This Research Report Investigates the Utilization of the Internet For

7/28/2019 This Research Report Investigates the Utilization of the Internet For

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Department of

Accounting & Information Systems

BBA Program.

Report On:Paper Based Annual ReportVs

Web Based Annual Report

Prepared ForMd. Mehedi M. MazumderLecturer,Department of Accounting & Information Systems,University Of Dhaka

Prepared By

THE LEGENDSection: A;BBA; 14th BatchDepartment of

Accounting &Information Systems,


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University Of Dhaka.

Group Name: THE LEGEND

Group Members:

Name Roll No

1. Pappu Kumar Dey (Leader) 14008

2. Shah Alam 14001

3. Farjana Yeasmin Chowdhury 14019

4. Mohsena Matin 14045

5. Md. Jahangir Alam 14051

6. Rozina Akter 14053

7. Sazzad Iftekhar 14059

8. Alamgir Hossain 14063

9. Md. Imdadul Haq Fahad 14064

10.Md. Omar Faruk 14067

11.Manoj Roy 14081

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Abstract:

This research 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 the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).

Corporate websites of the sample insurance companies were browsed by using a

standard web browser for collecting data relating to corporate reporting on the

Internet. The study shows that web-based corporate annual reporting in

Bangladesh is still in its infancy. Most of the insurance companies do not update

their corporate websites but only maintain some traditional formalities in their

websites. Even some insurance companies do not have any corporate website.

Again presenting paper based annual report some insurance companies

prepared their annual report normally. Most of the insurance companies

presented their paper based annual report using glossy paper, colors, photos,

graphs, charts, brief text highlights etc. That is the common scenario in

presenting annual report of insurance sector in Bangladesh.

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Content:

Preamble 05

Objectives of our study 06

Methodology 07

Limitations of our study 08

What is Annual Report 08

Why would we read an Annual Report 09

What intent is included in an Annual Report 10

Sector of our study

11

Insurance Companies that have been studied for our report 12

Rupali Insurance Company Limited 13

Green Delta Insurance Company Limited: 14

Pragati Insurance Limited 15

Global Insurance Limited 16

Sonar Bangla Insurance Company Limited 18

Continental Insurance Limited 19

Agrani Insurance Company Limited 20

Eastland Insurance Company Limited 21

An Overview 22

Conclusion 23

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Recommendation 24

References 25

Preamble:

In the era of globalization, Business organizations always try to show their

performance and activities summary in the preceding years. For highlighting their

performance and activities, Annual Report is the best way.

Normally, Annual Report is prepared for the shareholders and presented in every

Annual General Meeting (AGM). But now-a-days not only shareholders but also

interested groups use Annual Report to know organizations performance and

other information. Paper based annual report is used by the shareholders and it

is not available for every body and every time. For this reason, at present

business organizations submit their annual report with updated information in

their website. Even they provide additional information and half yearly, quarterly

annual report. So searching their website both shareholders and interested

groups can get sufficient information about them.

As Web-based annual report is a gift of twenty first century for us.

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Objectives of our study:

The objectives of the present study are:

(01) To survey the availability of websites for the insurance companies listed in

the stock exchanges in Bangladesh.

(02) To draw a complete picture of the situation of web based annual reporting

and paper based annual reporting in insurance sectors in Bangladesh.

(03) To analyze and differentiate between paper based annual report and web

based annual report.

(04) To find out whether a company prepares both the paper based annual report

and web-based annual report.(05)To asses the task of presenting annual report of individual insurance

company.

(06)To determine what types of information is updated in the web-based annual

report.

(07)To draw performance in presenting annual report of insurance section.

(08)To obtain a comprehensive insight about the preparation of annual report of

insurance sector.

(09)To acquire practical knowledge which will help to build up our career in the

real world.

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(10) To draw conclusions and offer recommendations on the basis of lack and

limitations.

Methodology:

To meet the objectives of the report, a different methodology has been used to

acquire as well as to analyze the overall activities of insurance sector. To

evaluate the entire process, mainly observation method has been followed. To

understand the general process of preparing annual report, face to face

conversation has been conducted with our group members. To explore the report

preparing method, individual company report has been personally observed. And

the analysis has been integrated to determine the issues.

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Limitations of our study:

There are some limitations in our study such as:

Gathering information through one way communication.

Some insurance companies have no their own corporate website.

Unavailability of up to dateannual report of some insurance companies in their

website.

Insufficient disclosure of information of some insurance companies.

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

What is annual report:

An annual report is exactly what is sounds like a formal report on a companys

performance in the preceding years.

In details, 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. The front of an annual report often

will be colorful, flashy and glossy, while possibly containing photos, graphics and

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brief text highlights. The latter part of the report contains the detailed financial

information.

Why would we read an Annual Report?

Most investors consider the annual report to be the most useful and credible tool

for gaining a comprehensive overview of a company. It is one of the most critical

documents that a company produces and is often the primary document used by

investors when researching a company. It provides details about the financial

condition of the company, and offers insight into the details of its business, as

well as its management philosophy.

According to a survey by Research Strategy Management, Inc., 91 percent of

investors indicate that a company's annual report is the most credible source of

information about that company. Billionaire investor Warren Buffet stated that

nearly everything he learns about a company comes from public documents. And

according to research conducted by Shelley Taylor & Associates, of the 26

sources of information that investors can rely on to make financial decisions, the

annual report is ranked as one of the top five.

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What content is included in an Annual Report?

The content in annual report is unique to each company. The content that

companies select to include in their annual report varies from company to

company, and from year to year. Investors usually can expect to find the

following items in a company's annual report:

A summary of the previous year

Vision, mission, strength and believes

Progress and performance at a glance

Status of Compliance of Corporate Governance

Information about the company, including its structure, product line, and

subsidiaries

A letter to shareholders from the President or CEO

A detailed discussion about the company's financial results

The financial statements (balance sheet, income statement, and cash flow

statement)

Notes to the financial statements

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Classified summary of Assets

Other information about the company that often is not included in other

documents.

Sector of our study: Insurance companies

Insurance sector is becoming most potential and rising sector in the present

world with a view to allocating risk of lives and properties. In our country

potentiality of this sector is the same as in the outside world.

Here our study is on this sector is related to how the insurance companies in our

country communicate with their stakeholders and what basis of reporting they

follow. Our study is also related to the differences between their reporting bases

if any of them follows more than one.

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Local insurance companies that have been studied for

our report:

Rupali Insurance Company Limited

Green Delta Insurance Company Limited

Pragati Insurance Company Limited

Global Insurance Limited

Sonar Bangla Insurance Limited

Continental Insurance Limited

Agrani Insurance Company Limited

Eastland Insurance Company Limited

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Rupali Insurance Company Limited:

Rupali Insurance Company Limited maintains web based annual report and

updates their information:

For that reason

1. In the web the financial statement is present but auditors report is not

present because of maintaining formalities in presenting web based

annual report.

2. 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.

3. In web based annual report, assets,, resources, investments etc are

updated but the graphical show is not updated.

4. Statement of Equity is a part of paper based annual report but is absent

in web based annual report.

5. Some additional information such as background; are presented in web

based report but is absent in paper based report.

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6. In corporate web-site Rupali Insurance Company Limited maintains all

formalities but they do not present annual report of preceding years except

Financial Statements of 2007.

Green Delta Insurance Company Limited:

Green Delta Insurance Company presents their both annual report flamboyantly

and nicely. They present their annual report in well furnished and well decorated

way. Their report presentation is different from other insurance companies. They

used glossy paper and also used colors for easily identifying. There is no

difference between hard and soft copy of annual report.

They 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.

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Pragati Insurance Limited:

In corporate website of Pragati Insurance Limited, financial statement or annual

report is not present. Only Gross Premium Income, Re-Insurance Premium

Ceded, 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 Companys 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.

In website companys profile is given with huge information and their

background but in paper based annual report it is given briefly i.e. date of

inauguration, listing with DSE, listing with CSE.

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In website details information about their products and services is given but in

paper based annual report only products and services title is given.

In website Directors report is not given.

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

1. In the paper based report there is content of where report. But it is absent

in the web-based report.

2. 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.

3. In the hard copy annual report there is no introduction about the company

for the stake holders and interested groups. In the short version there is a

detail introduction titled About us and it includes preamble, capital

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structure, management, and re-insurance protection, settlement of claims,

HR & D, promotional activities, and objectives of the company.

4. Paper based report did not indicate about their clients that mean we cant

know who this insurances clients are. But in the soft copy we found that

theres a chart of their valued clients.

5. Year wise financial performance is shown individually in the hard copy. Inthe soft copy it is shown under the heading of About Us

6. There is no indication about its services, but in soft version names of

services has been shown such as Fire insurance , Marine insurance,

Automobile insurance, Engineering insurance and miscellaneous

insurance etc.

7. Paper based annual report contains auditors report but it is absent in web

based report.

8. Financial Statements of Global insurance Limited is shown in paper based

report. We cant find its financial statements in the soft version. Because

some organizations dont want to disclose all the information to general

people.

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Sonar Bangla Insurance Company Limited:

Sonar Bangla Insurance Company Limited has a website but it is not updated

and only maintaining some formalities they had presented annual report of 2004.

Even they are not updating their operating results after 2000 and 2001.

1. In paper based annual report there is no existence of Chartered

Accountants (CA), Company Secretaries, Managing Directors, and

Chairmen. So there is no confident in this report.

2. Also the list of branches of Sonar Bangla Insurance Company Limited is

updated in the web based report.

3. Some more information such as directors report, compliance report of

Securities Exchange Commission (SEC) notification, Directors Certificate

etc. are presented in paper based annual report.

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Continental Insurance Limited:

Continental Insurance Limited (CIL) is newly listed insurance company in Dhaka

Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Continental

Insurance has not its own corporate website. So Continental Insurance can not

submit its annual report with additional and updated information. So its 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 Directors

profile, Chief Executives profile, consolidated balance sheet, schedule of fixed

assets, progress at a glance, credit rating report, Corporate Social Responsibility

(CSR) etc.

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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, information etc. of Agrani Insurance

Company Limited are very sophisticated.

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Eastland Insurance Company Limited:

Eastland Insurance Company Limited (EICL) has no corporate website. So wecould 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 Auditors Report & Financial

Statements Eastland Insurance Company Limited used 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.

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An overview to the web based reporting of local

insurance companies:

Name Website Updated

website

Financial

statement

s

Performanc

e at a

glance

Additional

information

Products &

services

Yes No Yes No Yes No Yes No Mor

e

Les

s

Details Brief

01.RICL

02.GDICL

03.PICL

04.GIL

05.SBIL

06.CIL -- -- -- -- -- -- -- -- -- --

07.AICL -- -- -- -- -- -- -- -- -- --

08.EICL -- -- -- -- -- -- -- -- -- --

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Conclusion:

In todays business world, Insurance sector is an essential sector for providing

safety and security to business. Here important task is to conduct business in an

organized and effective manner. In our country insurance sector is growing very

fast and has a very bright future. In any country this sector plays a fundamental

role in the economic activities. Now, questions arise that how we con make this

process effective.

Business process needs to make lot more progressive. According to this

process, insurance companies also 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 companys all the

information and companies will be more benefited in terms of time and money.

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Recommendation:

On the basis of our study we are offering some recommendations for the

Insurance Sector in Bangladesh regarding web based and paper based annual

report

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

website.

2. In web site they should provide sufficient information i.e. companies

background, directors profile, list of branches etc.

3. Presenting annual report in website should maintain some formalities i.e.

signature, auditors report etc.

4. Use sufficient graphs so that users can easily understand and compare

companys performance and activation with some previous years.

5. Web based annual report should be prepared for corporate people.

6. In financial statement necessary information should be disclosed so that

users do not get confused.

7. Annual report should be standard and presentable i.e. different colors,

structure for better understanding.

8. Paper based annual report should be prepared for general people.

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References:

1. Rupali Insurance Company Ltd. Annual Report 2007

2. Green Delta Insurance Company Ltd. Annual Report 2007

3. Pragati Insurance Company Ltd. Annual Report 2007

4. Global Insurance Company Ltd. Annual Report 2007

5. Sonar Bangla Insurance Ltd. Annual Report 2007

6. Continental Insurance Ltd. Annual Report 2007

7. Agrani Insurance Company Ltd. Annual Report 2007

8. Eastland Insurance Company Ltd. Annual Report 2007

9. www.rupaliinsurance.com

10. www.green-delta.com

11. www.pragatiinsurance.com

12. www.gilbd.com

13. www.sonarbanglains.com
http://www.rupaliinsurance.com/http://www.green-delta.com/http://www.pragatiinsurance.com/http://www.gilbd.com/http://www.sonarbanglains.com/http://www.rupaliinsurance.com/http://www.green-delta.com/http://www.pragatiinsurance.com/http://www.gilbd.com/http://www.sonarbanglains.com/

Documents

This Research Report Investigates the Utilization of the Internet For