLC was honoured to be a sponsor to support this worthy cause. The event was conducted at the Tsunami Monument area and began with a special Dua for the lecturers and teachers who have contributed for the success of students.

A walk was also conducted in lieu of Teachers’ Day. During the walk, all participants expressed feelings of gratitude and recognition to the teachers.

Product PortfolioSustainability Report

Corporate Governance


16

Maldives Police Sponsorship

During the period under review, Amãna Takaful (Maldives) PLC was privileged to sponsor the Traffic Unit of Maldives Police Service for projects carried out in various atolls aimed at creating awareness to the public.

The key objective of this awareness campaign was to educate the public on the role of traffic police, traffic regulations and the responsibility of the public in adhering to traffic regulations. Equipment for this purpose were handed over by Amãna Takaful (Maldives) PLC to Maldives Police Service in the presence of officials from both sides.

Training Course on Fundamentals of Islamic Capital MarketA Training Course on ‘Fundamentals of Islamic Capital Market’ jointly organised by the Capital Market Development Authority (CMDA) and Islamic Research and Training Institute (IRTI) of Islamic Development Bank (IDB), was sponsored by Amãna Takaful Maldives at Nasandhura Palace Hotel.

The training programme was meant to build capacity among stakeholders in the financial sector and prospective issuers of Islamic Securities.

Seminar - Dawn of Islamic Finance in the MaldivesA seminar was organised by Housing Development Finance Corporation (HDFC) PLC on Islamic Finance. The event saw the participation of foreign speakers who spoke on topics such as Economic Prosperity through Islamic Financial Products, Fundamentals of Islamic Financing and Legal and Regulatory Framework of Islamic Financing in Maldives. Amãna Takaful Maldives was privileged to be a sponsor of the event.

Human Resource - Talent Management UnitTraining and DevelopmentStaff training and development is one of the most integral pillars of our human resource management strategies, hence opportunities were created for the staff to participate in various workshops, seminars and long-term training programmes. The focus behind the training initiatives was to ensure that staff members are empowered with duties to face the growing challenges in the macro environment, as well as to diligently provide customer services.

Product PortfolioSustainability ReportCorporate Governance


17

During the year, we conducted a series of customised training programmes under a model named SMART. This unique training package was designed to develop staff members’ talent on Self-Development, Client Service, Team Development and Leadership Qualities.

In order to build team spirit and to support the achievements of the corporate goals and objectives, staff members were divided into teams and each team was periodically assigned different responsibilities in achieving outcomes.

The Company also focused on providing continuous knowledge enhancement of Shari’ah through the help of the Shari’ah Council and many other external programmes. This consistent knowledge sharing enable staff members to perform better in their day-to-day operations.

Corporate Mission Meeting (CMM)The objective of CMM is to share the ethos of the Company’s mission statement with the staff. The CMMs are being held every Tuesday mornings and staff are given opportunities to share their thoughts during the allocated sessions, which resulted in the proper understanding of the Company’s Mission Statement.

Professional Development Forum (PDF)The PDF was designed to improve professionalism through the learning and development of suitable qualities to enable career advancement.

Product PortfolioSustainability Report



18

Staff RecreationThe Amãna Takaful Welfare Association (ATWA) was established to organise recreational activities for our staff members. The Association organised exciting activities namely fishing trips, picnics, tours, volley ball tournaments and many other activities during the year.

In addition to ATWA activities, SMART teams organised activities to improve team spirit and competitiveness within teams. The Ramadan Quiz competition was also held and a trophy was handed over to the winning team.

During this time, the Company’s seventh anniversary was celebrated amongst staff members and seven activities were conducted within the team members to mark this special day.

Product PortfolioSustainability ReportCorporate Governance


19


With the increasing demands on the industry and business in itself, Amãna Takaful (Maldives) PLC strongly believes that it is vital to adopt the highest standard of corporate governance. This will help to nurture a culture of transparency, accountability and integrity which are essential traits in ensuring its sustained growth in a competitive market. As an Islamic financial institution, the very basic foundation of Amãna Takaful (Maldives) PLC is structured on all these values and attributes.

Essentially, corporate governance means a management process on how a corporate, business entity is directed, managed and controlled. It is a concept which is now increasingly gaining prominence in the business and corporate world. In any business organisation where the shareholders have placed the exercise of power in the hands of the Directors, it naturally follows that the Directors are accountable to the shareholders. To ensure that the trust placed in the Directors is secure, the organisation ought to adhere to the best corporate governance practices which embody integrity, accountability and transparency. Nevertheless, the success of any good governance practice initiative will depend on how the people are led and the policies as well as the processes are implemented.

Amãna Takaful (Maldives) PLC is committed to adopting best practices in its endeavour to create shareholders' wealth and other stakeholders' well-being, as well as gain market confidence. It is also committed towards maintaining a smooth functioning of its overall operations.

Capital Structure and ShareholdingAmãna Takaful (Maldives) PLC has at its foundation a capital structure consisting of an issued share capital of MVR 26,314,583/-.

The Company has 804 shareholders, while the majority shares are held by individuals. Details of the main shareholders are given on page 56.

Board of Directors and Board CommitteesThere are six Independent Non-Executive Directors on the Board of Amãna Takaful (Maldives) PLC. Its members have been drawn from a rich diversity of business and enterprise. Their expertise and experience in various fields as well as insights have contributed immensely to making effective and informed Board decisions. The selection of the appropriate and suitable candidates with the right skills, attributes and experiences is crucial in order to ensure its

efficiency and effectiveness. For it is believed that a healthy Board culture will help to encourage and safeguard good governance practices which in turn will ensure shareholders’ interests will always be protected. The names of the Board of Directors are given on page 23.

The main functions of the Board of Directors are as follows:

Formulate, review and monitor implementation of competitive business strategies including long-term business plans.

Ensure the appointment of a competent Chief Executive Officer and an effective management team including an evaluation of their performance, as well as review the Company’s and the Group’s succession plans.

Secure a sound and an adequate risk management system.

Review the integrity and effective information, control and audit systems.

Adopt business practices that conform to ‘Shari’ah’ Principles.

Approve policies of corporate conduct that continue to promote, maintain and sustain the integrity of the Company and the Group.

Ensure compliance with legal/ethical standards.

The responsibilities of the Chief Executive Officer and the Chairman have been clearly established, adhering to best corporate governance practices. The responsibility and task of the Chairman and the Chief Executive Officer are separated in order to establish checks and balances whilst at the same time facilitate better governance of the Company and the Group.

New Directors are nominated to bridge identified knowledge gaps. Such Directors are elected to the Board by shareholders at the Annual General Meeting. The Board meets quarterly and the agenda is circulated to the Board members well ahead of the scheduled date. The Chairman of the Board as well as members chairing the various committees of the Board will outline the agendas for the Board and committee meetings respectively. Each Director or Member is free to suggest items for the agenda or raise issues and concerns at these meetings.

Amãna Takaful (Maldives) PLC has outsourced its secretarial functions to a qualified company of secretaries.


20

The following committees of the Board have been formed with the objective of improving governance, viz:

(i) Audit and Compliance Committee

(ii) Risk Management Committee

(iii) Investment Committee

(iv) Remuneration Committee

(v) Nominating Committee

(vi) Executive Committee

Each committee has a defined Terms of Reference approved by the Board, outlining the respective committees’ authorities and responsibilities. The Board may, from time to time, establish and maintain additional committees. All members of these committees are expected to attend all meetings.

(i) The Audit and Compliance CommitteeThe Audit and Compliance Committee comprises four Independent Non-Executive Directors of the Board. This committee is chaired by Dato' Mohd Fadzli Yusof who is an Independent Non-Executive Director of the Company. The Chief Executive Officer, Finance Manager, other Senior Managers and Internal Auditors are invited to be present at the meetings. Exit meetings are held after each internal audit assignment with all concerned where actions to rectify any weakness described in the audit findings. The details of the Audit Committee are provided in the Report of the Board Audit and Compliance Committee on page 28 whilst the details of the composition of the committee are set out on page 23.

(ii) The Risk Management CommitteeThe Risk Management Committee of the Board comprises four Independent Non-Executive Directors and this committee is chaired by Dato’ Mohd Fadzli Yusof. The main function of this committee is to manage risks relating to Takaful in line with the risk appetite of Amãna Takaful (Maldives) PLC. The Committee also looks into risks associated with the operations, investments and business risks in general. The details of the Risk Management Committee are provided on page 30.

(iii) The Investment CommitteeThe Executive Committee (EXCOM) of the Company acts as the Investment Committee. The Committee recommends investment strategies including long term and maintains an investment portfolio that ensures not only in conformity with regulatory and ‘Shari’ah’ requirements but also endeavouring to match assets of the Company against its liabilities. The committee convenes its meetings thrice a year.

(iv) The Remuneration CommitteeThe Remuneration Committee is composed of three Independent Non-Executive Directors of the Board. This Committee is entrusted with the responsibility of maintaining a reasonable and competitive remuneration packages in line with the financial performance of the Company. The Committee regularly reviews and compares the overall executive compensation programme, benchmarking against the industry, for the determination of the Board. It also recommends the package for the Executive Director, the Chief Executive Officer and other Senior Officers of the management staff taking into cognisance the practice of the industry. In relation to this, the Remuneration Committee takes into consideration key result areas linked to the performance of the individual officer concerned relative to the target sets. Independent Directors may not receive, directly or indirectly, any consulting, advisory or other compensatory fees from the Company. Details of the composition of the Committee are set out on page 23.

Sustainability ReportCorporate GovernanceAnnual Report of the Board of Directors on the Affairs of the Company


21

Details of total aggregate remuneration of Directors/Top Management for the financial year under review are as follows:

Category Below MVR 100,000/-

MVR 100,000/- - MVR 200,000/-

MVR 200,000/- - MVR 400,000/-

MVR 400,000/- and above

Independent Non-Executive Directors

Tyeab Akbarally – – –

Osman Kassim – – –

Dato’ Mohd Fadzli Yusof – – –

M.H.M. Rafiq – – –

Ehsan Zaheed – – –

Dr. Abdullah Shiham – – –

Executive Director

Hareez Sulaiman – – –

Top Management – – –

Ethical StandardsAmãna Takaful (Maldives) PLC aspires to adopt the highest ethical standards which contain the following elements: Honesty and fairness Compliance with regulatory requirements Accountability - provision of accurate, timely and essential

information to stakeholders Avoiding conflict of interest Professional judgment Maintaining privacy and confidentiality of customer-related

information Corporate and Social Responsibility Maintaining best practices in marketing and advertising

The management encourages employees to adopt ethical practices during the weekly mission meetings.

Executive ManagementThe Chief Executive Officer deliberates strategic issues with Heads of Departments at weekly senior management meetings, in order to obtain feedback on the effective implementation of strategies. The entire executive staff is subjected to a performance evaluation biannually/annually.

Sustainability ReportCorporate Governance

Annual Report of the Board of Directors on the Affairs of the Company

(v) The Nominating CommitteeThe Nominating Committee has been given the responsibility to recommend new appointments to the Board. The Committee also reviews the effectiveness of the existing Board, the Committees of the Board and the contribution of each Director. Further, it assists the Board in reviewing the Board’s required mix of skills, experience and other qualities, including core competencies which Non-Executive Directors should bring to the Board.

Detailed composition of the Committee is set out in table shown hereunder :

(vi) Executive CommitteeThe Executive Committee or (EXCOM) is composed four members and is chaired by Ehsan Zaheed. The Committee is entrusted with the responsibility of monitoring the implementation of the business strategies of the Company. The members of the Committee are as follows:

1. Ehsan Zaheed - Chairman

2. Dr. Abdullah Shiham

3. Fazal Ghaffoor

4. Hareez Sulaiman


22

Internal ControlsThe Board of Directors acknowledge the imperative of a sound and strong internal control for the purpose of attaining good governance. The internal control system, among others, covers risk management and organisational, operational, financial, compliance and business development controls. Towards this end, the Board has entrusted the responsibility of establishing an effective internal control system to the Audit and Compliance Committee, which is also responsible for the regular monitoring of such controls. In addition, an in-house audit team of the Ultimate Parent Body, Amãna Takaful PLC, Sri Lanka conducts internal audit on the systems and various aspects of the operations in accordance with the risk-based principle. The findings are conveyed to the Audit Committee, which, in turn, briefs the Board on areas of concern.

Compliance with ‘Shari’ah’ RequirementsAmãna Takaful (Maldives) PLC takes the utmost care in adhering to ‘Shari’ah’ Principles. Shari’ah Unit set up by the Ultimate Parent Body, Amãna Takaful PLC, Sri Lanka internally to carry out quarterly reviews on the policies and operations of Amãna Takaful (Maldives) PLC. The Unit also conducts regular training programmes to members of staff in order to disseminate the knowledge of Shari’ah, in particular that relates to the operation of Takaful and Islamic finance in general. The Statement of Compliance is a part of the Annual Report and is provided on page 32.

Regulatory ComplianceThe Audit Committee is responsible for regulatory compliance. In addition, a Compliance Unit has been set up to monitor and investigate into all compliance-related matters across the organisation. It keeps a close track of all new legislative requirements, regulations and directives; and notify and guide the respective departments accordingly.

Amãna Takaful (Maldives) PLC is committed to the highest standard of compliance to due standards of disclosure, transparency, accountability and integrity requirements and any legislation relating thereto. The Company is in the process of establishing a Whistle-Blowing Policy with the main objective of providing an avenue for employees to raise concerns and define a way to handle any concerns of integrity and misconduct.

Relationship with StakeholdersThe Board of Directors disclose policy decisions and operations affecting shareholders through its Quarterly Disclosures and/or Annual Reports. The Board entertains questions from shareholders at Annual General Meetings ensuring shareholder participation and interaction.

The management holds weekly mission meetings at which employees are briefed of the policies, goals and values of Amãna Takaful (Maldives) PLC and their views and suggestions are sought and evaluated.

Amãna Takaful (Maldives) PLC believes in delighting its customers through an exemplary service credo. An interactive website provides access to the general public on the Company’s activities.

Sustainability ReportCorporate GovernanceAnnual Report of the Board of Directors on the Affairs of the Company


23

Corporate Governance Disclosures in Relation to Directors of the Company

Areas of Compliance Current Status Remarks

Board of Directors Independent Non-Executive Directors All the Independent Non-Executive Directors have submitted the annual declaration of their independence to the Board of Directors.

1. Tyeab Akbarally - Chairman2. Osman Kassim3. Dato’ Mohd Fadzli Yusof4. M.H.M. Rafiq5. Ehsan Zaheed 6. Dr. Abdullah Shiham Executive Director/s1. Hareez Sulaiman Does not serve as Non-Executive Director in any other

company

Remuneration Committee 1. Dato’ Mohd Fadzli Yusof - Chairman

2. M.H.M. Rafiq3. Tyeab Akbarally

Nominating Committee 1. Dato’ Mohd Fadzli Yusof - Chairman 2. M.H.M. Rafiq

3. Tyeab Akbarally

Audit Committee 1. Dato’ Mohd Fadzli Yusof - Chairman 2. M.H.M. Rafiq

3. Ehsan Zaheed4. Dr. Abdullah Shiham

Sustainability ReportCorporate Governance



24


The Directors are pleased to submit their Report together with the Audited Accounts for the Company, for the year ended 31st December 2012, to be presented at the Annual General Meeting of the Company.

Review of the YearThe Chairman’s Review on page 2 describes the Company’s affairs and mentions important events that occurred during the year. The Managing Director’s Review on page 5 elaborates the financial results of the Company. These reports together with the Audited Financial Statements reflect the state of the affairs of the Company.

Principal Activities The principal activity of the Company is General Takaful Business.

Financial Statements The Financial Statements are prepared in conformity with the International Financial Reporting Standards and comply with the requirements of Section 65 of the Companies Act No. 10 of 1996.

Independent Auditor’s ReportThe Auditor’s Report on the Financial Statements is given on page 35 of this Report.

Accounting PoliciesThe Accounting Policies adopted in preparation of the Financial Statements are given on page 42.

Financial Results and Appropriations Net Profit after Taxation of the Shareholders’ Fund for the year was MVR 4.5 Mn.

The Surplus of the General Takaful Fund for the year was MVR 4.2 Mn.

Property, Plant & EquipmentDuring the year under review the capital expenditure on Property, Plant & Equipment for the Company amounted to MVR 162 Thousand.

Information relating to movement in Property, Plant & Equipment during the year is disclosed under Note 10 to the Financial Statements.

InvestmentsDetails of Investments held by the Company are given in Note 8 to the Financial Statements on page 48.

ReservesTotal revenue reserves as at 31st December 2012 for the Company amounted to MVR 10.07 Mn. The breakup and the movement are shown in the Statement of Changes in Equity in the Financial Statements.

Share CapitalThe Share Capital of the Company as at 31st December 2012, was MVR 26,314,583 represented by 20,241,987 Ordinary Shares. The details of the Share Capital are given in Note 15 to the Financial Statements on page 51.

Contingent LiabilitiesThere were no material contingent liabilities outstanding as at 31st December 2012.

Post-Balance Sheet EventsThere were no material events occurring after the Balance Sheet date that require adjustments or disclosure in the Financial Statements.

Directors’ ResponsibilitiesThe Statement of the Directors’ Responsibilities is given on page 34 of the Annual Report.

Corporate GovernanceThe Company has complied with the Corporate Governance Rules laid down by the Capital Market Development Authority of Maldives. The Report on the Corporate Governance is given on page 19.

Statutory PaymentsThe Directors, to the best of their knowledge and belief, are satisfied that all statutory payments in relation to all relevant regulatory and statutory authorities have been paid within the stipulated period.


25

Material ContractsA Memorandum of Understanding has been entered in to between Amãna Takaful (Maldives) PLC and Amãna Global Ltd. Sri Lanka, with effect from 1st January 2011 for a period of 3 years for the provision of technical assistance in the areas of underwriting, Re-takaful services, investment management, information technology and other support services.

The following Directors of Amãna Takaful (Maldives) PLC are Directors of Amãna Global Ltd.:

Mr. Tyeab Akbarally

Mr. M.H.M. Rafiq

Mr. Ehsan Zaheed

Interests RegisterDirectors interest in contracts of the Company, both direct and indirect during the year under review are included in Note 20 in the related party disclosures to the Financial Statements.

Directors or the Chief Executive Officer do not have any other contracts or dealings with the Company, other than what is disclosed in this report.

Directors of the Company who were also Directors of related entities as at 31st December 2012:

Company Name of Director Position Relationship

Amãna Global Ltd., Sri Lanka Tyeab Akbarally Chairman Parent CompanyM.H.M. Rafiq DirectorEhsan Zaheed Director

Amãna Takaful PLC, Sri Lanka Tyeab Akbarally Chairman Ultimate Parent CompanyOsman Kassim DirectorDato’ Mohd Fadzli DirectorM.H.M. Rafiq DirectorEhsan Zaheed Director

Amãna Asset Management Ltd., Sri Lanka Tyeab Akbarally Chairman Related CompanyEhsan Zaheed Director

Amãna Capital Ltd., Sri Lanka Tyeab Akbarally Chairman Related CompanyEhsan Zaheed Director

First Option Pvt Ltd., Maldives Tyeab Akbarally Chairman Related CompanyEhsan Zaheed Director

Corporate GovernanceAnnual Report of the Board of Directors on the Affairs of the Company

Board Audit and Compliance Committee Report


26

Board CommitteesAudit CommitteeFollowing are the names of the Directors comprising the Audit Committee of the Board:

1. Dato’ Mohd Fadzli Yusof - Chairman

2. Mr. M.H.M. Rafiq

3. Mr. Ehsan Zaheed

4. Dr. Abdullah Shiham

Remuneration Committee and Nominating CommitteeFollowing are the names of the Directors comprising the Remuneration Committee and Nominating Committee of the Board:

1. Dato’ Mohd Fadzli Yusof - Chairman

2. Mr. M.H.M. Rafiq

3. Mr. Tyeab Akbarally

The particulars of the Remuneration Committee and Nominating Committee are mentioned in the Corporate Governance Report on page 20.

Share Information and Substantial ShareholdingsThe distribution of shareholding, market value of shares are given on page 56.

The earnings per share, dividends per share, net assets per share are given on page 56.

Directors The Directors of the Company during the year are as follows:

Date ofAppointment

Date ofResignation

Mr. Tyeab Akbarally 18.05.2005 –

Mr. Osman Kassim 18.05.2005 –

Dato’ Mohd Fadzli Yusof 18.05.2005 –

Mr. M.H.M. Rafiq 18.05.2005 –

Mr. Ehsan Zaheed 18.05.2005 –

Dr. Abdullah Shiham 20.03.2012 –

Mr. Hareez Sulaiman 20.05.2012 –

Brief profiles of the Directors are given on page 10 of this Annual Report.

Directors’ ShareholdingThe interest of the Directors in the shares of the Company as at 31st December 2012 were as follows:

No. of Ordinary Shares as at

31.12.2012

Mr. Tyeab Akbarally Nil

Mr. Osman Kassim Nil

Dato’ Mohd Fadzli Yusof Nil

Mr. M.H.M. Rafiq Nil

Mr. Ehsan Zaheed 200

Abdullah Shiham 100

Hareez Sulaiman 1,380

Independence of DirectorsParticulars of Independent Directors are mentioned in the Corporate Governance Report on page 23.

Board MeetingsThe composition of the Board, together with details of attendance of each member at meetings during the period under review, are as follows:

No. of MeetingsApplicable

Attended

Mr. Tyeab Akbarally - Chairman 3 1

Mr. Osman Kassim 3 2

Dato’ Mohd Fadzli Yusof 3 3

Mr. M.H.M. Rafiq 3 3

Mr. Ehsan Zaheed 3 3

Dr. Abdullah Shiham 3 2

Mr. Hareez Sulaiman 2 2

Corporate GovernanceAnnual Report of the Board of Directors on the Affairs of the CompanyBoard Audit and Compliance Committee Report


27

Going ConcernThe Directors, after making necessary inquiries and review of the financial position and future prospects of the Company, have a reasonable expectation that the Company has adequate resources to continue to be in operational existence for the foreseeable future. Therefore, the going concern basis is adopted in the preparation of the Financial Statements.

AuditorsThe resolutions to appoint the present Auditors, Messrs Ernst & Young, Chartered Accountant, who have expressed their willingness to continue in office, will be proposed at the Annual General Meeting.

The Audit and non-audit fees paid to the Auditors is disclosed in the Note 4.2 on page 46.

As far as the Directors are aware, the Auditors do not have any relationship on interest in the Company.

The Audit Committee reviews the appointment of the Auditors, its effectiveness and its relationship with the Company including the level of audit and non-audit fees paid to the Auditors. Details on the work of the Audit Committee are set out in the Audit Committee Report.

Notice of Annual General MeetingThe Annual General Meeting will be held on 28th April 2013 at 2.30 p.m. at Nasandhura Palace Hotel, Male’, Maldives.

The Notice of the Annual General Meeting appears on page 58.

For and on behalf of the Board,

Hareez SulaimanManaging Director/CEO

Ehsan ZaheedDirector

M.N.M. ShameelPartnerFor and on behalf ofKPMGSecretaries

Amãna Takaful (Maldives) PLC4th April 2013Male’

Corporate GovernanceAnnual Report of the Board of Directors on the Affairs of the Company



28


CompositionThe Board Audit and Compliance Committee, appointed by and answerable to the Board of Directors, comprises (as at the date of this Annual Report) four members who are Independent Non-Executive Directors. The Committee is made up of members who bring their varied expertise, experience and knowledge to effectively carry out their duties. The Committee meets at least four (4) times a year, usually at quarterly intervals, to review and approve the annual external and internal audit plans; ensure the independence and objectivity of the external auditors; review the internal audit process, adequacy of internal controls and assess the transactions of related parties. In addition, the Committee also plays the role of a platform for the Management to raise concerns on possible irregularities for investigation.

The composition of the Committee and details of attendance of each member at meetings of the Committee during the period under review are as follows:

Members No. of Meetings Attended

1. Dato’ Mohd Fadzli Yusof (Chairman) 4 out of 4

2. M.H.M Rafiq 4 out of 4

3. Mr. M. Ehsan Zaheed 4 out of 4

4. Dr. Abdullah Shiham 2 out of 3

Dr. Abdullah Shiham Hassan, an Independent Non-Executive Director was appointed to the Board on 20th March 2012. Agendas and reports to be tabled and deliberated at the meetings were prepared and distributed sufficiently in advance to members, along with the appropriate briefing materials.

The Managing Director (MD) attended all the meetings of the Committee during the period under review. The Manger, Internal Audit Department also attended all meetings in the capacity of Secretary to the Audit Committee. Other members of the Management were also invited to attend the meeting when required.

Objectives, Duties and Responsibilities The key objectives of the Audit Committee are;

To satisfy themselves that the good financial reporting system is in place in order to present accurate and timely financial information to the Board of Directors, regulators and shareholders and to make sure that these are prepared in accordance with International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) and other relevant laws and regulations

To satisfy themselves of the effectiveness of the Company’s risk management process in order to identify and mitigate risks.

To review the design and implementation of the internal control system and take steps to strengthen them as necessary.

To ensure that the contact of the business is in compliance with the applicable laws and regulations of the country and the policies and procedures of the Company.

To assess the independence of the External Auditors and monitor the performance of Internal and External Auditors.

To assess the Company’s ability to continue as a going concern in the foreseeable future.

The primary duties and the responsibilities of the Committee are as follows:

1. Review the adequacy of the internal audit programme and plan, internal audit findings and recommend actions to be taken by the Management of deficiencies in controls, processes and procedures.

2. Assessment of the independence and performance of the Company’s External Auditors.

3. Review the Management Letter and follow-up on its recommendations.

4. Ensure preparation and presentation of financial reports in line with accounting standards and ensuring the adequacy of disclosure in such reports.

5. Review the effectiveness of internal controls and risk management processes.

6. Ensure compliance with regulatory affairs and corporate governance.


29

Internal AuditThe internal audit functions of the Company are undertaken by the Internal Audit Department. The Department presented to the Committee the Comprehensive Audit Plan for the financial year under review, and instructed the Internal Auditors on the approach to be adopted in their auditing processes. Apart from the Audit Plan, the Committee also instructed the Auditors to carry out investigation, inspection and auditing on certain issues deemed necessary to maintain and ensure the adequacy and effectiveness of internal controls and principles of best practice.

The Committee deliberated and reviewed a number of internal audit reports on a multitude of operational areas such as reinsurance (Retakaful), various types of reserve including technical reserve, claims and underwriting as well as treasury matters. To ensure key decisions and recommendations of the Committee were efficiently implemented a process of follow-up programmes had been put in place.

External AuditThe Committee reviewed the Management Letter and other recommendations submitted by the External Auditors, Ernst & Young and followed up the issues raised, during the financial year under review.

The Committee further made recommendations in relation to the remuneration, functions and terms of engagement of the External Auditors, particularly in relation to their auditing work.

Provision of Non-Audit ServiceThe Committee is responsible for reviewing the nature of non-audit services that the External Auditors may undertake in order to ensure that the Auditor’s independence is not impaired in such circumstances.

ConclusionThe Committee is satisfied that effective measures, in respect of internal control of the Company, are in place. The accounting standards are duly followed and the activities and the functions of the Company are in compliant with regulatory and statutory requirements. The Committee is also comfortable that the assets of the Company have been adequately safeguarded, and the requirements of independence of Internal and External Auditors are met. With the transparent and appropriate relationship established with the External Auditors, the latter have an obligation to raise and highlight any significant defects or weaknesses in the Company’s system of internal control and compliance to the attention of the Management, the Committee and the Board. On the whole, the Committee strongly believes that the Company is in the right direction in terms of Corporate Governance and Best Practices.

Dato’ Mohd Fadzli YusofChairmanAudit and Compliance Committee 4th April 2013

Annual Report of the Board of Directors on the Affairs of the CompanyBoard Audit and Compliance Committee Report

Risk Management Committee Report


30

Risk Management Committee Report

Risk Management Framework at Amãna Takaful (Maldives) PLC (ATM)Essentially, the Board is responsible for establishing and embarking upon a sound Risk Management policy for the Company to efficiently manage its risks. It ensures that the Company’s risks are appropriately identified, evaluated and effectively managed through ongoing systems and continuous processes. The overall risk management framework of ATM can be seen from the organised structure of internal controls put in place by the Board. By this structure of internal controls the Board discharges its responsibility through a number of Board Committees such as Audit, Risk Management, Investment and Remuneration. Risk management is carried out in accordance with ATM’s defined business process and Takaful operation. Through these various committees the Board will deliberate, consider and decide issues related to risks faced by the Company and monitor its development. Notwithstanding the responsibility of the Board, risks related initiatives are undertaken and performed at all levels of business units.

The Risk Management Committee of the Board (RISCO) was established in June 2011.

Membership of RISCOThe membership of RISCO comprises of four (4) Independent Non-Executive Directors.

MembersFor the period under review, the members are as follows:

1. Dato’ Mohd Fadzli Yusof (Chairman) - Independent Non-Executive Director

2. Mohamed Haniffa Mohamed Rafiq - Independent Non-Executive Director

3. Ehsan Zaheed - Independent Non-Executive Director

4. Dr. Abdullah Shiham - Independent Non-Executive Director

QuorumThe quorum for the meeting is three (3) members.

ObjectiveThe primary objective of RISCO is to manage a wide range of risks pertinent to a Takaful Operator or an Islamic Insurance Operation. In relation to this, the RISCO inter-alia focuses into risk factors associated with the operation, finance, investment and other business risks in general.

In relation to this, the RISCO is also responsible to identify, analyse, recommend and monitor strategic wide Risk Management for ATM. In this respect, Amãna Takaful (Maldives) PLC is required to-

a. Safeguard its assets and resources.

b. Maintain its reputation and integrity, among all its stakeholders.

c. Optimise the return and minimise impact to, and protect the interests of all stakeholders including shareholders, participants, intermediaries and staff.

d. Meeting regulatory requirements of both internal and external authorities.

e. Improve strategic competitiveness and operational effectiveness that would enhance the long-term value of the stakeholders.

f. Fulfil ATM’s strategic objectives

g. Ensure that the ATM keep up with AAOIFI standards based on the rulings of its Shari’ah Advisory Council, as long as they do not contravene with local regulations.

h. Maintain and highlight value of service as ethical insurance provider.


31

Duties and ResponsibilitiesThe primary duties and responsibilities of the RISCO are as follows:

a. Reviewing and recommending risk management strategies, policies and risk tolerance for the approval of the Board;

b. Reviewing and assessing the adequacy of risk management policies and framework for identifying, measuring, monitoring and controlling risks as well as the extent to which these are operating effectively ;

c. Ensuring adequate infrastructure, resources and system are in place for an effective risk management i.e., ensuring that the staff responsible for implementing risk management system perform those duties independently of the Takaful operator’s risk taking activities; and

d. Reviewing the Management’s Periodic Reports on risk exposure, risk portfolio composition and risk management activities.

MeetingThe mandate for the RISCO is to undertake regular meetings, at least once in every quarter and the reporting should be directed to the Board. During the first two Quarters, the roles and responsibilities of the RISCO of Amãna Takaful (Maldives) PLC had been assumed by the RISCO of the Group, entrusted with Amãna Takaful PLC, Sri Lanka. All reports pertaining to the risks and findings were tabled at and deliberated by the latter.

In relation to the above, during the year under review, the Committee convened its meeting four (4) times, at quarterly intervals.

Board Audit and Compliance Committee ReportRisk Management Committee Report

Report of the Shari’ah Advisory Council

Chairman’s RemarkRISCO expresses its satisfaction that effective measures have been in place to deal with an appropriate risk management process of Amãna Takaful (Maldives) PLC. It was able to identify the risk factors, and in line with this developed a Risk Management Manual, taking into account of all possible risks associated with the business activities. The RISCO and the Board believe that ATM is in the right direction in terms of developing a sound system and process to manage and mitigate these risk factors.

Dato’ Mohd Fadzli YusofChairmanRisk Management Committee 4th April 2013


32

Report of the Shari’ah Advisory Council

We have examined the whole operations including the investments of Amãna Takaful (Maldives) PLC, (the"Company'') for the year 2012. We have also conducted our review to form an opinion as to whether the Company has complied with Shari'ah Rules and principles and also with the specific fatwas, regulations and guidelines issuedby us.

Management's Responsibility for the Financial StatementsThe Company's management is responsible for ensuring that the financial institution conducts its business in accordance with lslamic Shari'ah Rules and Principles. Our responsibility as the Shari'ah Committee is to form an independent opinion, based on our review of the operations of the Company, and to report to you.

Scope of Audit and Basis of Opinion The scope of our audit primarily involves the review of Company's compliance with the Shari'ah Regulations and Guidelines. Our review also includes examining, on a test basis of each type of product in relation to issuance compensations and accountings.

Opinionln our opinion and to the best of our information and belief and according to the explanations given to us:

(a) The transactions undertaken by the Company, during the year 2012, were in accordance with the guidelines prescribed by the Shari'ah Advisory Council and in conformity with the requirements of Takaful Regulations;

(b) Muslim Shareholders are advised to disburse Zakaah on their shares as per the lslamic Laws of Zakaah.

We seek Allah the Almighty to grant us all success and straight-forwardness.

Ash-Sheikh M.M.A. MubarakChairman - Shari’ah Advisory Council

Mufti M.I.M. RizweMember - Shari’ah Advisory Council

Ash-Sheikh M. Fazil FarookMember - Shari’ah Advisory Council

Ash-Sheikh Murshid MulaffarSecretary - Shari’ah Advisory Council

Ash-Sheikh IyazMember - Shari’ah Advisory Council

Financial Reports

Statement of Directors’ Responsibilities 34Independent Auditors’ Report 35

Income Statement 36Statement of Financial Position 37Statement of Changes in Equity 38

Statement of Cash Flow 39Segmental Analysis - Income Statement 40

Segmental Analysis - Statement of Financial Position 41Notes to the Financial Statements 42


34

Statement of Directors’ Responsibilities

This statement sets out the responsibilities of the Directors in relation to Financial Statements of the Company. The Directors confirm that the Financial Statements for the year 2012 prepared and presented in this Annual Report are consistent with the requirements of the Companies Act No. 10 of 1996. In preparing the Financial Statements, the Directors have adopted appropriate accounting, principles and policies and where relevant, disclosed and explained material departures, if any. The Directors ensure that applicable accounting standards have been followed and that the judgments and estimates provided are reasonable and prudent and provide a true and fair view of the state of affairs as well as the profitability of the Company. The Directors also state that the Financial Statements are prepared on a going concern basis and a review of the Company’s performance indicates that the Company has adequate resources to continue in operation.

The Directors have taken proper and sufficient care to ensure the maintenance of adequate accounting records in conformity with the applicable provisions and any other legislations including the Companies Act No. 10 of 1996 to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The Company possesses an effective internal audit system commensurate with the size and nature of its business. Steps have also been taken to ensure that proper records are maintained and the information generated is reliable.

It is the responsibility of the Directors to provide the Auditors every opportunity to carry out necessary audit work to enable them to present their audit report. The Directors, are satisfied that all statutory payments in relation to all relevant regulatory and statutory authorities which were due and payable by the Company as at the Balance Sheet date have been paid or where relevant provided for.

The Directors are of the view that they have to the best of their knowledge, discharged their responsibilities as set out in this statement.

For and on behalf of the Board,

Tyeab Akbarally Chairman

Male’, Republic of Maldives4th April 2013


35

Independent Auditors’ Report

AHF/TK

To the Shareholders of Amãna Takaful (Maldives) PLC

We have audited the accompanying financial statements of Amãna Takaful (Maldives) PLC which comprise the statement of financial position as at 31 December 2012 and the income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.

This report is made solely to the company’s members, as a body, in accordance with section 71 of the Companies Act No. 10 of 1996. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. Therefore, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these amalgamated financial statements in accordance with International Financial Reporting Standards. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of amalgamated financial statements that are free from material misstatement, whether due to fraud or error ; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate for the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Unqualified OpinionIn our opinion the financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2012, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

06 March 2013Male’

E YRNST& OUNGG. Shafag, 2 Floor

nd

Rahdhebai MaguMaléRepublic of Maldives

Chartered Accountants

[email protected]

: +960 3341743, +960 3326799: +960 3320748

Partners : A D B Talwatte FCA FCMA W R H Fernando FCA FCMA M P D Cooray FCA FCMA H M A Jayesinghe FCA FCMAD K Hulangamuwa FCA FCMA LLB (Lond) A Herath FCA

Residential Partners: A H Fawzy FCA FCMA FCCA M Rengaraj ACA ACMA


36

Income Statement

Year ended 31st December 2012 2011Notes MVR MVR

Gross written contribution (premium) 3 71,466,628 43,085,959 Less: Contribution (premium) ceded to reinsurers (net of retakaful commission income) 3 (31,771,106) (15,679,735)Wakalah (management) fee income – –

Net written contribution (premium) 39,695,522 27,406,224

Net change in reserve for unearned contribution (premium) 17.1 (4,574,792) (6,064,610)Net earned contribution (premium) 35,120,730 21,341,614 Benefits, losses and expensesTakaful (insurance) claims and benefits (net of reinsurance recoveries) 3 (14,471,175) (8,528,898)Acquisition cost (including administrative incentive) (1,398,801) (896,019)Underwriting results 19,250,754 11,916,697

Other RevenueInvestment income 3.1 1,054,393 54,682 Other income 3.2 1,834,386 1,898,475

ExpensesOther operating, investment related and administrative expenses 4 (11,544,077) (10,064,619)Amortisation 5 (322,066) (241,551)Selling and distribution cost – (252,519)Profit before taxation 10,273,390 3,311,165

Business profit tax 6 (1,571,535) (90,489)Profit for the year 8,701,855 3,220,676

Earnings per share 7 0.43 0. 32

The accounting policies and notes on pages 42 through 55 form an integral part of the Financial Statements.

37


Statement of Financial Position

As at 31st December 2012 2011Notes MVR MVR

AssetsInvestments 8 41,165,303 13,972,449 Intangible assets 9 2,012,934 2,335,002 Property, plant & equipment 10 346,435 360,785 Deposit with Maldives Monetary Authority 2,000,000 2,000,000 Contribution (premium) receivables 11 5,348,022 8,108,209 Other assets 12 3,854,976 536,835 Deferred tax assets 6.2 – 31,978 Amounts due from related parties 13 1,262,036 313,428 Cash and cash equivalents 14 4,748,003 19,262,128 Total assets 60,737,709 46,920,814

Equity and liabilitiesShareholders' equityIssued share capital 15 26,314,583 26,314,583 Revenue reserves 16 10,725,963 3,358,710 Total equity 37,040,546 29,673,293

LiabilitiesDeferred tax liabilities 6.2 146,975 – Takaful (insurance) contract liabilities 17 13,497,402 6,668,585 Retakaful (reinsurance) payables 6,145,917 7,308,247 Amounts due to related parties 18 – 852,797 Other liabilities 19 3,906,869 2,417,892 Total liabilities 23,697,163 17,247,521 Total equity and liabilities 60,737,709 46,920,814

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board by,

Tyeab Akbarally Hareez Sulaiman Shakir MohamedChairman Managing Director/CEO Senior Accountant/Head of Finance


6th March 2013Male’

38


Statement of Changes in Equity

Year ended 31st December 2012 ShareCapital

SharePremium

WAQFFund

RetainedEarnings

TotalEquity

MVR MVR MVR MVR MVR

Balance as at 1st January 2011 10,241,024 – – 138,034 10,379,058 Transferred to the WAQF fund – – 1,542 (1,542) – Increment of the par value of existing shares 160,016 – – – 160,016 Issued & fully paid up capital as at 30th April 2011 10,401,040 – 1,542 136,492 10,539,074 Initial public offering (800,000 shares) 1,040,000 14,960,000 – – 16,000,000 Balance as at 19th November 2011 (after IPO) 11,441,040 14,960,000 1,542 136,492 26,539,074 Bonus issue (utilising the premium from the IPO) 14,873,543 (14,873,543) – – – Excess of share premium set-off against share issue expenses

– (86,457) – – (86,457)

Profit for the year – – – 3,220,676 3,220,676 Balance as at 31st December 2011 26,314,583 – 1,542 3,357,168 29,673,293 Final dividend - 2011 – – – (676,738) (676,738)Interim dividend - 2012 – – – (657,865) (657,865)Profit for the year – – – 8,701,855 8,701,855 Balance as at 31st December 2012 26,314,583 – 1,542 10,724,420 37,040,545


39


Statement of Cash Flow

Year ended 31st December 2012 2011MVR MVR

Operating activitiesProfit for the year 8,701,855 3,220,676 Non-cash adjustment to reconcile profit to net cash flows Amortisation of intangible assets - software 322,066 241,551 Depreciation 173,806 143,524 Loss on disposal of property, plant & equipment 2,481 – Increment of the par value of existing shares – 33,364 Working capital adjustments: Decrease in deferred tax assets 31,978 – Increase in deferred tax liabilities 146,975 – Increase in contribution (premium) receivables 2,760,187 2,268,449 Increase/(decrease) in other assets (3,318,141) 5,018,066 Increase in takaful contract liabilities 6,828,817 6,668,585 Increase/(decrease) in retakaful (reinsurance) payable (1,162,322) 7,308,247 Increase/(decrease) in other liabilities 154,374 1,390,230 Decrease in amounts due to/from related parties (1,801,405) (15,168,635)Net cash flows from operating activities 12,840,671 11,124,057

Investing activities Investment in financial asset (27,192,854) (13,302,257)Acquisition of property, plant & equipment (161,942) (174,556)Acquisition of intangible assets – (2,576,554)Net cash used in investing activities (27,354,796) (16,053,367)

Financing activities Proceeds from issuance of share capital – 16,000,000 Net cash flows from financing activities – 16,000,000

Net Increase in cash and cash equivalents (14,514,125) 11,070,690

Cash and cash equivalents at 1st January 19,262,128 8,191,438

Cash and cash equivalents at 31st December (Note 14) 4,748,003 19,262,128


40


Segmental Analysis - Income Statement

Year ended 31st December 2012 General Takaful Shareholders'Fund Fund Adjustments ConsolidatedMVR MVR MVR MVR

Gross written contribution (premium) 71,466,628 – – 71,466,628 Less: Contribution (premiums) ceded to retakaful - [net of retakaful (reinsurance) commission income] (31,771,106) – – (31,771,106)Net written contribution (premium) 39,695,522 – – 39,695,522 Net changes in reserve for unearned contribution (4,574,792) (4,574,792)Net earned contribution (premium) 35,120,730 – – 35,120,730

Benefits, losses and expensesTakaful (insurance) claims and benefits - (net of retakaful recoveries) (14,471,175) – – (14,471,175)Acquisition cost (including administrative incentive) – (1,398,801) – (1,398,801)Underwriting results 20,649,555 (1,398,801) – 19,250,754

Wakalah fee – 15,253,331 (15,253,331) –

Other revenueInvestment income 476,343 578,050 – 1,054,393 Other income – 1,834,386 – 1,834,386

21,125,898 16,266,966 (15,253,331) 22,139,533 Direct expensesWakalah fee (15,253,331) – 15,253,331 –

ExpensesStaff cost – (5,532,544) – (5,532,544)Establishment expenses – (2,339,821) – (2,339,821)Sales and marketing expenses – (523,480) – (523,480)Administration expenses (521,788) (2,452,638) – (2,974,426)Depreciation (173,806) – (173,806)Amortisation (322,066) – – (322,066)

(16,097,185) (11,022,289) 15,253,331 (11,866,143)

Profit from operation 5,028,713 5,244,677 – 10,273,390 Business profit tax (854,006) (717,529) – (1,571,535)Profit for the year 4,174,707 4,527,148 – 8,701,855

41


Segmental Analysis - Statement of Financial Position

Year ended 31st December 2012 General Takaful Shareholders'Fund Fund Adjustments ConsolidatedMVR MVR MVR MVR

AssetsInvestments 20,317,071 20,848,232 – 41,165,303 Intangible assets 2,012,934 – – 2,012,934 Property, plant & equipment – 346,435 – 346,435 Deposit with Maldives Monetary Authority 2,000,000 – – 2,000,000 Contribution (premium) receivable 5,348,022 – – 5,348,022 Wakalah fee receivable 5,401,403 (5,401,403) – Other assets 417,783 3,437,193 – 3,854,976 Inter-fund receivable 2,182,776 (2,182,776)Amounts due from related parties 142,784 1,119,252 – 1,262,036 Cash and cash equivalents 3,949,017 798,986 – 4,748,003 Total assets 34,187,611 34,134,277 (7,584,179) 60,737,709

Equity and liabilitiesShareholders' equityIssued share capital – 26,314,583 – 26,314,583 Revenue reserve 6,169,466 4,556,497 – 10,725,963 Total equity 6,169,466 30,871,080 – 37,040,546

LiabilitiesDeferred tax liabilities 173,113 (26,138) 146,975 Takaful contract liabilities 13,497,402 – – 13,497,402 Retakaful payable 6,145,917 – – 6,145,917 Wakalah fee (management fee) payable 5,401,403 – (5,401,403) – Inter fund payable 2,182,776 – (2,182,776) – Other liabilities 617,534 3,289,335 – 3,906,869 Total liabilities 28,018,145 3,263,197 (7,584,179) 23,697,163 Total equity and liabilities 34,187,611 34,134,277 (7,584,179) 60,737,709

42


Notes to the Financial Statements

1. Corporate InformationGeneralAmãna Takaful (Maldives) PLC (“Company”) is a public limited liability Company incorporated and domiciled in Maldives. The registered office of the Company is located at H. Mialani, 3rd Floor, Sosun Magu, Male’, Republic of Maldives.

Up to 4th March 2010, the Company had its local agent HMS Maldives Pvt Ltd. who had obtained a temporary license from Maldives Monetary Authority to carry out the insurance business in Republic of Maldives in the capacity of an agent of Amãna Takaful PLC, Sri Lanka.

On 4th March 2010, Amãna Takaful (Maldives) PLC was granted a license from Maldives Monetary Authority, the regulator for insurance in the Maldives, to write general insurance business after cancelling the temporary license issued to HMS Maldives Private Ltd.

Further, on 23rd March 2011, ongoing public, Amãna Takaful (Maldives) Pvt Ltd. re-registered the Company with Ministry of Economic Development as a public limited liability company in the name of Amãna Takaful (Maldives) PLC.

Principal Activities and Nature of OperationsDuring the year, the principal activity of the Company was providing Takaful, Shari’ah compliance insurance solutions.

Parent EnterpriseThe Company’s parent undertaking is Amãna Global Ltd. and ultimate parent undertaking is Amãna Takaful PLC - Sri Lanka.

Basis of PreparationThe Financial Statements are prepared under the historical cost convention in accordance with International Financial Reporting Standards. No adjustment is made for inflationary factors affecting these Financial Statements.

2. Summary of Significant Accounting PoliciesConversion of Foreign Currencies All foreign currency transactions are converted to Maldivian Rufiyaa, which is the reporting currency at the rates of exchange prevailing at the time the transactions were effected. Monetary assets and liabilities denominated in foreign currencies are translated to reporting currency at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities are translated using exchange rate that existed when the values were determined. The resulting gains and losses are accounted for in the Income Statement.

Prepaid ExpenditureExpenditure which is deemed to have a benefit or relationship to more than one reporting period is classified as prepaid expenditure. Such expenditure is written off over the period, to which it relates, on a straight-line basis.

ReceivablesContribution (premium) receivables are stated at the amounts they are estimated to realise net of provision for impairment of bad and doubtful receivables.

Other receivables and dues from related parties are recognised and carried at cost less impairment losses on any uncollectible amounts.

Taxation(a) Business TaxThe Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the Maldives. Provision for income tax is based on the elements of income and expenditure as reported in the Financial Statements and is computed in accordance with the provisions of the relevant tax statutes.

(b) Deferred Tax Deferred income tax is provided, using the liability method, on temporary differences at the Balance Sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised. The carrying amount of deferred income tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

43


Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the Balance Sheet date.

Cash and Cash EquivalentsCash and cash equivalents are comprise of cash at banks and cash in hand.

For the purpose of cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above.

Property, Plant & EquipmentProperty, Plant & Equipment is stated at cost, excluding the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment in value. Such cost includes the cost of replacing part of such plant & equipment when that cost is incurred if the recognition criteria are met.

The cost of the self-constructed assets includes the cost of materials, direct labour cost and appropriate proportion of production overheads. The cost of Property, Plant & Equipment acquired by the Company includes cost of acquisition together with any incidental expenses incurred in bringing the assets to its working condition for the intended use.

When a major inspection of plant and machinery is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are met.

Depreciation on Property, Plant & Equipment of the Company is charged on a straight-line basis to write off the cost over the estimated useful life of the assets as follows:

Furniture and fittings 20%

Computer equipments 33.33%

Other equipments 25%

Motor vehicles 25%Intangible assets 12.5%

Impairment of AssetsThe Company assesses at each reporting date whether there is an indication that an assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount. An asset recoverable amount is the higher of an asset’s

or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflect current market assessments of the time value of money and the risk specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.

Investment - Quoted Shares and GoldThese investments are marked to market at the Balance Sheet date. Unrealised gains and losses are carried at market value i.e. changes to market value are adjusted through the Income Statement as a credit or charge to reflect the investment at the current market value.

Takaful (Insurance) Contract Liabilities and Other LiabilitiesLiabilities for, Takaful (insurance) contract liabilities and other liabilities, which fall due for payment on demand or within one year from the closing, date.

Takaful contract liabilities and other liabilities are also carried at cost.

Events after the Reporting DateAll material events after the reporting date have been considered and where appropriate adjustments or disclosures have been made in the respective notes to the Financial Statements.

Capital Commitment and ContingenciesCapital commitment and contingent liabilities of the Company are disclosed in the Financial Statements.

Retakaful (Reinsurance) and Contribution (Premium) ReceivableAll contribution (premium) and other receivable assets are recognised at the amounts receivable, as they are due for settlements within 90 days from the date of recognition. Collectability of the contributions and other debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectible, are written off. A provision for doubtful debts is raised when some doubts as to collection exists and in any event when the debt is more than 180 days overdue, to the extent that any relevant contribution (premium) has been earned.

Segmental Analysis - Statement of Financial PositionNotes to the Financial Statements

Share Information

44


Revenue RecognitionRevenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable net of trade discounts and sales taxes. The following specific criteria are used for the purpose of recognition of revenue:

(a) Wakalah Fee (Management Fee)Wakalah Fee (Agency/Management Fee) on Takaful Contribution (Insurance Premium)The Shareholders’ Fund is entitled for management fee on every Takaful Contribution (insurance premium) received in respect of the business received during the year on pre agreed rate. Share of Profit on Investment IncomeThe Shareholders' Fund is entitled for 50% of investment income.

(b) Investment IncomeShare of Profit (Interest Income) on Investments with Islamic BankIncome is recognised on cash basis since the Company cannot reliably estimate the same.

Other Investment IncomeAll other investment income is recognised on an accrual basis.

(c) Interest Income on Deposit with Maldives Monetary AuthorityInterest income is recognised on accrual basis. The basis of recognition of interest income is discussed under Note 3.2 in the Financial Statements.

All authorised insurance undertaking, whether life or general insurance shall at all times maintain a deposit of MVR 2,000,000/- with Maldives Monetary Authority (the Authority), for each type of insurance (life or general insurance) the undertaking is authorised to engage in.

Expenditure RecognitionExpenses are recognised in the Income Statement on the basis of a direct association between the cost incurred and the earning of specific items of income. All expenditure incurred in the running of the business and in maintaining the Property, Plant & Equipment in a state of efficiency has been charged to income in arriving at the profit for the year.

Expenditure incurred for the purpose of acquiring, expanding or improving assets of a permanent nature by means of which to carry on the business or for the purpose of increasing the earning capacity of the business has been treated as capital expenditure.

For the purpose of presentation of Income Statement, the Directors are of the opinion that nature of expenses method presents fairly the elements of the Company’s performance, and hence such presentation method is adopted.

Segmental Analysis - Statement of Financial PositionNotes to the Financial StatementsShare Information

45



3. Gross Written Contribution (Premium) and Net Underwriting IncomeGross written contribution (premium) 71,466,628 43,085,959 Less: Contributions (premiums) ceded to retakaful (reinsurers) Treaty (8,823,802) (8,143,950) Facultative (22,467,717) (7,299,116) Excess of loss (479,587) (236,669)Net written contribution (premium) 39,695,522 27,406,224

Gross provision for unearned contribution (premium)Opening balance (6,064,610) – Closing balance (10,639,402) (6,064,610)Provision for unearned contribution (premium) (4,574,792) (6,064,610)Total underwriting income 35,120,730 21,341,614

Gross benefits and claims paid (12,499,308) (7,768,403)Retakaful (reinsurance) claims recoveries 888,742 14,087 Ceded to Amãna Takaful PLC (2,609) (170,607)Provision for claims outstanding (1,818,000) (603,975)Provision for claims IBNR (1,040,000) – Takaful (insurance) claims and benefits (net) (14,471,175) (8,528,898)Acquisition cost (including administrative incentive) (1,398,801) (896,019)Net underwriting income 19,250,754 11,916,697

3.1 Investment IncomeDividends income 35,350 10,701 Murabaha income 367,327 10,285 Mudharabah income 96,060 33,695 Income on disposal of Gold 270,695 – Income on Gold 284,961 –

1,054,393 54,682

3.2 Other IncomeIncome from deposit with Maldives Monetary Authority 19,998 26,847 Exchange gain – 425,621 Management fee income 1,806,088 1,406,013 Wakalah (management) fee income from Amãna Takaful PLC – 37,094 Sundry income 8,300 2,900

1,834,386 1,898,475

3.2.1 Interest income from security deposit has been recognised as an income and expensed to charity as donation.


Share Information

46



4. Other Operating, Investment Related and Administration ExpensesStaff expenses (4.1) 5,395,189 3,635,546 Administration & establishment expenses (4.2) 5,089,017 4,451,609 Depreciation 173,806 143,524 Consultancy fees 590,043 382,216 Travel expenses 296,022 172,354 Share issue expenses – 1,279,370

11,544,077 10,064,619

4.1 Staff ExpensesWages, salaries & bonuses 3,274,338 1,895,729 Contribution to defined contribution plans 131,306 45,795 Staff welfare 67,842 30,868 Staff training 320,378 23,490 Medical claims 95,515 58,408 Other staff cost 1,505,810 1,581,256

5,395,189 3,635,546

4.2 Included in Administrative Expenses Audit fee 63,810 58,009 Non-audit fee 37,757 34,325

101,567 92,334


5. Amotisation of Intangible AssetsSoftware 322,066 241,551


47


2012 2011MVR MVR

6. TaxationTax on business profit (Note 6.1) 1,392,582 122,467Deferred tax provided/(reversed) during the year (Note 6.2) 178,953 (31,978)

1,571,535 90,489

6.1 Income Tax on ProfitBusiness Profit Tax has been calculated at 15% on the taxable profit for the year end in accordance with the Business Profit Tax Act No. 05/2011. A reconciliation between tax expense and the product of accounting profit multiplied by Maldives' domestic tax rate for the year ended 31st December 2012 is as follows:

2012 2011MVR MVR

Profit before tax 10,273,390 1,230,181Add: Depreciation charge for the period 495,872 241,042 Disallowable expenses 387,344 – Less: Capital allowances (979,395) (427,381) Other allowable expenses (393,338) – Tax free allowance (500,000) (227,397)Taxable (loss)/profit 9,283,874 816,445

Income tax on taxable profit @ 15% 1,392,582 122,467

6.2 Deferred Tax Temporary difference on property, plant & equipment 979,831 213,186Tax rate 15% 15%Deferred tax (asset)/liability as at 31st December 146,975 (31,978)At 1st January 2012 (31,978) –Provision made/(reversed) during the year 178,953 (31,978)As at 31st December 2012 146,975 (31,978)

6.3 Reflected in the statement of financial position as follows:Deferred tax assets – 31,978Deferred tax liabilities 146,975 –Deferred tax (assets)/liabilities net 146,975 31,978

6.4 The provision on deferred tax is made on temporary differences between the carrying value and tax base of Property, Plant & Equipment. The Company's management expects to earn future taxable profits and therefore deferred tax asset are recognised.


Share Information

48


7. Earnings per ShareEarnings per share is calculated by dividing the profit for the year attributable to equity shareholders of the Parent by the weighted average number of ordinary shares outstanding during the year.

The following reflects the income and share data used in the earnings per share computation:

2012 2011MVR MVR

Amount used as the numerator:Profit for the year 8,701,855 3,220,676

Number Number

Number of ordinary shares used as denominator:Weighted average number of ordinary shares in issue applicable to earnings per share 20,241,987 10,040,998

Earnings per share 0.43 0.32

2012 2011MVR MVR

8. Investments Murabaha investments 4,428,676 412,280Mudharaba investments 27,997,050 5,120,250Investments in gold 4,958,096 7,570,865Investment in equity securities 697,481 869,055Wakalah investment 3,084,000 –

41,165,303 13,972,449

2012 2011

Number of Market Value Number of Market Value Shares MVR Shares MVR

8.1 Investment in Equity SecuritiesQuotedChevron Lubricants Lanka PLC 3,900 95,687 2,900 67,534Lanka Floortiles PLC 10,000 78,950 10,000 110,000Kotagala Plantations PLC 5,000 44,941 5,000 44,041Expo Lanka Holdings PLC 376,257 319,904 395,400 487,479Dhivehi Raajjey Gulhun PLC 2,000 158,000 2,000 160,000

397,157 697,482 415,300 869,055


49


2012 2011MVR MVR

9. Intangible AssetsAt costBalance as at 1st January 2,576,554 –Additions – 2,576,554Balance as at 31st December 2,576,554 2,576,554

AmortisationBalance as at 1st January 241,551 –Amortisation for the year 322,069 241,551Balance as at 31st December 563,620 241,551

Carrying amount as at 31st December 2,012,934 2,335,002

Balance as at 01.01.2012

Additions/Transfers Disposal/Transfers


MVR MVR MVR MVR

10. Property, Plant & EquipmentAt costFurniture and fittings 306,967 79,560 6,919 379,608Motor vehicles 132,880 – – 132,880Computers and peripherals 267,569 67,098 38,445 296,222Other equipment 204,661 15,284 55,018 164,927Total value of depreciable assets 912,077 161,942 100,382 973,637


Charge for the Year

Disposal/Transfers


MVR MVR MVR MVR

DepreciationAt costFurniture and fittings 162,554 61,416 6,640 217,330Motor vehicles 110,255 16,375 – 126,630Computers and peripherals 175,436 56,897 38,445 193,888Other equipment 103,048 39,117 52,811 89,354Total depreciation 551,292 173,805 97,896 627,202

Carrying amount 360,785 346,435


Share Information

50


2012 2011MVR MVR

11. Contribution (Premium) ReceivableContribution (premium) receivable participants 5,348,022 8,108,209

5,348,022 8,108,209

2012 2011MVR MVR

12. Other AssetsOther receivables 2,867,446 82,350 Deposits, advances and prepayments 946,304 353,457 Loans to company officers – 46,260 Printing & stationary stock – 18,331 Balance related to the agency operation - Amãna Takaful PLC - Management fee receivable – 267 - OPD recovery receivable 41,226 36,170

3,854,976 536,835

2012 2011MVR MVR

13. Related Party ReceivablesAmãna Global Ltd. 1,013,111 178,471 First Option Private Ltd. 104,414 18,000 Amãna Takaful PLC - Medical 142,784 – Amãna Asset Management Ltd. 1,727 – Balance related to the agency operation - Amãna Takaful PLC - Current Account with GTF – 116,957

1,262,036 313,428

2012 2011MVR MVR

14. Cash and Cash EquivalentsCash in hand 3,500 19,130,737 Balances with banks 4,744,503 131,391

4,748,003 19,262,128


51


2012 2011MVR MVR

15. Issued Share Capital15.1 Authorised share capital50,000,000 Ordinary shares of MVR 1.30 65,000,000 65,000,000

15.2 Issued and Fully Paid Share Capital20,241,987 Ordinary shares of MVR 1.30 26,314,583 26,314,583

2012 2011MVR MVR

15.3 Number of SharesExisting shares as at 1st January 20,241,987 8,000,800 Initial public offering (general public) – 800,000 Bonus issue (utilising the premium from the IPO) – 11,441,187 Number of shares as at 31st December 20,241,987 20,241,987

15.3.1 Voting Power and Dividends The holders of ordinary shares confer their rights to receive dividends as declared from time to time and are entitled to one vote per share at a meeting of the Company. Further, Company has declared an interim dividend amounting to MVR 657,865/- during the year ended 31st December 2012.

2012 2011MVR MVR

16. Revenue ReservesRetained Earning Balance as at 1st January 3,357,169 138,035 Profit for the year 8,701,855 3,220,676 Dividend declared - 2012 (657,865) – - 2011 (676,738) – Transferred to WAQF fund 1,542 (1,542)Balance as at 31st December 10,725,963 3,357,169 WAQF FundTransferred during the year – 1,542 Revenue reserves 10,725,963 3,358,711


Share Information

52


2012 2011MVR MVR

17. Takaful (Insurance) Contract LiabilitiesProvision for unearned contribution (premium) (Note 17.1) 10,639,402 6,064,610 Provision for claims IBNR 1,040,000 603,975 Claims outstanding (Note 17.2) 1,818,000 –

13,497,402 6,668,585

17.1 Provision for Unearned ContributionAs at 1st January 6,064,610 – Increased during the year 4,574,792 6,064,610 As at 31st December 10,639,402 6,064,610

17.2 Provision for Claims OutstandingAs at 1st January 603,975 –

Settled during the year (603,975) – Provision made during the year 1,818,000 603,975 As at 31st December 1,818,000 603,975

The incurred but not reported (IBNR) claim reserve has been actuarially computed by Mr. Zainal Abidin Mohd Kassim (FIA) of Actuarial Partners Consulting Sdn Bhd, Malaysia. The valuation is based on internationally accepted valuation methods, which analyses the past experience and patter of the claims.

2012 2011MVR MVR

18. Amounts due to Related PartiesAmãna Takaful PLC (Colombo) – 267 Amãna Takaful PLC - Assets Management (Colombo) – 79,513 Amãna Takaful PLC - Medical Takaful (Colombo) – 517,439 Amãna Takaful PLC - Shareholder Fund (Colombo) – 255,579 Balance related to the agency operation - Amãna Takaful PLC - Current Account with GTF –

– 852,797


53


2012 2011MVR MVR

19. Other LiabilitiesAccrued expenses 102,782 42,003 Commission payable 616,870 551,722 Other payables 1,908,011 1,539,382 Income tax payable 1,279,206 – Balance related to the agency operation Amãna Takaful PLC - Others – 250,000 - Excess payment – 34,786

3,906,869 2,417,892

20. Related Party DisclosuresInformation regarding the outstanding related party balances at the year ended, refer Notes 13 and 18.

Name of the Company Relationship Nature of Transaction Total AmountMVR

Amãna Global Ltd. Parent Company Balance at 1st January 178,456

Settlements (fund transfers to) 1,908,660

Consultancy fee (600,205)

Cashless claims (473,800)

Other expenses on behalf of Amãna Takaful (Maldives) PLC –

Balance at 31st December 1,013,111

First Option Pvt Ltd. Balance at 1st January 18,000

Settlements (fund transfers to) –

Other expenses on behalf of First Option Pvt Ltd. 86,414

Balance at 31st December 104,414

Amãna Asset Management Ltd. Balance at 1st January (79,513)

Settlements (fund transfers to) 79,513

Other expenses on behalf of First Option Pvt Ltd. 1,727

Balance at 31st December 1,727


Share Information

54


Amãna Takaful PLC

Medical Shareholders' Amãna Takaful PLC Amãna Takaful PLCRelationship Takaful Fund (General Takaful Fund)

Nature of the transactionBalance at 1st January (517,439) (255,579) 116,957 (267)Consultancy fee (91,258) (825,521) – – ATPLC settled (1,318,080) – (211,007) – ATPLC agency claimed settled – – 94,050 –Settlement during the period 2,069,560 1,081,100 – 267

142,783 – – –

21. Financial Risk Management Objectives and PoliciesThe Company has various other financial assets and liabilities such as contribution (premium) receivable and Takaful (insurance) contract liabilities, which arise directly from its operations.

The main risks arising from the Company's financial instruments are foreign currency risk, liquidity risk, credit risk and interest rate risk. The policies for managing each of these risks are summarised below:

Foreign Currency Risk The Company has transactional currency exposure. Such exposure arises from sales and investments by an operating unit in currencies other than the unit's functional currency.

The Company's exposures to foreign currency risk was as follows based on notional amounts:

2012 2011

USD MVR USD MVR

Cash and cash equivalents 307,912 4,748,003 1,249,165 19,262,128 Fixed deposits 129,702 2,000,000 129,702 2,000,000 Contribution (premium) receivable 346,824 5,348,022 525,824 8,108,209 Other assets 249,998 3,854,976 34,814 536,835 Other payables 253,364 3,906,869 (156,802) (2,417,892)Takaful (insurance) contract liabilities 875,318 13,497,402 (432,463) (6,668,585)Retakaful (reinsurance) payable 398,568 6,145,917 (473,946) (7,308,247)Gross statement of financial position exposure 2,561,686 39,501,189 876,294 13,512,448


55


The following exchange rate applied during the year :

Average Rate Reporting Date Spot Rate

2012 2011 2012 2011

USD 15.42 15.42 15.42 15.42

22. Fair Value of Financial Assets and Financial LiabilitiesShort-Term Financial Assets and LiabilitiesThe fair value of short-term financial assets and liabilities approximate their carrying value because of their immediate or short-term maturity.

23. Events Occurring after the Reporting DateThere have been no material events occurring after the Balance Sheet date that require adjustment to or disclosure in the Financial Statements.

24. Capital Commitments and ContingenciesThere were no material capital commitments approved or contracted and contingencies as at 31st December 2012.


Share Information

56


Share Information

Category of Shareholders

Name Shares % of Share Holding

Amãna Global Ltd. 11,166,500 55Expolanka Holdings Ltd. 4,600,000 23Other Shareholders 2,423,728 12Public 2,051,759 10Total 20,241,987 100

Market Highlights Highest trade price MVR 14.00

Lowest traded price MVR 2.00

No. of trades 9

No. of shares traded 211,380

Weighted average traded price MVR 2.13

Market capitalisation MVR 40,483,974

Market value per share MVR 2.00

Price-earnings ratio (P/E Ratio) 4.65

Dividend per share MVR 0.03

57


Certification of Incurred But Not Reported (IBNR) Claims and Liability Adequacy Test (LAT)

I, Zainal Abidin Mohd. Kassim, being the actuary performing the estimation of the general takaful liabilities of Amãna Takaful (Maldives) PLC, to the best of my knowledge certify that the net IBNR estimate inclusive of expense provision, amounting to MVR 1.3 Mn, together with the net case reserves held by the Company of MVR 1.5 Mn, is expected to be adequate to meet the Company’s future claims liability in respect of claims incurred up to 31st December 2012.

I certify that the accounting net UCR provision of MVR 10.6 Mn is expected to be adequate to meet the future liabilities in respect of the unexpired risks as at 31st December 2012.

I also certify that the results set out in this report satisfy the Liability Adequacy Test (LAT) requirements under the IFRS 4.

In performing the estimation of the general takaful liabilities of the Company, I have taken all reasonable steps to ensure the accuracy and completeness of the data.

For and on behalf of Actuarial Partners Consulting

Zainal Abidin Mohd. Kassim Fellow of the Institute of Actuaries

5th April 2013

58


Glossary

Acquisition Expenses-General Takaful (Insurance) All expenses which vary with and are primarily related to the acquisition of the new insurance contracts and the renewal of existing insurance contracts.

ActuaryAn expert concerned with the application of probability and statistical theory to problems of insurance, investment, financial management and demography.

ClaimsThe amount payable under a contract of insurance arising from the occurrence of an insured event, such as, the destruction or damage of property and related death or injuries, the incurring of hospital or medical bills, death or disability of the insured, the maturity of an endowment policy and the amount payable on the surrender of a policy.

Claims IncurredThe aggregate of all claims paid during the accounting period together with attributable claims handling expenses, where appropriate, adjusted by the claims outstanding provisions at the beginning and the end of the accounting period.

Claims Incurred but not Reported (IBNR)A reserve to cover the expected cost of losses that have occurred by the Balance Sheet date but have not yet been reported to the insurer.

Claim Outstanding - General Takaful (Insurance) BusinessThe amount provided to cover the estimated ultimate cost of settling claims arising out of events which have occurred by the Balance Sheet date including claims handling expenses, less amounts already paid in respect of those claims.

CommissionsA payment made to intermediaries in return for selling and servicing an insurer’s products.

Earned PremiumWritten premium adjusted by the unearned premium provisions at the beginning and the end of the accounting period.

General Insurance Business (General Takaful)Insurance business falling within the classes of insurance specified as General Insurance Business, under the Insurance Industry Regulation.

Insurance Provision - General Takaful (Insurance)This includes net unearned premium, provisions for unexpired risks, outstanding claims reserve and IBNR reserve.

Mudharaba This is an agreement made between two parties. The Investor, who provides 100% of the capital for the project and the Mudharib manages the entire project using his entrepreneurial skills. The Investor has no control over the management of the project. Profits arising from the project are distributed according to a predetermined ratio. Losses are borne by the provider of the capital.

Net Earned PremiumGross written premium adjusted for the reinsurance incurred and for the increase or decrease in unearned premium.

Premium (Contribution)The consideration payable by the insured for an insurance contract.

Retakaful (Reinsurance)Transfer of all or part of the risk assumed by an insurer under one or more insurance to another insurer, called the reinsurer.

Shari’ahIs the code of law for the Islamic way of life which has been derived from the Quran and the Sunnah (The Practice of the holy Prophet Muhammad - Peace be upon him).

Shari'ah Advisory Council (SAC)This comprising Shari'ah Scholars or/and well versed personnel in Shari'ah, which ensures Shari'ah compliance in the operations of the Company. The SAC advises the Company on all Shari'ah matters in its business activities and involves in endorsing and validating relevant documentation, such as products’ manuals, policy terms and conditions, marketing materials, sales illustrations, etc.

Solvency Margin - General Takaful (Insurance) The difference between the value of the assets and the value of the liabilities required to be maintained by the insurer who carries on general insurance business.

TakafulIs an Arabic word, which means ‘guaranteeing each other’. It is a system of risk management based on the principle of mutual assistance (TA-AWUN) and contributions (Tabarru) where the risk is shared collectively by the group voluntarily.

UnderwritingThe process of selecting which risks an insurance company can cover and deciding the premium and terms of acceptance.

Unearned Premium/Unearned Premium ReserveIt represents the portion of premium already entered in the accounts as due but which relates to a period of risk subsequent to the Balance Sheet date.

Written PremiumTotal premium received or due from all insurance contracts during a period.

59


Notice of Meeting

NOTICE IS HEREBY GIVEN that the Second Annual General Meeting of Amãna Takaful (Maldives) PLC will be held on Sunday 28th April 2013 at 2.30 p.m. at Nasundhura Palace Hotel, Male’, Republic of Maldives, for the following purposes:

1. To receive and consider the Annual Report of the Board of Directors on the Affairs of the Company for the year ended 31st December 2012 and the Report of the Auditors thereon.

2. To re-elect the Independent Directors of the Company, who

retires as per Article 61 of the Articles of Association of the Company.

3. To reappoint the retiring Auditors, Messrs Ernst & Young, Chartered Accountants for the ensuing year and to authorise Directors to determine their remuneration.

By Order of the Board,Amãna Takaful (Maldives) PLC

M.N.M. ShameelPartnerSigned for and on behalf ofKPMGSecretaries Male’

11th April 2013

Notes:1. A member entitled to attend and vote at the above meeting is entitled to

appoint a proxy to attend and vote in his/her behalf. A proxy need not be a member of the Company.

2. A Form of Proxy is enclosed for this purpose.

3. The instrument appointing a proxy must be completed and deposited at the Registered Office of the Company, 3rd Floor, H. Mialani, Sosun Magu, Male’, Republic of Maldives not less than forty-eight hours prior to the time appointed for holding the meeting.

60


Notes


Form of Proxy

I/We the undersigned ……………………………………………………………………………………………………………………………………………………………………………

of …………………………………………………………………………………………………………………………………………………………………………………………………………

bearing ID card/Passport Number …………………………………………… with MSD Account/Share Certificate Number ……………………………………………

and Number of shares of ………………………………………………………………………………. being a member/members of Amãna Takaful (Maldives) PLC,

hereby appoint ....................................................................................................................................................................................................……………………………… of

……………………………………………………………………………………………………………………………………………………………………………………………………………

bearing ID Card/Passport Number ………………………………………………………………………… as my/our proxy to represent me/us and to vote for me/us on my/our behalf at the Annual General Meeting to be held on Sunday, 28th April 2013 at 2.30 p.m. and at any adjournment thereof and at every poll which may be taken in consequence thereof. As witness my/our hands this ……………………. day of ………………….………….. 2013.

……………………………………Signature (Member)

Contact No.: …………………………………

……………………………………Signature (Proxy)

Contact No.: …………………………………

Instructions as to Completion1. In order to appoint a proxy, this form shall in the case of an individual be signed by the shareholder or by his/her Attorney and in the

case of a company/corporation, the Form of Proxy must be under its Common Seal, which should be affixed and attested in the manner prescribed by its Articles of Association.

2. The full name and address of the proxy holder and of the shareholder appointing the proxy holder should be entered legibly in the Form of Proxy.

3. A copy of the National Identity Card or Passport of the shareholder and the proxy should be affixed with the Form of Proxy.

4. A Board resolution appointing the proxy to represent the shareholder, in case the shareholder is a legal entity should be submitted along with the Form of Proxy.

5. The duly completed Form of Proxy must be deposited at the Registered Office of the Company at 3rd Floor, H. Mialani, Sosun Magu, Male’, Republic of Maldives, not later than 48 hours prior to the time appointed for the holding of the meeting.

6. In the case of a proxy signed by an Attorney, the relevant Power-of-Attorney or a certified copy thereof should also accompany the completed Form of Proxy and must be deposited at the Registered Office of the Company.

Name of the CompanyAmãna Takaful (Maldives) PLC

Legal Status Public Quoted Company with Limited Liability Incorporated in Maldives on 18th May 2005.

Company Registration Number C-0315/2005

Registered Office3rd Floor, H. Mialani, Sosun Magu, Male’, Republic of Maldives

Stock Exchange ListingThe shares of the Company are listed in the Main Board of Maldives Stock Exchange, in May 2011

DirectorsTyeab Akbarally (Chairman)Osman KassimDato’ Mohd Fadzli YusofM.H.M. RafiqM. Ehsan ZaheedDr. Abdullah Shiham HassanHareez Sulaiman

Shari’ah Advisory CouncilMoulavi M.M.A. Mubarak - ChairmanMoulavi M. Murshid Mulaffar - SecretaryMufti M.I.M. RizviMoulavi M. Fazil FarookMohamed Iyaz

AuditorsErnst & YoungChartered AccountantsG. Shafag, 2nd FloorRahdhebai MaguMale’Republic of Maldives

LawyersRaajje ChambersM. Maahi, 2nd FloorBoduthakurufaanu MaguMale’Republic of Maldives

Consultant ActuariesActuarial Partners Consulting Sdn BhdSuite 17.02 Kenanga InternationalJalan Sultan Ismail50250 Kuala LumpurMalaysia

Reinsurance PanelBest ReMNRBLabuan Reinsurance (L) Ltd. GIC RetakafulTrust International BahrainCatlin Labuan Ltd. (Lloyds Syndicate)

SecretariesM.N.M. ShameelPartnerFor and on behalf of KPMG2nd Floor, H. MialaniSosun Magu,Male’Republic of Maldives

Principal BankersMaldives Islamic BankBank of MaldivesBank of CeylonState Bank of IndiaHongkong and Shanghai Banking Corporation Ltd.

Corporate Information

This Amãna Takaful (Maldives) PLC annual report has been produced by Smart Media The Annual Report Company, a certified carbon neutral organisation. Additionally, the greenhouse gas emissions resulting from activities outsourced by Smart Media in the production of this annual report, including the usage of paper and printing, are offset through verified sources.

Annual Report

2012

Amãna Takaful (Maldives) P

LC

Am

ãna Takaful (Maldives) PLC

Annual Report 2012C

RO

SS

ING

LINE

S

Amãna Takaful (Maldives) PLC3rd Floor, H. Mialani, Sosun Magu, Male’, Republic of Maldives

www.takaful.mv

Amãna Takaful (Maldives) PLC...Amãna Takaful (Maldives) PLC Annual Report 2012 7 Sustainability Initiatives At Amãna Takaful (Maldives) PLC, we have been mindful of our greater

Documents