Standard Insurance, a listed company in the capital market, has spent Tk 1.41 crore more than the management expenses prescribed by IDRA.
The auditor recently reviewed the company financial statements of 31 December 2023, and reported the findings.
An “Emphasis of Matter,” also known as EoM, is a statement issued after an audit is completed by a professional auditor, suggesting that the financial information provided is limited in scope or that the company has not maintained generally accepted accounting principles.
This listed general insurance company has spent Tk 1.41 crore more than the fixed management expenses for the year 2023.
According to the financial report, the management expenses of Standard Insurance Company for the year 2023 were fixed at Tk 15.47 crore, but the company spent Tk 16.89 crore.
Allowable management expenditure refers to the expenditure authorised by the Insurance Development and Regulatory Authority (IDRA) for the management of insurance activities, especially agent commission and operating expenses.
Basically this limit is fixed by IDRA on the basis of total premium income in a year.
The Business Post had made a number of attempts to reach out to Company Secretary Mohammad Kowser Munshi on phone for comments on the matter, but he did not respond till the filing of this report.
Regarding excess expenses, IDRA spokesperson Jahangir Alam said, “A company cannot settle insurance claims on time if it spends more than the prescribed limit. The company is then called for a hearing.
“The company is then asked to submit documents related to additional expenses. After receiving them, further action is taken.”
Q1 of 2024
As per its unaudited financial report, the publicly traded company's consolidated net profit jumped to Tk 2.90 crore in Q1 this year, from Tk 2.81 crore in the same quarter last year, sources at the company said.
Standard Insurance company's earnings per share (EPS) stood at Tk 0.67 for the first quarter of 2024, against Tk 0.65 recorded in the same period last year.
Its net operating cash flow per share (NOCFPS) was Tk 0.84 for the January-March quarter this year, against Tk 0.54 negative for the January-March quarter of 2023.
The listed insurance company’s net asset value (NAV) per share was Tk 21.25 as on March 31, 2024, compared to Tk 20.89 till March 31 last year.
2023 finances
Standard Insurance Ltd posted a 10.22 per cent year-on-year decrease in profit to Tk 9.13 crore in 2023. The profit stood at Tk 10.17 crore in 2022.
The insurer reported earnings per share of Tk 2.11 for 2023 against Tk 2.35 a year ago.
Its net asset value per share rose to Tk 20.89 from Tk 20.77 in 2022 while the net operating cash flow per share slipped to Tk 0.93 from Tk 2.19 during the period.
The board of directors of Standard Insurance has recommended a 10 per cent cash dividend for the year that ended on December 31.
This company is scheduled to hold its annual general meeting (AGM) on June 26. The record date is May 23 for share splits.
Standard Insurance's shares were unchanged at Tk 37.40 on the Dhaka Stock Exchange Thursday.
Listed in 2008, the company’s paid-up capital is Tk 43.29 crore, authorised capital is Tk 100 crore, and the total number of securities is 4.32 crore.
The sponsor-directors own 64.28 stakes in the company, while the institutional investors own 10.82 per cent, and the general public 24.90 per cent until April 2024, show the Dhaka Stock Exchange (DSE) data.
