REPORT OF THE AUDIT COMMITTEE

The audit committee of the Central Insurance Company Limited is a Sub-Committee of the Board of Directors. The Committee is headed by a Director who is an Independent Director of the Company. The Chief Internal Audit & Compliance officer has direct access to the Committee and the Committee is directly reportable to the Board.

PURPOSE OF AUDIT COMMITTEE

The role of the Audit Committee is to monitor the integrity of the financial statements of the Company and review and, when appropriate, make recommendations to the Board on business risks, internal controls, and compliance. The Committee assists the Company in ensuring a good monitoring system within the business. The Audit Committee is responsible to the Board of Directors.

ROLE OF THE AUDIT COMMITTEE:

According to the Terms of Reference approved by the Board and in compliance with Section 3.00 of the Bangladesh Securities and Exchange Commission Notification No. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June 2018, the role of the Committee is as follows:

• Oversee the financial reporting process.
• Monitor the choice of accounting policies and principles.
• Monitor Internal Control Risk management process.
• Oversee hiring and review the performance of external auditors.
• Review along with the management, the annual financial statements before submission to the Board for approval.
• Review along with the management, the quarterly and half yearly financial statements before submission to the Board for approval.
• Review the adequacy of the internal audit function.
• Review statements of significant related party transactions submitted by the management.
• Review Management Letters/ Letter of Internal Control weakness issued by statutory auditors.
• When money is raised through Repeat Public Offering (RPO)/Rights Issue, the Company shall disclose to the Audit Committee the uses/applications of funds by major category (capital expenditure, sales, and marketing expenses, working capital, etc), on a quarterly basis, as a part of their quarterly declaration of financial results. Further, on an annual basis, the Company shall prepare a statement of funds utilized for purposes other than those stated in the offer document/prospectus.

CONSTITUTION OF THE AUDIT COMMITTEE

1. Md. Amirul Islam, FCA, FCS - Chairman  ( Independent Director)
2. A. M. Abid Chowdhury -  Member  ( Independent Director )
3. Md. Tayabur Rahman - Member   ( Director )
4. Md. Masud Karim - Member   ( Director )
5. Md. Noor-Ul-Alam - Member Secretary ( Company Secretary )

MEETING ATTENDANCE

The Audit Committee met with the external auditors separately, and with the internal auditors, on an annual basis without any Executive Directors being present. The Secretary of the Audit Committee facilitates the Chairman and other members for the effective functioning of the Committee as per its terms of reference as well as corporate governance notification of BSEC.