Paper Based Annual Report Vs Web Based Annual Report

UNIVERSITY OF UNIVERSITY OF DHAKADHAKA

Department of Accounting & Information Systems

 BBA Program.

 WELCOME TO THE PRESENTATIONON BEHALF OF

‘THE LEGEND’.

GROUP NAME: THE LEGEND

GROUP MEMBERSNAME ROLL NO

Pappu Kumar Dey (Leader) 14008 Shah Alam 14001 Farjana Yeasmin Chowdhury 14019 Mohsena Matin 14045 Md. Jahangir Alam 14051 Rozina Akter 14053 Sazzad Iftekhar 14059 Alamgir Hossain 14063 Md. Imdadul Haq Fahad 14064 Md. Omar Faruk 14067 Manoj Roy 14081

PRESENTATION TOPIC

PAPER BASED ANNUAL REPORT

VS

WEB BASED ANNUAL REPORT

Annual report

An annual report is a published document given to shareholders by public corporations. The document details the financial status of the company with various reports and financial statements.

SECTOR WE STUDIED

Insurance companies in Bangladesh

REPORT AT A GLANCE* ABSTRACT * PREAMBLE* OBJECTIVES* METHODOLOGY * LIMITATIONS * ABOUT ANNUAL REPORT* STUDIED INSURANCE COMPANIES* OVERVIEW* CONCLUSION* RECOMMENDATIONS

ABSTRACT OF OUR REPORT

This report investigates the utilization of the Internet for Communicating corporate information by the listed insurance companies of Bangladesh. The sample for the study consists of 8 insurance companies listed on DSE and CSE. The study shows that web-based corporate annual reporting in Bangladesh is still

in its infancy.

PREAMBLE Annual report is the best via for

highlighting the performance and activities of business organizations. Every public limited company presents its annual report in every AGM.

OBJECTIVES

To survey the availability of websites for the insurance companies listed in the stock exchanges in Bangladesh.

To draw a complete picture of the situation of web based annual reporting and paper based annual reporting.

To analyze and differentiate between paper based annual report and web based annual report.

To obtain a comprehensive insight about the preparation of annual report of insurance sector.

To draw conclusions and offer recommendations on the basis of lack and limitations.

METHODOLOGY Observation method Face to face conversation with

group members Personal observation of individual

company report Integration of analysis

LIMITATIONS → Gathering information through one way

communication. → Some insurance companies have no their

own corporate website. →Unavailability of up to date annual report of

some insurance companies in their websites.

→Insufficient disclosure of information of some insurance companies.

→After all lack of knowledge, efficiency and experience of the group members.

STUDIED INSURANCE COMPANIES

*Rupali Insurance Company Limited*Green Delta Insurance Company Limited*Pragati Insurance Company Limited * Global insurance Company Limited*Sonar Bangla Insurance Limited *Continental Insurance Limited *Agrani Insurance Company Limited   *Eastland Insurance Company Limited

Rupali Insurance Company Limited:

01. In the web the financial statement is present but auditors report is not present because of maintaining formalities in presenting web based annual report.

02. In the web based annual report, the name of board of directors is updated which is not possible in paper based until next annual report is published.

03. In web based annual report, assets,, resources, investments etc are updated but the graphical show is not updated.

04. “Statement of Equity” is a part of paper based annual report but is absent in web based annual report.

05. Some additional information such as background; are presented in web based report but is absent in paper based report.

Green Delta Insurance Company Ltd

GREEN DELTA INSUSANCE ALWAYS UPDATE THEIR INFORMATION.

They have presented their annual report of 2005, 2006 and 2007 with additional information such as “About us”, “Vision, Mission, Strength & Believes”, “Chairmen profile”, “Company profile”, “Performance at a glance”, “Other activities” etc.

Pragati Insurance Company Limited Pragati Insurance Company Limited

In corporate website of Pragati Insurance Limited, financial statement or annual report is not present

Only Gross Premium Income, Re-Insurance Premium, Net Premium Income, Gross Claim, Investment and Other Income, Net Profit before Tax, Paid up Capital, Shareholders’ Equity, Total Assets, Total Reserve, Earning Per Share (EPS), Book Value Per Share of last five years in the title of “Company’s Performance” are presented.

In website “Big Client Portfolio” i.e. local and foreign clients is present but in their paper based annual report is absent.

Global Insurance Limited:

(Symbol of security & peace) Global Insurance Limited publishes both hard copy and soft

copy of their annual report. Through observing both two, we find –

01. In the paper based report there is a “content”. But it is absent in the web-based report.

02. Only the names of “Board of Directors” are presented in the paper based annual report. But in the web based report “Board of Directors” profile is elaborated with summary of their degree, duties, and responsibilities.

 Sonar Bangla Insurance Company Limited:

01. In paper based annual report there is no existence of signature of Chartered Accountants (CA), Company Secretaries, Managing Directors, and Chairmen. So there is no confident in this report.

02. Also the list of branches of Sonar Bangla Insurance Company Limited is updated in the web based report.

03.Some more information such as director’s report, compliance report of Securities Exchange Commission (SEC) notification, Directors Certificate etc. are presented in paper based annual report.

Continental Insurance Limited:

Continental Insurance Limited is newly listed insurance company in DSE and CSE. Continental Insurance has not its own corporate website. So Continental Insurance can not submit its annual report with additional and updated information. So it’s a great barrier for us to compare between paper based annual report and web based annual report. Their paper based annual report presentation is nice, but they have some limitation in providing some necessary information such as Director’s profile, Chief Executive’s profile, consolidated balance sheet, schedule of fixed assets, progress at a glance, credit rating report, CSR etc.

Agrani Insurance Company Limited:

It is also a rising insurance company. They provide their information only through paper based annual report. Their paper based annual report provides sufficient information. But still they do not provide any web based annual report. It would be very easy and flexible for us if they had any web based annual report. So it is also a barrier for us. But their paper based report presentation is also nice than most other insurance companies. Their cover page is very enchanting. They use glossy paper. For identifying easily they use various colors. So from observation, it can be said that paper based annual report presentation of Agrani Insurance Company Limited are very sophisticated.

Eastland Insurance Company Limited:

Eastland Insurance Company Limited (EICL) has no corporate website. So we could not get any information from any source about their financial performance and activities except paper based annual report.

Presentation of their paper based annual report is quite well comparing with other insurance companies’ annual report. In Auditor’s Report & Financial Statements.

Eastland Insurance Company Limited used various colors for better understanding.  They used different types of graphs and charts in presenting their performance in their annual report. They showed their Value Added Statement both in the form of table and pie-chart. They also showed ‘Audit Committee Report ‘and ‘Compliance Report on SEC Notification’ in their annual report.

OVERVIEWName

Website Updated website

Financial statements

Performance at a glance

Additional information

Products & services

Yes

No Yes No Yes No Yes No More

Less

Details

Brief

01.RICL

√   √   √   √   √     √

02.GDICL

√   √   √   √   √   √  

03.PICL

√     √   √ √   √     √

04.GIL

√   √     √ √   √     √

05.SBIL

√     √   √   √   √   √

06.CIL

  √ -- -- -- -- -- -- -- -- -- --

07.AICL

  √ -- -- -- -- -- -- -- -- -- --

08.EICL

  √ -- -- -- -- -- -- -- -- -- --

CONCLUSION

Insurance sector is an essential sector for providing safety and security to business. In any country this sector plays a fundamental role in the economic activities. Insurance companies present their business performance through annual report. From different perspective it is found that insurance sector in Bangladesh is not so developed in presenting annual report. The practice of reporting both web based and paper based annual report of insurance sector is rare. If insurance companies develop the system of preparing annual report then all the stake holders and interested groups can about the company’s all the information and companies will be more benefited in terms of time and money.

RECOMMENDATION

Every insurance company should use personal web site and update their website.

In website they should provide sufficient information. Presenting annual report in website should maintain

some formalities i.e. signature, Auditor’s report etc. Use sufficient graphs so that users can easily understand

and compare company’s performance and activities with some previous years.

In financial statement necessary information should be disclosed so that users do not get confused.

Annual report should be standard and presentable i.e. different colors, structure for better understanding

THANK YOU