Amana Takaful PLC 2015

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The Takaful concept is about purity,
fairness and mutual trust.
It is a commitment, to provide financial
security through solidarity
Pioneering Spirit...
Participative Approach...
Trusted Relationships...
If we were to encapsulate ATLs ethos in a nutshell...
this would be it. These words speak of the character
and qualities we bring to bear in every single
relationship we forge with customer and stakeholder.
We have just one goal the sustained success and
empowerment of all. So, whether we ride the storm or
sail gentle breezes, we remain uniquely...ATL. This was a
challenging year...but we held rm to our ethos.
Amna Takaful PLC | ANNUAL REPORT 2015
2
OUR VISION OUR VALUES

To be a world-class Takaful
service provider
We will benchmark our delivery of value to that of
world-class service providers in terms of product and
services, whilst upholding the principles of Takaful.
Our delivery will reach all our stakeholders including
customers, shareholders, suppliers, regulators, our staff
and the community at large.
OUR MISSION
Providing total Takaful solutions within the guidelines
of Shariah and serving all in an admirable manner.
CORD
C Customer Centred: Working always with the
customer-rst every-time mind-set.
O Open Mindedness: Looking for better solutions.
Demonstrating positive emotions and behaviours.
R Rise for Quality: Our work is a reection of who we are.
We value ourselves high and therefore our work. Strive to
meet and exceed customer expectations.
D Diversity: Diversity in everything we do. Embrace our
peoples visible and invisible differences, be it age,
gender, ethnicity, nationality, religion.
3
CONTENTS
Financial Highlights 4
Group Chairmans Statement 6
Chief Executive Ofcers Review 8
Message from the Head of Amna Takaful Life Ltd. 10
Board of Directors 13
Management Team 16
Management Discussion and Analysis 22
Product Portfolio 32
Corporate Social Responsibility 38
Human Resources 41
Corporate Governance 52
Enterprise Risk Management 60
Annual Report of the Board of Directors on the 68
Affairs of the Company
Board Audit and Compliance Committee Report 71
Report of the Remuneration Committee 73
Report of the Shariah Advisory Council 74
Financial Reports
Statement of Directors Responsibilities 76
Certicate of the Actuary Family Takaful (Life) 77
Certication of Incurred But Not Reported (IBNR) Claims and 78
Liability Adequacy Test (LAT)
Independent Auditors Report 79
Statement of Financial Position 80
Statement of Comprehensive Income 81
Statement of Changes in Equity 82
Statement of Cash Flow 84
Segmental Analysis Statement of Financial Position 2015 86
Segmental Analysis Statement of Comprehensive Income 2015 87
Segmental Analysis Statement of Financial Position 2014 88
Segmental Analysis Statement of Comprehensive Income 2014 90
Statement of Financial Position Family Takaful 92
(Life Insurance) Supplemental
Notes to the Financial Statements 93
Group Value Added Statement 153

Share Information 154
Ten Year Summary 156
Branch Network 160
Glossary 161
Notice of Meeting 163
Form of Proxy Enclosed
Corporate Information Inner Back Cover
4
FINANCIAL HIGHLIGHTS
2015 2014 Growth

Rs. Mn Rs. Mn %
Group
Total Gross Written Premium 3,238 2,652 22.08
Prot/(Loss) After Tax (281) 103 (372.30)
Earnings/(Loss) per Share (Rs.) (0.20) 0.07 (396.62)
Total Assets 4,746 3,742 26.82
Net Assets Value per Share (Rs.) 0.87 1.19 (27.24)
Return on Equity (%) (18.58) 7.51
General Takaful
Gross Written Premium 2,309 1,973 17.05
Net Earned Premium 1,603 1,416 13.22
Life (Family) Takaful

Gross Written Premium 928 679 36.71
Life (Family Takaful) Fund Family Takaful 575 551 4.26
Unit Linked 1,192 731 63.08
Total Life (Family Takaful) Fund 1,767 1,282 37.79
Company
Prot After Tax 265 64 316.33
Earnings per Share (Rs.) 0.18 0.06 177.55
Net Assets Value per Share (Rs.) 1.13 1.04 8.62
Return on Equity (%) 15.73 6.13
No. of Employees 258 358 (27.93)
No. of Branches/Distribution Centres 28 28 0.00
General Takaful
Gross Written Premium 1,547 1,376 12.44
Net Earned Premium 1,237 1,106 11.85
5 Financial Highlights
15,065
Numbers
12,087
Numbers
10,610
Numbers
9,510 2,309
Rs. Mn
Numbers
8,260
Numbers
1,973
Rs. Mn
1,830
1,789 Rs. Mn
Rs. Mn
1,296
Rs. Mn
1,130
Rs. Mn
698 750 928

Rs. Mn
Rs. Mn 735 Rs. Mn
569 Rs. Mn
Rs. Mn 679
Rs. Mn
543
Rs. Mn
318 365
Rs. Mn Rs. Mn
2011 2012 2013 2014 2015
General Takaful General Takaful Family Takaful Family Takaful

Contributions Net Claims Incurred (Life) Certicates (Life) Contributions
6
GROUP CHAIRMANS STATEMENT
TOTAL GROSS WRITTEN PREMIUM
Rs. 3.2 Bn
Growth of 22% over 2014
I am pleased to welcome all our shareholders to the Annual

We continue to explore General Meeting of Amna Takaful PLC. In doing so, I wish to
creative solutions within the present the Annual Report and the Financial Statements for the
year 2015, of the Amna Takaful Group.
Shariah compliant remit to As we embarked on a new three (3)-year Strategic Plan for the
boost earnings in the future. period 2015-2017, the rst of which has just concluded, the life
business which was segregated as a wholly-owned Subsidiary of
A government security Amna Takaful PLC (ATPLC) achieved a seamless transformation
through a Sukuk will be an under the name and style of Amna Takaful Life Ltd.
added impetus. Each of the Group companies individually contributed positively

with Amna Takaful PLC in particular reporting a prot of
Rs. 266.4 Mn. This comes from a one-off transfer of an
investment from its fully-owned Subsidiary Amna Global Ltd.
Amna Takaful Maldives contributed a prot of Rs. 48 Mn to the
Group. However, the fair value gain of ATPLC arising from the
said transfer has been eliminated in the Groups results as per
the accounting standards. Consequently, at a Group level, a loss
of Rs. 280.5 Mn is now reported.
7 Group Chairmans Statement
Business Results to explore creative solutions within the Shariah compliant

remit to boost earnings in the future. A government security
The Groups Gross Written Premium (GWP) of Rs. 3.2 Bn is a
through a Sukuk will be an added impetus.
growth of 22% over 2014. As reported earlier, the loss of the
Group for the year was Rs. 280.5 Mn.
Insurance Landscape and Outlook
Consolidated GWP of Amna Takaful PLC of Rs. 2.5 Bn includes
While the market has recognised the negative consequences of
a revenue of Rs. 928.3 Mn from the Life Business, reecting a
rate-cutting as a competitive strategy, a correction in pricing is
growth of 20.6% ahead of the industrys 17.4%. Our industry
clearly an imperative to service cost of claims and spares.
share remained at at 2.0%. The fore runner in this growth is
De-tariff is not the answer in an environment of escalating
Amna Takaful Life, which recorded a signicant upside of 36.7%,
repair and spares cost, particularly in a market that is
over-performing the Life industrys year on year growth of 20%.
motor-centric. The absurdly low rates on non-motor too is a
cause for concern. Exacerbating the situation is the unwieldy
For the second successive year, the General Insurance Industry
credit levels in the industry, where Sri Lanka stands unique in
GWP was largely pummelled by motor premiums. In 2015, the
the region. In this context, we can continue to bemoan the low
GWP increased by Rs. 8.9 Bn or 15.4% over the previous year,
industry indices and penetration levels, even as the economy
where motor accounted for 76.9% with segment share moving
takes off, not adding real value to GDP. As we embark on the
up to 63.7%. With a record number of new motor registrations
risk-based capital regime from 2016, the challenges it presents
and resultant congestion and mishaps, compounded by rate
will bring added pressure on business performance.
cutting, the loss ratios were substantially higher, with ATPLC
being no exception. Our loss ratios in motor had a signicant
impact on overall performance. The Insurance business, in Acknowledgements
particular, was fraught with galloping motor claims, which dees I am aware of the increasing level of engagement industry
the motor-led dominance on industry growth and decline in players have with the Insurance Board of Sri Lanka. This is
income from investments. expectedly so with more companies in the fray following the
segregation agenda. This augers well for the industry and
For the third time since 2012, the General Business paid out a protection of the insured. I thank the IBSL for their part in the
surplus award of 12.5% in 2015, following on from 10% and 15% regulatory affairs of our Company and ready advice, at all times.
in the two years preceding. The years negative performance of
the General Takaful Fund on account of motor claims, may not As we conclude the rst year post the segregation, Board
permit an award in 2016. members now have added responsibility in the discharge of
their duties, as we restructure the Group with a new life entity
Amna Takaful Maldives continued to defend its market share and the Maldives operation within greater control. I thank them
and deliver year on year prots for the 5th consecutive year, for their forbearance, advice, and support.
since being a listed entity on the Maldives Stock Exchange.
However, the prot momentum was severely impaired by a The year just gone by has been one of turbulence and concern
ruling of the authorities to consolidate a signicant segment of for all staff. It is important to re-energize and remain steadfast
volume and revenue in one class of business to be underwritten in the service of our customers as ag bearers of the Takaful
only by the State insurer. We continue to make representations concept and remain a beacon of trust, for the continuous
to the authorities to ensure a level playing eld. Despite the growth of this hallowed principle. I thank them all for their
prot out-turn of Rs. 46 Mn (lower by 40% over 2014) we remain perseverance and commitment.
steadfast to share surplus with our customers for the fourth
successive year.
Investment Income
The lackluster performance in equities and xed income
instruments in the overall context of lower investment returns
reduced earnings by 29.8% to Rs. 190.3 Mn. (This does not Tyeab Akbarally
include the one-off transfer from Amna Global). We continue Chairman
22nd April 2016

8
CHIEF EXECUTIVE OFFICERS REVIEW
GROSS WRITTEN PREMIUM
Rs. 1.5 Bn
Growth of 12.4% over 2014
Peace be Upon You All.

We are now at a high level
of preparedness to launch I wish to share some aspects of our business performance and
also a few thoughts in this Annual Review of Amna Takaful PLC
the Business Intelligence for the 2015 reporting year.
(BI) Tool to augment our At the outset, Id like to pay tribute to our loyal stakeholders for
the condence reposed in Amna Takaful in this participatory
customer contact ability with and sharing concept that has endured for over 16 years. Equally,
professionalism through your continued patronage and persistence for innovative
products, solutions and an exemplary service ethos is the
technological deployment driving force for all Amnites to steer through an intensely
competitive environment.
on the eld. With good time,
I take pleasure in presenting the salient business results
we aspire to be a fully wired as follows:
outt. z The Company grew its Gross Written Premium (GWP) by 12.4%
to Rs. 1.5 Bn over the previous year.
z Realisation of a prot of Rs. 265.3 Mn from a one-off
transaction through Amna Global
9 Chief Executive Ofcers Review
z Defended its market share Due to the ongoing Group restructuring, and prudent
z Sustained a positive outcome in underwriting result, for the deployment of resources, the one-off realisation of gains on a
fourth successive year fair value transaction from Amna Global resulted in wiping off
the accumulated liabilities in total. This has strengthened our
z Awarded a 10% surplus to non-claimants
balance sheet substantially.
z Improved performance in the business mix 66:34
motor/non-motor As the industry embraces the Risk Based Capital regime and
z Disbursed claims of Rs. 965.6 Mn its compliance, industry players will migrate to a new set of
z Recorded an investment income of Rs. 55.4 Mn, although disclosures and regulatory surveillance. It is imperative that we
lower by 61.3% over 2014 drive self-discipline and prudence in rates, uncompromising
underwriting practices and a cap on credit outlay, in order to
z Accelerated the diversity programme in talent recruitment
be a responsible contributor to overall economic growth. We
and development
need to get this right fast, as we develop and build capacity and
capability in new phenomena such as climate and cyber risks,
Though industry growth moved up from 6.4% in 2014 to 15.4% in as the nation positions itself for ambitious growth.
2015, 77% of that premium volume upside was a result of motor
underwriting, that too in a erce price-cutting environment.
The Company consciously steered an agenda of retaining its In Conclusion
core customers and selective motor acquisition together with Together with my management team, I wish to acknowledge the
upward movement of rates. Notwithstanding, the soaring support, advice and condence of the Chairman and the Board
incidents of road accidents and resultant cost of claims service of Directors, in the discharge of our duties and spurring us to
and spares, our loss ratio increased substantially. greater heights.
One half of our business growth was realised from the I thank the Shariah Advisory Council for their guidance and
non-motor segment in which we made good progress in all consultation as we preserve and expand the tenets of Takaful
its sub-classes, with favourable underwriting results. We will in all its purity. I also pay tribute to all my fellow Amnites for
continue to accelerate this trend to rebalance our portfolio for their steadfastness, as we Beat the Storm and move on to
sustainable business performance. storm the marketplace as true ag-bearers of the Takaful way.
Ameen.
Our continuous pursuit to inuence and enlist potential
customers and develop products for Banca-takaful partners,
thereby expanding the concept of Takaful throughout the Island,
has paid-off with an improved volume share from our branch
network now counting 54% of total GWP.
Productivity improvements through cost containment, energy

saving, multiskilling and outsourcing is borne out by overall M.F. Ghaffoor
costs remaining at as in the previous year, despite an Chief Executive Ofcer
increase in marketing spend and an overall staff attrition at
10% in addition to the workload with shared services. While 22nd April 2016
we embark on rightsizing our organisation and pursue a high
performance culture, recruiting and retaining skilled staff
remains a key challenge. Talent development, knowledge and
skills enhancement programmes continue unabated. We are
now at a high level of preparedness to launch the Business
Intelligence (BI) Tool to augment our customer contact ability
with professionalism and technological deployment on the
eld. In good time, we aspire to be a fully wired outt.
10
MESSAGE FROM THE HEAD OF AMNA TAKAFUL LIFE LTD.
GROSS WRITTEN PREMIUM
Rs. 928 Mn
Growth of 37% over 2014
I consider it a privilege to present the business review

Sourcing and inducting of Amna Takaful Life Ltd. (ATLL) in its rst year of
eld talent continues to independent operations.
be a challenge in growing Amna Takaful Life recorded a GWP of Rs. 928 Mn in 2015,
compared to Rs. 679 Mn in 2014. This performance, with a
the agency network. Whilst growth rate of 25% in 2014 and 37% in 2015, both ahead of
industry, afrms our promise of above industry performance,
measures have been initiated, which is now rmly entrenched in our DNA.
we are committed to increase Prot after tax of Rs. 18 Mn was constrained by an increase in
our eld force in order to post-segregation costs and reduced investment income.
enhance penetration as well Revenue

as grow our future leaders. All business lines, namely, Savings and Protection, Wealth
Management and Corporate and Mortgage fared well, recording
signicant growth over the previous year.
11 Message from the Head of Amna Takaful Life Ltd.
The new business from Savings and Protection products was ATLL produced eight qualiers for the prestigious Million Dollar
Rs. 230 Mn, resulting in total revenue from the channel of Round Table (MDRT), USA, a record high for the Company.
Rs. 538 Mn, a growth of 27% and 30% respectively over 2014. Participation at such events will enhance skills and help infuse
The channel contributed 58% of the total GWP of the Company. international best practice into the entity.
Prosper continued to play its key role in growing the life fund,
contributing Rs. 338 Mn, an increase of 46%, taking up 36% of Challenges
the revenue. ATLL managed its rst year lapsation at 37%, a signicant
improvement from 50.1% recorded in 2012 (source, Industry
DeergaYou, Sri Lankas rst Shariah compliant retirement plan Lapsation Study). We believe that this progressive trend will
was launched in September 2015 adding to the portfolio of continue with new initiatives that are in place to improve
wealth management solutions. Crafted with the rising level of persistency.
life expectancy, we believe the product will feature well in the
growth agenda of the Company. Sourcing and inducting eld talent continues to be a challenge
in growing the agency network. Whilst measures have been
initiated, we are committed to increase our eld force in order
Business Lines and Channels to enhance penetration as well as grow our future leaders.
Agency continues to be the dominant channel, offering all
products, generating over 87% of the GWP during the year.
Conclusion
We are delighted that the investments made in 2014 to I wish to thank the Chairman and the Board of Directors
develop the channel are paying dividends in the form of both for their committed guidance in steering the Company,
productivity and sales competence. The initiatives include post-segregation.
scaled-up training, revamped benet structures and increased
eld support and monitoring. I thank all our valued customers for their continued trust
in us and salute all Agents and Staff for their unrelenting
2016 will see the implementation of the Business Intelligence commitment to keep the Takaful ag ying high.
(BI) Tool, through which real time information on Key
Performance Indicators and sales staff activity will be available We remain, OPEN TO ALL.
to management. We expect a signicant increase in on-eld
efciency as a result.
ATLL will also commence Bancassurance with Amna

Bank in 2016, promoting the DeergaYou retirement plan.
Disproportionate effort and budgets are being channelled to
develop this to be a key channel in the future.
Talent
Reyaz Jeffrey
In order to sustain our ambitious plan for above industry
Chief Executive Ofcer
growth, we continue to acquire industry knowledge, locally and
internationally, while continuously scouting for talent. Amna Takaful Life Ltd.
A performance-driven ethos is now well entrenched in the 22nd April 2016

organisations culture, stemming from revamped performance
appraisals systems, staff recognition and reward schemes.
12
Pioneering
Spirit
The pioneering spirit is deeply etched in our being.
From being the rst and only fully-edged Takaful
proponent in the industry to being the rst to offer a
Shariah compliant Retirement Plan and the only insurer
to offer a special hospitalisation product for senior
citizens, we arent afraid to break new ground.
13
BOARD OF DIRECTORS
Board of Directors
14
01 Tyeab Akbarally 04 Dato Mohd Fadzli Yusof

Chairman Non-Executive (ATPLC and ATLL) Independent Non-Executive Director (ATPLC and ATLL)
Tyeab Akbarally is the Chairman of the Company. He has been Dato Mohd Fadzli Yusof was appointed to the Board on
appointed to the Board since its inception. He is also a Director 10th February 1999. He was the Founder Chief Executive Ofcer/
of Akbar Brothers (Pvt) Ltd., the largest tea exporter in the Director of Syarikat Takaful Malayisa Berhad, the rst Takaful
country. Tyeabs business interests extend to many sectors operator in Malaysia and Asia since its incorporation in 1984
of the economy, including Tea Trade, Pharmaceutical Trade, until his retirement in 2005. He obtained the Professional
Hydropower and Commodity Trading. He is also on the Boards Diploma in Communication, Advertising and Marketing (CAM)
of Amna Bank PLC and several companies in the Akbar from the CAM Foundation in the United Kingdom. He
Brothers Group. commenced his career in broadcasting, including six years
with BBC in London. Currently, he is an independent member
of the Board of HeiTech Padu Berhad and MRC Data Sdn Bhd.
02 Osman Kassim He also serves as a member of the Board of Directors, Mains
Non-Executive Director (ATPLC) Zakat Sdn Bhd, for the state of Negeri Sembilan, Malaysia,
Osman Kassim, the visionary and one of the main promoters and a member of the Board of Trustees Sultan Mizan Royal
of Amna Group of Companies, is the Chairman of Amna Foundation. He has recently been appointed as a member of
Bank PLC, Sri Lankas rst and only licensed commercial bank the Board of State Economic Development Corporation for the
to conduct all its operations under the principles of Islamic State of Kelantan, Malaysia. He is also an Academic Fellow,
banking. Kassim, a well-versed personality in Islamic banking University College Insaniah in the State of Kedah, Malaysia.
and nance, was instrumental in introducing the non-interest
based concept of nance to Sri Lanka with the setting up of
Amna Investments in 1997, whose assets and liabilities were 05 Dr. Aboobacker Admani Mohamed Haroon
later transferred to Amna Bank PLC in 2011. Non-Executive Director (ATPLC)
Dr. A.A.M. Haroon was appointed as a Director on
With over 40 years of senior management experience, Kassim 21st September 2000. He is a Medical Practitioner by profession.
was also the founder Chairman of the Expolanka Group of He also holds the Chairmanship of several private companies,
Companies, diversied engaged business activities ranging encompassing different industries including Garments,
from exports, imports, garments, waste management, entrepot Healthcare and Clinical Diagnostics.
trading, airline agencies, freight forwarding, tours and travel,
aviation etc. He currently sits on the Board of Expolanka as a
Non-Executive Director. 06 Muhammad Ehsan Zaheed
Executive Director (ATPLC)
He is also the Chairman of Asia Pacic Institute of Information Ehsan Zaheed was appointed as the Director/CEO of Amna
Technology (APIIT) Sri Lanka, set up in collaboration with APIIT Takaful on 1st October 2003. He is a Fellow Member of The
Malaysia and the Chairman of Vidullanka PLC, a leading provider Institute of Chartered Accountants of Sri Lanka and a member
of renewable energy to the National Grid. He is also a Director of the Institute of Public Accountants of Australia. He completed
of Aberdeen Holdings (Pvt) Ltd. his Articles at Messrs Ernst & Young, Chartered Accountants.
Having worked with several leading private sector nancial
He was conferred an Honorary Doctorate from the Staffordshire institutions, he has immense exposure in Sri Lanka and overseas.
University in recognition of his achievements as both a global
entrepreneur and visionary educationalist.
07 Aboo Sally Mohamed Muzzammil
Independent Non-Executive Director (ATPLC)
03 Mohamed Haniffa Mohamed Raq
A.S.M. Muzzammil was appointed to the Board in April 2010.
Independent Non-Executive Director (ATPLC and ATLL)
He is the Chairman/Managing Director, Ceylon Foods (Pvt) Ltd.
M.H.M. Raq has been on the Board since its inception. He has served for over 40 years in senior management positions
He has been involved in the insurance industry for over four in commerce and industry. He holds a MA in Business Analysis
decades. His interests are extremely diverse and include from Lancaster University, UK and the J Dip MA, UK. He is a
Education, Healthcare and Real Estate. Raq, with his wealth of Fellow of the CIMA (UK) and ACCA (UK). Muzzammil served
experience in the sphere of insurance, plays an active role in as the President of CIMA Sri Lanka Division, Exporters
Amna Takaful PLC.
15 Board of Directors
Association of Sri Lanka and the Seafood Exporters Association

09 Radhakrishnan Gopinath
of Sri Lanka. He has been a member, of the Councils of the Independent Non-Executive Director (ATPLC and ATLL)
Moratuwa University, SLIATE, SLSI and the ITI and was a member
Radhakrishnan Gopinath was appointed to the Board on
of the Joint Business Forum and various Chambers of Commerce
6th June 2012. He was formerly the Chief Executive Ofcer and
and Industry. He has been a Vice-President and Treasurer of the
the Managing Director of Life Insurance Corporation Lanka
OPA and also serves in several business, educational, social and
(LIC Lanka), having previously held several top positions at LIC
religious organisations.
India. Gopinath was also a Director at Al Nabooda Insurance
Brokers LLC Dubai. He has also served as a Vice President of
the Insurance Association of Sri Lanka and was an Executive
08 Dr. Ifthikarudeen Ahamed Ismail
Committee member of the Ceylon Chamber of Commerce in the
Independent Non-Executive Director (ATPLC and ATLL)
Insurance Sub-Committee.
Dr. Ifthikarudeen Ahamed Ismail was appointed to the Board
of Amna Takaful PLC in June 2012. He also serves as Chairman Gopinath is a member of Chartered Insurance Institute (CII),
of Amna Holdings (Pvt) Ltd. and as a Director of Asia Siyaka UK and also a member of The Personal Finance Society and
Commodities PLC. Society of Mortgage Professionals (PFS) London UK. He is also
a member of Indian Management Association and also is the
He holds a BSc (Hons) Degree from the University of Ceylon and Alumnus of Madras Christian College, India. He holds a Bachelor
a PhD from the University of St. Andrews UK. He has attended of Science (Mathematics) and a Postgraduate Diploma in
the Advanced Management Programme at the Harvard Business Business Management.
School and has participated in a variety of senior functional
and general management training courses, mainly in Europe. His passion in training, coaching and mentoring along with his
He is a Fellow of the Institute of Management of Sri Lanka. extensive experience in insurance led him to establish GOPAST
Centre for Learning (Pvt) Ltd., a company dedicated towards
Whilst he was Vice Chairman of Unilever, he served in various building human potential, where he holds the position of
capacities in state institutions; among them as a Director of Chief Executive Ofcer/Managing Director.
the National Apprentice Board, a member of the Advisory
Committee of the Ministry of Foreign Affairs, the Research
Planning Council of the CISIR, the Tertiary Vocational Education
Commission and the Council of the Open University.
He has served as Principal of Zahira College, Colombo, CEO

and Director of APIIT Lanka and as Chairman of the Board of
the Sri Lanka Business Development Centre, Council Member of
the Employers Federation, Chairman of the Board of Governors
of the Symphony Orchestra, Chairman of the Colombo District
Scouts Association and Patron of the Photographic Society of
Sri Lanka.
16
MANAGEMENT TEAM
General Management Committee (GMC)
M. Fazal Ghaffoor A. Reyaz Jeffrey Zaid Ibnu Aboobucker

Chief Executive Ofcer ATPLC Chief Executive Ofcer ATLL General Manager
Operations and Medical
Adel Hashim M. Fawas Farook M. Farhan Jabir

General Manager Sales and Marketing General Manager Strategic Planning Head of Human Resources
and Corporate Risk (Shared Services) (Shared Services)
M.S.M. Iqbal Rinaz Niyas A.H.M. Dilshad

Head of Information Technology Head of Finance and Administration Head of Compliance and Regulatory
(Shared Services) (Shared Services) Reporting (Shared Services)
17 Management Team
Business Operations Management (BOM) and Other Corporate Management
M.Z.M. Nazim Kester Amarasinghe Rizvan Ahamed

Specied Ofcer Assistant General Manager Technical Assistant General Manager
Retakaful/General Underwriting
Nalin Sakalasooriya Shamail Annam Azmy Saly

Assistant General Manager Assistant General Manager Senior Manager Learning and
Motor Claims Business Development (Corporate) Development (Shared Services)
M.G.M. Ansari A.L.M. Inamulla Roshan Ranasinghe

Senior Manager Business Senior Manager Internal Audit Senior Manager
Development (Shared Services) Portfolio Management
Management Team
18
Sumedha Mirihana Rushdi Zarook Dr. Yusry Mohideen

Manager Marketing Activations Manager Legal (Shared Services) Manager - Medical Takaful
(Shared Services)
Shahul Hameed Farook Thilak Nishantha Ahmed Ajfar

Senior Manager Manager Human Resources Manager Information Technology
Branch Sales and Operations (Shared Services) (Shared Services)
M.H. Mohamed Aslam Shaheer Rasooldeen Manesha Marambe

Secretary to the Board Manager Relationship Management Assistant Manager Strategic Planning
Unit (Shared Services) and Corp Risk (Shared Services)
19 Management Team
U.G. Janaka Wijayakumara M.N. Ashique Mohammad Omar Mustafa

Senior Regional Manager Regional Manager Central Channel Sales Manager
Southern and Sabaragamuwa Leasing and Financial Services
Thasleen Ammon M.F.M. Hismy M. Jibrath

Channel Sales Manager Corporate Business Development Manager Business Development
North and Northwest Manager East
Management Team
20
Amna Takaful Life Ltd.
N. Shahnaz Deen Shaul Hameed Asif Nimalika Sooriyaarachchi M. Sathik Niyas

Specied Ofcer Assistant General Manager Assistant General Manager Senior Regional Manager
Sales and Distribution Family Underwriting East and Uva
M.R. Shakir Mohamed M.K. Mohamed Althaf M. Hazari Farouk A.C.M. Siraj
Regional Manager Western Manager Business Development Regional Manager Central Regional Manager Southern
(Prosper)
W. Sawan Rangana Rodrigo R. Priyanthi Newmen Sabeeh Feisal

Manager Agency Development/ Manager Group Life Manager Family Underwriting
Sales Administration
21
Participative
Approach
To ATL, a key aspect of participation is the complete
willingness to foster mutual prosperity. Our enterprise
has grown and prospered with our customers. ATL recorded
an 18.2% growth in Group Investment Income, 36.7% growth
in Family Takaful Gross Written Premium, and 63% increase
in our Family Takaful Unit Linked Fund. Partners with mutual
interest remain accessible to each other ATLs web portal/
mobile applications regimes epitomise this openness.
22
MANAGEMENT DISCUSSION AND ANALYSIS
The Company Amna Takaful Life Ltd. (ATLL)

Amna Takaful PLC (ATPLC) commenced operations in 1999. In Amna Takaful Life Ltd. came into operation from 1st January
2006, the Company was listed in the Colombo Stock Exchange. 2015 and provides long-term insurance solutions. The Company
The staff strength, with ATLL includes 320 full-time employees commenced with an initial capital investment of Rs. 500 Mn
with presence in 28 locations across the island. as mandated by the IBSL. The Company has a range of unique
Endowment; Wealth Management products and standard
The Company successfully segregated the business into Life Mortgage and Group Life solutions under guidelines of Shariah.
(Family) and Non-Life Units as mandated by the Regulation
of Insurance Industry Act No. on 1st January 2015. At the
segregation, ATL spanned off the Family Takaful operation as a Amna Takaful Maldives PLC (ATM)
wholly-owned Subsidiary Amna Takaful Life Ltd. (ATLL), while Amna Takaful (Maldives) PLC, is a General Insurance Company,
retaining the Non-Life business in its parental capacity. providing Takaful Solutions in the Republic of Maldives. It was
founded in 2003 and is based in Mal, Maldives. Its product
The General and Family Takaful Companies completed its range includes personal accident, health, travel, marine, hull,
rst year of operation after the segregation, with the shared hotel, re, protection and indemnity, motor, business, home,
services in HR, Finance, Marketing, IT and Compliance being contractors all risks, delity, public liability, money-in-transit,
provided by ATPLC. burglary, erection all risks and business interruption.
The ownership of ATM was transferred from AGL to ATPLC as

Group Overview part of the ongoing group restructure.
As at 31st December 2015, comprised the following companies
including Amna Takaful entities. Amna Takaful Maldives, is listed in the Maldives Stock
Exchange. It enjoys a 14% market share.
Amna Global Ltd. (AGL)

Amna Global Ltd. is an Investment Advisory that plays the dual
role as marketer of the Group and its offerings. It has built its
brand locally and overseas over several years. Amna Global
has the potential to develop into a signicant player in the
distribution of Shariah compliant investment products. It is
also registered under the Board of Investments (BOI) Sri Lanka.
Strategic Performance
ATPLC has grown its Gross Written Premium (GWP) by 12.4% to
Rs. 1.55 Bn over the previous year, maintaining its market share.
The Company focused on the Non-Motor segment in line with
the strategic plan and recorded a growth of 19.2%. In contrast
the industry grew its motor portfolio by 19%, whilst growing the
Amna Takaful PLC (ATPLC)
Non-Motor segment by 9.5% during the same period.
Having commenced operations in 1999 as a Composite Insurer,
Amna Takaful completed 16 years of operations in 2014, with ATPLC, the Parent Company of the Group, recorded a prot
presence in 28 locations across Sri Lanka, covering eight provinces, of Rs. 265.3 Mn for the year ended 2015 in comparison to
with the exception of Uva. The Company was listed in year 2002 Rs. 63.7 Mn the previous year. The years prots included a
and operated as a Composite Insurer until 31st December 2014. one-time gain of Rs. 587.2 Mn, from the transfer of the
Subsidiary ATM from Amna Global Ltd. to ATPLC.
On segregation from 1st of January 2015, the Life segment was
spun off as a fully-owned Subsidiary of ATPLC, who retained ATLL has grown its GWP by 36.7% to Rs. 928.3 Mn and increased
the General Business and provides the shared services as market share from 1.2% in 2014 to 1.6% in 2015. The Life Fund
permitted by IBSL. ATPLC presently employs 258 full-time grew by 37.8% to Rs. 1.7 Bn by December 2015.
employees, of which 58 employees provide shared services for
both business segments.
23 Management Discussion and Analysis
Porters 5 Force Analysis

Forces Details Life General
Threat of Potential Entrants Threat of Entry is based z Entry barrier of Rs. 500 Mn z Entry barrier of Rs. 500 Mn
on market entry barriers. capital for registration. capital for registration.
Barriers range from legislative z Increased focus on life z Price undercutting leading to
requirements, minimum capital losses for general insurance
insurance in-line with
requirements to a variety of players.
increased disposable income
regulatory requirements that
in the economy.
need to be fullled in order to
commence business. z More major players focusing
on Life Insurance.
z Increasing ageing population.
Threat of Substitute Products Alternative products to Life z Increased interest rates z No Substitute Product for
insurance products in the economy leads to insurance as third party
Eg. Pension products, savings more competition from the insurance is mandatory.
schemes etc. economy. z No Substitutes for general
insurance products.
Bargaining Power of Suppliers Suppliers in terms of insurance z Inability to attract major z Reinsurance plays a key role
are the Reinsurance Partners. Reinsurers at competitive in the General Business.
Further Labour/Talent supply is rates due to the low volumes z Reluctance of foreign
a key area in terms of supply in in the market. reinsurers to enter the
the insurance industry. Sri Lankan market as a result
of the lower margins as
well as the low quantum of
business from Non-Motor
has resulted in smaller
companies in the industry
not been able to fully
compete in the Non-Motor
segment of the industry.
Rivalry among Competitors With the number of players z Rivalry amongst insurance z Low margins.
in the insurance industry companies with a variety of z Low differentiation of
rising up to 28 players, the differentiated covers. products amongst competitors.
local insurance industry is z High exit cost.
experiencing over supply.
z Good margins.
Management Discussion and Analysis

24
Business Environment
Sri Lanka witnessed two major elections namely the 2015 is also attributed to the lower levels of credit extended to
Presidential and the Parliamentary elections in 2015. A new the private sector during the rst eight months of the previous
Executive President was elected in January followed by the year. In absolute terms, credit increased by Rs. 310.5 Bn during
General Election in August in which a new Government of the rst eight months of 2015, suggesting a strong demand for
co-habitation was formed. The August Parliamentary Elections banking sector funds. Meanwhile, as per the Quarterly Survey
gave a clear win to the United National party. With the of Commercial Banks Loans and Advances to the Private Sector,
President, being from the United Peoples Freedom Alliance, credit ows to all major sectors recorded an expansion during
a Coalition Government was formed. the rst half of 2015. Accordingly, credit to Industry and Services
sectors on a year-on-year basis increased by 27.8% and 25.6%,
The Sri Lankan economy recorded a growth of 5.6% in the rst respectively, during the rst half of 2015.
half of 2015 with positive contribution from agriculture, industry
and service related activities. Agriculture, Forestry and Fishing The Sri Lankan Rupee that remained broadly stable during
related economic activities rebounded, recording a positive the rst eight months of the year, supported by Central Bank
growth of 3.3% during the rst half of 2015, compared to the intervention, depreciated thereafter as the Central Bank allowed
contraction of 0.7%, in the corresponding period of 2014. greater exibility in the determination of the exchange rate. The
The revival of agricultural activities was mainly a result of the increased demand for foreign exchange, mainly due to higher
signicant improvement in the paddy sector amidst negative imports and debt service payments, the reversal of foreign
growth rates recorded in relation to tea, rubber and spices. investments in the Government Rupee Securities market, the
Meanwhile, industrial activity, which contracted by 4.5% moderation of workers remittances and modest inows to the
in the rst half of 2014, recorded a growth of 1.3% in the nancial account, added pressure on the exchange rate.
rst half of 2015.
Market interest rates continued to remain at low levels in the
The recovery in manufacturing activities mainly contributed to rst ten months of 2015, beneting from prevailing relaxed
this growth, while construction activities as well as mining and monetary conditions. The Average Weighted Call Money Rate
quarrying contracted. The growth momentum of services related (AWCMR) displayed somewhat mixed movements in the rst
activities continued, with an expansion of 7.1% during the rst ten months of 2015. Even though the AWCMR declined below
half of 2015, compared to 4.2% in the rst half of the previous the SDFR, following the rationalisation of access to the SDF in
year. The acceleration of value added in services was driven September 2014, the AWCMR peaked at 7% on 2nd March 2015,
by real estate, nancial services, wholesale and retail trade with the removal of this restriction and then remained around
activities as well as other personal services. 6.7% until mid-April 2015.
Ination remained at single digit levels for the seventh

consecutive year and year-on-year headline ination Industry Overview
declined to negative territory during the third quarter. The The premium income of insurance companies increased
continued low ination could be attributed to prudent demand signicantly, while total assets showed a moderate growth.
management policies of the Central Bank, improved domestic Total assets of the insurance sector recorded a growth of 0.8%
supply conditions and low international commodity prices. on year-on-year basis, by end of June 2015, in comparison to
Nevertheless, the very low headline ination in 2015 was the growth of 13.0% recorded as at end June 2014. The gross
also the result of sharp downward adjustments to domestic written premiums (GWP) of the General Insurance sector grew
administered prices of fuel and energy as well as the reductions by 15.3% in 2015, when compared with the increase of 3.9% in
in prices of selected essential food items by the Government. the corresponding period of 2014. Relatively high growth in the
premium income of the General Insurance Sector, particularly
The growth of credit extended to the private sector by motor insurance, has largely contributed toward the high
commercial banks, which rebounded towards end of 2014, growth of overall GWP. This was mainly due to the signicant
accelerated further during the rst eight months of 2015, driven increase in new vehicle registrations, primarily due to the
by low market lending rates, increased real wages, as well as reduction of tax on small motor cars. The premium income from
increased import demand. Accordingly, credit to the private Motor Insurance, which constitutes about 63.7% of the General
sector increased by 21.3% on a year-on-year basis by end of Insurance Premium, grew at a relatively high rate of 19.1% in
August 2015, compared to 8.8% recorded at end of 2014. The 2015, compared with the 5.1% increase in the corresponding
high year-on-year growth rate in private sector credit during period of 2014. Further, the premium income from Non-Motor
segment increased by 9.2% in 2015 compared to 1.5% in 2014.
25

26
The long-term Insurance industry recorded a growth of 20%, Growth of General and Life Business
which was the highest in the last ve years. The number of
policies sold grew by 19.9% to 645,596 during the year under GWP 2015 2014 Growth
review, which contributed to a 30% higher growth of the new Rs. Mn Rs. Mn %
business in terms of First Premium and First Year Premium.
ATPLC 1,547.45 1,376.27 12.4
ATLL 928.29 679.03 36.7

Business Performance Review
Total 2,475.74 2,055.30 20.5
ATPLC Group
Gross Written Premium-Segmental Growth over the last ve
years is depicted in the chart below. While ATPLC General grew In 2015, the GWP of ATPLC and ATLL accumulated to Rs. 2.5 Bn
by 12.4% in 2015 over the previous year, ATLL and ATM grew by in comparison to Rs. 2.1 Bn in 2014, reecting a growth of 20.5%
36.7% and 27.7% respectively, enabling Groups Gross Written year-on-year.
Premiums to grow by 22.1% in 2015.
ATL General
ATPLC GROUP GWP
ATPLC grew by 12.4% and ATLL grew by 36.7%, which is a
signicant shareholder value addition for the Company.
Rs. Mn Rs. Mn
The Market Share of ATPLC was 2.3% in 2015.
1,750 3,500
ATPLCs strategic plan to shift the portfolio mix to a 60:40 ratio

1,400 2,800
between Motor and Non-Motor in three years saw the motor
share move from 68% in 2014 to 66% in 2015.
1,050 2,100
700 1,400 General Business Growth Analysis 2014-2015
350 700
Category 2015 2014 Growth
Rs. Mn Rs. Mn %
0 0
2011 2012 2013 2014 2015 Fire 120.00 117.06 2.5
Marine 39.69 36.02 10.2

Group ATPLC General ATM General ATLL Life
(RHS) (LHS) (LHS) (LHS) Motor 1,020.95 935.81 9.1
Hull 66.35 31.49 110.7

The General and Family Takaful companies completed its
PAB 5.50 5.15 6.8
rst year of operations after the segregation with the shared
services in HR, Finance, Marketing, IT and Compliance being WCI 10.07 8.06 24.9
provided by ATPLC. Bond 16.52 9.06 82.3
Engineering 38.04 32.18 18.2
Miscellaneous 47.37 43.91 7.9
Medical 182.96 157.51 16.2
Total 1,547.45 1,376.25 12.4

PRODUCT MIX
E A E A
B 2015 2014
B % %
D
D
A - Fire 8 9
B - Marine 2 3
C - Motor 66 68
D - Medical 12 11
E - Miscellaneous 12 9
C
C
2015 2014
ATL Life
ATLL, the Life Company was reported as an independent The Life Fund recorded an year-on-year increase of 37.8% to
business for the rst time in this Annual Report. However, in Rs. 1.8 Bn in 2015, compared to the growth 37.7% in 2014. The
the Management Discussion and Analysis its compared with Unitised portfolio, especially the Unit Linked Prosper, the
the previous years performances, as a business segment for premium wealth management product, signicantly impacted
analytical purposes. The chart below depicts the growth in the growth of the Life Fund in 2014 and 2015.
Gross Written Premium over the last ve years, where the Unit
Linked portfolio of the Life business has supported growth.
FAMILY TAKAFUL GWP FAMILY TAKAFUL FUND
Rs. Mn Rs. Mn %
1,000 2,000 40
800 1,600 32
600 1,200 24
400 800 16
200 400 8
0 0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Family Takaful Mortgage and Group Unit Linked Family Takaful Fund (Rs. Mn) Family Growth Rate (%)
In the year 2015, the Life Fund grew by Rs. 482.8 Mn, compared
to the growth of Rs. 346.8 Mn in 2014.
28
ATLL Fund Movement Investment Income

ATPLC with ATLL yielded an average return of 5.8% on the total
2015 2014 2013 2012
Rs. Mn Rs. Mn Rs. Mn Rs. Mn
average investment assets for the year 2015. The highest yield of
7.1% was recorded from Mudharaba deposits with Banks, whilst
Gross Written Premium 928.29 679.03 542.99 364.76 the lowest yield was on real estate portfolio. The downward
Net Earned Premium 908.06 665.25 537.96 356.95 trend in the equity market continued throughout the year
with few exceptions and yielded 3.0% for the full year. The
Income from Investments 121.36 136.99 72.51 51.18
Government Securities too performed below expectation during
Claims and Expenses 536.95 455.41 389.33 241.08 the year, yielding a return of 5.6% for the year under review.
Fund Growth 482.83 346.83 221.14 167.05
Expenses
On segregation, the cost structures of ATL have changed due
Claims General Business
to the parent-subsidiary relationship and the shared services
Total net claims incurred during the year 2015, amounted provided by the General Company. Total expenses of Life and
to Rs. 965.6 Mn, 20.5% above the previous year. However, General companies on a consolidated basis for comparison
the claims incurred on the Motor portfolio increased by with the last year, is depicted in the table overleaf.
Rs. 300.6 Mn to Rs. 822.6 Mn, compared to Rs. 522.0 Mn in 2014.
The increased claims cost was on account of the portfolio of The total expenses have increased by 7.6%, whilst staff expenses
Hybrid cars. This was a common scenario experienced amongst have risen by a marginal 5.7%, compared to the previous year.
all industry players. Marketing expenses have increased signicantly to fund the new
Marketing Campaign launched under the theme Open to all.
GENERAL CLAIMS GROSS
Consolidated Expenses of ATPLC and ATLL
Rs. Mn
1,000 Consolidated Expenses 2015 2014 Change
Rs. Mn Rs. Mn %
800
Staff Expenses 282.01 266.70 5.7
600 Administration and
Establishment Expenses 220.74 239.90 (8.0)
400
Sales and Marketing 77.73 44.11 76.2
200 Depreciation 30.10 26.60 13.2
Consultancy Fees 29.13 21.89 33.1

0
2011 2012 2013 2014 2015 Travel Expenses 132.69 115.06 15.3
Amortisation 0.70 4.09 (82.9)

Motor Medical Non-Motor
Finance Cost 2.37 2.42 (2.1)
Total 775.47 720.77 7.6

Claims incurred on the Medical portfolio also increased by
30.2% in 2015.

30
Protability
ATPLC recorded a prot of Rs. 265.3 Mn for the year 2015, costs, as prots of the Company. In its rst year of independent
compared to the prot of Rs. 63.7 Mn recorded in 2014. This operations, ATLL recorded a prot after tax of Rs. 18 Mn in 2015.
includes the performance of both General Takaful (Risk Fund)
and Shareholders Funds of the Company. The Group recorded a loss of Rs. 280.5 Mn in 2015 compared to
a prot of Rs. 103 Mn in 2014.
Amna Takaful Maldives recorded a prot MVR 5.2 Mn,
equivalent to LKR. 46.1 Mn for the year 2015. As a Takaful entity, The prots attributable to the non-controlling interest of 45%
ATLL considers the surplus in the Shareholders Fund, which of Amna Takaful Maldives was Rs. 20.7 Mn for the year 2015,
earns the management fee from the premium income and compared to Rs. 35.3 Mn equivalent in 2014.
meets all the business related expenses including acquisition
2016 Future Priorities
Area of Focus Description Future Priority
Revenue Core revenue driver of the business. In-line with the three year plan devised in 2015, Management has
taken steps to ensure that the core revenue objectives are met
and adequate personnel are hired and skills upgraded in order
to succeed in this task. Channel wise structural changes too will
contribute to this achievement.
Credit Management Minimising credit is essential in General Management has made it a priority to ensure that credit is strictly
Business in order to have sustainable cash managed and guidelines are prudently followed in order to
ows. 60-90 days of credit overtime become minimise delays in collecting premium from customers. A strict
a norm of the General Business. formula has also been devised in order to counter the same.
The Life Business is essentially a cash

business and thus is devoid of any
cash ow issues arising from the same.
Claims Management The main cost component of an insurance Struck with high claims volumes over the last 18 months. The
business. Prudent management is essential Company has a claims management process in place in order to
to run a successful insurance company. curtail fraudulent claims and to ensure an efcient and smooth
customer service experience.
Customer Satisfaction Customer satisfaction remains a core The Company has currently outsourced its call centre operation
element of insurance. Customer experience but has a full time manager in charge of monitoring efciency
being at high levels will ensure retention and customer service excellence. Additionally, the Company
as well as future increase of revenue of strives to ensure that customers obtain a surplus payment on
the Company. an annual basis.
Staff Welfare Ensuring staff welfare will help retain The Company has an incentive package for sales staff as well as
the most vital asset in a service-based non-sales staff in order to boost productivity. Further, the Company
organisation. has a performance based remuneration system in place, which is
ne tuned on an annual basis to ensure maximum effectiveness.
Expenses Overheads management is another Management expects to cut cost via economies of scale,
essential cost component in an insurance multiskilling and double hatting of staff. Reducing the expense
business. Maintaining an efcient expense ratio, which is a top priority. Synergies across the General and Life
ratio is essential. Companies, as well as improvements in the shared services would
help optimisation.
Micro Insurance
A decade into the 21st Century, poverty is still a harsh reality In the local context, according to a study conducted, the
for most of humanity. Approximately, 80% of the worlds Life insurance penetration is approximately 12% of the total
population lives on less than $ 10 a day and nearly 50% live on population. A much higher percentage belongs to medium
less than $ 2 a day (World Bank Development Indicators, 2008). and higher income segments of the economy. The industry is
Majority of such low-income levels have absolutely no access yet to penetrate the masses in rural and semi urban areas
to formal/organised nancial services, especially nancial where approximately 75% of Sri Lankans reside. Therefore, it
protection or insurance. is evident that a vast number of people in Sri Lanka especially
in the low-income segment, exposed to various risks are
Micro insurance is an insurance solution for the low income unprotected nancially.
population of urban and rural economies. It plays a crucial
role in reducing poverty and improving the living standards of ATL being the pioneer of the Takaful concept in Sri Lanka,
low-income communities whilst providing a nancial cover in realising the social responsibility and the need to protect these
the case of disasters and calamities. people has introduced a range of Micro Takaful products to suit
the diverse segments of this market.
32
PRODUCT PORTFOLIO
General
Travel Pal My Home Business Cover

In the event of an unforeseen A home is a showpiece of a lifetime A good insurance policy is an important
inconvenience during the policyholders decorated with memories of love, care aspect of business security, as it secures
travel period, the Takaful Travel Pal policy and family. It is more than mere bricks investments against specic forms of
offers support to customers travelling for and mortar. Therefore, My Home provides destruction or loss. The Business Cover
leisure, business or family engagements. a comprehensive cover for a range of enables an enterprise to operate smoothly
The policy is a comprehensive and reliable potential risks. In the event of a burglary despite unexpected calamities. We also
travel companion. It covers the holder it covers damaged property and stolen offer tailor-made policies for different
in the event of hospitalisation, personal goods. It includes all belongings in the types of businesses including textile shops,
accident and injuries, permanent or total home jewellery, valuables, interior restaurants, grocery stores, pharmacies,
disabilities, loss of luggage and valuables, and exterior decorations. The cover also hardware shops, supermarkets and the like.
reimbursement of repatriation cost and provides protection against damages
a comprehensive cover for ight delay/ caused by re, falling trees and branches,
cancellation, missed departure etc. explosions, natural disasters such as
Travel Pal also provides absolute peace earthquakes, lightning and thunderstorms
of mind to the policyholder and free etc. Additionally, it offers a host of free
access to airport lounge facilities at the benets such as, a personal accident
Bandaranaike International Airport. cover for the family, protection against
loss of rent and cash, re brigade
The policy is available online, catering to charges, replacement of ATM/credit cards,
the ever-growing tech savvy customers. alternative accommodation requirements,
Quotations can be viewed and travel deterioration of food in the refrigerator
policies can be bought online through and much more.
www.takaful.lk. The ATL Mobile app can
be downloaded and used for any purpose
including visa applications. Foreign
travellers can obtain their Travel Pal policy
through ATLs island-wide branch network
as well as partnered travel agents.
Total Drive Easy Marine

This motor policy cares not only for your car, Maritime enterprise is fraught with many
but also for your loved ones and includes risks. With our Easy Marine cover, one can
various covers to suit your risk appetite. be at ease, whilst the goods are on the
It includes an exceptional claim settlement move. This is because we are committed
process with the choice of payment options. to safeguarding your imports and exports
from the point of origin to destination.
Our online portal www.takaful.lk and the ATL The policyholder can also enjoy the
Mobile app offers customers a wide range broad coverage offered with a superior
of functions that include; renewal of motor professional and friendly service with
policies, obtaining quotations, notifying an speed and efciency, ensuring smooth
accident and tracking a motor claim. sail at any stage.
33 Product Portfolio
Medical
Hale & Hearty Crystalline Suwasiri

An extended hospital stay is not only Women are the primary caregivers in todays This is a unique health insurance policy
distressing but it can also be a surprisingly society. However, a number of health issues with an extremely affordable fee of just
expensive with costs escalating beyond pose specic risks to them. ATLs Crystalline Rs. 2,222/- for an annual insurance cover
ones limit. Not just the disease but Policy is especially tailored for ladies, of Rs. 100,000/-. This has made the Suwasiri
the cost of treatment too takes its toll. providing coverage for the treatment of Health Insurance Policy the most affordable
Hale & Hearty insurance plan covers ailments common to ladies. From critical policy available to Sri Lankans. Suwasiri is
individuals and their families within the illnesses to the complications of aging, the the perfect solution to the challenges faced
age group of 18 to 55. It can be tailored policy insures against the most pressing by Sri Lankans due to the increasing costs
to meet the needs of entrepreneurs, threats to womens health, providing peace of hospitalisation and medical treatment
executives, managers and others like of mind to them. expenses. Whilst good health is a blessing,
young adults and housewives. The policy an illness can occur when we least expect it.
also features an array of benets that ATL Suwasiri Health Insurance policy is the
provide policyholders with added value solution that will help ease ones nancial
and convenience. Hale & Hearty gives burden during a time of crisis.
policyholders the convenient option
of cashless transactions in over 22
leading hospitals. As a result, ATL settles
hospitalisation bills directly to the
hospital ensuring the policyholder has
minimal use for cash and feels no hassle
and stress.
Kruthaguna
Kruthaguna a pioneering hospitalisation
policy meaning gratitude especially
designed for Individuals over 55 years
by ATL to full a noble responsibility
that has thus far not been provided for
by the insurance industry. The scheme
offers many benets including hospital
charges, ambulance services and wheel
chair grants to name a few. Kruthaguna
additionally covers expenses incurred
which include medical tests required
even after hospitalisation, purchase
of medicines and a residential nursing
service for elders who are brought home
after hospitalisation, a true consolation
for both children and parents. The product
offers three schemes to choose from
which is available to all Sri Lankans over
the age of 55.
Product Portfolio
34
Micro
Navodhaya Samudra Shakthi Kiri Govi Diriya

Navodhaya, covers the general risks of Sri Lanka being an island nation, over 10% This is a unique product introduced by ATL
diverse low-income communities such as the of the population is dependent on shing to uplift the dairy farming communities
self-employed and factory workers and their or related industries. ATL introduced a from the risks and challenges encountered
families including death, hospitalisation and hull insurance scheme for the shing by them. This is distributed through the
funeral expenses etc. communities to protect their livelihood. farmer network established at village level.
Presently, the Company is conducting
This exible product has been tailored to research to introduce a scheme to secure
suit the plantation sector employees as well, other risks faced by the animal husbandry
taking into account the specic risks they industry of this country which needs
are exposed to. protection as they too are exposed to
various risks including diseases.
In addition, the Company has initiated

several steps to introduce more products
to suit the needs of the agriculture
farming and various other industry specic
communities.
35 Product Portfolio
Life
Adhyapana Platinum Surakshitha

Adhyapana is a long-term protection and Platinum has been designed to suit those Life, is uncertain and we need to be
saving plan that helps the policyholders of us who want to provide the best money prepared to face any misfortune.
to nance their childrens education and can buy for the ones dearest to us. Not Surakshitha is a Life cover affordably
future with a health insurance cover. It only does it meet ones protection needs in packaged to enable the policyholder and his
helps to make every parents wish of giving terms of death, critical illness and accident, family to face misfortunes and unavoidable
their children the best education but it also includes a comprehensive circumstances. Surakshitha provides a plan
and future reality. hospitalisation cover for the policyholder that is tailor-made to suit the individual
and the family with an overseas treatment needs with a host of benets including
option. A unique feature is that it enables hospitalisation and critical illness cover.
the insured to obtain a second medical The money is judiciously invested to provide
opinion locally or overseas, in case of a larger returns as well.
critical illness, which is a rst time feature
in Sri Lanka.
Prosper Safeguard Group Life

This is Sri Lankas rst Shariah compliant We all wish to leave behind an inheritance An untimely death or accident or disability
unit linked life insurance plan. Amna Takaful for our loved ones. However, the unexpected can take away a valuable employee and
Prosper enables to invest for the future loss of the breadwinner might leave the his/her contribution to a company, not
and at the same time provide protection to dependants with the burden of debt. Amna to mention the devastation caused to the
the family if the unthinkable happens. The Takaful Safeguard protects the loved ones employees family. Amna Takaful now
solution is based on investments in secure from the burden of leftover debt and enables offers the opportunity to secure the health
deposits and equity and with the choice of them to enjoy the life built for them by and well-being of the employees, so that
four different funds. There are plans for a the policyholder. Amna Takaful Safeguard they can work with peace of mind, knowing
peaceful retirement, childrens education, enables one to plan ahead. that they will be taken care of in the event
weddings and getting the dream home. of a tragedy.
Life is for living; and we help you make the
most of it.
DeergaYou
This is the rst ever Shariah compliant
retirement plan that caters to the ever
growing demand for a pension plan that
secures the nancial security of customers
in their golden years. It paves the way for
one to save regularly between the ages of
18 to 55 and thereafter enjoy an increasing
monthly pension payment.
36
37
Trusted
Relationships
Trust must be built over time. The longevity of the relationships
we enjoy with key stakeholders (over a decade or more in most cases
with our customers and Reinsurers) is the surest sign that a high
degree of trust exists between us. Closer to home we are committed
to building trusted relationships by guiding/assisting our employees
develop themselves and build long-term careers with us ATL has
invested approximately Rs. 50 Mn over the past 5 years in staff training,
development and recruitment.
38
CORPORATE SOCIAL RESPONSIBILITY
ATL Cares
Ladies Empowerment Centre (LEC) in Aluthgama The interactive sessions included activities and presentations
The LEC was formally inaugurated on 1st October 2015. ATL which facilitated the participants to better understand the
Cares joined hands with a dedicated team of professionals principles and in the long run develop skill to be better
and businessmen who teamed up voluntarily to setup a centre individuals.
for women with entrepreneurial spirit. The primary objective
of the Centre is to provide opportunity for women to enhance
and develop vocational skills and counselling activities through
specically designed programmes. The LEC conducts many
courses to empower women in specialised areas such as
tailoring, cookery and child psychology etc.
Childrens Day at Balangoda

ATL Life partnered with the Balangoda Divisional Secretariat
to host an event for the local pre-schools in celebration of
the World Childrens Day on the 1st of October. The event
was themed The role played by parents in up-bringing their
children. It highlighted the importance of early development
Personality Development for the Welipitiya in children and the manner in which the home environment
Divisional Secretariat created by the parents played a vital role in their early
childhood development. The event consisted of a talent show,
ATL Cares invested time and effort in yet another programme
art competition together with fun and games, with the winners
to develop the personality and leadership potential of the eld
receiving special gifts sponsored by ATL Life. A felicitation
ofcers and executives of the Welipitiya Divisional Secretariat.
ceremony was held to appreciate pre-school teachers in
The programme was conducted at the Welipitiya Divisional
recognising the important role they play in the development
Secretariat grounds, where 75 staff members were trained
of children. This was followed by a thought provoking
on personality development, team building, communication,
knowledge sharing session with the parents.
decision-making and most importantly mental and physical
robustness. These newly acquired skills would assist them in
building good relationship with the public whilst providing
exemplary service.
39 Corporate Social Responsibility
Spreading to Kandy our Spirit of Caring

As part of the inauguration of the ATLs Kandy regional ofce,
ATL Cares gave away sports equipment to the Dharmapala Maha
Vidyalaya and Siddilebbe Maha Vidyalaya. The students were
joyful and excited about their new sports equipment. Both the
students and the school representatives were grateful of the
thoughtful gesture by ATL.
ATL Cares for Children with Special Needs at

Sunshine Camp
In keeping with its primary goals of supporting child education
and welfare, ATL Cares partnered Sunshine Camp, a charity
organisation dedicated towards supporting differently-abled
children. The charity strives to optimise and develop the many
talents of these children. ATL supported the cause through a
donation, facilitating the children to be an inclusive group in
the nations development.
Corporate Social Responsibility

40
Awareness Programme with the Galle District Ice Cream Dansala

Trafc Police The Company organised an ice cream dansala during the Vesak
ATL partnered the Galle District Trafc Police in an awareness season for the many sight seers who came to witness the Vesak
campaign to educate the general public on the rising incidents celebrations in the city.
of road accidents in the area. The programme consisted of
a workshop for three-wheeler drivers, school van drivers
and public transport ofcials on becoming more obedient,
respecting trafc rules. A public awareness campaign was also
conducted with the participation of the trafc police. The main
purpose of the programme was to educate the pedestrians and
drivers about the general highway code and averting accidents
by simply following these rules.
Iftar Drive Through

ATL initiated a project to provide Iftar refreshments to the
travellers on Marine Drive, Colombo. People in the locality,
devoid of caste and creed enjoyed a refreshing Iftar meal.
41
HUMAN RESOURCES
Amna Takaful: Seventeen years in the making marks its Companies, the Group today has 320 employees based in eight
presence today with a geographic footprint of 26 branches provinces around the country. In our endeavour to constantly
Island-wide and has secured above industry growth during boost staff productivity, the Group witnessed a sensitive
2015. Despite unforeseen challenges the people of ATL are reduction of Full Time Employees (FTE) from 358 in December
determined than ever before, to delight its customers and 2014 to 320 by end December 2015, whilst upholding service
serve them beyond expectations. levels and growing revenue during the period.
People are at the very heart of our Organisation and it is this Rationalising jobs, redeploying personnel and encouraging
key differentiator that continuously ensures that our workforce Multiskilling/double-hatting among the ranks, whilst exploring
is engaged and empowered to deliver on the objectives of the prudent outsourcing options, increasingly aided our quest
Company. Having identied, acquired and developed critical towards decreasing FTE numbers, whilst improving overall
new skills in our employees, both in the General and Life productivity.
HR Strategy
Strategy 1 2 3 4 5
No. 1 Takaful Player, by miles, Rs. 200 Mn retained prots in 3 years, with a Market Share of 4%, based on a volume of Rs. 5 Bn.
Human Resources
42
The three year Strategic Plan (2015-2017), comprises ve Broad

initiatives; Market Penetration, Balanced Portfolio, Enabling
Winning Culture, Cost Containment and Customer Service
Excellence. In order to deliver on the Battle Order and Rules
of the Game, the need to nurture an Enabling Winning Culture
within the Organisation was identied as one of paramount
importance; as a result, prominence has been given to
ensure that ATLs HR Strategy is in full alignment with the
Organisations corporate strategy. This was translated
by way of cascading goals with the implementation of the
new Performance Management System (PMS) last year
across the Company.
Leadership Excellence Programme (LEP)

As part of ATLs strategy in promoting an Enabling Winning
Culture for business success, a well thought through, structured
Leadership Excellence Programme was crafted with the
assistance of HI-5 Consultancies to impart key soft skills to
staff. The primary aim of the LEP was to develop leadership
potential and groom the next succession of managers within
the Company.
The process involved:

i. Self-Learning Participants were given two months
to assimilate the self-learning modules and prepare
themselves for an exam, based on the knowledge acquired.
ii. MCQ Test Participants vying to partake in the LEP had to iv. Work Based Assignments On completion of the workshops,
rst secure a minimum of 60% marks at the test. participants were given work based assignments to
implement a change initiative encapsulating either of the
iii. Workshops The four days workshops entailed soft skills
following: cost savings, a process improvement or some
being imparted through case studies, activities, role plays
form of value addition to the business. They were given
and other experiential learning techniques.
two months for the completion of the project, with
measurable results.
iv. Final Assessment The nal assessment was presided by

an Independent Assessor along with two senior managers.
Learnings from the programme were assessed objectively
along with the impact of their project/solution.
Core Modules:
1. Introduction to Strategy
2. Change Management
3. Decision-Making Tools
4. Leadership
5. Communication Skills
6. Working as a Team
7. Time and Stress Management
8. Managing Personal Finance
9. Effectively Managing Yourself
43 Human Resources
Graduate Recruitment Programme (GRP) ii. Carrying out specic Assignments/Projects with
Presentations at Corporate Mission Meetings
As part of our strategy in developing a solid talent pipeline
within the Company, ATL embarked on a Graduate Recruitment iii. Presentations to the General Management Committee
Programme in January 2015. The initiative set out to attract, on their departmental learnings, observations and
infuse, develop and retain young talent in the Company. recommendations.
iv. Assessments at the conclusion of each departments stint.
Stringent ltering and selection processes were employed
to ensure that the cream of applicants were selected for this Hands-on activities at the regional ofces and branches,
GRP. This entailed written exams (Aptitude Test, Language including eld accompaniments and customer visits,
Prociency, General Knowledge, Memory and a Personality participation at various Learning and Development
Proling Exercise) testing the prospects knowledge from Programmes, whilst engaging and delivering on various project
diverse spheres. The short-listed applicants were then subject work, ensured that the MTs were being well rounded, groomed
to a full day Assessment Centre, employing a variety of and fast tracked to take up positions in the appropriate
techniques and activities to help determine which candidates functions at the conclusion of their 12 months training.
had the potential to be promoted to management positions.
GENDER ANALYSIS GRADUATE RECRUITMENT PROGRAMME
Gender %
B
A - Male 64
B - Female 36
The 12 months programme was meticulously crafted and

fashioned in order to expose the Management Trainees (MTs) to
all aspects and functions of the business. Apart from detailed
theoretical insights and knowledge that was imparted in the
respective departments on processes and procedures, the MTs
had to demonstrate their understanding by:
i. Hands-on execution of the work at the relevant
departments.
Human Resources
44
Segregation Agenda
As per the Regulation of Insurance Industry (Amendment) Act The Rationale for the PDF is coined using the acronym IDEA
of 2011, all composite insurance companies were required to
I Inculcate a LEARNING CULTURE within the organisation
segregate the General and Life Insurance businesses effective
D Develop Self-Esteem
from January 2015. Consequently, the Life Business Unit was
spun-off as an independent entity (Amna Takaful Life Ltd. E Enhance productivity and performance
ATLL), being a fully-owned subsidiary of Amna Takaful PLC. A Applying what is learnt, in context at the workplace
With the formation of Amna Takaful Life Ltd., staff dedicated to

Employee Analysis
the Life operation were seamlessly transitioned to the new Life
Company (ATLL) with effect from 01st January 2015.
Staff Distribution by Province 2015 2014
No. % No. %
Professional Development Forum (PDF)
Central 42 13.00 46 13.00
Launched in July 2015 and held once every two months for the
Senior Management Team, the PDF is essentially a 2 hours Eastern 28 9.00 32 9.00
power packed session on latest Management Perspectives, North Central 2 1.00 3 1.00
trends and developments with a global avour, facilitated North Western 31 10.00 38 11.00
by external resource professionals, academics and eminent Northern 3 1.00 4 1.00
industry personalities.
Southern 16 5.00 18 5.00
Uva 1 0.31 3 0.85
Western 197 62.00 214 59.00
Total 320 100.00 358 100.00
GENDER ANALYSIS OF STAFF
B
Gender 2015
%
A - Male 94
B - Female 6
B Gender 2014
%
A - Male 95
B - Female 5
A
45 Human Resources
Staff Strength 2015 2014 2013 2012 Labour Turnover 2015 2014 2013 2012
Senior Management 17 16 16 15 Number of Staff Resigned/ 70 54 72 83

100 99 96 38 Terminated
Middle Management
Executives 171 195 195 199 Average Number of staff 341 364 364 408
During the Period
Non-Executives 32 45 52 130
Labour Turnover % 20.50 14.80 19.80 20.30
Grand Total 320 355 359 382
Diversity
Service Analysis Senior Middle Executives Non- Total
of Staff 2015 Management Management Executives Ours is an environment that continuously strives to embrace
Years diversity, invite fresh thinking and experiences. At ATL we
2 and below 1 32 42 12 87 advocate a mutually inclusive culture, one of tolerance
towards age, gender, ethnicity, nationality, religion and or
35 3 14 67 8 92
working/thinking styles, capabilities and needs. We value the
6 10 8 37 58 9 112 richness and variety of ideas from these differences.
Above 10 5 17 3 4 29
Grand Total 320 We endeavour to recruit candidates, both females and males
with diverse backgrounds, experiences and perspectives to
enrich our talent pool. Developing employee and leadership
capabilities that foster innovation, teamwork and giving equal
AGE ANALYSIS OF STAFF 2015
opportunity for all employees to continuously discover, learn
and develop to contribute at the workplace and society at large,
E A is at the very core of what we do as a responsible employer.
Age %
D
Capable females were recruited to different functions on a
A - 18-25 8
need basis, both at the Head Ofce and Branches to serve an
B B - 25-30 28 increasingly diverse customer base.
C - 30-40 43
D - 40-50 15
E - Above 50 6
SERVICE ANALYSIS OF STAFF 2015
D
Years %
A
A - 2 and below 27
B - 3-5 years 29
C C - 6-10 years 35
D - Above 10 9
B
Human Resources
46
Annual Awards Day 2014 Some Key Awards:

The Annual Awards Day is a much awaited event to celebrate the i. CEOs Award Essentially recognises and appreciates the
achievements and teamwork of our talented employees. contribution of operations staff who go beyond the normal
call of duty.
The Awards Day aims to recognise and reward the achievers in ii. Ten Years Service Award Staff completing 10 years of
the Company from both Sales and Operations alike. service in the Company are recognised for their dedicated
service to Takaful.
iii. Champion of Champions Recognises the overall best
performing Sales Personnel.
Employee Exchange Programme (EEP)

A cross-fertilisation exercise was initiated for the rst time
between staff of ATL Colombo and Amna Takaful Maldives (ATM).
We believe that markets beyond our own territory will enrich

our people to totally new, different and exciting experiences
that would enhance knowledge and skills in their respective
areas of expertise. Under this initiative staff in the Underwriting
and Marketing division of both companies were swapped for a
period of three months to:
z Learn about the daily operations, business activities/relevant
functions in context to the environment;
z Gain new skills and experience, as planned in the preparation
process of the exchange programme;
z Generate new ideas; and
z Enhance co-operation.
47 Human Resources
Street Storm (Operations Staff)

In an attempt to display a spirit of togetherness and propel the
top-line production of ATL, a cross section of the operations
team at Head Ofce and Branches took to the streets of
Colombo city and other townships during September, to build
greater awareness of our product line among the masses.
CMA Training Partner

ATL joined hands with Certied Management Accountants
Sri Lanka by signing a Training Partnership Agreement (TPA) to
produce Management Accountants who are skilled and
well-trained in their valued profession.
TPAs are signed with commercial and other institutions of

repute that have capacity for training and qualied staff that
could provide proper guidance to trainees.
Professor Watawala (President CMA) and Fazal Ghaffoor

(CEO ATL) signed the agreements. The certicate of
accreditation was presented subsequently at a small ceremony.
Human Resources
48
Amna Takaful Welfare Association ATWA Staff Eye Clinic

ATWA forms an integral part of our Company and ensures that
staff across the Board are engaged in different activities and
events organised throughout the year, thus bringing about a
sense of work life integration.
ATWAs Mandate Covers
Regional/Branch Shufe
Ice Cream Dansala
During the year, staff were rotated and repositioned across the
country. A exible and pragmatic approach was adopted to the
placement of staff, ensuring that they were more responsive to
changing business needs.
49 Human Resources
As a result, staff were given diverse exposure and experience, Total training hours amounted to 5,648 while the per capita
giving them the opportunity to spread their tentacles, increase learning hours exceeded 34 per employee, covering all the
motivation, improve effectiveness and in many cases exploring sales regions, including Western and Head Ofce.
their hidden talents.
The Banca Takaful Overseas Training Programme was one of the
The areas highlighted on the left depict the regions/branches distinct programmes attended by key members of the Banca
where changes were made. Takaful Sales Force in 2015.
Consultative Selling programmes were specially designed

Learning and Development for those who had potential to be developed as strong
General Takaful communicators to win businesses that were valuable to
2015 was a successful year for General Takaful in terms of the organisation. All four Regions of General Insurance had
Learning and Development. The Takaful Academy of Skills and undergone this experience.
Knowledge TASK (the Learning and Development wing of ATL)
endeavoured to inculcate Technical Competency in both sales Negotiation Skills programmes were fashioned and imparted
and operations staff alike aligned to Company values. to people involved in front line operations, both in sales and
operations. Negotiation techniques of the present and future
Training Needs Identication for the operations and sales were the focal point of this initiative.
staff were derived from the information extracted from the
Performance Appraisal Review Forms (PARFORMs). In the In order to inculcate a Non-Motor mind set in staff, a series
PARFORMs, Line Managers/Heads of Departments clearly of programmes branded Non-Motor Champions were delivered
indicated the training needs of their staff. In addition, a across the regions. Those who showcased their talent in
separate segment of sales staff had independent skills the subject area were rewarded and named as Non-Motor
development programmes which were designed and delivered Champions.
as per the industry standards.
Primary programmes were crafted to cater to the needs of

Technical Competency and Selling Skills that were eight in
number. They were delivered in a structured fashion to enhance
the knowledge and skills that are vital for the development of
a learning organisation and that is the foundation of successful
corporate entities.
TASK was able to produce 40 (forty) licentiates of the Insurance

Board of Sri Lanka, keeping the pass rate above 75%. This is a
benchmark standard higher than the industry.
Human Resources
50
An area of key focus on the General Insurance training-front Out Bound Team Building Programmes were also conducted to
was Product Competence. This entailed a basket of Non- inculcate team spirit within the organisation. This was to uphold
Motor Products being presented to the audience with specic the CORD values of ATL.
attention being given to eld underwriting skills. The objective
was to build the eld underwriting capability essential to selling
Non-Motor Products.
Converting Technical Details into a Unique Sales Point is an area

requiring more knowledge and guidance in order to close a sale
effectively. For this purpose a programme titled Technical Sales
Competency Programme was designed and rolled out. This
programme indeed took our people to new and greater heights.
In addition, Skill Boosters E-Zines and email courses on

Management, Leadership and Personality Development in
English were circulated among the members of middle and
senior management of ATL.
Family Takaful
An Agency Force plays a critical role in any insurance company,
both in a global as well as local context. ATLL has been seriously
focusing on Agency Cadre Development and diverting resources
towards its growth, expansion and capability building.
51 Human Resources
In the year 2015, TASK crafted and delivered a set of new In order to further strengthen the Life Training, Regional
programmes for the sales force. This included soft and Trainers were appointed after having qualied on the Train the
technical skills required for Sales Staff, whilst Technical Trainer programme. These champions developed capability and
Competency Programmes for the Operational Staff were condence to conduct basic trainings within their respective
outsourced in addition to the soft skills recommended in regions. This ensured an uninterrupted delivery of basics.
the year end appraisals.
Agency Management Programmes were conducted for
Twenty Six programmes on Soft and Technical Skills were Team Leaders and Sales Managers who were instrumental
conducted in-house. This exclusively includes the Design, for business success in their respective terrains. Agency
Development and Delivery of the tailor-made programmes. Management comprised of Motivation Skills, Leadership Skills,
Separate projects were initiated for Sales Management, Team Coaching Skills, Recruitment and Selection and Performance
Management and Agency Management of the Company. Management.
A Grading System was introduced to measure the effectiveness Another noteworthy initiative was the Low Producer Coaching.
of structured training programmes. Total training hours Under this initiative low producers were identied and coached
comprise 19,360 training hours and more than 64 per capita effectively to gradually attain Performer status. Turnover
learning hours. cost was minimised and productivity of the low performers
increased substantially.
A course on Personal Financial Planning was introduced to the
sales team to encourage Need-Based Selling of Life Insurance. Professional Selling Skills programme was delivered in three
This is an initiative practiced by a few corporates who believe in levels. PSS 1; the basic Selling Skills, PSS 2; the intermediate:
the Development of Human Capital in the long haul. PSS 3; was an advanced module with comprehensive objection
handling techniques. Role Play was the main emphasis as a
In addition to the structured projects, a number of overseas success factor, through this endeavour.
training exercises took place to inculcate professionalism and
best practices in the management of ATLL. Personal Financial Planning in all three languages was
conducted to develop the Sales Force to qualify for the wealth
Technical Competency Life had been focusing on the regulatory management course to be conducted in 2016.
requirement of licentiate status in which signicant growth was
witnessed in the pass rate of staff going beyond 80%. In addition to the above, Self-Motivation, Secret to Success,
English Camp and Team Building initiatives are the core drivers
of the Learning and Development exercise at ATL Life.
Product Competency Life was yet another area receiving due

attention from TASK. This programme was effectively rolled out
across the Company and was a main driving force in achieving
the top and bottom-line gures.
52
CORPORATE GOVERNANCE
Corporate Governance that nurtures a Capital Structure and Shareholding

culture of transparency, accountability and Amna Takaful PLC has at its foundation a capital structure
consisting of an issued share capital of Rs. 1,650,001,188/-.
integrity plays an integral part in ensuring
our growth and stability. It is through the The Company has 6,422 shareholders, while the majority shares
adoption of the highest of such standards are held by institutions. Details of the main shareholders are
given on page 154.
that we continue to enjoy the trust and
condence of all our stakeholders.
Board of Directors and Board Committees
The present business environment has become more There are nine Directors on the Board of Amna Takaful PLC, of
challenging. Therefore, Amna Takaful PLC and the Group whom eight hold ofce in non-executive capacities. The Board
strongly believe that it is vital for the Company and the Group of Directors has been drawn from a cross-section of industries.
to adopt the highest standards of corporate governance. This Their expertise and experience in various elds as well as
would nurture a culture of transparency, accountability and insights have contributed immensely to making effective and
integrity which are essential prerequisites in ensuring the informed Board decisions. The selection of the appropriate
Companys survival and growth in a competitive market. and suitable candidates with the right skills and attributes is
crucial in order to ensure its efciency and effectiveness. For it
Corporate governance is described as a management process is believed that a healthy Board culture will help to encourage
in which a corporate, business entity or Company is directed, and safeguard good governance practices which in turn will
managed and controlled. It is a concept which is now ensure shareholders interests are always protected. The names
increasingly gaining prominence in the business world. In any of the Board of Directors are given on page 69.
company where the shareholders have placed the reigns 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, a company
must adhere to the best corporate governance practices
which embody integrity, accountability and transparency.
Nevertheless, the success of any good governance practice
initiative depends on how the people are led and the policies
as well as the processes are implemented.
In order to create shareholders wealth and gain market

condence, Amna Takaful PLC is committed to adopting
best practices. It is also committed to maintain the smooth
functioning of the Companys operations.
53 Corporate Governance
Corporate Governance Framework

Amna Takaful PLC and the Group operate within a clear governance framework, which is outlined in the diagram below and set out
in this Report:
Amna Takaful PLC

Chairman:
Tyeab Akbarally Board of Amna Takaful PLC
Principal objective: Nine Directors:
Leading the Board to ensure One Executive Director, a Non-Executive
effectiveness in all aspects Chairman and seven Non-Executive
of its role. Directors.
Principal objective:
Collectively to ensure the long-term
success of the Company.
Audit and Compliance Committee Risk Management Committee Investment Committee

Three Independent Non-Executive Three Non-Executive Directors. Three Non-Executive Directors and
Directors. One Executive Director.
Principal objective:
Principal objective: Review and realign the risk appetite Principal objective:
To ensure that the interests of shareholders of the Company at strategic and various To ensure that a healthy investment
are properly protected in relation to functional levels. portfolio is maintained within the
financial reporting and internal controls. investment guidelines of the IBSL
Risk Management Committee report and Shariah.
The Board Audit and Compliance pages 60 to 67.
Committee report pages 71 and 72.
Remuneration Committee Executive Committee
Three Non-Executive Directors. Five Directors, the CEO and GMC.

The Chairman presides at these
Principal objective: monthly meetings.
To develop policy on executive
remuneration. It also recommends Principal objective:
packages for the Executive Director and To monitor the implementation to the
senior managers immediately below business strategies of the Company and
Board level. the Group.
Remuneration Committee report page 73.
Corporate Governance
54
Board Size and Composition

The Board currently comprises nine Directors: the Chairman, management are robust; determining levels of remuneration;
seven Non-Executive Directors and one Executive Director. satisfying themselves on the integrity of nancial information
The size and composition of the Board and its Committees and succession planning for the Executive Directors.
are regularly reviewed by the Board and in particular, by the
Nominations Committee to ensure that there is an appropriate The Board reviews strategic issues on a regular basis and
balance and diverse mix of skills, experience, independence exercises control over the performance of the Company by
and knowledge of the Group. More details of our Board agreeing budgetary targets and monitoring performance against
members can be found on pages 14 and 15. those targets. Certain matters are reserved for approval by
the Board and the Board has overall responsibility for the
The Board is collectively responsible for the long-term success Groups system of internal controls and risk management,
of the Group. Executive Directors are responsible for running as described on pages 60 and 67. Following presentation by
the business operations and ensuring that the necessary executive management and a disciplined process of review and
nancial and human resources are in place in order to achieve challenge by the Board, clear decisions on policy and strategy
the Companys strategic aims. are adopted and the executive management is empowered to
implement those decisions.
The Non-Executive Directors are responsible for constructively
challenging and helping develop proposals on strategy; A formal schedule of matters reserved for Board approval is
scrutinising the performance of management; satisfying maintained which covers items that are signicant to the Group
themselves that nancial controls and systems of risk as a whole due to their strategic, nancial or reputational
implications. A summary of these matters includes:
Approval and monitoring strategic

and annual business plans
Review of business performance
Approvling significant acquisitions,
mergers or disposals
Approval of the Groups interim Strategic Ensure adequate succession

dividend and recommendation plans are in place
of final dividend
Board and Board Committee
Compliance with the SEC Listing Succession appointments and removals
Rules, Disclosure and Transparency Regulatory Planning and
Rules and the Companys Law on Appointment or removal of the
Takeovers and Mergers
Reward Company Secretary
Board
Appointment or removal of the
Decisions Auditors and determination of the
audit fee
Major changes in the employee

share or pension schemes
Finance,
Governance and
Reporting
Controls
Approval of the Annual Reports and
Internal controls and risk management systems
Accounts to be put before the Company
Approval of policies, major projects and contracts
Approval of Financial Statements
Oversight of Directors conflicts of interest
Matters for business reviews
Rules and procedures for dealing in the
Companys shares
Corporate governance and compliance with
the SECs Code of Conduct
The main functions of the Board of Directors are as follows:

Chief Executive
z Formulate, review and monitor implementation of competitive
business strategies including long-term business plans. The role of the Chief Executive Ofcer (or Chief Executive
or CEO) is to:
z Ensure the appointment of a competent Chief Executive
Ofcer, and an effective management team including an z Run the day-to-day business and operations of the
evaluation of their performance, as well as review the Company;
Companys and the Groups succession plans. z Lead the development and delivery of strategy to enable
z Secure a sound and an adequate risk management system. the Group to meet the requirements of its shareholders;
z Review the integrity and effective information, control and z Lead and oversee the executive management of the
audit systems. Company;
z Adopt business practices that conform to Shariah Principles. z Meet the Groups budget and strategic plans; and
z Approve policies of corporate conduct that continue to z Provide the appropriate environment to recruit, engage,
promote, maintain and sustain the integrity of the Company retain and develop the personnel needed to deliver the
and the Group. strategy.
z Ensure compliance with legal/ethical standards.
Board Secretary
Board Roles and Responsibilities
Under the direction of the Chairman, the role of the Board
Chairman Secretary and his team is to:
The role of the Chairman (or Chair) is to:

z Ensure good information ows within the Board and its
Committees and between senior management and
z Lead the Board to ensure effectiveness in all aspects
Non-Executive Directors;
of its role;
z Facilitate Director inductions and professional
z Plan agenda items and timings for Board meetings;
development;
z Ensure the membership of the Board is appropriate to z As requested, arrange independent professional advice
meet the needs of the business;
for Directors at the Companys expense; and
z Oversee that the Board Committees carry out their z Advise the Board through the Chairman on governance
duties including reporting to the Board;
matters.
z Establish appropriate personal objectives for the
Chief Executive;
The responsibilities of the Chief Executive Ofcer and
z Ensure Directors are up-to-date with training and the Chairman have been clearly established, adhering to
development; best corporate governance practices. The responsibility
z Provide the information necessary for Directors to take and task of the Chairman and the Chief Executive Ofcer are
a full and constructive part in Board discussions; separated in order to facilitate better workings of the Company
and the Group.
z Promote an open culture of debate; and
z Develop and maintain effective communication with New Directors are nominated to bridge identied knowledge
shareholders. gaps. Such Directors are elected to the Board by shareholders
at the Annual General Meeting. In accordance with the Articles
of Association, three Directors retire annually and being eligible
offer themselves for re-election. 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.
56
Amna Takaful PLC has outsourced its secretarial functions to a iii. The Investment Committee
qualied company of secretaries. The Investment Committee comprises Osman Kassim,
M.H.M. Raq, Dr. Haroon and Ehsan Zaheed. The Committee
The following Committees of the Board have been formed with ensures that a healthy investment portfolio is maintained
the objective of improving governance: viz- within the Investment Guidelines of the IBSL and Shariah
i. Audit and Compliance Committee Advisory Council whilst optimising yield to meet investment
ii. Risk Management Committee income targets of the Company. The Committee convenes its
meeting on a monthly basis.
iii. Investment Committee
iv. Remuneration Committee
iv. The Remuneration Committee
v. Executive Committee
The Remuneration Committee is composed of three
Each Committee has a dened terms of reference approved Non-Executive Directors of the Board of which two are
by the Board, outlining the respective Committees authorities Independent Directors. Details of remuneration paid to
and responsibilities. The Board may, from time to time, Directors are set out in Note 34 to the Financial Statements
establish and maintain additional committees. All members of on page 133.
these Committees are expected to attend all meetings.
The report of the Remuneration Committee is provided on
page 73.
i. The Audit and Compliance Committee
The Audit and Compliance Committee comprises three
v. Executive Committee
Independent Non-Executive Directors of the Board. This
Committee is chaired by Dato Mohd Fadzli Yusof who is an The Executive Committee or EXCOM is composed of ve
Independent Non-Executive Director of the Company. The Chief members of the Board and is chaired by the Chairman of the
Executive Ofcer, General Managers, relevant Senior Managers Company. Meetings are held once a month and the Committee
and Internal Auditors are invited to be present at the meetings. is entrusted with the responsibility of monitoring the
Exit meetings are held after each internal audit assignment with implementation of the business strategies of the Company and
all concerned where rectication actions taken of any weakness the Group. The members of the Committee are as follows:
described in the audit ndings. The details of the Audit and i. Tyeab Akbarally Chairman
Compliance Committee are provided in the Report of the Board ii. Osman Kassim
Audit and Compliance Committee on pages 71 and 72.
iii. M.H.M. Raq
iv. M. Ehsan Zaheed
ii. The Risk Management Committee
v. Dr. Ifthikarudeen A. Ismail
The Risk Management Committee of the Board comprises
three Non-Executive Directors of which two are Independent
Directors. This Committee is chaired by Dato Mohd Fadzli Yusof Ethical Standards
who is an Independent Non-Executive Director of the Company. Amna Takaful PLC aspires to adopt the highest ethical
The main function of this Committee is to review and re-align standards and adheres to the Code of Ethics for insurance
the risk appetite of the Company at strategic and various companies in Sri Lanka which contain the following elements:
functional levels. Further, the Committee also reviews the z Honesty and fairness;
different risks that the Company is exposed to and recommends
mitigation strategies for such risks.
z Compliance with regulatory requirements;
z Accountability provision of accuracy, timely and essential
A detail report on the Risk Management Committee functions information to stakeholders;
and its activities during the year 2015 is provided on pages 60 z Avoiding conict of interest;
to 67. z Professional judgment;
z Maintaining privacy and condentiality of customer-related
information;
z Corporate and Social Responsibility; and
z Maintaining best practices in marketing and advertising.
The management encourages employees to adopt ethical of the Company. The Unit also conducts regular training
practices during the weekly mission meetings. programmes to members of staff in order to disseminate
the knowledge of Shariah, in particular that relates with
the operation of Takaful and Islamic nance in general. The
Executive Management Statement of Compliance is a part of the Annual Report and is
The Chief Executive Ofcer deliberates strategic issues with the provided on page 71.
General Management Committee (GMC) which includes the CEO
of the Family Takaful business, General Manager Operations,
General Manager Sales and Marketing, Head of Strategy and Regulatory Compliance
Risk, Head of Finance, Head of HR and the Head of Information The Audit and Compliance Committee is responsible for
Technology and the Compliance Ofcer. Each of them, who head regulatory compliance. In addition, a Compliance Unit has been
Strategic Business Units drive their business functions aligned set up to monitor and investigate into all compliance-related
to the strategic plan, building capacity and capability. Corporate matters across the organisation. It keeps a close track of all
Governance and Compliance is a key function of the GMC. The new legislations, regulations etc., and notify and guide the
Companys performance dashboard is a key evaluation and respective departments accordingly.
measurement tool in this process.
The Business Operations Management (BOM) takes Relationship with Stakeholders

responsibility for operationalising the plan on a day-to-day The Board of Directors discloses policy decisions and
basis and implementing the decisions of the GMC. These include operations affecting shareholders through its biannual and
a track on competitor activity, steering projects and building annual reports.
cross-functional bonds across different departments and taking
ownership for the technical aspects. It is also a forum to build The Board entertains questions from shareholders at the
leadership and talent in support of the succession plan. Annual General Meetings ensuring shareholder participation
and interaction.
Internal Controls The management holds weekly mission meetings at which

The Board of Directors acknowledges the imperative of a employees are briefed of the policies, goals and values of
sound and strong internal control environment for the purpose Amna Takaful PLC and their views and suggestions are sought
of attaining good governance. The internal control system, and evaluated.
among others, covers risk management and organisational,
operational, nancial, compliance and business development Amna Takaful PLC believes in serving its customers beyond
controls. Towards this end, the Board has entrusted the their expectations. An interactive website provides access to the
responsibility of establishing an effective internal control general public on the Companys activities.
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 conducts internal audit on the Solvency Requirements
systems and various aspects of the operations in accordance The Solvency Margin pertaining to Long-Term Insurance
with the risk-based principle. The ndings are conveyed to the (Family Takaful) Business of Amna Takaful Life Ltd. has been
Audit and Compliance Committee, which, in turn, briefs the maintained as per the Regulation of Insurance Industry (RII)
Board on areas of concern. Act No. 43 of 2000.
Amna Takaful PLC has been able to maintain the required

Compliance with Shariah Requirements Solvency Margin for General Insurance Business throughout the
Amna Takaful PLC takes the utmost care in adhering to year. However, the Solvency Ratio fell short marginally mainly as
Shariah principles. A Shariah Unit has been set up internally a result of an additional provision for IBNR arising from the year
to carry out quarterly reviews on the policies and operations end actuarial valuation.
58
Corporate Governance Disclosures Under CSE Rules in Relation to Directors of the Company
Areas of Compliance Current Status Remarks
Board of Directors Executive Director The Board comprises eight Non-Executive Directors of a total of nine
1. M. Ehsan Zaheed Board members. This is in compliance with the CSE Listing Rules.
Non-Executive Directors All the Non-Executive Directors have submitted the annual
1. Tyeab Akbarally Chairman declaration of their independence or non-independence to the
Board of Directors.
2. Osman Kassim
3. M.H.M. Raq
4. Dato Mohd Fadzli Yusof
5. Dr. A.A.M. Haroon
6. A.S.M. Muzzammil
7. Dr. Ifthikarudeen Ahamed Ismail
8. R. Gopinath
Independent Directors The Board comprises ve Independent Directors out of eight

1. M.H.M. Raq Non-Executive Directors by the end of 2015. Dato Mohd Fadzli Yusof
2. Dato Mohd Fadzli Yusof and M.H.M. Raq do not technically qualify as independent by not
meeting Rule 7.10.4 (e) of the CSE Listing Rules. However, the Board
3. A.S.M. Muzzammil after much discussions were of the view that they are nevertheless
4. Dr. Ifthikarudeen Ahamed Ismail independent. Set out below are the criteria to consider them as
5. R. Gopinath Independent Directors:
a. They do not provide any services to the Company in a capacity
other than Director.
b. They have not received nancial assistance from the Company.
c. They do not have any apparent conict of interest in the
Company which would impair their independent judgment as
Directors. The Board was also of the view that taking into account
the contribution made by these Directors to the affairs of the
Company, their integrity and stature were not in question.
Remuneration 1. Dato Mohd Fadzli Yusof Chairman This Committee comprises three Non-Executive Directors
Committee 2. M.H.M. Raq of whom two are independent.
3. Dr. A.A.M. Haroon
Audit and 1. Dato Mohd Fadzli Yusof Chairman This Committee comprises three Independent Directors
Compliance 2. M.H.M. Raq of the Company.
Committee
3. A.S.M. Muzzammil
Directors Attendance at the Meetings
Name of the Director Board Meetings Audit Committee Meetings Remuneration Committee Meetings
Held/Applicable Attended Held Attended Held Attended
1. Tyeab Akbarally Chairman 4 4
2. Osman Kassim 4 3
3. M.H.M. Raq 4 4 4 4 2 2
4. Dato Mohd Fadzli Yusof 4 4 4 4 2 2
5. Dr. Aboobacker Admani Mohamed Haroon 4 4 2 2
6. Muhammad Ehsan Zaheed 4 4
7. Aboo Sally Mohamed Muzzammil 4 2 4 4
8. Dr. Ifthikarudeen Ahamed Ismail 4 4
9. Radhakrishnan Gopinath 4 3
60
ENTERPRISE RISK MANAGEMENT
As the pioneer Takaful Company, risk management is at the General segments separately since 2014. This section elaborates
heart of what we do and is the source of value creation as well the Companys Enterprise Risk Management Framework and the
as a vital form of control. It is an integral part of maintaining Key Risk Management activities initiated during 2015.
nancial stability for our customers, shareholders and other
stakeholders. Our sustainability and nancial strength are
underpinned by effective risk management, which allows us What is Enterprise Risk Management?
to prepare for future challenges, move speedily and facilitate ERM is yet an emerging topic in this part of the world thus
better decisions for our customers, giving them peace of mind. needs repeated explanations and elaborations for our society
both internally and externally. ERM has formally been dened
The Companys Risk Management Strategy is to operate within as the identication and assessment of the collective risks
the risk appetite guidelines set by the Board Risk Committee that affect rm value, and the implementation of a rm-wide
and approved by the Board of Directors, which are then strategy to manage those risks (Meulbroek 2002). Collective
reviewed on a quarterly basis, with an eye on the changing risks refer to risk categories such as the one proled in
corporate risk environment. Given the increased level of Committee of Sponsoring Organisations of the Treadway
assertiveness required in a forthcoming Risk Based Capital Commission (COSO) ERM cube, as well as the interaction of
regime and the connected risk involvements, the Company risks over time.
revisited the current Risk Management Model and widened its
scope to an Enterprise Risk Management (ERM) Framework. COSO and framework which was published in 2004 in US
The Risk Management Unit carries out series of campaigns to denes ERM:
enhance the awareness among the managers and executives on
a process, effected by an entity's Board of Directors,
the ERM Framework.
management and other personnel, applied in strategy setting
and across the enterprise, designed to identify potential events
Though the risk elements are managed on a daily basis at
that may affect the entity, and manage risks to be within its
operational levels, the RISCO formally monitors the Key Risk
risk appetite, to provide reasonable assurance regarding the
Indicators through Enterprise Risk Registers for both Life and
achievement of entity objectives.
COSO Enterprise Risk Management Cube

61 Enterprise Risk Management
The underlying premise of enterprise risk management is that Denitions of Risk and Risk Management
every entity exists to provide value for its stakeholders. All
Risk in general could be dened as The combination of the
entities face uncertainty and the challenge for management
probability of an event and its negative consequences, in other
is to determine how much uncertainty to accept as it strives
words, the barriers in meeting the corporate objectives.
to grow stakeholder value. Uncertainty presents both risk and
opportunity, with the potential to erode or enhance value.
Risk Management can be dened as An efcient and
Enterprise Risk Management enables management to effectively
effective process of minimising risks in meeting stakeholder
deal with uncertainty and associated risk and opportunity,
requirements. However, Enterprise Risk Management is not
enhancing the capacity to build value.
strictly a serial process, where one component affects only the
next. It is a multidirectional, iterative process in which almost
Value is maximised when management sets strategy and
any component can and does inuence another.
objectives to strike an optimal balance between growth return
goals and related risks, and efciently and effectively deploys
resources in pursuit of the entitys objectives. Enterprise risk Risks Faced by Insurance Companies
management encompasses It appears that many organisations are experiencing pressure
z Aligning risk appetite and strategy Management considers and recognising that change in the organisations overall
the entitys risk appetite in evaluating strategic alternatives, approach to risk oversight is warranted, with the status quo
setting related objectives, and developing mechanisms to no longer acceptable. Insurance companies whose business
manage related risks. model is based on Risk Management require special attention
z Enhancing risk response decisions Enterprise Risk with regard to its Management. As an insurance company, we
Management provides the rigor to identify and select among identied the following risk categories as illustrated in the
alternative risk responses risk avoidance, reduction, diagram below. The Risk Management professionals refer to this
sharing, and acceptance. as the Risk Wheel. The different colours and shapes illustrate
the magnitude and angles of risks that each of the risk types
z Reducing operational surprises and losses Entities gain
carries with it.
enhanced capability to identify potential events and establish
responses, reducing surprises and associated costs or losses.
z Identifying and managing multiple and cross-enterprise
risks Every enterprise faces a myriad of risks affecting
different parts of the organisation, and Enterprise Risk
Management facilitates effective response to the interrelated
impacts, and integrated responses to multiple risks.
z Seizing opportunities By considering a full range of
potential events, management is positioned to identify and
proactively realise opportunities.
z Improving deployment of capital Obtaining robust risk
information allows management to effectively assess overall
capital needs and enhance capital allocation.
These capabilities inherent in enterprise risk management help

management achieve the entitys performance and protability
targets and prevent loss of resources.
Enterprise risk management helps ensure effective reporting

and compliance with laws and regulations, and helps
avoid damage to the entitys reputation and associated
consequences. In summary, Enterprise Risk Management helps
an entity get to where it wants to go and avoid pitfalls and
surprises along the way.
Enterprise Risk Management

62
1. Insurance Risk
Being an insurance company, risks related to the insurance business i.e., Insurance Risk, becomes primary in the list. Insurance is
all about managing risks on behalf of the customers. In that context, we have identied the following three major risk areas under
this category:
Insurance Risks Control
Underwriting Risk At the time of underwriting of a Risk (business/ A robust underwriting regime is in place with well-experienced
asset) it is our duty towards the customer to analyse and evaluate and qualied professionals in the team.
the risk that we are willing to undertake. Therefore the Company
is bound to charge the right premium as all such premiums are A well scrutinised set of SOPs are formulated and implemented.
pooled up with other participants. At the time of claims, it is
shared by all the participants in the pool.
Product Design Designing the product offers and benets with the The Company has appointed a Product Development Team with a
right pricing is very critical to the Insurance Business. set of hand-picked members from Sales, Underwriting, Operation,
Marketing and Finance. They meet periodically and review existing
product features while researching for new product requirements.
Actuarial calculations and provisions carry Mortality and Claims A qualied and well-experienced professional rm has been
risks for Life and Non-Life businesses. contracted to carry out the Actuarial functions for both Life and
General Segments.
a. Claims Risk
Claims Risk Control
Potential Loss of values is the primary risk that the Insurance At the time of planning for the years ahead, the management along
businesses undertake to manage in the business model. with the underwriting and sales teams, decide the product mix
targets taking the claims experiences pertaining to the specic
classes. It also assesses the future potential on agreed assumption.
The risk of overpayment or underpayment of claims arises from Continuous training and development programmes are in place with
the claims assessment process and the level of decision-making supervision of well-experienced senior staff to mitigate such risks.
competency of the staff involved.
b. Retakaful Risk
Retakaful Risk Control
Credit risk can also be a factor with respect to Retakaful. Should a Retakaful placements are done with reinsurers having credit ratings
reinsurance company be either slow to pay its claims/contributions as required by Insurance Board of Sri Lanka (IBSL).
or unable to make such payments, the effects on insurance
company performance (and hence value) could be signicant. The services of professional Retakaful brokers are also obtained in
reinsurance placements.
Accepting risks beyond the Companys retention limits. System controls are in place to avoid such instances. However, to
further enhance the control measure, certain critical processes are
being automated. Additionally all cases are handled through an
evaluation process.
2. Market Risks 3. Strategic and Reputational Risk

Market risks are wider risks that any company is exposed Achievement of overall Business Goals is the top most priority
to in terms of Demand and Supply for any types of goods for any Company and justies the purpose and existence of
and services, and cost. The increased competition from the organisations in the long run. However, companies need to
industry players in terms of rates, products, marketing etc., are achieve their corporate goals consistently in the short run in
continuous risks while the entry of new players to the industry order to achieve long-term success. Thus, achieving annual
is a further risk. targets in terms of revenue and protability along with other
operational targets become critical to the organisation. Even
Furthermore, for insurance companies which are heavily though the overall Enterprise Risk Management Framework
dependent on investment income, healthy market conditions embraces this objective, specic strategies and action plans to
underpinned by solid economic conditions are vital. Therefore, support and ensure achievements of annual targets are vital.
in addition to the overall economic growth conditions, key
economic variables such as interest rates, ination, stock Due to internal and external reasons the Company could be
market performance, exchange rates, and commodity market exposed to serious risks to the reputation of the Company and
conditions especially Gold etc., expose enormous speculative its Brand Image, which could in turn affect the performance and
risks to the Company. achievement of corporate goals.
The Company experienced enormous threat from the market The Company has appointed a Corporate Spokesperson, who
during the year mainly through intense price cutting by almost maintains a watching brief and monitors all news items related
all the players, especially the Takaful window operators to tap to the Company in the public domain. A collation of these are
the Takaful client segment. However, we have been able to escalated to management with the assistance of Media-Watch
secure the base being the only fully-edged Takaful Company. partners through the marketing unit.
Our clientele do understand that the Takaful is a complete
system and not simply a product range in a conventional system.
4. Operational Risks
Operational risks result from inadequate or failed internal processes, people and systems which cover a wider area of
operational aspects:
Operational Risks Controls
Sudden Disasters/Calamities A Detail DRP is in force to recover within 12 hours.
BCP/DRP Failures Tested every three months.
Not having the Right People at the Right Place A Semi-Annual Performance Appraisal system is in place to
scrutinise the performance of key staff members including the
Top Management Personnel.
Process Failures SOPs do not capture important controls The Risk Committee reviews the SOPs periodically along with
internal audit and makes modications when required.
Potential Fraud and Errors Strict implementation of the SOPs will minimise the risks involved
in this area in addition to the supervisory controls.
Liquidity Crunch The Treasury team prepares a cash forecast on a weekly basis prior
to making investment decisions.

64
Operational Risks Controls
Technology Failure The Disaster Recovery Plan covers such risks
Non-Implementation of Key Projects The Business Operations Management (BOM) meets fortnightly
while the General Management Committee (GMC) meets monthly
and reviews projects under implementation.
Utilities Electricity A back-up Generator is fully active
5. Compliance Risk
It is noteworthy that the Company successfully completed the segregation process on time as stipulated by Regulation. Accordingly the
Life Business transitioned to Amna Takaful Life Ltd., as a fully-owned subsidiary of Amna Takaful PLC which retained the General
Takaful Business.
The key Compliance Risks and the control measures are listed below:
Compliance Risk Controls
Unable to comply with the applicable regulatory requirements z The rst item of the Agenda for the regular Executive Committee
is set on compliance matters to prioritise the discussion on
the subject. Any signicant issue is escalated to the Audit/Risk
Committees and the Board.
z A Dedicated Compliance Department is functional headed by a
Senior Manager who is a member of the General Management
Committee.
z All heads of departments are made aware of the applicable
laws and regulations. Further, the regulatory requirements are
cascaded down to relevant staff members.
z A monthly sign-off is obtained on a compliance check list covering
applicable laws and regulations. This Checklist is tabled at the
Executive Committee meetings.
z A periodic internal audit exercise is carried out on the compliance
function and a report is tabled at the Audit Committee meetings.
6. Credit Risk
With the deteriorating market practices on credit due to competitive pressures, the Company heightened its credit arrangement
process through strict control measures and improved the Credit Policy on the recommendation of the Audit Committee during 2014.
Credit Risk Controls
Unable to recover premiums given on credit SOP on Credit Approval which covers authorisation and approvals
controls Credit Policy is linked to the Sales Commission and
Incentive scheme.
Weekly Credit Review.
Risk in recovering Retakaful Rated Retakaful Companies.
Unable to recover capital value of Investments Guided by the IBSL Investment Guidelines.
Close monitoring by the Board Investment Committee.
ATI Risk Management Grid

Impact/Consequences and Likelihood of the risks are the The Company adopts the following strategies in managing the
two parameters to gauge the criticalness of the risks that are Risks as per the Likelihood and Impact grading. Please refer the
encountered by the Company. The parameter of Likelihood Impact and Likelihood along with the Risk Management Grid.
ranges from almost certain to rare on a scale of A to E while
the Consequence parameter ranges from Negligible to Severe Impact/ Risk Option Strategy
Likelihood
on I to V scale.
(I,E), (I,D), Low Accept Keep Monitoring of the
(I,C), (II,E), Likelihood.
(II,D).
(I,B), (I,A), Medium Reduce Have measures to

(II,C), (II,B), Likelihood manage Likelihood
(III,E), (III,D), and/or and/or Impact.
(IV,E), (IV,D). Impact
(II,A), (III,C), High Spread z Spread the Risk to a

(III,B), (III,A), and/or Third Party or involve
(IV,C), (IV,B), Transfer risk owner sharing
(V,E), (V,D), the risk.
(V,C). z Have contingency
arrangements.
z Have plans for
Amna Takaful maintains a Risk Register which analyses all the recovery.
potential risks under each of the above Category and these
(IV,A), (V,B), Very High Avoid Do not participate
items have been graded based on the above parameters of
(V,A). in the activity.
Likelihood and Consequences.

66
ATI Enterprise Risk Management Framework 1. First Line of Defence

In the ERM Framework of ATPLC, the entire Company (Enterprise) Publicise Educating the staff at shop oor level with
has been structured into a 4-stage cascade viz; Practices, the appropriate level of authority will help them take the
Personnel, Procedures and Publicise from a risk management right decision at the right time. We recognise that staff in
perspective, as illustrated below: the front line are exposed to the market and most often
encounter various challenges. Cognisant of the challenge
in communicating the entire ERM framework and strategies
to manage risks, the Risk Management Unit has adopted a
simplied cascade process to the wider audience to mobilise
support and upscale knowledge at all levels in the Company.
2. Second Line of Defence

Policies and Procedures Policies and Procedures play a vital
role through proper internal control mechanisms in mitigating
several risk factors. Further, the Company also has re-structured
the Management Review Process through the General
Management Committee (GMC) and a Business Operations
Management Team (BOM), widening the participation of Key
Management Personnel with specic roles in each of the groups.
3. Third Line of Defence

Key Personnel being appointed at key positions in any
organisation will mitigate a major part of the risk. We believe in
our people, especially people who are occupying key positions,
Board - The Board of Directors that they will take prudent business decisions in pursuit of
RISCO - Board Risk Committee corporate objectives.
AC - Board Audit Committee
BIC - Board Investment Committee
4. Final Line of Defence
EXCOM - Executive Committee
Governance Practices are activities that take place at Board
CEO - Chief Executive Ofcer
level in order to ensure delivery of promises made to the
CRO - Chief Risk Ofcer
stakeholders. In addition to the scheduled Board meetings and
HODs - Heads of Departments
deliberations, there are Sub-Committees at Board level such as
SOPs - Standard Operating Procedures
the Investment, Board Audit, Risk Management and Executive
GMC - General Management Committee
Committees. These committees independently meet with the
BOM - Business Operations Management
Key Management Personnel and review performance, challenges
TC - Technical Committee
and opportunities under the respective areas and report to
PDT - Product Development Team
the Board periodically. While the Executive and the Investment
Committees meet on a monthly basis, the other committees
The ERM framework operates on a bottom-up approach in terms
meet on a quarterly basis.
of its lines of Defence.
Risk Management Process z Corporate Risk Review Committee (CRRC) reviewed and
analysed key risk areas and presented to RISCO.
In the process of managing the risks of the Organisation the
Company has identied the following Key Risk Indicators. These z The Company reviewed and cascaded the Business Continuity
indices are monitored through a dashboard which is reviewed Plan (BCP) and updated with lessons learnt and the changes
at BOM, GMC, RISCO and Board levels. Corrective actions will be attributed to the BCP process and people involved.
taken as and when signicant deviations are observed in the z The staff at the front line was educated through a series
relevant areas. of training programmes at regional level to elevate their
knowledge on risk management and the signicance in
adhering to the set systems and procedures.
Risk Area Key Risk Indicator
z The Board Risk Committee met four times during the year
Insurance z Average Rates by Sub-Classes
2015, and reviewed the following key risk areas:
Risk z Claims Ratios by Sales Teams and Sub-Classes
z Product Protability
Date of the RISCO Members Present Key Risk Areas
z RI Covers Vs Risk Accumulation Discussed in Detail
Strategic and z Daily Target Achievements 25th February 2015 Dato Mohd Fadzli z Retakaful
Reputational z Variance Analysis Yusof Chairman Programme 2015
Risk
z Client Satisfaction Index M.H.M. Raq z Review of Risk
Ind. Director Register
Market Risk z Interest Rate Movement
Dr. A.A.M. Haroon z Synergy
z Bullion Market Movement Ind. Director Programme
z Equity Market Movement Fazal Ghaffoor between ATL and
z Economic Indicators Chief Executive Ofcer Amna Bank
z Changes in Tax Regulations

9th June 2015 Dato Mohd Fadzli z General Claims
z Changes in Government Policies Yusof Chairman Risks
Operational z Staff Turnover Ratio M.H.M. Raq z Rates Revision on
Risk Ind. Director Motor Takaful
z Staff Satisfaction Index
Dr. A.A.M. Haroon z Review of Risk
z Internal/External Audit Findings
z Deviations from ISO Standards on Safety Measures
Fazal Ghaffoor z Staff Productivity
z Current and Liquidity Ratios Chief Executive Ofcer Analysis
Credit Risk z Debtors Turnover Ratio (Days)
31st August 2015 Dato Mohd Fadzli z General Claims
z Risk-Adjusted Investment Assets (RBC) Yusof Chairman Cost
Compliance z Queries Raised by Regulator/Ombudsman M.H.M. Raq z Review of Risk

Risk Ind. Director Register
z Pending Legal Matters
Dr. A.A.M. Haroon z Delegation of
z Unresolved Audit Queries
Ind. Director Authority Limits
z Items in the Management Letter Life Underwriting
Fazal Ghaffoor
z Investment Portfolio Mix Chief Executive Ofcer z Change in
Retakaful
Arrangements -
Life
Key Risk Management Activities During 2015
z RISCO, the Board Risk Committee, reviewed the Risk Registers 24th November Dato Mohd Fadzli z General Claims
on a quarterly basis and monitored the Key Risk Indicators 2015 Yusof Chairman Cost
covering all aspects of the business. M.H.M. Raq z Review of Risk
z The Executive Committee reviewed and monitored the
monthly performance of the Company especially with Dr. A.A.M. Haroon z Providing Tabs to
Ind. Director Sales Staff
regard to increased claims cost and deteriorating pricing
on a monthly basis and made several steps to mitigate Fazal Ghaffoor
Chief Executive Ofcer
further damages.
68
ANNUAL REPORT OF THE BOARD OF DIRECTORS ON

THE AFFAIRS OF THE COMPANY
The Directors are pleased to submit their report together with Property, Plant & Equipment
the audited accounts for the Company and the Group, for
During the year under review, the capital expenditure on
the year ended 31st December 2015, to be presented at the
Property, Plant & Equipment for the Group amounted to
Seventeenth Annual General Meeting of the Company.
Rs. 21.9 Mn (2014 Rs. 50 Mn).
Review of the Year Information relating to movement in Property, Plant &

Equipment during the year is disclosed under Note 6 to the
The Chairmans Statement on pages 6 to 7 describes the
Financial Statements.
Companys affairs and mentions important events that
occurred during the year, and up to the date of this Report.
The Management Discussion and Analysis on pages 22 to 31 Financial Assets
elaborates the nancial results of the Company. These reports
Details of nancial assets held by the Company are given in
together with the Audited Financial Statements reect the state
Note 8 to the Financial Statements.
of affairs of the Company.
Reserves
Principal Activities
Accumulated prot/(loss) as at 31st December 2015 for the
The principal activity of the Company is General Takaful
Company and Group amounted to Rs. 5.6 Mn (2014 loss of
Business. The Family Takaful (Long-Term Insurance) business
Rs. 263.9 Mn) and loss of Rs. 420.8 Mn (2014 Rs. loss of 121.5 Mn),
is carried out through Amna Takaful Life Ltd., a wholly-owned
respectively. The breakup and the movement are shown in the
subsidiary of Amna Takaful PLC.
Statement of Changes in Equity in the Financial Statements.
Financial Statements Stated Capital

The Financial Statements are prepared in conformity with
The stated capital of the Company as at 31st December 2015 was
the Sri Lanka Accounting Standards and comply with the
Rs. 1,650,001,188/- represented by 1,500,001,080 ordinary shares.
requirements of Section 151 of the Companies Act No. 07 of 2007
The Company raised Rs. 400,000,288/- through a Rights Issue
and the Rules and Regulations of Insurance Board of Sri Lanka
of 500,000,360 ordinary shares with 1 ordinary share for every 2
are given on pages 80 to 152 of this Annual Report.
existing ordinary shares at Rs. 0.80 per share at the beginning
of the year. The details of the stated capital are given in Note 16
Independent Auditors Report to the Financial Statements on page 123.
The Auditors Report on the Financial Statements is given on
page 79 of this Annual Report. Contingent Liabilities
There were no material contingent liabilities outstanding as at
Accounting Policies 31st December 2015 other than those reported in Note 42 to the
The accounting policies adopted in preparation of the Financial
Statements are given on pages 93 to 106.
Material Issues Pertaining to Employees and
Financial Results and Appropriations Industrial Relations of the Company
The Prot after Taxation of the shareholders fund of the The Company did not come across any material issues pertaining
Company for the year was Rs. 490.4 Mn (2014 Rs. 27.7 Mn). to employees and industrial relations during the year.
The decit of the General Takaful Fund of the Company for the
Post-Balance Sheet Events
year was Rs. 225 Mn (2014 surplus Rs. 35.9 Mn).
There were no material events occurring after the Reporting date
The Prot after Taxation of the Company for the year was that require adjustments or disclosure in the Financial Statements.
Rs. 265.3 Mn (2014 Rs. 63.7 Mn) and the Loss after Taxation of
the Group for the year was Rs. 280.5 Mn (2014 prot Rs. 103 Mn). Directors Responsibilities
The Family Takaful (Life) Fund balance including Unit Linked The Statement of the Directors Responsibilities is given on
Fund has increased to Rs. 1,766.5 Mn from Rs. 1,282 Mn in 2014. page 76 of this Annual Report.
69 Annual Report of the Board of Directors on the Affairs of the Company
Corporate Governance Share Information and Substantial Shareholdings

The Company has complied with the Corporate Governance The distribution of shareholding, market value of shares and
Rules laid down under the Listing Rules of the Colombo Stock twenty largest shareholders are given on pages 154 and 155.
Exchange. The Report on the Corporate Governance is given on
pages 52 to 59 of this Annual Report. The earnings per share, dividends per share, net assets per
share are given on page 155.
Statutory Payments
The Directors, to the best of their knowledge and belief, are Directors
satised that all statutory payments in relation to all relevant The Directors of the Company during the year are as follows:
regulatory and statutory authorities have been paid within the
stipulated period. Date of Date of
Appointment Resignation
Interests Register Tyeab Akbarally 07.12.1998

The Company has maintained an Interest Register as Osman Kassim 07.12.1998
contemplated by the Companies Act No. 07 of 2007.
M.H.M. Raq 07.12.1998
a. Directors interest in contracts of the Company, both direct
and indirect during the year under review, are included in Dato Mohd Fadzli Yusof 10.02.1999
Note 38 in the related party disclosures to the Financial Dr. A.A.M. Haroon 21.09.2000
Statements.
M. Ehsan Zaheed 01.10.2003
b. Details of shareholding of Directors are given under
particulars of Directors Shareholding below: A.S.M. Muzzammil 29.04.2010
Dr. I.A. Ismail 06.06.2012
Board Committees R. Gopinath 06.06.2012
Audit and Compliance Committee

A brief prole of the Directors are given on pages 14 and 15 of
Following are the names of the Directors comprising the Audit
this Annual Report.
and Compliance Committee of the Board:
1. Dato Mohd Fadzli Yusof Chairman In terms of Section 84 (1) of the Articles of Association of the
2. M.H.M. Raq Company, Dr. Aboobacker Admani Mohamed Haroon retires by
3. A.S.M. Muzzammil rotation and being eligible has offered himself for re-election.
The Report of the Audit Committee on pages 71 and 72 set out In terms of Article 90 of the Articles of Association of the
the manner of compliance by the Company in accordance with Company, Mohamed Rizwan Mohamed Nayeem and
the requirements of the Rule 7.10.6 of the Listing Rules of the Mohamed Hassan Sattar Kassim, who were appointed to the
Colombo Stock Exchange on Corporate Governance. Board since the last Annual General Meeting being eligible,
offer themselves for re-election.
Remuneration Committee In terms of Section 211 of the Companies Act No. 07 of 2007,
the following Directors who are above 70 years of age retire
Following are the names of the Directors comprising the
by rotation and being eligible have offered themselves for
Remuneration Committee of the Board:
re-election and the following resolutions to be passed
1. Dato Mohd Fadzli Yusof Chairman accordingly, if thought t:
2. M.H.M. Raq
3. Tyeab Akbarally
I. Re-Election of Dr. Ifthikarudeen Ahamed Ismail
The particulars of the Remuneration Committee are mentioned IT IS HEREBY RESOLVED: To re-elect Dr. Ifthikarudeen Ahamed
in the Report of the Remuneration Committee on page 73. The Ismail who is 78 years of age as a Director in terms of Section
details of the aggregate remuneration paid to the Executive and 211 of the Companies Act No. 07 of 2007, and it is specically
Non-Executive Directors during the nancial year are given in declared that the age limit of 70 years referred to, in Section 210
Note 34 to the Financial Statements. of the Companies Act No. 07 of 2007 shall not apply to the said
Dr. Ifthikarudeen Ahamed Ismail.
Annual Report of the Board of Directors on the Affairs of the Company

70
II. Re-Election of M.H.M. Raq Going Concern

IT IS HEREBY RESOLVED: To re-elect M.H.M. Raq who is 71 years The Directors, after making necessary inquiries and review of
of age as a Director in terms of Section 211 of the Companies Act the nancial position and future prospects of the Company,
No. 07 of 2007 and it is specically declared that the age limit of have a reasonable expectation that the Company has adequate
70 years referred to, in Section 210 of the Companies Act No. 07 resources to continue to be in operational existence for the
of 2007 shall not apply to the said M.H.M. Raq. foreseeable future. Therefore, the going concern basis is
adopted in the preparation of the Financial Statements.
III. Re-Election of Dato Mohd Fadzli Yusof

IT IS HEREBY RESOLVED: To re-elect Dato Mohd Fadzli Yusof Auditors
who is 71 years of age as a Director in terms of Section 211 of The resolutions to appoint the present Auditors, Messrs Ernst
the Companies Act No. 07 of 2007 and it is specically declared & Young, Chartered Accountants, who have expressed their
that the age limit of 70 years referred to, in Section 210 of the willingness to continue in ofce, will be proposed at the Annual
Companies Act No. 07 of 2007 shall not apply to the said Dato General Meeting.
Mohd Fadzli Yusof.
The audit and non-audit fees paid to the Auditors is disclosed
in Note 34 on page 133 of this Annual Report.
Directors Shareholdings
The interest of the Directors in the shares of the Company as at As far as the Directors are aware, the Auditors do not have any
31st December 2015 were as follows: relationship on interest in the Company.
No. of Ordinary Shares The Audit Committee reviews the appointment of the Auditors,
its effectiveness and its relationship with the Company
As at 31st December 2015 2014 including the level of audit and non-audit fees paid to the
Auditors. Details on the work of the Audit Committee are set out
Tyeab Akbarally 120 80
in the Audit Committee Report.
Osman Kassim 5,425,568 2,560,079
Dato Mohd Fadzli Yusof Notice of Annual General Meeting

Dr. A.A.M. Haroon 40 40 The Annual General Meeting will be held on 18th May 2016 at
9.30 a.m. at the Committee Room B, Bandaranaike Memorial
M.H.M. Raq 20 20
International Conference Hall (BMICH), Bauddhaloka Mawatha,
M. Ehsan Zaheed 65,000 65,000 Colombo 7. The Notice of the Annual General Meeting appears
on page 163 of this Annual Report.
A.S.M. Muzzammil
Dr. I.A. Ismail For and on behalf of the Board,

R. Gopinath
Independence of Directors
Tyeab Akbarally
Particulars of Independent Directors are mentioned under Chairman
Corporate Governance Report on page 58.
Related Party Transactions

The details pertaining to related party transactions which M. Ehsan Zaheed
exceeds the lower of 10% of equity or 5% of the total assets Director
of the Company have been disclosed in the respective
notes in the Financial Statements. Directors have disclosed
the transactions with related parties in terms of Sri Lanka
Accounting Standard LKAS 24 Related Party Disclosures, Managers & Secretaries (Pvt) Ltd.
in Note 38 to the Financial Statements. Secretaries
Amna Takaful PLC
22nd April 2016
Colombo
71
BOARD AUDIT AND COMPLIANCE COMMITTEE REPORT
Composition Objectives, Duties and Responsibilities

The Audit Committee, appointed by and answerable to the The key objectives of the Audit Committee are:
Board of Directors, comprises (as at the date of this Annual z To satisfy themselves that a good nancial reporting system
Report) three are Independent Non-Executive Directors. The is in place in order to ensure accurate and timely nancial
Committee is made up of members who bring their varied information to the Board of Directors, regulators and
expertise, experience and knowledge to carry out and discharge shareholders and to make sure that these are prepared in
their duties and responsibilities professionally and effectively. accordance with Sri Lanka Accounting Standard and other
The Committee meets at least four (4) times a year, usually relevant laws and regulations.
at quarterly intervals, to review and approve both the annual
z To satisfy themselves of the effectiveness of the Companys
external and internal audit plans; ensure the independence
risk management process in order to identify and mitigate
and objectivity of the External Auditors; review the internal
risks.
audit process, adequacy of internal controls, and assessment
on various transactions of the related party. In addition, the z To review the design and implementation of the internal
Committee also plays the role of a platform for the Management control system and take steps to strengthen them as
to raise concerns on possible irregularities for investigation. necessary.
z To ensure that the contract of the business is in compliance
The composition of the Committee and details of attendance of with the applicable laws and regulations of the country and
each member at meetings of the Committee during the period the policies and procedures of the Company.
under review are as follows: z To assess the independence of the External Auditors, and
monitor the performance of Internal and External Auditors.
Members No. of Meetings
Attended
z To assess the Companys ability to continue as a going
concern in the foreseeable future.
1. Dato Mohd Fadzli Yusof Chairman
Independent Non-Executive Director 4 out of 4 The primary duties and the responsibilities of the Committee
are as follows:
2. M.H.M Raq
Independent Non-Executive Director 4 out of 4 1. Review the adequacy of the internal audit programme and
plan, internal audit ndings and recommend actions to
3. Aboo Sally Mohamed Muzzammil
be taken by the Management of deciencies in controls,
Independent Non-Executive Director 4 out of 4
processes and procedures.
2. Assessment of the independence and performance of the
S.H.M. Giado, the Chief Internal Auditor, Amna Bank PLC, was Companys External Auditors.
nominated to the Committee in view of his contribution in
3. Review the Management Letter of the External Auditors and
terms of technical expertise.
follow-up on its recommendations.
The Chief Executive Ofcer (CEO) Amna Takaful PLC, Chief 4. Ensure the preparation and presentation of nancial reports
Executive Ofcer Amna Takaful Life Ltd., General Manager in line with the accounting standards and ensuring the
Operations and Medical Takaful as well as General Manager Sales adequacy of disclosure in such report.
and Marketing were invited to be present at all meetings of the 5. Review the effectiveness of internal controls and risk
Committee during the period under review. The Senior Manager, management processes.
Internal Audit also attended all meetings in the capacity of 6. Ensure compliance with Regulatory Affairs and Corporate
Secretary to the Audit Committee, so were the respective Heads Governance.
of Departments Strategic Planning and Corporate Risk, Finance,
Compliance, Underwriting, Claims and, Reinsurance/Retakaful.
Other members of the Management were also invited to attend Internal Audit
the meeting when required. The internal audit functions of the Company are undertaken by
the Internal Audit Department. The Department presented to
Agendas and reports to be tabled, presented and deliberated the Committee the Comprehensive Audit Plan for the nancial
at the meetings were prepared and distributed sufciently year under review, and instructed the Internal Auditors on the
in advance to all members, along with the appropriate and approach to be adopted in their auditing processes. Apart from
relevant brieng materials.
Board Audit and Compliance Committee Report

72
the Audit Plan, the Committee also instructed the Auditors to Provision of Non-Audit Service
carry out investigation, inspection and auditing on certain issues
The Committee is also responsible for reviewing the nature of
deemed necessary to maintain and ensure the adequacy and
non-audit services that the External Auditors may undertake in
effectiveness of internal controls and principles of best practice.
order to ensure that the Auditors independence is not impaired
in such circumstances.
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 Conclusion
technical reserve, claims and underwriting as well as treasury The Committee is satised that effective measures, in respect of
matters. To ensure key decisions and recommendations of the internal controls of the Company, are in place. The accounting
Committee were efciently implemented a process of follow-up standards are duly followed. Similarly, all the activities and
programmes had been put in place. Where necessary, Auditors functions of the Company are in compliance with regulatory and
were directed to conduct follow-up audits and inspections. statutory provisions. The Committee is also comfortable that
the assets of the Company have been adequately safeguarded,
External Audit and the requirements of independence of both the Internal and
External Auditors are met. With the transparent and appropriate
The Committee reviewed the Management Letter and other
relationship established with the External Auditors, the latter
recommendations submitted by the External Auditors, Messrs
have an obligation to raise and highlight any signicant defects
Ernst & Young and followed-up the issues raised, during the
or weaknesses in the Companys system of internal control and
nancial year under review. From time to time during the
compliance to the attention of the Management, the Committee
period under review External Auditors made presentations and
and the Board. On the whole, the Committee rmly believes
briengs to the Committee on issues related to new accounting
that the Company is in the right direction in terms of corporate
standards and regulatory requirements.
governance and best practices.
The Committee further made recommendations in relation to

the remuneration, functions and terms of engagement of the
External Auditors, particularly in relation to their audit work.
Dato Mohd Fadzli Yusof

Chairman Board Audit and Compliance Committee
22nd April 2016

Colombo
73
REPORT OF THE REMUNERATION COMMITTEE
The Remuneration Committee is entrusted by the Board of

Remuneration Remarks/Comments
Directors with the responsibility of overseeing reasonable, Committee
attractive and competitive remuneration packages for all
level of employees, aligned with the Groups performance and Members Comprised three (3) Non-Executive
interests of other stakeholders. The Committee also ensured Directors, of whom two (2) are independent
that the remuneration structure commensurates with each
employees performance, competency, commitment, dedication, Chairman Dato Mohd Fadzli Yusof
responsibility and skill. (Independent Non-Executive Director)
The Committee regularly reviewed and compared the overall Other members M.H.M. Raq
executive compensation package, benchmarking against the (Independent Non-Executive Director)
industry, for the consideration and adoption of the Board. It Dr. A.A.M. Haroon
also recommended the packages for the Executive Director, (Non-Independent Non-Executive Director)
the Chief Executive Ofcer and other Senior Members of the
Management, taking into cognisance the practice of the industry Secretary M. F. Jabir
as well as the overall nancial strength of the Group. In relation Head of Human Resources
to this, the Remuneration Committee took into consideration
Key Result Areas and Performances linked to the achievement,
contribution and performance of the individual ofcer Papers to be deliberated at the meetings were distributed in
concerned, relative to the targets set. advance to all the members.
Independent Directors had not received, directly or indirectly,

any consulting, advisory or other compensatory fees from
the Group.
Other key responsibilities under the mandate of the Committee Dato Mohd Fadzli Yusof
covered the following: Chairman Remuneration Committee
z Reviewing and ensuring that the Group implemented a
25th February 2016
sound Performance Appraisal Review System for employees
Colombo
at all levels.
z Making recommendation to the Board on annual increments,
key promotions and scale-ups.
z Making recommendation to the Board on bonus and related
payment, if any, to employees of all levels.
z Considering and recommending to the Board the
remuneration scheme for the Directors.
74
REPORT OF THE SHARIAH ADVISORY COUNCIL
We have examined the operations of Amna Takaful PLC Opinion

(the Company) for the year ending 31st December 2015.
In our opinion, to the best of our knowledge and belief, based
We have also conducted our review to form an opinion as to
on the explanations given to us:
whether the Company has complied with Shariah Rules and
Principles and also with the specic fatwas, regulations and i. The Takaful Operations, Financial Transactions and General
guidelines issued by the Shariah Advisory Council. Operations undertaken by the Company during the year
under review were generally in accordance with the
guidelines prescribed by the Shariah Advisory Council.
Responsibilities ii. Muslim Shareholders are advised to disburse Zakaah on
It is our responsibility, as Shariah Advisory Council, to ensure their shares as per the Islamic Laws of Zakaah. Management
that the Takaful operations, nancing transactions, contracts has been asked to calculate, in consultation with the
and investments entered into by the Company with its clients Shariah Advisory Council, the Zakaah per share that is due
and stakeholders are in compliance with Shariah rules and by shareholders.
principles. It is the responsibility of the Companys Management
to ensure that all rules, principles and guidelines set by the We seek Allah the Almighty to grant us all success and straight-
Shariah Advisory Council are complied with, and that all forwardness.
policies and services being offered are duly approved by the
Shariah Advisory Council.
Scope of Audit
The scope of our audit primarily involved the review of
Companys compliance with the Shariah Regulations and
Guidelines. Our review also included interviewing staff,
Mufti M.I.M. Rizwe
examining different activities conducted by the Company based
Chairman Shariah Advisory Council
on samples/documents. This included reviewing:
1. Draft Financial Statements
2. Underwriting of different types of policies
3. Claims
4. Co-insurance operations
Ash-Sheikh Fazil Farook
5. Review of all related documentation Member Shariah Advisory Council
6. Retakaful and Reinsurance
7. Investments
8. Mandatory placement of funds with the Central Bank of
Sri Lanka
Ash-Sheikh Murshid Mulaffar

Secretary Shariah Advisory Council
75 Notes to the Financial Statements
Financial Reports
76 Statement of Directors Responsibilities
77 Certicate of the Actuary Family Takaful (Life)
78 Certication of Incurred But Not Reported (IBNR)
Claims and Liability Adequacy Test (LAT)
79 Independent Auditors Report
80 Statement of Financial Position
81 Statement of Comprehensive Income
82 Statement of Changes in Equity
84 Statement of Cash Flow
86 Segmental Analysis Statement of Financial Position 2015
87 Segmental Analysis Statement of Comprehensive Income 2015
92 Statement of Financial Position Family Takaful (Life Insurance) Supplemental
76
STATEMENT OF DIRECTORS RESPONSIBILITIES

This statement sets out the responsibilities of the Directors It is the responsibility of the Directors to provide the Auditors
in relation to Financial Statements of the Group and the every opportunity to carry out necessary audit work to enable
Company. The Directors conrm that the Financial Statements them to present their audit report. The Directors, are satised
for the year 2015, prepared and presented in this Annual Report that all statutory payments in relation to all relevant regulatory
are consistent with the requirements of the Companies Act and statutory authorities which were due and payable by the
No. 07 of 2007 and the Regulation of Insurance Industry Act Company as at the Reporting date have been paid or where
No. 43 of 2000. relevant provided for.
In preparing the Financial Statements, the Directors have The Directors are of the view that they have to the best of
adopted appropriate accounting principles and policies and their knowledge, discharged their responsibilities as set out
where relevant, disclosed and explained material departures, in this statement.
if any. The Directors ensure that applicable accounting
standards (SLFRS/LKAS) have been followed and that the For and on behalf of the Board,
judgments and estimates provided are reasonable and prudent
and provide a true and fair view of the state of affairs as well as
the protability of the Company. The Directors also state that
the Financial Statements are prepared on a going concern basis
and a review of the Companys performance indicates that the
Company has adequate resources to continue in operation.
Tyeab Akbarally
The Directors have taken proper and sufcient care to
Chairman
ensure the maintenance of adequate accounting records in
conformity with the applicable provisions of the Regulation
22nd April 2016
of Insurance Act No. 43 of 2000 and any other legislations
Colombo
including the Companies Act No. 07 of 2007 to safeguard the
Sri Lanka
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.
77
CERTIFICATE OF THE ACTUARY FAMILY TAKAFUL (LIFE)

I, Zainal Abidin Mohd. Kassim, being the Actuary to the best of
my knowledge certify the following:
(a) that I have included each and every policy for which there is
a policy liability in conducting the valuation of liabilities for
the purposes of Section 48 of the Regulation of Insurance
Industry Act No. 43 of 2000 and the Solvency Margin Rules
and any subsequent amendments;
(b) that I have taken all reasonable steps to ensure the
accuracy and completeness of the policies mentioned in
item (a) above;
(c) that I have complied with the provisions of the said Act in
item (a) above;
(d) that I have complied with provisions of the Solvency
Margin (Long-Term Insurance) Rules, 2002 and guidance
notes/guidelines prescribed by the Board and any
subsequent amendments there under in the determination
of the net amount of liabilities;
(e) that in my opinion, the net liability so determined by me, in
the Form H-LT the valuation balance sheet, is adequate to
meet the insurers future commitments under the insurance
contracts.
Zainal Abidin Mohd. Kassim

Fellow of the Institute of Actuaries
Actuarial Partners Consulting Sdn. Bhd.

Suite 17.02, Kenanga International
Jalan Sultan Ismail
50250 Kuala Lumpur
MALAYSIA
Tel.: 603 2161 0433

Fax: 603 2161 3595
Kuala Lumpur
16th February 2016
78
CERTIFICATION OF INCURRED BUT NOT REPORTED (IBNR) CLAIMS AND

LIABILITY ADEQUACY TEST (LAT)
Amna Takaful PLC 31st December 2015 Net IBNR

and LAT Certication
I hereby certify that the undiscounted Central Estimate of IBNR
provision of Rs. 33,744,966 inclusive of claim handling expenses
is adequate in relation to the Claim Liability of Amna Takaful
PLC as at 31st December 2015, net of Retakaful. This IBNR
provision, together with the Case Reserves held by the
Operator, is expected to be adequate to meet the future
liabilities in respect of the Operators incurred claims
obligations as at 31st December 2015, in many, but not all,
scenarios of future experience.
At the end of each reporting period, companies are required

to carry out a Liability Adequacy Test (LAT) as laid out in
SLFRS 4. The LAT is performed to assess the adequacy of the
carrying amount of the Unearned Contribution Reserve (UCR).
I hereby certify that the UCR provision of Rs. 480,215,430 set
by the Operator, net of Retakaful is adequate in relation to the
unexpired risks of Amna Takaful PLC as at 31st December 2015,
in many, but not all, scenarios of future experience. As such,
there is no deciency to be recognised by the Operator.
The results have been determined in accordance with

internationally accepted actuarial principles.
I have relied upon information and data provided by

the management of the above operator and I have not
independently veried the data supplied, beyond applying
checks to satisfy myself as to the reasonability of the data.
Matthew Maguire
Fellow of the Institute of Actuaries of Australia (FIAA)
For and on behalf of NMG Consulting
29th February 2016
7(FRQWDFW#10**URXSFRP
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&KXOLD6WUHHW2&%&&HQWUH6LQJDSRUH
79
INDEPENDENT AUDITORS REPORT
Ernst & Young Tel : +94 11 2463500

Chartered Accountants Fax Gen : +94 11 2697369
201 De Saram Place Tax : +94 11 5578180
P.O. Box 101 eysl@lk.ey.com
Colombo 10 ey.com
Sri Lanka
TO THE SHAREHOLDERS OF AMNA TAKAFUL PLC

Report on the Financial Statements Report on Other Legal and Regulatory Requirements
We have audited the accompanying nancial statements of Amna As required by Section 163(2) of the Companies Act No. 7 of 2007,
Takaful PLC, (the Company), and the consolidated nancial statements we state the following:
of the Company and its subsidiaries (Group), which comprise the (a) The basis of opinion and Scope and Limitations of the audit are as
statement of nancial position as at 31 December 2015, and the stated above.
statement of comprehensive income, statement of changes in equity
(b) In our opinion:
and, statement of cash ows for the year then ended, and a summary of
signicant accounting policies and other explanatory information. - We have obtained all the information and explanations that were
required for the audit and, as far as appears from our examination,
Boards Responsibility for the Financial Statements proper accounting records have been kept by the Company,
The Board of Directors (Board) is responsible for the preparation of - The nancial statements of the Company give a true and fair
these nancial statements that give a true and fair view in accordance view of the nancial position as at 31 December 2015, and of its
with Sri Lanka Accounting Standards, and for such internal controls as nancial performance and cash ows for the year then ended in
Board determines is necessary to enable the preparation of nancial accordance with Sri Lanka Accounting Standards
statements that are free from material misstatement, whether due to
fraud or error. Emphasis of Matters
Without qualifying our opinion,
Auditors Responsibility
(i) we draw attention to Note 2.7 in the nancial statements which
Our responsibility is to express an opinion on these nancial statements indicates that the Company had not met the Solvency Margin as
based on our audit. We conducted our audit in accordance with per the Regulation of Insurance Industry Act No 43 of 2000 and
Sri Lanka Auditing Standards. Those standards require that we comply amendments thereto (Act) as at 31st December 2015 and the
with ethical requirements and plan and perform the audit to obtain Solvency Margin (Risk Based Capital) Rules reported to Insurance
reasonable assurance about whether the nancial statements are free Board of Sri Lanka up to the date of audit report. These conditions,
from material misstatement. along with other matters as set forth in Note 2.7, indicate the
existence of a material matter for which mitigating factors are
An audit involves performing procedures to obtain about amount explained therein, and;
evidence and disclosures in the nancial statements. The procedures
(ii) we draw attention to Note 9.3 in the nancial statements which
selected depend on the auditors judgment, including the assessment of
describes the transfer of investment in the subsidiary to the
the risks of material misstatement of the nancial statements, whether
Company at no consideration that is accounted based on the policy
due to fraud or error. In making those risk assessments, the auditor
stated in Note 3.1.7.
considers internal control relevant to the entitys preparation of the
nancial statements that give a true and fair view in order to design - The nancial statements of the Company and the Group, comply
audit procedures that are appropriate in the circumstances, but not for with the requirements of Sections 151 and 153 of the Companies
the purpose of expressing an opinion on the effectiveness of the entitys Act No. 07 of 2007.
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting As required by Section 47(2) of the Regulation of Insurance Industry
estimates made by Board, as well as evaluating the overall presentation Act, No. 43 of 2000, as far as appears from our examination, except for
of the nancial statements. the requirements of the Solvency Margin under section 26(1) of the
Act, the accounting records of the Company have been maintained in
We believe that the audit evidence we have obtained is sufcient and the manner required by the rules issued by the Insurance Board of
appropriate to provide a basis for our audit opinion. Sri Lanka, so as to clearly indicate the true and fair view of the nancial
position of the Company.
Opinion
In our opinion, the consolidated nancial statements give a true and fair
view of the nancial position of the Group as at 31 December 2015, and
of its nancial performance and cash ows for the year then ended in 22nd April 2016
accordance with Sri Lanka Accounting Standards. Colombo
Partners: W R H Fernando FCA FCMA M P D Cooray FCA FCMA R N de Saram ACA FCMA Ms. N A De Silva FCA Ms. Y A De Silva FCA W K B S P Fernando FCA FCMA
Ms. L K H L Fonseka FCA A P A Gunasekera FCA FCMA A Herath FCA D K Hulangamuwa FCA FCMA LLB (Lond) H M A Jayesinghe FCA FCMA
Ms. A A Ludowyke FCA FCMA Ms. G G S Manatunga FCA N M Sulaiman ACA ACMA B E Wijesuriya ACA ACMA
$PHPEHUoUPRI(UQVW <RXQJ*OREDO/LPLWHG
80
STATEMENT OF FINANCIAL POSITION

Group Company
As at 31st December Notes 2015 2014 2015 2014

Rs. Rs. Rs. Rs.
Assets
Intangible Assets 5 24,703,309 24,159,095 3,268,669 8,148,051
Property, Plant & Equipment 6 123,230,578 127,569,511 102,811,631 116,191,821
Improvements to Leasehold Buildings 7
Deferred Tax Assets 36.2 99,702,606 98,818,473 97,594,408 97,594,408
Investment Property 8 73,500,000 101,800,000 73,500,000 101,800,000
Investment in Subsidiary 9 1,124,322,352 157,125,000
Financial Assets 10 2,448,384,541 1,754,395,695 720,613,338 1,150,366,809
Retakaful (Reinsurance) Receivables 40,366,531 98,048,710 25,907,745 81,723,981
Contribution (Premium) Receivable 11 528,442,104 509,920,521 322,668,907 391,124,982
Other Assets 12 134,955,421 162,300,566 85,290,304 144,820,937
Other Assets Unit Linked 13 37,971,813 34,401,147 34,401,147
Financial Assets Unit Linked 14 1,054,182,514 603,171,340 603,171,340
Cash and Bank Balances 15 133,915,913 131,984,293 47,709,756 106,977,062
Cash and Bank Balances Unit Linked 15 46,639,393 95,837,468 95,837,467
Total Assets 4,745,994,723 3,742,406,819 2,603,687,110 3,089,283,005
Liabilities
Insurance Contract Liabilities Non-Life 19 742,618,418 625,154,301 588,060,786 520,242,362
Insurance Contract Liabilities Family Takaful Fund 20.1 574,710,988 551,210,935 551,210,935
Insurance Contract Liabilities Family Takaful - Unit Linked 20.2 1,191,795,346 730,798,810 730,798,810
Employee Benets 21 30,245,309 26,847,116 24,474,647 24,685,007
Other Liabilities Unit Linked 22 39,436,759 20,116,161 20,116,161
Other Liabilities 23 446,951,716 398,323,137 86,951,032 188,315,171
Subordinated Debt 24 200,000,000 200,000,000
Finance Lease Liability 26 10,741,702 14,546,379 10,741,702 14,546,379
Bank Overdrafts 15 4,271,030
Total Liabilities 3,236,500,238 2,371,267,869 910,228,167 2,049,914,825
Shareholders Equity
Equity Attributable to Equity Holders of the Parent
Stated Capital 16 1,650,001,188 1,250,000,900 1,650,001,188 1,250,000,900
Other Reserves 17 80,105,452 65,384,653 34,331,677 46,097,523
Revenue Reserves 18 (426,505,809) (120,935,104) 9,126,078 (256,730,243)
1,303,600,831 1,194,450,449 1,693,458,943 1,039,368,180
Non-Controlling Interest 205,893,654 176,688,500
Total Equity 1,509,494,485 1,371,138,950 1,693,458,943 1,039,368,180
Total Equity and Liabilities 4,745,994,723 3,742,406,819 2,603,687,110 3,089,283,005
These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
M. Rinaz Niyas M. Fazal Ghaffoor

Senior Manager Finance Chief Executive Ofcer
The Board of Directors is responsible for the preparation and presentation of these Financial Statements.
Signed for and on behalf of the Board by,
M. Ehsan Zaheed Tyeab Akbarally

Director Chairman
The Notes on pages 93 to 152 are an integral part of these Consolidated Financial Statements.
22nd April 2016
Colombo
81
STATEMENT OF COMPREHENSIVE INCOME

Group Company
Year Ended 31st December Notes 2015 2014 2015 2014

Rs. Rs. Rs. Rs.
Gross Written Contribution (Premium) 27 3,237,609,198 2,652,008,024 1,547,445,375 2,055,297,907

Less: Contribution (Premium) Ceded to Retakaful Companies (Reinsurers) (666,752,524) (539,791,021) (262,451,331) (241,277,531)
Net Written Contribution (Premium) 2,570,856,674 2,112,217,003 1,284,994,044 1,814,020,376
Net Change in Reserve for Unearned Contribution (Premium) (59,483,158) (30,816,411) (47,511,263) (42,440,999)
Net Earned Contribution (Premium) 2,511,373,516 2,081,400,593 1,237,482,781 1,771,579,377
Other Revenue
Income from Investments 28 185,723,522 256,938,933 46,781,493 275,557,333
Other Income 29 50,349,553 31,792,218 7,923,012 6,434,482
Total Revenue 2,747,446,591 2,370,131,744 1,292,187,286 2,053,571,192
Fair Value Gains and Losses 4,539,234 14,020,670 747,649 (1,868,352)

Fair Value of Investment Transferred 9 587,197,352
Total Revenue Including Fair Value of Investment Transferred 30 2,751,985,825 2,384,152,413 1,880,132,287 2,051,702,840
Benets, Losses and Expenses

Takaful (Insurance) Claims and Benets (Net) 31 (1,337,089,798) (895,860,854) (965,579,081) (801,081,229)
Acquisition Cost (Net of Reinsurance Commission) (226,903,823) (187,262,697) (84,014,605) (151,291,225)
Change in Family Takaful Contract Liability (482,826,576) (346,831,160) (346,831,160)
Other Operating and Administration Expenses 32 (969,039,477) (857,418,001) (560,653,116) (712,281,734)
Amortisation 33 (5,141,517) (5,656,927) (2,656,153) (4,088,343)
Total Claims, Benets and Expenses (3,021,001,191) (2,293,029,639) (1,612,902,955) (2,015,573,691)
Prot from Operations 34 (269,015,366) 91,122,775 267,229,332 36,129,149
Finance Cost 35 (2,371,332) (4,693,506) (1,941,399) (2,421,172)
Prot/(Loss) Before Taxation (271,386,698) 86,429,268 265,287,933 33,707,976
Income Tax 36 (9,113,439) 16,581,602 30,012,448
Prot for the Year (280,500,137) 103,010,871 265,287,933 63,720,424
Prot Attributable to:

Equity Holders of the Parent (301,188,689) 67,692,778
(280,500,137) 103,010,870
Basic, Diluted Earnings Per Share 37 (0.20) 0.07 0.18 0.06
Prot for the Period (280,500,137) 103,010,870 265,287,933 63,720,424
Other Comprehensive Income

Items that will Never be Reclassied to Prot or Loss
Revaluation of Property, Plant & Equipment 9,518,159 7,348,684
Dened Benet Plan Actuarial Losses 21.1 (1,295,296) (4,923,991) 1,061,120 (4,080,468)
8,222,863 (4,923,991) 8,409,804 (4,080,468)
Items that are or may be Reclassied to Prot or Loss

Net Change in Fair Value of Available-for-Sale Financial Assets (4,126,880) (11,409,608) (747,649) 1,868,352
Net Change in Fair Value of Available-for-Sale Financial Assets
Reclassied to Prot or Loss (2,805,465) (21,395,206) (2,890,162) (21,395,206)
Transfer (to)/from Policyholders Reserve (98,867)
Foreign Currency Translation Differences for Foreign Operations 44,213,037 6,875,116
37,181,825 (25,929,698) (3,637,811) (19,526,854)
Other Comprehensive Income, Net of Tax 45,404,688 (30,853,688) 4,771,993 (23,607,321)
Total Comprehensive Income for the Year (235,095,449) 72,157,183 270,059,926 40,113,103
Total Comprehensive Income Attributable to:

Equity Holders of the Parent (274,880,454) 40,403,496
(235,095,449) 72,157,182
82
STATEMENT OF CHANGES IN EQUITY

Other Reserves Revenue Reserves
Year ended 31st December 2015 Stated Prepaid Share Revaluation Translation Policyholders Available-for- Accumulated Non- Total
Capital Reserve Reserve Reserve Reserve Sale Reserve Loss Controlling
Interest
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Group
Adjusted Balance as at
1st January 2014 1,250,000,900 30,128,071 15,505,816 26,711,229 (184,268,515) 154,950,901 1,293,028,403
Net Prot for the Year 67,692,779 35,318,091 103,010,869
Life Policy Holders

Net Change in Fair Value of
Available-for-Sale Financial Assets (4,751,400) (6,658,208) (11,409,608)
Available-for-Sale Financial Assets
Transferred to Prot or Loss (21,395,206) (21,395,206)
Foreign Currency Translation
Differences for Foreign Operations 3,781,314 3,093,802 6,875,116
Dened Benet Plan Actuarial Losses,
Net of Deferred Tax (4,923,991) (4,923,991)
Total Comprehensive Income 3,781,314 (26,146,606) 62,768,788 31,753,685 72,157,180

Net Change in Fair Value of Available-
for-Sale Financial Assets Transfer
(to)/from Policyholders Reserve
Dividend Paid (10,016,086) (10,016,086)

Advance Received for the Ordinary
Shares to be Issued 15,969,452 15,969,452
Balance as at 31st December 2014 1,250,000,900 15,969,452 30,128,071 19,287,130 564,623 (121,499,727) 176,688,500 1,371,138,949
Net Prot for the Period (301,188,689) 20,688,552 (280,500,137)

Net of Deferred Tax (3,327,466) (799,414) (4,126,880)
Transferred to Prot or Loss (2,805,465) (2,805,465)
Net Change in Fair Value of Property,
Plant & Equipment Net of
Deferred Tax 9,518,159 9,518,159
Foreign Currency Translation
Differences for Foreign Operations 24,317,170 19,895,867 44,213,037
Net Change in Fair Value of Available-
for-Sale Financial Assets Transfer
(to)/from Policyholders Reserve (98,867) (98,867)
Total Comprehensive Income 9,518,159 24,317,170 (98,867) (6,132,931) (302,483,985) 39,785,005 (235,095,449)
Transfer of Revaluation Surplus to

Retained Earnings, at the Disposal (3,145,078) 3,145,078
Dividend Paid (10,579,851) (10,579,851)
Ordinary Shares Issued 400,000,288 (15,969,452) 384,030,836
Balance as at 31st December 2015 1,650,001,188 36,501,152 43,604,300 (98,867) (5,568,308) (420,838,634) 205,893,654 1,509,494,485
83 Statement of Changes in Equity
Other Reserves Revenue Reserves
Year ended 31st December 2015 Stated Prepaid Share Revaluation Policy- Available-for- Accumulated Total
Capital Reserve Reserve holders' Sale Reserve Prot/(Loss)
Reserve
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Company
Adjusted Balance as at 1st January 2014 1,250,000,900 30,128,071 26,711,229 (323,554,575) 983,285,625
Total Comprehensive Income
Net Prot for the Year 63,720,424 63,720,424
Life Policy Holders

Net Change in Fair Value of Available-for-Sale Financial
Assets Net, Deferred Tax 1,868,352 1,868,352
Assets Transferred to Prot or Loss (21,395,206) (21,395,206)
Total Comprehensive Income (19,526,854) 59,639,957 40,113,102

Assets Transfer (to)/from Policyholders Reserve
Advance received for the Ordinary Shares to be issued 15,969,452 15,969,452
Balance as at 31st December 2014 1,250,000,900 15,969,452 30,128,071 7,184,375 (263,914,618) 1,039,368,179
Net Prot for the Period 265,287,934 265,287,934

Assets, Net of Deferred Tax (747,649) (747,649)
Assets Transferred to Prot or Loss (2,890,162) (2,890,162)
Net Change in Revaluation of Property, Plant & Equipment
Net of Deferred Tax 7,348,684 7,348,684
Transfer from the Revaluation Reserve (3,145,078) 3,145,078
Dened Benet Plan Actuarial Losses, Net of Deferred Tax 1,061,120 1,061,120
Total Comprehensive Income 4,203,606 (3,637,811) 269,494,132 270,059,927

Assets Transfer (to)/from Policyholders Reserve
Ordinary Shares Issued 400,000,288 (15,969,452) 384,030,836
Balance as at 31st December 2015 1,650,001,188 34,331,677 3,546,564 5,579,514 1,693,458,943
84
STATEMENT OF CASH FLOW
Group Company
Year ended 31st December Notes 2015 2014 2015 2014

Rs. Rs. Rs. Rs.
Cash Flows from/(used in) Operating Activities

Contribution (Premium) Received from Participants 3,219,087,617 2,520,210,757 1,615,901,451 1,979,203,840
Retakaful (Reinsurance) Premium Paid (642,658,162) (478,904,869) (281,168,915) (227,233,578)
Claims, Benets and Expenses Paid (1,307,807,296) (1,387,134,386) (1,003,263,772) (1,205,430,460)
Retakaful (Reinsurance) Receipts in Respect of Claims 99,551,929 243,053,072 95,527,238 203,599,152
Cash Paid to and on Behalf of Employees (358,459,724) (329,295,889) (210,986,724) (261,528,649)
Prots Received from Investments and Other Income 162,000,040 216,513,299 34,367,588 191,657,874
Dividends Received 19,256,053 7,828,596 9,298,084 37,544,048
Finance Cost Paid 35 (2,371,337) (4,693,506) (1,941,399) (2,421,172)
Other Operating Cash Payments (698,956,967) (393,116,102) (451,469,626) (444,690,176)
Cash Flow from/(used in) Operating Activities (Note A) 489,642,157 394,460,972 (193,736,075) 270,700,879
Gratuity Paid (4,606,777) (4,529,235) (4,361,777) (4,529,235)
Net Cash Flow from/(used in) Operating Activities 485,035,380 389,931,737 (198,097,852) 266,171,644
Cash Flows from/(used in) Investing Activities

Net Disposal/(Purchase) of Investment Securities (545,707,876) 23,668,953 50,636,311 132,362,391
Purchase of Intangible Assets (6,638,439) (516,156) (366,156)
Proceeds from Disposal of Intangible Assets 2,223,231 2,223,231
Purchase of Property, Plant & Equipment (21,952,193) (47,498,293) (10,101,491) (44,114,031)
Proceeds from Disposal of Property, Plant & Equipment 5,032,235 25,369 4,857,050
Proceeds from Disposal Investment Property 32,750,000 12,842,903 16,000,000 12,789,750
Disposal/(Purchase) of Subsidiaries (380,000,000)
Net Cash Flows from/(used in) Investing Activities (534,293,041) (11,477,224) (316,384,899) 100,671,954
Cash Flows from/(used in) Financing Activities

Repayment of Extended Murabaha Facility (362,372) (362,372)
Repayment of Lease Facility (5,849,864) (2,540,489) (5,849,863) (2,540,489)
Proceeds from Issue of Corporate Debt 200,000,000 200,000,000
Dividend Paid (10,579,851) (10,016,086)
Proceeds from Rights Issue 384,030,836 15,969,452 384,030,836 15,969,452
Net Cash Flows from/(used in) Financing Activities 567,601,121 3,050,505 578,180,973 13,066,591
Increase/(Decrease) in Cash and Cash Equivalents (Note B) 518,343,460 381,505,019 63,698,222 379,910,189
85 Statement of Cash Flow
Group Company
Year ended 31st December Notes 2015 2014 2015 2014

Rs. Rs. Rs. Rs.
NOTE A
Reconciliation of Operating Prot/(Loss) with
Cash Flows from Operations
Prot from Operations (269,015,366) 91,122,774 267,229,332 36,129,149
Depreciation 34 31,022,375 29,087,542 26,223,698 26,073,748
Amortisation 5,141,515 5,656,927 2,656,151 4,088,343
Provision for Gratuity 6,709,674 5,416,804 5,212,537 5,171,283
Unrealised (Income)/Losses from FVTPL (9,006,664) (46,617,706) (3,863,470) (44,487,058)
Fair Value of Investment Transferred (587,197,352)
(Increase)/Decrease in Debtors and Other Assets 83,303,191 (25,270,668) 114,661,382 (85,684,913)
Reversal of Provision for Doubtful Debts (1,885,166) (1,885,166)
Increase in Family Takaful (Long-Term Insurance) Fund 461,074,257 346,831,160 346,831,160
Increase in Net Unearned Contribution (Premium) 67,829,612 30,816,411 47,511,264 42,440,999
Increase/(Decrease) in IBNR and General Reserve Provision 23,433,604 12,862,671 20,986,102 24,273,213
Increase/(Decrease) in Claims Provision 28,267,441 (120,752,919) (678,943) (118,904,202)
Increase/(Decrease) in Other Creditors 67,949,176 93,374,757 (78,234,994) 60,510,452
Prot on Sale of Property, Plant & Equipment (245,327) (92,903) (250,383) (39,750)
Finance Cost 35 (2,371,332) (4,693,506) (1,941,399) (2,421,172)
(Gain)/Loss on Fair Value of Investment Property (7,500,000) (7,500,000)
(Prot)/Loss on Sale of Investment Property 3,050,000 1,450,000
Recycling of Available-for-Sale Fair Value Losses of Investments (21,395,206) (21,395,206)
Cash Flows from/(used in) Operating Activities 489,642,157 394,460,972 (193,736,075) 270,700,880
Note B
Increase/(Decrease) in Cash and Cash Equivalents
Cash at Bank and in Hand and Cash Equivalents 848,687,634 518,343,460 420,527,978 472,852,290
Cash and Cash Equivalents at the end of the Period 848,687,634 518,343,460 420,527,978 472,852,290
Cash and Cash Equivalents at the beginning of the Year 15 518,343,460 136,838,441 472,852,290 92,942,099
Cash and Cash Equivalents Transferred to
Amna Takaful Life Ltd. (116,022,533)
Increase/(Decrease) in Cash and Cash Equivalents 518,343,460 381,505,019 63,698,222 379,910,189
86
SEGMENTAL ANALYSIS STATEMENT OF FINANCIAL POSITION 2015

Amna Takaful Amna Takaful Amna Takaful Amna Global Adjustments Group
PLC Life Ltd. (Maldives) PLC Ltd.
As at 31st December 2015 General Takaful
Rs. Rs. Rs. Rs. Rs. Rs.
Assets
Intangible Assets 3,268,669 18,408,394 10,454,276 212,494 (7,640,524) 24,703,309
Property, Plant & Equipment 102,811,631 14,932,249 3,591,012 1,895,686 123,230,578
Deferred Tax Asset 97,594,408 2,108,198 99,702,606
Investment Property 73,500,000 73,500,000
Financial Assets 720,613,338 1,089,312,676 633,972,463 4,486,064 2,448,384,541
Investment in Gold
Retakaful (Reinsurance) Receivables 25,907,745 1,971,743 12,487,044 40,366,531
Contribution (Premium) Receivable 322,668,907 54,301,540 151,471,657 528,442,104
Other Assets 85,290,304 33,673,170 35,149,179 7,674,798 (26,832,030) 134,955,421
Other Assets Unit Linked 37,971,813 37,971,813
Financial Assets Unit Linked 1,054,182,514 1,054,182,514
Investment in Subsidiary 1,124,322,352 43,122,540 (1,167,444,892)
Call Deposit 628,733 628,733
Cash and Bank Balances 47,709,756 51,928,656 32,740,290 908,478 133,287,180
Cash and Bank Balances Unit Linked 46,639,393 46,639,393
Total Assets 2,603,687,110 2,403,950,881 881,974,119 58,754,570 (1,202,371,956) 4,745,994,723
Liabilities
Insurance Contract Liabilities Non-Life 588,060,786 154,557,632 742,618,418
Insurance Contract Liabilities Family Takaful Fund 574,710,988 574,710,988
Insurance Contract Liabilities Family Takaful
Unit Linked 1,191,795,346 1,191,795,346
Employee Benets 24,474,647 4,558,055 1,212,607 30,245,309
Other Liabilities Unit Linked 39,436,759 39,436,759
Other Liabilities 86,951,032 77,856,180 272,368,457 37,062,586 (27,286,539) 446,951,716
Subordinated Debt 200,000,000 200,000,000
Finance Lease Liability 10,741,702 10,741,702
Total Liabilities 910,228,167 1,888,357,328 426,926,089 38,275,193 (27,286,539) 3,236,500,238
Shareholders Equity
Stated Capital 1,650,001,188 500,000,000 202,370,719 37,125,000 (739,495,719) 1,650,001,188
Other Reserves 34,331,677 2,169,475 79,151,235 (35,546,935) 80,105,452
Revenue Reserves 9,126,078 13,424,078 173,526,076 (16,645,623) (605,936,417) (426,505,809)
1,693,458,943 515,593,553 455,048,030 20,479,377 (1,380,979,071) 1,303,600,831
Total Equity 1,693,458,943 515,593,553 455,048,030 20,479,377 (1,175,085,417) 1,509,494,485
Total Equity and Liabilities 2,603,687,110 2,403,950,881 881,974,119 58,754,570 (1,202,371,956) 4,745,994,723
87
SEGMENTAL ANALYSIS STATEMENT OF COMPREHENSIVE INCOME 2015

Amna Takaful Amna Takaful Amna Takaful Amna Global Adjustments Group
PLC Life Ltd. (Maldives) PLC Ltd.
Year ended 31st December 2015 General Takaful
Gross Written Contribution (Premium) 1,547,445,375 928,293,778 761,870,045 3,237,609,198

Less: Contribution (Premium) Ceded to
Retakaful Companies (Reinsurers) (262,451,331) (18,481,675) (385,819,518) (666,752,524)
Net Written Contribution (Premium) 1,284,994,044 909,812,103 376,050,527 2,570,856,674

Add: Unearned Takaful Contribution (Premium)
at the beginning of the Year 432,704,167 6,598,719 70,798,133 510,101,019
Less: Unearned Takaful Contribution (Premium)
at the end of the Year (480,215,430) (8,346,453) (81,022,294) (569,584,177)
Net Earned Contribution (Premium) 1,237,482,781 908,064,369 365,826,366 2,511,373,516
Other Income
Income from Investments 46,781,493 121,364,484 19,912,058 586,211,528 (1,175,743,393) (401,473,830)
Other Operating Income 7,923,012 7,137,382 24,745,207 16,543,952 (6,000,000) 50,349,553
Total Revenue 1,292,187,286 1,036,566,234 410,483,631 602,755,480 (1,181,743,393) 2,160,249,239
Fair Value Gains and Losses 747,649 1,701,622 2,089,963 4,539,234
Fair Value of Investment Transferred 587,197,352 587,197,352

Total Revenue Including Fair Value of
Investment Transferred 1,880,132,287 1,038,267,856 412,573,594 602,755,480 (1,181,743,393) 2,751,985,825

Takaful (Insurance) Claims and Benets Net (965,579,081) (207,571,762) (163,938,954) (1,337,089,798)
Acquisition Cost (Net of Reinsurance Commission) (84,014,605) (97,321,849) (45,567,369) (226,903,823)

Increase in Family Takaful
(Long-Term Insurance) Fund (482,826,576) (482,826,576)
Management Fee from Contribution (Premium)
comprising Acquisition Cost
Prot/(Loss) from Operations 830,538,601 250,547,669 203,067,271 602,755,480 (1,181,743,393) 705,165,629
Less: Indirect Expenses

Other Operating, Investment Related and
Administration Expenses (534,429,419) (229,257,831) (142,937,469) (27,392,380) (4,000,000) (938,017,099)
Amortisation (2,656,153) (875,467) (3,072,823) (99,574) 1,562,500 (5,141,517)
Depreciation (26,223,697) (1,920,512) (1,968,980) (909,188) (31,022,377)
Finance Cost (1,941,399) (429,933) (2,371,332)
Prot/(Loss) Before Taxation 265,287,933 18,063,926 55,087,999 574,354,339 (1,184,180,893) (271,386,698)
Income Tax (9,113,439) (9,113,439)
Prot/(Loss) for the Year 265,287,933 18,063,926 45,974,560 574,354,339 (1,184,180,893) (280,500,137)
88
SEGMENTAL ANALYSIS STATEMENT OF FINANCIAL POSITION 2014

Year ended 31st December 2014 Amna Takaful PLC
Family General Shareholders Adjustments Company

Takaful Fund Takaful Fund Fund
Rs. Rs. Rs. Rs. Rs.
Assets
Intangible Assets 1,757,317 6,390,734 8,148,051
Property, Plant & Equipment 116,191,821 116,191,821
Improvements to Leasehold Buildings
Deferred Tax Asset 97,594,408 97,594,408
Investment Property 43,683,332 45,450,000 12,666,668 101,800,000
Financial Assets 590,098,533 278,488,360 281,779,916 1,150,366,809
Investment in Gold
Retakaful (Reinsurance) Receivables 313,733 81,410,252 81,723,981
Contribution (Premium) Receivable 29,941,781 361,183,201 391,124,982
Other Assets 19,771,455 6,279,072 118,770,410 144,820,937
Other Assets Unit Linked 34,401,147 34,401,147
Financial Assets Unit Linked 603,171,340 603,171,340
Investment in Subsidiary 157,125,000 157,125,000
Inter Fund Receivable 20,806,403 72,601,762 (93,408,165)
Management Fee Receivable 127,701,225 (127,701,225)
Cash and Bank Balances 14,585,065 60,126,073 32,265,923 106,977,062
Cash and Bank Balances Unit Linked 95,837,467 95,837,467
Total Assets 1,431,803,854 855,500,630 1,023,087,866 (221,109,390) 3,089,283,005
Liabilities
Insurance Contract Liabilities Non-Life 520,242,362 520,242,362
Insurance Contract Liabilities Family Takaful Fund 551,210,935 551,210,935
Insurance Contract Liabilities Family Takaful Unit Linked 730,798,810 730,798,810
Employee Benets 24,685,007 24,685,007
Deferred Tax Liability
Other Liabilities 23,129,146 101,391,862 63,794,163 188,315,171
Murabaha Facility
Finance Lease Liability 14,546,379 14,546,379
Bank Overdrafts
Inter Fund Payable 87,454,742 5,953,424 (93,408,165)
Management Fee Payable 19,094,060 108,607,165 (127,701,225)
Total Liabilities 1,431,803,854 736,194,813 103,025,550 (221,109,390) 2,049,914,825
Shareholders Equity
Stated Capital 1,250,000,900 1,250,000,900
Other Reserves 46,097,523 46,097,523
Accumulated Loss 119,305,867 (376,036,107) (256,730,243)
119,305,867 920,062,316 1,039,368,180
Non-Controlling Interest
Total Equity 119,305,867 920,062,316 1,039,368,180
Total Equity and Liabilities 1,431,803,854 855,500,680 1,023,087,866 (221,109,390) 3,089,283,005
Amna Takaful Amna Global Amna Takaful Adjustments Group

(Maldives) PLC Ltd. Life Ltd.
General Takaful
Rs. Rs. Rs. Rs. Rs.
11,617,810 162,069 13,434,189 (9,203,024) 24,159,095

3,620,734 1,981,784 5,775,173 127,569,511

1,224,065 98,818,473
101,800,000
494,983,362 5,422,786 103,622,739 1,754,395,697

16,324,729 98,048,710
118,795,539 509,920,521
29,197,225 21,773,171 50,000 (33,540,766) 162,300,567
34,401,147
603,171,340
59,704,780 (216,829,780)

24,632,416 374,815 131,984,293
95,837,467
700,395,878 89,419,404 122,882,101 (259,573,570) 3,742,406,819
104,911,939 625,154,301
551,210,935
730,798,810
2,162,109 26,847,116

20,116,161
205,336,246 45,943,463 2,269,022 (43,540,765) 398,323,137

14,546,379
4,271,030 4,271,030

310,248,185 52,376,603 2,269,022 (43,540,765) 2,371,267,869
202,370,719 37,125,000 120,000,000 (359,495,719) 1,250,000,900

34,938,198 (15,651,069) 65,384,653
152,838,776 (82,199) 613,079 (17,574,517) (120,935,104)
390,147,693 37,042,801 120,613,079 (392,721,305) 1,194,450,449
176,688,500 176,688,500
390,147,693 37,042,801 120,613,079 (216,032,805) 1,371,138,950
700,395,878 89,419,404 122,882,101 (259,573,570) 3,742,406,819
90
SEGMENTAL ANALYSIS STATEMENT OF COMPREHENSIVE INCOME 2014

Year ended 31st December 2014 Amna Takaful PLC
Family General Shareholders Adjustments Company

Takaful Fund Takaful Fund Fund
Rs. Rs. Rs. Rs. Rs.
Gross Written Contribution (Premium) 679,028,925 1,376,268,982 2,055,297,907

Less: Contribution (Premium) Ceded to
Retakaful Companies (Reinsurers) (9,777,999) (231,499,532) (241,277,531)
Net Written Contribution (Premium) 669,250,926 1,144,769,450 1,814,020,376

Add: Unearned Takaful Contribution (Premium)
at the Beginning of the Year 2,597,313 394,264,572 396,861,886
Less: Unearned Takaful Contribution (Premium)
at the End of the Year (6,598,719) (432,704,166) (439,302,885)
Net Earned Contribution (Premium) 665,249,520 1,106,329,856 1,771,579,377
Other Income
Management Fee from Contribution (Premium) Others (104,727,837) (349,727,888) 454,455,724
Management Fee from Investment Income (32,083,164) (11,331,827) 43,414,992
Income from Investments 136,988,375 35,855,692 102,713,266 275,557,333
Fair Value Gains and Losses (1,869,005) 653 (1,868,352)
Other Operating Income 3,005,167 15,791,742 (12,362,427) 6,434,482
Total Revenue 665,426,894 782,261,996 616,376,377 (12,362,427) 2,051,702,840

Takaful (Insurance) Claims and Benets Net (161,237,744) (639,843,485) (801,081,229)
Acquisition Cost (Net of Reinsurance Commission) (6,467,603) 46,011,141 (190,834,763) (151,291,225)
Increase in Family Takaful (Long-Term Insurance) Fund (346,831,160) (346,831,160)

Management Fee from Contribution (Premium)
Comprising Acquisition Cost (67,243,087) (123,591,676) 190,834,763
Prot/(Loss) from Operations 83,647,300 64,837,976 616,376,377 (12,362,427) 752,499,225
Less: Indirect Expenses

Other Operating, Investment Related and
Administration Expenses (83,647,300) (28,041,126) (586,881,988) 12,362,427 (686,207,986)
Amortisation (438,022) (3,650,320) (4,088,343)
Depreciation (410,833) (25,662,915) (26,073,748)
Finance Cost (2,421,172) (2,421,172)
Prot/(Loss) Before Taxation 35,947,995 (2,240,019) 33,707,976
Income Tax 30,012,448 30,012,448
Prot/(Loss) for the Period 35,947,995 27,772,429 63,720,424
Amna Takaful Amna Global Amna Takaful Adjustments Group

(Maldives) PLC Ltd. Life Ltd.
General Takaful
Rs. Rs. Rs. Rs. Rs.
596,710,117 2,652,008,024
(298,513,489) (539,791,021)
298,196,628 2,112,217,003
79,089,653 475,951,538
(67,465,064) (506,767,949)
309,821,216 2,081,400,593
3,117,888 17,623,125 2,882,470 (42,241,883) 256,938,932
17,407,080 (1,518,058) 14,020,670
19,441,782 13,286,504 (7,370,550) 31,792,218
349,787,965 30,909,629 1,364,412 (49,612,433) 2,384,152,413
(94,779,625) (895,860,854)
(35,971,471) (187,262,697)
(346,831,160)
219,036,869 30,909,629 1,364,412 (49,612,433) 954,197,702
(122,575,502) (25,458,980) (1,458,541) 7,370,550 (828,330,459)
(2,780,396) (64,855) (285,834) 1,562,500 (5,656,927)
(1,765,479) (723,299) (525,016) (29,087,542)
(2,272,334) (4,693,506)
91,915,493 2,390,161 (904,979) (40,679,383) 86,429,267
(13,430,846) 16,581,602
78,484,647 2,390,161 (904,979) (40,679,383) 103,010,871

92
STATEMENT OF FINANCIAL POSITION FAMILY TAKAFUL (LIFE INSURANCE)

SUPPLEMENTAL
As at 31st December 2015 2014
Rs. Rs.
Assets
Intangible Assets 18,408,393 13,434,189
Property, Plant & Equipment 14,932,250 5,775,174
Financial Assets 1,089,312,676 103,622,739
Retakaful Receivable 1,971,740
Contribution (Premium) Receivable 54,301,541
Other Assets 33,673,170 50,000
Other Assets Unit Linked 37,971,813
Financial Assets Unit Linked 1,054,182,514
Cash and Bank Balances 52,557,390
Cash and Bank Balances Unit Linked 46,639,393
Total Assets 2,403,950,880 122,882,102
Liabilities
Insurance Contract Liability Family Takaful Fund 574,710,988
Insurance Contract Liability Family Takaful Unit Linked 1,191,795,346
Employee Benets 4,558,055
Other Liabilities Unit Linked 39,436,758
Other Liabilities 77,856,179 2,269,022
Total Liabilities 1,888,357,326 2,269,022
Shareholders Equity
Stated Capital 500,000,000 120,000,000
Other Reserves 2,070,608 1,518,058
Accumulated Loss 13,522,946 (904,979)
Total Equity 515,593,554 120,613,079
Total Equity and Liabilities 2,403,950,880 122,882,102
93
NOTES TO THE FINANCIAL STATEMENTS
1. Corporate Information 2. Basis of Preparation

The Groups Statement of Financial Position represents the
1.1 General
assets, liabilities and equity of General Takaful (Non-Life
Amna Takaful PLC (Company) is a public limited liability Insurance), Family Takaful (Life Insurance) and Shareholders
company incorporated and domiciled in Sri Lanka. The Fund. The Family Takaful (Life Insurance) Fund Statement of
registered ofce of the Company is located at 660 1/1, Financial Position, represents assets and liabilities of the Family
Galle Road, Colombo 03. Takaful (Life Insurance) Fund.
The shares of the Company are listed on the Secondary Board The Groups Statement of Financial Position includes the assets
of the Colombo Stock Exchange. and liabilities of Amna Global Ltd., Amna Takaful (Maldives)
PLC and Amna Takaful Life Ltd.
These Consolidated Financial Statements comprise the
Company and its subsidiaries (collectively the Group and The Groups Statement of Comprehensive Income, reects the
individually Group companies). underwriting results of General Takaful business, surplus from
Family Takaful business and investment and other income of
1.2 Principal Activities and Nature of Operations General Takaful, Family Takaful and Shareholders Funds and
related expenses. The results of Amna Global Ltd., Amna
Company Takaful (Maldives) PLC and Amna Takaful Life Ltd. are also
During the year, the principal activity of the Company was included in the Group Statement of Comprehensive Income.
General Takaful Insurance Business.
Financial assets and nancial liabilities are offset and the
net amount reported in the Statement of Financial Position
Subsidiary
only when there is a legally enforceable right to offset the
The principal activity of Amna Global Ltd. (100% stake) is recognised amounts and there is an intention to settle on
providing services such as Technical Support, Research a net basis or to realise the assets and settle the liability
and Development, Administration, Business Planning and simultaneously.
Co-ordination, Financial and Treasury Management, Marketing
and Sales Promotion, sourcing of raw material and components
under Section 17 of the Board of Investment of Sri Lanka Law 2.1 Statement of Compliance
No. 4 of 1978. The Consolidated Statement of Financial Position, the
Consolidated Statement of Comprehensive Income, Changes in
Amna Takaful (Maldives) PLC, which is a subsidiary (51% stake) Equity and Cash Flows, together with accounting policies and
of Amna Takaful PLC was incorporated to carry out Insurance Notes, (Financial Statements) as at 31st December 2015 and for
Business in the Republic of Maldives and has obtained license the year then ended, have been prepared in accordance with
from Maldivian Monitory Authority on 4th March 2010, to carry Sri Lanka Accounting Standards (SLAS) (hereinafter referred
out General Takaful Business. to as SLFRS/LKAS) as issued by The Institute of Chartered
Accountants of Sri Lanka and comply with the requirements of
Amna Takaful Life Ltd. (100% stake), incorporated on the Companies Act No. 07 of 2007, the Regulation of Insurance
10th July 2014, in order to be in-line with the requirement to Industry Act No. 43 of 2000 and amended thereto.
segregate Life and General Insurance Business, as required by
the RII (Amendment) Act No. 03 of 2011, is engaged in Family
(Life) Insurance Business. 2.2 Basis of Measurement
The Financial Statements have been prepared on the historical
cost basis except for the following material items in the
1.3 Date of Authorisation for Issue
Statement of Financial Position:
The Financial Statements of Amna Takaful PLC, for the year
z Motor vehicles in Property, Plant & Equipment measured at
ended 31st December 2015, was authorised for issue by the
fair value
Board of Directors on 22nd April 2016.
z Financial instruments at fair value through prot or loss are
measured at fair value
1.4 Responsibility for Financial Statements z Available-for-sale nancial assets are measured at fair value
The Board of Directors is responsible for preparation and z Investment properties, which are measured at fair value
presentation of these Financial Statements.
Notes to the Financial Statements

94
z Policyholders liabilities have been measured at actuarial 2.4.1.2 Actuarial Valuations of the Insurance Provisions
determined values The valuation of Long-Term Insurance Provision and General
z The liability for Dened Benet Obligations are actuarially Insurance Provisions were carried out by Mr. Zainal Abidin Mohd
valued and recognised at the present value Kassim (BSc, FIA, ASA) of Actuarial Partners Consulting Sdn.
Bhd. (formerly known as Mercer Zainal Consulting Sdn. Bhd.),
The Group presents its Statement of Financial Position broadly Malaysia and NMG Consulting respectively.
in the order of liquidity.
(i) Note 19 General Insurance Provision
2.3 Functional and Presentation Currency Non-Life Insurance contract liabilities are recognised when
These Consolidated Financial Statements are presented in contracts are entered into and premiums are charged. These
Sri Lankan Rupees (Rs.), which is the Companys functional liabilities are known as the outstanding claims provision, which
and presentation currency. are based on the estimated ultimate cost of all claims incurred
but not settled at the Reporting date, whether reported or not,
together with related claims handling costs and reduction for
2.4 Use of Estimates and Judgments the expected value of salvage and other recoveries. Delays can
In the process of applying the Group accounting policies, be experienced in the notication and settlement of certain
management is required to make judgments, apart from types of claims, therefore the ultimate cost of these cannot be
those involving estimations, which has the most signicant known with certainty at the Reporting date. This calculation
effect on the amounts recognised in the Financial Statements. uses current estimates of future contractual cash ows, after
Further, management is required to consider key assumptions taking account of the investment return expected to arise on
concerning the future and other key sources of estimation assets relating to the relevant Non-Life Insurance technical
uncertainty at the Reporting date, that have a signicant risk provisions. If these estimates show that the carrying amount
of causing a material adjustment to the carrying amounts of the unearned premiums is inadequate, the deciency is
of assets and liabilities within the next nancial year. The recognised in the Statement of Comprehensive Income by
respective carrying amounts of assets and liabilities are given setting up a provision for liability adequacy. The liability is
in related Notes to the Financial Statements. Actual results may not discounted for the time value of money. No provision
differ from these estimates. for equalisation or catastrophe reserves is recognised. The
liabilities are derecognised when the contract expires, is
Estimates and underlying assumptions are reviewed on discharged or is cancelled.
an ongoing basis. Revisions to estimates are recognised
prospectively. The provision for unearned premiums, represents premiums
received for risks that have not yet expired. Generally, the
The key items as such are discussed below. reserve is released over the term of the contract and is
recognised as premium income. At each Reporting date, the
Group reviews its unexpired risk and a liability adequacy test is
2.4.1 Assumptions and Estimation Uncertainties
performed to determine whether there is any overall excess of
Information about assumptions and estimation uncertainties expected claims and over unearned premiums. This calculation
that have a signicant risk of resulting in a material adjustment uses current estimates of future contractual cash ows after
in the year ending 31st December 2015, is included in the taking account of the investment return expected to arise on
following Notes: assets relating to the relevant Non-Life Insurance technical
provisions. If these estimates show that the carrying amount
2.4.1.1 Note 8 Investment Property of the unearned premiums is inadequate, the deciency is
recognised in the Statement of Comprehensive Income by
The Group has determined the fair value of its investment
setting up a provision for liability adequacy.
properties based on the valuation reports submitted by
M.M.M. Saleem (GMIV, DIV Sri Lanka). The fair value is
determined, taking into consideration the situation, location (ii) Note 20 Long-Term Insurance Provision
infrastructure facilities, amenities available, present market (Family Takaful Fund)
value of close properties etc. Life insurance liabilities are recognised when contracts
are entered into and premiums are receivable. At each
Reporting date, an assessment is made of whether the
recognised life insurance liabilities are adequate by using a
liability adequacy test.
Signicant estimates and assumptions made in respect of When measuring the fair value of an asset or a liability, the
Actuarial Valuations have been disclosed in the Note 20.3 Group uses market observable data as far as possible. Fair
to the Financial Statements. values are categorised into different levels in a fair value
hierarchy, based on the inputs used in the valuation
techniques as follows:
2.4.1.3 Note 21 Employee Benets
The Dened Benet Obligation and the related charge for z Level 1: Quoted prices (unadjusted) in active markets for
the year are determined using assumptions required under identical assets or liabilities.
actuarial valuation techniques. The valuation involves z Level 2: Inputs, other than quoted prices, included in Level 1
making assumptions about discount rates, future salary that are observable for the asset or liability, either directly
increases, staff turnover rates etc. Due to the long-term (i.e. as prices) or indirectly (i.e. derived from prices).
nature of such obligations these estimates are subject to z Level 3: Inputs for the asset or liability, that are not based on
signicant uncertainty. observable market data (unobservable inputs).
2.4.1.4 Note 36 Deferred Tax Asset If the inputs used to measure the fair value of an asset or a
liability might be categorised in different levels of the fair value
Deferred tax assets are recognised for all unused tax losses
hierarchy, then the fair value measurement is categorised in
to the extent that it is probable that taxable prot will be
its entirety in the same level of the fair value hierarchy as the
available against which the losses can be utilised. Signicant
lowest level input that is signicant to the entire measurement.
management judgment is required to determine the best
estimate of deferred tax assets that can be recognised, based The Group recognises transfers between levels of the fair value
upon the likely timing and level of future taxable prots hierarchy at the end of the Reporting period, during which the
together with future tax planning strategies. change has occurred.
2.4.1.5 Note 9 Investment in Subsidiaries Further information about the assumptions made in measuring
fair values is included in the following Notes:
Fair Value of Investment Transferred
z Note 6 Property, Plant & Equipment
The determination of fair value of investment transferred
recorded on the Statement of Comprehensive Income and z Note 8 Investment Property
the corresponding entry being recorded in Investment in z Note 10 Financial Instruments
Subsidiary on the Statement of Financial Position is determined
using a variety of valuation techniques that include the use
of mathematical techniques. The inputs to these models are 2.6 Segment Reporting
derived from observable market data where possible, but if this A segment is a distinguishable component of the Group
is not available, judgment is required to establish their engaged in providing services, subject to risks and rewards that
fair values. are different to those of other segments.
The Board of Directors decided the fair value of share based Segmental information is based on industry segments
on different valuation techniques and the following table reecting the Groups management structure. Segmentation
demonstrates the sensitivity to a reasonably possible change has been determined, based on the activities of the companies
in the key assumption employed with all other factors held or sectors into which the product or services are sold. The
consistent in the fair value measurement. primary format is based on the core business, General, Family
and Fund Management Services of Shareholders Fund and
Technical Services.
Sensitivity
10% Increase in Expected Multiple (Rs.) 59,187,744 Inter segment transactions are based on fair market prices.
10% Decrease in Expected Multiple (Rs.) (58,336,818)
Expenses directly identied to a particular segment, are charged
accordingly. Expenses that cannot be directly identied to a
particular segment, are allocated on the basis decided by the
2.5 Measurement of Fair Values management and applied consistently throughout the period.
A number of the Groups accounting policies and disclosures
require the measurement of fair values, for both nancial and The Groups activities are located mainly in Sri Lanka and
non-nancial assets and liabilities. Maldives. Consequently, assets and liabilities by geographic
region are considered not material to be disclosed.

96
2.7 Going Concern The consideration transferred, does not include amounts
related to the settlement of pre-existing relationships. Such
These Financial Statements are presented on the assumption
amounts are generally recognised in prot or loss.
that the Company is a going concern. The Directors too have
made an assessment of the Companys ability to continue as a Any contingent consideration payable is measured at fair
going concern. value at the acquisition date. If the contingent consideration is
classied as equity, then it is not remeasured and settlement is
The assessment of the going concern assumption involves
accounted for within equity. Otherwise, subsequent changes in
making a judgment, at a particular point in time, about the
the fair value of the contingent consideration are recognised in
future outcome of events or conditions as the Company had
prot or loss.
fallen short of the required Solvency Margin only in the month
of December 2015, as per the Regulation of Insurance Industry
(RII) Act No. 43 of 2000 for General Insurance Business as at 3.1.2 Non-Controlling Interests (NCI)
the Reporting date and the requirements under Solvency NCI are measured at their proportionate share of the acquirees
Margin (Risk Based Capital) before the Financial Statements are identiable net assets at the acquisition date.
authorised for issue. A capital plan was submitted to Insurance
Board of Sri Lanka by the letter dated 29th December 2015 with Changes in the Groups interest in a subsidiary, that do not result
the reference ATPLC/COMP/15/12/361 of which two of the items in a loss of control, are accounted for as equity transactions.
had been initiated and completed. Subsequent to the Reporting
date, at the request of the regulator, a detailed plan has 3.1.3 Subsidiaries
also been submitted on 22nd April 2016, with reference Subsidiaries are entities controlled by the Group. The Group
ATPLC/COMP/16/04/398. controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has
The Directors are of the view the Company is able to continue as
the ability to affect those returns through its power over the
a going concern due to the following committed mitigating plans;
entity. The Financial Statements of subsidiaries are included in
z Additional measures to infuse new capital into the Company the Consolidated Financial Statements from the date on which
by 30th June 2016 has been planned, for which potential control commences until the date on which control ceases.
parties have been already identied and mutually agreed to
z Divest and dilute strategic investments including the 3.1.4 Loss of Control
investment in subsidiary When the Group loses control over a subsidiary, it derecognises
the assets and liabilities of the subsidiary and any related NCI
3. Summary of Signicant Accounting Policies and other components of equity. Any resulting gain or loss is
recognised in prot or loss. Any interest retained in the former
The Group has consistently applied the following accounting
subsidiary is measured at fair value when control is lost.
policies to all periods presented in these Consolidated
3.1.5 Transactions Eliminated on Consolidation
Certain comparative amounts in the Statement of Comprehensive Intra-group balances and transactions and any unrealised
Income and OCI have been reclassied or re-represented, as income and expenses arising from intragroup transactions,
a result of a change in the accounting policy regarding the are eliminated.
presentation of items of OCI.
3.1.6 Common Control Transactions

3.1 Basis of Consolidation A business combination involving entities or businesses
3.1.1 Business Combinations under common control is a business combination in which
The Group accounts for business combinations using the all combining entities or businesses ultimately are controlled
acquisition method when control is transferred to the Group. by the same party or parties both before and after the
The consideration transferred in the acquisition combination and that control is not transitory.
is generally measured at fair value, as are the identiable
The acquirer of the common control transaction applies book
net assets acquired. Any goodwill that arises is tested
value accounting for all common control transactions.
annually for impairment. Any gain on a bargain purchase is
recognised in prot or loss immediately. Transaction costs are In applying book value accounting, no entries are recognised
expensed as incurred, except if related to the issue of debt or in Prot or Loss; instead, the result of the transaction is
equity securities. recognised in equity as arising from a transaction with
shareholders.
3.1.7 Common Control Transactions in Separate When a foreign operation is disposed of in its entirety or
Financial Statements partially, such control, signicant inuence or joint control is
When an investment in a subsidiary, associate or joint venture lost, the cumulative amount in the translation reserve related
is acquired in a common control transaction, the investment to that foreign operation is reclassied to prot or loss as part
shall be measured at the fair value of the consideration given of the gain or loss on disposal. If the Group disposes part of its
(be it cash, other assets or additional shares) plus, where interest in a subsidiary but retains control, then the relevant
applicable any costs directly attributable to the acquisition. proportion of the cumulative amount is reattributed to NCI.
When the purchase consideration does not correspond to the If the settlement of a monetary item receivable from or payable
fair value of the investment acquired, the transaction shall be to a foreign operation is neither planned nor likely to occur in
recorded at fair value, irrespective of the actual consideration; the foreseeable future, then foreign currency differences arising
any difference between fair value and agreed consideration will from such item form, part of the net investment in the foreign
be a contribution to or a distribution of equity for a subsidiary, operation. Accordingly, such differences are recognised in OCI
or an increase in the investment held or a distribution received and accumulated in the translation reserve.
by the parent.
3.3 Income Tax
3.2 Foreign Currency Income tax expense comprises current and deferred tax. It is
3.2.1 Foreign Currency Transactions recognised in prot or loss except to the extent that it relates to
a business combination or items recognised directly in equity
Transactions in foreign currencies are translated to the
or in OCI.
respective functional currencies of Group companies at
exchange rates at the dates of the transactions.
3.3.1 Current Taxes
Monetary assets and liabilities denominated in foreign Current income tax assets and liabilities for the current and
currencies are translated to the functional currency at the prior periods, are measured at the amount expected to be
exchange rate at the Reporting date. Non-monetary assets and recovered from or paid to the Commissioner General of Inland
liabilities, that are measured at fair value in a foreign currency, Revenue. The tax rates and tax laws used to compute the
are translated to the functional currency at the exchange rate amount, are those that are enacted or substantively enacted by
when the fair value was determined. Non-monetary items that the Reporting date.
are measured, based on historical cost in a foreign currency,
are translated using the exchange rates as at the dates of the The provision for income tax is based on the elements of income
initial transactions. and expenditure, as reported in the Financial Statements and
computed in accordance with the provisions of the Inland
Foreign currency differences are generally recognised in Revenue Act No. 10 of 2006 and the amendments thereto.
prot or loss.
3.3.2 Deferred Taxation
However, foreign currency differences arising from the
translation of available-for-sale equity investments (except on Deferred income tax is provided, using the liability method, on
impairment, in which case foreign currency differences that all temporary differences at the Reporting date between the tax
have been recognised in OCI, are reclassied to prot or loss); bases of assets and liabilities and their carrying amounts for
are recognised in OCI: nancial reporting purposes.
Deferred income tax liabilities are recognised for all taxable

3.2.2 Foreign Operations temporary differences. Deferred income tax assets are
The assets and liabilities of overseas subsidiaries deemed recognised for all deductible temporary differences, carry
as foreign operations, including goodwill and fair value forward of unused tax assets and unused tax losses, to the
adjustments arising on acquisition, are translated into extent that it is probable that taxable prot will be available
Sri Lankan Rupees at the exchange rates at the Reporting date. against which the deductible temporary differences and the
The income and expenses of foreign operations are translated carry forward of unused tax assets and unused tax losses can
into Sri Lankan Rupees at the exchange rates at the dates of be utilised.
the transactions.
The carrying amount of deferred income tax assets is reviewed
Foreign currency differences, are recognised in OCI and at each Reporting date and reduced to the extent that it is no
accumulated in the translation reserve, except to the extent longer probable that sufcient taxable prot will be available to
that the translation difference is allocated to NCI. allow all or part of the deferred income tax asset to be utilised.

98
Deferred income tax assets and liabilities are measured at the The amortisation period and the amortisation method for an
tax rates that are expected to apply to the year when the asset intangible asset with a nite useful life is reviewed at least at
is realised or the liability is settled, based on tax rates (and tax each nancial year end. Changes in the expected useful life
laws) that have been enacted or substantively enacted at the or the expected pattern of consumption of future economic
Reporting date. benets embodied in the asset is accounted for by changing
the amortisation period or method, as appropriate and treated
as changes in accounting estimates. The amortisation expense
3.4 Intangible Assets
on intangible assets with nite lives is recognised in the
3.4.1 Goodwill Statement of Comprehensive Income in the expense category
Goodwill arising on the acquisition of subsidiaries is measured consistent with the nature of the intangible asset. Amortisation
at the acquisition date as: commences when the assets were available for use.
z the fair value of the consideration transferred; plus The useful lives and the amortisation methods of intangible
z the recognised amount of any non-controlling interests in the assets with nite lives are as follows:
acquiree; plus
z if the business combination is achieved in stages, the fair Class Useful Life Amortisation Method
value of the pre-existing equity interest in the acquiree; less
Computer Software 8-20 years Straight-line method
z the net recognised amount (fair value) of the identiable
assets acquired and liabilities assumed.
Gains or losses arising from derecognition of an intangible
Subsequently, goodwill is measured at cost less accumulated asset are measured as the difference between the net disposal
impairment losses. proceeds and the carrying amount of the asset and are
recognised in the Statement of Comprehensive Income when
Goodwill is reviewed for impairment, annually or more the asset is derecognised.
frequently if event or changes in circumstances indicate that
the carrying value may be impaired.
3.5 Prepaid Expenditure
3.4.2 Research and Development Expenditure which is deemed to have a benet or relationship
to more than one nancial year is classied as prepaid
Expenditure on development activities is capitalised only if the
expenditure. Such expenditure is written off over the period to
expenditure can be measured reliably, the product or process is
which it relates, on a straight-line basis.
technically and commercially feasible, future economic benets
are probable and the Group intends to and has sufcient
resources to complete development and to use or sell the asset. 3.6 Salvage Stock
Subsequent to initial recognition, development expenditure Salvage stocks are valued at since realised/realisable value.
is measured at cost less accumulated amortisation and any
accumulated impairment losses. Amortisation is recognised
in the Statement of Comprehensive Income on a systematic 3.7 Retakaful (Reinsurance) and
basis over 20 years to reect the pattern in which the related Contribution (Premium) Receivable
economic benets are recognised. The Group cedes insurance risk, in the normal course of
business for all its businesses. Reinsurance assets represent
Research and other development expenditure is recognised balances due from reinsurance companies. Amounts
in the Statement of Comprehensive Income in the year recoverable from reinsurers are estimated in a manner
it is incurred. consistent with the outstanding claims provision or settled
claims associated with the reinsurers policies and are in
3.4.3 Other Intangible Assets accordance with the related reinsurance contract.
Intangible assets acquired separately are measured on initial
recognition at cost. Following the initial recognition of the Reinsurance assets are reviewed for impairment at each
intangible assets, the cost model is applied, requiring the Reporting date or more frequently when an indication of
assets to be carried at cost less any accumulated amortisation impairment arises during the Reporting year. Impairment
and accumulated impairment losses. occurs when there is objective evidence as a result of an event
that occurred after initial recognition of the reinsurance asset
Intangible assets with nite lives are amortised over the useful that the Group may not receive all outstanding amounts due
economic life and assessed for impairment whenever there under the terms of the contract and the event has a reliably
is an indication that the intangible asset may be impaired. measurable impact on the amounts that the Group will receive
from the Reinsurer. The impairment loss is recorded in the The Company has revalued its entire class of motor vehicles as
Statement of Comprehensive Income. at 31st December 2013 and has carried it at the revalued amount
in the Statement of Financial Position. The motor vehicles are
The Group also assumes reinsurance risk in the normal revalued every three years on a rollover basis to ensure that the
course of business for life insurance and non-life insurance carrying amounts do not differ materially from the fair value at
contracts where applicable. Premiums and claims on assumed the Reporting date.
reinsurance are recognised as revenue or expenses in the same
manner as they would be, if the reinsurance were considered An item of Property, Plant & Equipment is derecognised upon
direct business, taking into account the product classication of disposal or when no future economic benets are expected
the reinsured business. from its use. Any gain or losses arising on derecognition of the
asset is included in the Statement of Comprehensive Income in
Reinsurance liabilities represent balances due to reinsurance the year the asset is derecognised.
companies. Amounts payable are estimated in a manner
consistent with the related reinsurance contract.
3.9.2 Restoration Cost
Premiums and claims are presented on a gross basis for both Expenditure incurred on repairs or maintenance of Property,
ceded and assumed reinsurance. Plant & Equipment in order to restore or maintain the future
economic benets expected from originally assessed standard
Reinsurance assets or liabilities are derecognised when the of performance, is recognised as an expense when incurred.
contractual rights are extinguished or expired or when the
contract is transferred to another party.
3.9.3 Depreciation
Insurance receivables are recognised when due and measured The provision for depreciation is calculated by using a
on initial recognition at the fair value of the consideration straight-line method on the cost or revalued amount of all
received or receivable. The carrying value of insurance Property, Plant & Equipment, in order to write-off such amounts
receivables is reviewed for impairment whenever events or less their estimated residual values over the estimated useful
circumstances indicate that the carrying amount may not economic lives. Leased assets are depreciated over the shorter
be recoverable, with the impairment loss recorded in the of the lease term and their useful lives, unless it is reasonably
Statement of Comprehensive Income. certain that the Group will obtain ownership by the end of the
lease term.
3.8 Other Assets and Receivables The estimated useful lives of Property, Plant & Equipment are
Other assets and receivables are stated at their estimated as follows:
realisable value.
Class Useful Life
3.9 Property, Plant & Equipment Motor Vehicles 04-05 Years

3.9.1 Cost Computer Equipment 03-05 Years
The Property, Plant & Equipment are stated at cost (except Other Equipment 04-05 Years
for motor vehicles) less accumulated depreciation and any Furniture and Fittings 05-10 Years
accumulated impairment losses.
Leasehold Vehicles 04-05 Years
The cost of Property, Plant & Equipment is the cost of
acquisition or construction, together with any expenses The Group provides depreciation from the date the assets are
incurred in bringing the asset to its working condition for its available for use, up to the date of disposal.
intended use.
When parts of an item of Property, Plant & Equipment have 3.10 Leases
different useful lives, they are accounted for as separate items
3.10.1 Finance Leases Where the Group is the Lessee
(major components) of Property, Plant & Equipment.
Property, Plant & Equipment on nance leases, which effectively
Expenditure incurred for the purpose of acquiring, extending or transfer to the Group substantially all risks and benets
improving assets of a permanent nature by means of which to incidental to ownership of the leased item are capitalised at the
carry on the business or to increase the earning capacity of the inception of the lease at the fair value of the leased property or,
business has been treated as capital expenditure. if lower, at the present value of the minimum lease payments.

100
Capitalised leased assets are disclosed as Property, Plant & The Groups existing types of nancial instruments and their
Equipment and depreciated consistently with that of owned classications are shown in the table below:
assets, as described under Property, Plant & Equipment.
Financial Asset Category
The corresponding principal amount payable to the lessor,
Treasury Bonds Available-for-Sale
together with the nance cost payable over the period of the
Treasury Bills Available-for-Sale
lease is shown as a liability. Lease payments are apportioned
between the nance charges and reduction of the lease liability Equity Shares Fair Value Through Prot or
so as to achieve a constant periodic rate of nance cost on the Loss and Available-for-Sale
remaining balance of the liability. Unit Trust Available-for-Sale
Term Deposits/Mudharaba Deposits Loans and Receivables
The cost of improvements to or on leasehold property is Loans and Receivable Loans and Receivables
capitalised, disclosed as leasehold improvements and
depreciated over the unexpired period of the lease or the Financial Liability Category
estimated useful lives of the improvements, whichever is shorter.
Murabaha Facility Other Financial Liabilities
3.10.2 Operating Leases

Leases where the lessor effectively retains substantially all risks
and benets of ownership over the leased term, are classied 3.11.1 Recognition of Financial Instruments
as operating leases. The Group initially recognises loans and receivables on the
date that they are originated. All other nancial assets
Lease payments (excluding costs for services such as insurance (including assets designated as at fair value through prot or
and maintenance) paid under operating leases are recognised loss) are recognised initially on the trade date, which is the date
as an expense in the Statement of Comprehensive Income on a that the Group becomes a party to the contractual provisions of
straight-line basis over the lease term. the instrument.
Financial assets and nancial liabilities are offset and the

3.11 Financial Instruments net amount presented in the Statement of Financial Position
The Group classies non-derivative nancial assets into the when, and only when, the Group has a legal right to offset the
following categories: nancial assets at Fair Value Through amounts and intends either to settle them on a net basis or to
Prot or Loss, Loans and Receivables and available-for-sale realise the asset and settle the liability simultaneously.
nancial assets.
3.11.2 Measurement
The Group classies non-derivative nancial liabilities into the
Financial Assets at Fair Value Through Prot or Loss
Other Financial Liabilities category.
Financial assets at fair value through prot or loss include
The classication depends on the purpose for which the nancial assets held for trading and those designated at fair
investments were acquired or originated. Financial assets are value through prot or loss at inception. Investments typically
classied as at fair value through prot or loss, where the bought with the intention to sell in the near future are classied
Groups documented investment strategy is to manage nancial as held for trading. For investments designated as at fair value
investments on a fair value basis, because the related liabilities through prot or loss, the following criteria must be met.
are also managed on this basis. The available-for-sale and
The designation eliminates or signicantly reduces the
held-to-maturity categories are used when the relevant liability
inconsistent treatment that would otherwise arise from
(including shareholders funds) is passively managed and/or
measuring the assets or liabilities or recognising gains or losses
carried at amortised cost.
on a different basis; or
The Groups nancial assets include cash and short-term
The assets and liabilities are part of a group of nancial assets,
deposits, trade and other receivables, loan and other
nancial liabilities or both which are managed and their
receivables, quoted and unquoted nancial instruments and
performance evaluated on a fair value basis, in accordance with
derivative nancial instruments.
a documented risk management or investment strategy.
These investments are initially recorded at fair value. Directly

attributable transaction costs are recognised in the Statement
of Comprehensive Income as incurred. Subsequent to initial these liabilities are measured at amortised cost using the
recognition, these investments are remeasured at fair effective interest method.
value. Fair value adjustments and realised gain and loss are
recognised in the Statement of Comprehensive Income.
3.12 Impairment of Financial Assets
Financial assets, not classied as at fair value through prot or
Loans and Receivables
loss, are assessed at each Reporting date to determine whether
Loans and receivables are non-derivative nancial assets with there is objective evidence of impairment.
xed or determinable payments that are not quoted in an active
market. These investments are initially recognised at cost, being Objective evidence that nancial assets are impaired includes:
the fair value of the consideration paid for the acquisition of
z default or delinquency by a debtor;
the investment. All transaction costs directly attributable to the
acquisition are also included in the cost of the investment. After z restructuring of an amount due to the Group on terms that
initial measurement, loans and receivables are measured at the Group would not consider otherwise;
amortised cost, using the effective interest rate method. Gains z indications that a debtor or issuer will enter bankruptcy;
and losses are recognised in the Statement of Comprehensive z adverse changes in the payment status of borrowers or issuers;
Income when the investments are derecognised or impaired,
z the disappearance of an active market for a security; or
as well as through the amortisation process.
z observable data indicating that there is measurable decrease
in expected cash ows from a group of nancial assets.
Cash and Cash Equivalents
Cash and cash equivalents are dened as cash in hand,
Assets Carried at Amortised Cost
demand deposits and short-term highly liquid investments,
readily convertible to known amounts of cash and subject to If there is objective evidence that an impairment loss on assets
insignicant risk of changes in value. carried at amortised cost has been incurred, the amount of the
impairment loss is measured as the difference between the
For the purpose of Cash Flow Statement, cash and cash assets carrying amount and the present value of estimated
equivalents consist of cash in hand and deposits in banks net of future cash ows (excluding future expected credit losses that
outstanding bank overdrafts. Investments with short maturities have not been incurred) discounted at the nancial assets
i.e., three months or less from the date of acquisition are also original effective interest rate. The carrying amount of the
treated as cash equivalents. The Cash Flow Statement has asset is reduced and the loss is recorded in the Statement of
been prepared using the direct method. Interest and dividend Comprehensive Income.
received are classied as operating cash ows.
The Group rst assesses whether objective evidence of
impairment exists individually for nancial assets that are
individually signicant and individually or collectively for
Available-for-sale nancial assets are non-derivative nancial nancial assets that are not individually signicant. If it
assets that are designated as available-for-sale or are not is determined that no objective evidence of impairment
classied in any of the three preceding categories. These exists for an individually assessed nancial asset, whether
investments are initially recorded at fair value plus any directly signicant or not, the asset is included in a group of nancial
attributable transaction costs. After initial measurement, assets with similar credit risk characteristics and that group
available-for-sale nancial assets are measured at fair of nancial assets is collectively assessed for impairment.
value. Fair value gains and losses are reported as a separate Assets that are individually assessed for impairment and for
component in Other Comprehensive Income and accumulated which an impairment loss is, or continues to be, recognised
in the available-for-sale reserve until the investment is are not included in a collective assessment of impairment. The
derecognised or the investment is determined to be impaired. impairment assessment is performed at each Reporting date.
On derecognition or impairment, the cumulative fair value gains If, in a subsequent period, the amount of the impairment
and losses, previously reported in equity, are transferred to the loss decreases and that decrease can be related objectively
Statement of Comprehensive Income. to an event occurring after the impairment was recognised,
the previously recognised impairment loss is reversed. Any
Other Financial Liabilities subsequent reversal of an impairment loss is recognised in the
Other nancial liabilities are non-derivative nancial liabilities, Statement of Comprehensive Income, to the extent that the
which are initially recognised at fair value less any directly carrying value of the asset does not exceed its amortised cost
attributable transaction costs. Subsequent to initial recognition, at the reversal date.

102
Available-for-Sale Financial Investments the Groups continuing involvement in the asset. Continuing
If an available-for-sale nancial asset is impaired, an amount involvement that takes the form of a guarantee over the
comprising the difference between its costs (net of any transferred asset is measured at the lower of the original
principal repayment and amortisation) and its current fair carrying amount of the asset and the maximum amount of
value, less any impairment loss previously recognised in consideration that the Group could be required to repay.
other comprehensive income, is transferred from equity to
the Statement of Comprehensive Income. Reversals in respect When continuing involvement takes the form of a written
of equity instruments classied as available-for-sale are not and/or purchased option (including cash settled option or
recognised in the Statement of Comprehensive Income. similar provision) on the transferred asset, the extent of
the Groups continuing involvement is the amount of the
Reversals of impairment losses on debt instruments classied transferred asset that the Group may repurchase, except that, in
at available-for-sale are reversed through the Statement of the case of a written put option (including a cash settled option
Comprehensive Income if the increase in the fair value of the or similar provision) on an asset measured at fair value, the
instruments can be objectively related to an event occurring extent of the Groups continuing involvement is limited to the
after the impairment losses were recognised in the Statement lower of the fair value of the transferred asset and the option
of Comprehensive Income. exercise price.
The Group derecognises a nancial liability when its contractual

Financial Assets Carried at Cost obligations are discharged or cancelled, or expire.
If there is objective evidence that an impairment loss has been
incurred on an unquoted equity instrument, that is not carried
at fair value because its fair value cannot be reliably measured, 3.14 Investment Properties
or on a derivative asset that is linked to and must be settled by Investment properties are measured initially at cost, including
delivery of such an unquoted equity instrument, the amount of transaction costs. The carrying amount includes the cost of
the impairment loss is measured as the difference between the replacing part of an existing investment property at the time
carrying amount of the nancial asset and the present value of that cost is incurred if the recognition criteria are met; and
estimated future cash ows discounted at the current market excludes the costs of day-to-day servicing of an investment
rate of return for a similar nancial asset. Such impairment property. Subsequent to initial recognition, investment
losses shall not be reversed. properties are stated at fair value, which reects market
conditions at the Reporting date. Gains or losses arising from
changes in the fair value of investment properties are included
3.13 Derecognition of Financial Instruments in the Statement of Comprehensive Income in the year in which
A nancial asset (or, when applicable, a part of a nancial they arise. Valuation of investment property by a professional
asset or part of a group of similar nancial assets) is valuer is carried out every year.
derecognised when,
Investment properties are derecognised when either they
- The rights to receive cash ows from the asset have expired,
have been disposed of or when the investment property is
- The Group retains the right to receive cash ows from the permanently withdrawn from use and no future economic
asset, but has assumed an obligation to pay them in full benet is expected from its disposal. Any gains or losses on
without material delay to a third party under a pass-through the retirement or disposal of an investment property are
arrangement, recognised in the Statement of Comprehensive Income in the
- The Group has transferred its rights to receive cash ows from year of retirement or disposal.
the asset and either:
- Has transferred substantially all risks and rewards of the Transfers are made to or from investment property only
asset, or when there is a change in use. For a transfer from investment
property to owner-occupied property, the deemed cost for
- Has neither transferred nor retained substantially all risks
subsequent accounting is the fair value at the date of change.
and rewards of the asset, but has transferred control of
If owner-occupied property becomes an investment property,
the asset.
the Group accounts for such property in accordance with the
policy stated under Property, Plant & Equipment up to the
When the Group has transferred its right to receive cash
date of change.
ows from an asset and has neither transferred nor retained
substantially all risks and rewards of the asset nor transferred
control of the asset, the asset is recognised to the extent of
3.15 Liabilities and Provisions Funding Arrangements

(Excluding Insurance Contracts) The Gratuity liability is not externally funded.
3.15.1 Liabilities
3.16.2 Dened Contribution Plans Employees Provident
All known liabilities have been accounted for in preparing the
Fund and Employees Trust Fund
Financial Statement.
Employees are eligible for Employees Provident Fund
contributions and Employees Trust Fund contributions
3.15.2 Provisions (Excluding Insurance Contracts) in-line with the respective statutes and regulations. The
Provisions are recognised when the Group has a present Company contributes 12 % and 3 % of gross emoluments of
obligation (legal or constructive) as a result of a past event, employees to Employees Provident Fund and Employees
where it is probable that an outow of resources embodying Trust Fund respectively.
economic benets will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation. 3.16.3 Short-Term Employee Benets
If the effect of the time value of money is material, provisions
Short-term employee benets are expensed as the related
are determined by discounting the expected future cash ows
service is provided. A liability is recognised for the amount
at a pre-tax rate that reects current market assessments of the
expected to be paid, if the Group has a present legal or
time value of money and, where appropriate, the risks specic
constructive obligation to pay this amount as a result of past
to the liability. The unwinding of the discount is recognised as
service provided by the employee and the obligation can be
nance cost.
estimated reliably.
3.16 Employee Benets 3.17 Impairment of Non-Financial Assets

3.16.1 Dened Benet Plan Gratuity The Group assesses at each Reporting date, whether there
A dened benet plan is a post-employment benet plan other is an indication that an asset may be impaired. If any such
than a dened contribution plan. The liability recognised in indication exist or when annual impairment testing for an
the Financial Statements in respect of dened benet plans asset is required, the Group makes an estimate of the asset's
is the present value of the dened benet obligation as at the recoverable amount. An asset's recoverable amount is the
Reporting date. The dened benet obligation is calculated by higher of an asset's or cash-generating unit's fair value less
a qualied Actuary as at the Reporting date using the Projected costs to sell and its value in use and is determined for an
Unit Credit (PUC) method as recommended by LKAS 19 individual asset, unless the asset does not generate cash
Employee Benets. inows that are largely independent of those from other
assets or groups of assets. Where the carrying amount of an
However, under the payment of Gratuity Act No. 12 of 1983, the asset exceeds its recoverable amount, the asset is considered
liability to an employee arises only on completion of ve years impaired and is written down to its recoverable amount. In
of continued service. The Group is liable to pay gratuity in terms assessing value in use, the estimated future cash ows are
of relevant statute. In order to meet this liability, a provision is discounted to their present value using a pre-tax discount rate
carried forward in the Statement of Financial Position. that reects current market assessments of the time value of
money and the risks specic to the asset. In determining fair
The item is stated under dened benet liability in the value less costs to sell, an appropriate valuation model is used.
Statement of Financial Position. These calculations are corroborated by valuation multiples or
other available fair value indicators.
Recognition of Actuarial Gains and Losses Impairment losses of continuing operations are recognised in the
Actuarial gains or losses are recognised in the Statement of Statement of Comprehensive Income in those expense categories
Other Comprehensive Income in the period in which they arise. consistent with the function of the impaired asset, except for
property previously revalued where the revaluation was taken
to equity. In this case, the impairment is also recognised in
Recognition of Past Service Cost
equity up to the amount of any previous revaluation.
Past Service Costs are recognised as an expense on a
straight-line basis over the average period until the benets For assets, an assessment is made at each Reporting date, as
become vested. If the benets have already been vested, to whether there is any indication that previously recognised
immediately following the introduction of, or changes to the impairment losses may no longer exist or may have decreased.
plan, past service costs are recognised immediately.

104
If such indication exists, the Company makes an estimate of 3.19.4 Outward Retakaful (Reinsurance)
recoverable amount. A previously recognised impairment loss is Contribution (premium) ceded to Retakaful companies
reversed only if there has been a change in the estimates used (Reinsurers), is recognised as an expense in accordance with
to determine the asset's recoverable amount, since the last the pattern of Retakaful (Reinsurance) service received.
impairment loss was recognised. If that is the case, the carrying
amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount 3.19.5 Claims
that would have been determined, net of depreciation, had no General insurance, include all claims occurring during the year,
impairment loss been recognised for the asset in prior years. whether reported or not, related internal and external claims
Such reversal is recognised in the Statement of Comprehensive handling costs that are directly related to the processing and
Income, unless the asset is carried at revalued amount, in which settlement of claims, a reduction for the value of salvage and
case the reversal is treated as a revaluation increase. other recoveries and any adjustments to claims outstanding
from previous years.
3.18 Investment in Gold
Claims expense and liability for outstanding claims are
This represents the physical gold purchased by the Group and recognised in respect of direct and inward Retakaful
held with the intention of value appreciation gain. Such gold is (Reinsurance) business. The liability covers claims reported but
initially measured at cost and subsequently measured at the not yet paid, Incurred But Not Reported claims (IBNR) and the
market value. Any resultant gain or losses are recognised in the anticipated direct and indirect costs of settling those claims.
Statement of Comprehensive Income. Claims outstanding are assessed by review of individual claim
les and estimating changes in the ultimate cost of settling
3.19 General Takaful Business claims. The provision in respect of IBNR is actuarially valued to,
(Non-Life Insurance Business) ensure a more realistic estimation of the future liability, based
on past experience and trends. Whilst the Directors consider
3.19.1 Gross Written Contribution (Gross Written Premium) that the provision for claims are fairly stated on the basis of
Contributions (Premiums) are recognised earlier of the entity information currently available, the ultimate liability will vary
being on risk to provide coverage to the policyholders for as a result of subsequent information and events. This may
insured event and the signing of the insurance contract. result in adjustments to the amount provided. Such amount
Upon inception of the contract, contributions (premiums) are is reected in the Financial Statements for that period. The
recorded as written and are earned primarily on a pro rata methods used and estimates made are reviewed regularly.
basis over the term of the related policy coverage. However, for
those contracts for which the period of risk differs signicantly 3.19.6 Deferred Acquisition Cost and Deferred Income
from the contract period, contributions (premiums) are earned
Acquisition cost/income is directly attributable to the prot
over the period of risk in proportion to the amount of insurance
or loss when policy is underwritten.
protection provided.
3.19.2 Unearned Contribution (Premium) 3.20 Family Takaful Business (Long-Term

The Unearned Contribution (Premium) Reserve represents the Insurance Business)
portion of the contributions (premiums) written in a year but 3.20.1 Takaful Contribution (Premium)
relating to the unexpired terms of coverage.
Contributions (premiums) from Family Takaful (traditional
life insurance) contracts, including participating contracts
The unearned premium is calculated applying 1/365 method on
and annuity policies with life contingencies, are recognised
the net premium (Gross Written Premium minus Reinsurance
as revenue when payable by the policyholder. Benets and
and Management Fee).
expenses are provided against such revenue to recognise
prots over the estimated life of the policies. Moreover,
3.19.3 Unexpired Risk for single contribution (premium) contracts, contributions
Provision is made where appropriate for the estimated amount (premiums) are recorded as income when received with any
required over and above unearned contribution (premium) to excess prot deferred and recognised in income as a constant
meet future claims and related expenses on the business in relationship to the insurance in force or, for annuities, the
force as at 31st December. amount of expected benet payments.
3.20.2 Retakaful Contracts (Reinsurance Contracts) In certain instances, the Shareholders Fund has been charged a
Outward Retakaful contributions (Reinsurance premiums) are management fee at 40% for certain Medical Takaful Policies.
recognised when payable. Retakaful (Reinsurance) recoveries
are credited to match the relevant gross claims. z Family Takaful (Life Insurance) Business
The management fee is charged on contribution of Family
Takaful Certicates, at the following rates:
3.20.3 Claims
Death claims are recorded on the basis of notications
Family Takaful Products First Year 55%
received. Maturities are recorded when due. Claims on
participating business include prot. Claims payable include Second Year 35%
direct costs of settlement. Third Year 25%
Fourth Year 12%
The interim payments (Part withdrawals) and surrenders are
Fifth and Year After 02%
accounted only at the time of settlement.
Mortgage Family Takaful (Insurance) Policies 20%
Group Family Takaful (Insurance) Policies 30%
3.20.4 Technical Provisions Family Takaful Business
Provision and Provision for Linked Liabilities
The Directors agree to the Family Takaful (long-term insurance) 3.21.1.2 Wakalah Fee (Agency/Management Fee) on
business provisions for the Company on the recommendation Investment Income
of reporting Actuary, following his annual investigation of the
The Shareholders fund is entitled for an agency fee of 50% on
Family Takaful (life insurance) business.
net investment income and does not share the losses.
The Actuarys valuation takes into account of all liabilities

including contingent liabilities and is based on the assumptions 3.21.2 Investment Income
recommended by the Consultant Actuary. 3.21.2.1 Interest Income
Interest income is recognised in the Statement of
3.21 Revenue Recognition Comprehensive Income, as it accrues and is calculated by using
Revenue is recognised to the extent that it is probable that the the effective interest rate method. Fees and commissions that
economic benets will ow to the Group and the revenue and are an integral part of the effective yield of the nancial asset
associated costs incurred or to be incurred, can be reliably or liability are recognised as an adjustment to the effective
measured. Revenue is measured at the fair value of the interest rate of the instrument.
consideration received or receivable net of trade discounts
and sales taxes. The following specic criteria are used for the 3.21.2.2 Dividend Income
purpose of recognition of revenue.
Investment income also includes dividends, when the right to
receive payment is established. For listed securities, this is the
3.21.1 Wakalah Fee (Agency/Management Fee) date the security is listed as ex-dividend.
3.21.1.1 Wakalah Fee (Agency/Management Fee) on

Takaful Contribution (Insurance Premium) 3.21.2.3 Realised/Unrealised Gains and (Losses)
The Shareholders Fund is entitled for management fee on every Realised gains and losses, recorded in the Statement of
Takaful Contribution (insurance premium) received in respect of Comprehensive Income on investments, include gains and
the business received during the year on the following basis. losses on nancial assets and investment properties. Gains
and losses on the sale of investments are calculated as the
z General Takaful (Insurance) Business difference between net sales proceeds and the original
The Shareholders Fund is entitled for a management fee at or amortised cost and are recorded on occurrence of the
the rate of 40% on contribution (premium) of General Takaful sale transaction.
(insurance) certicates. However, the Shareholders Fund has
charged a reduced management fee at the rates given below in
3.22 Others
order strengthen the General Takaful (Insurance) Fund:
Other income is recognised on an accrual basis.
Medical Takaful (Insurance) Policies 25%

All other General Takaful (Insurance) Policies 20% 37.5%

106
3.23 Expenditure Recognition SLFRS 9 is effective for annual reporting periods beginning on
or after 1st January 2018, with early adoption permitted.
Expenses are recognised in the Statement of Comprehensive
Income on the basis of a direct association between the
cost incurred and the earning of specic items of income. SLFRS 14 Regulatory Deferral Accounts
All expenditure incurred in the running of the business and in
SLFRS 14 is an interim standard which provides relief for rst
maintaining the Property, Plant & Equipment in a state
time adopters of SLFRS in relation to the accounting for certain
of efciency, has been charged to the Statement of
balances that arise from rate-regulated activities (regulatory
Comprehensive Income.
deferral accounts). The standard permits these entities to
continue to apply their previous GAAP accounting policies for
Surplus refund is made only when the Fund is in a surplus and
the recognition, measurement, impairment and derecognition
to those participants who have not made any claims during the
of regulatory deferral accounts.
policy period.
SLFRS 14 is effective for annual periods beginning on or after
For the purpose of presentation of Statement of Comprehensive
1st January 2016.
Income, the Directors are of the opinion that the nature of
expenses method, presents fairly, the elements of the Groups
performance and hence such presentation method is adopted. SLFRS 15 Revenue from Contracts with
Customers
3.24 Events after the Reporting Date SLFRS 15 establishes a comprehensive framework for
determining whether, how much and when revenue is
All material, post reporting events, have been considered and
recognised. It replaces existing revenue recognition guidance,
where appropriate, adjustments or disclosures have been made
including LKAS 18 Revenue, LKAS 11 Construction Contracts
in the respective Notes to the Financial Statements.
and IFRIC 13 Customer Loyalty Programmes.
3.25 Capital Commitments and Contingencies SLFRS 15 is effective for Annual Reporting periods beginning on
Capital commitments and contingent liabilities of the Group are or after 1st January 2018, with early adoption permitted.
disclosed in the Financial Statements.
Management believes that the SLFRS 14 would not be applicable
for the Group, as it is an existing SLFRS prepare/does not
3.26 Stated Capital involve in rate regulatory activities. Pending the completion of
Stated capital in relation to a company means, the total of the detailed impact analysis, possible impact from SLFRS 9 and
all amounts received by the Company or due and payable SLFRS 15 is not reasonably estimable as of the Reporting date.
to the Company.
The following amendments and improvements are
not expected to have a signicant impact on the
4. Standards Issued But Not Yet Effective
Companys/Groups Consolidated Financial Statements:
Impending Accounting standards/Standards z Accounting for Acquisitions of Interests in Joint Operations
Issued Not Yet Effective (Amendments to SLFRS 11).
Certain new accounting standards and amendments/ z Clarication of Acceptable Methods of Depreciation and
improvements to existing standards have been published, that Amortisation (Amendments to LKAS 16 and LKAS 38).
are not mandatory for 31st December 2015 Reporting periods.
z Equity Method in Separate Financial Statements
None of those have been early adopted by the Group/Company.
(Amendments to LKAS 27).
z Sale or Contribution of Assets between an Investor and
SLFRS 9 Financial Instruments its Associate or Joint Venture (Amendments to SLFRS 10
SLFRS 9 replaces the existing guidance in LKAS 39 Financial and LKAS 28).
Instruments: Recognition and Measurement. SLFRS 9 includes z Annual Improvements to SLFRSs 2012-2014 Cycle
revised guidance on the classication and measurement of various standards.
nancial instruments, a new expected credit loss model for
calculating impairment on nancial assets and new general
z Investment Entities: Applying the Consolidation Exception
hedge accounting requirements. It also carries forward the (Amendments to SLFRS 10, SLFRS 12 and LKAS 28).
guidance on recognition and derecognition of nancial z Disclosure Initiative (Amendments to LKAS 1).
instruments from LKAS 39.
Computer 2015 2014

Software
Rs. Rs. Rs.
5. Intangible Assets
5.1 Group
Cost
Balance at the Beginning of the Year 79,846,703 79,846,703 79,330,547
Additions During the Year 6,638,439 6,638,439 516,156
Disposal During the Year (2,533,231) (2,533,231)
Exchange Gain/Loss 9,205,282 9,205,282
Elimination (9,203,024) (9,203,024)
Balance at the End of the Year 83,954,169 83,954,169 79,846,703
Amortisation
Charges for the Year 6,704,015 6,704,015 5,359,414
Disposal During the Year (310,000) (310,000)
Exchange Gain/Loss (1,268,264) (1,268,264)
Elimination (1,562,500) (1,562,500)
Carrying Amount 24,703,309 24,703,309 24,159,095
Computer 2015 2014

Software
Rs. Rs. Rs.
5.2 Company
Cost
Additions During the Year 366,156
Disposal During the Year (2,223,231) (2,223,231) (23,878,211)
Amortisation
Amortisation Charge for the Year 2,656,151 2,656,151 3,790,830
Disposal During the Year (10,158,188)
Carrying Value 3,268,669 3,268,669 8,148,051

108
5.3 Acquisition of Intangible Assets During the Year

During the nancial year, the Company acquired/capitalised Intangible Assets (Computer Software) to the aggregate value of
Rs. 6,638,438/- (2014 Rs. 516,156/-). Cash Payments was made during the year for purchase of Intangible Assets.
5.4 Fully Amortised Intangible Assets in Use

Intangible Assets includes fully amortised computer software which are in the use of normal business activates having an initial cost
of Rs. 10,762,742/- (2014 Rs. 10,762,742/-).
5.5 Title Restriction on Intangible Assets

There were no restrictions that existed on the title of the Intangible Assets of the Group as at 31st December 2015.
5.6 Assessment of Impairment of Intangible Assets

The Board of Directors has assessed the potential impairment indicators of Intangible Assets as at 31st December 2015. Based on the
assessment, no impairment indicators were identied.
Balance as at Additions/ Disposals/ Increase/ Eliminations Total as at

01.01.2015 Transfers Transfers Decrease 31.12.2015
in Revaluation
6. Property, Plant & Equipment

6.1 Group
Cost/Valuation
Freehold (Note 6.1.1) 277,432,653 21,952,193 (5,925,496) 8,509,896 (14,609,462) 287,359,784
Leasehold (Note 6.1.2) 18,263,700 1,008,263 (6,118,963) 13,153,000
295,696,353 21,952,193 (5,925,496) 9,518,159 (20,728,425) 300,512,784
6.1.1 Freehold Property, Plant & Equipment

Cost/Valuation
Motor Vehicles 29,675,398 (4,726,000) 8,509,896 (14,609,462) 18,849,832
Computer Equipment 66,441,589 6,447,334 (558,600) 72,330,323
Other Equipment 83,234,107 6,259,294 (640,896) 88,852,505
Furniture and Fittings 98,081,559 9,245,565 107,327,124
Total Value of Depreciable Assets 277,432,653 21,952,193 (5,925,496) 8,509,896 (14,609,462) 287,359,784

in Revaluation
Depreciation
Motor Vehicles 11,623,376 4,233,251 (119,332) (14,609,462) 1,127,833
Computer Equipment 59,774,721 4,383,728 (457,371) 63,701,078
Other Equipment 41,920,541 11,385,619 (561,884) 52,744,276
Total Depreciation 164,618,092 27,034,399 (1,138,587) (14,609,462) 175,904,442
Carrying Amount 112,814,562 111,455,342
6.1.2 Leasehold Property, Plant & Equipment

Cost/Valuation
Motor Vehicles 13,950,700 1,008,263 (6,118,963) 8,840,000
Other Equipment 4,313,000 4,313,000
18,263,700 1,008,263 (6,118,963) 13,153,000
Depreciation
Motor Vehicles 2,993,588 3,125,376 (6,118,964)
Other Equipment 515,164 862,600 1,377,764
3,508,752 3,987,976 (6,118,964) 1,377,764
Carrying Amount 14,754,949 11,775,236
2015 2014
Rs. Rs.
6.1.3 Net Book Values

Freehold 111,455,342 112,814,562
Leasehold 11,775,236 14,754,949
Total Carrying Amount of Property, Plant & Equipment 123,230,578 127,569,511

110
6.1.4 Acquisition of Property, Plant & Equipment During the Year Group
During the year, the Group acquired Property, Plant & Equipment to the aggregate value of Rs. 21,952,191/- ( 2014 Rs. 47,498,293/-) for
cash considerations.
6.1.5 Fully-Depreciated Property, Plant & Equipment in Use Group

Groups Property, Plant & Equipment includes fully-depreciated assets having a gross carrying amount of Rs. 102,302,988/-
(2014 - Rs. 92,936,390/-). The initial cost of fully-depreciated Property, Plant & Equipment which are still in use as at Reporting date,
is as follows:
6.2 Property, Plant & Equipment Pledged as Security for Liabilities

The Property, Plant & Equipment pledged as securities for liabilities during the year, has been disclosed in Note 45 to the
6.3 Title Restriction on Property, Plant & Equipment

There are no restriction that existed on the title of the Property, Plant & Equipment of the Company as at the Reporting date.
6.4 Assessment of Impairment

The Board of Directors has assessed the potential impairment indicators of Property, Plant & Equipment as at 31st December 2015.
Based on the assessment, no impairment indicators were identied.
6.5 Capitalisation of Borrowing Costs

There were no capitalised borrowing costs relating to the acquisition of Property, Plant & Equipment during the year.
6.6 Temporarily Idle Property, Plant & Equipment

There were no temporarily idle Property, Plant & Equipment as at the year ended 31st December 2015.

in Revaluation
6.7 Company
Cost/Valuation
Freehold (Note 6.7.1) 253,813,515 10,101,491 (4,726,000) 6,340,421 (13,527,976) 252,001,451
Leasehold (Note 6.7.2) 18,263,700 1,008,263 (6,118,963) 13,153,000
272,077,215 10,101,491 (4,726,000) 7,348,684 (19,646,939) 265,154,451
6.7.1 Freehold Property, Plant & Equipment

Cost/Valuation
Motor Vehicles 24,730,555 (4,726,000) 6,340,421 (13,527,976) 12,817,000
Computer Equipment 58,543,680 2,985,486 61,529,166
Other Equipment 79,048,355 2,840,457 81,888,812
Total Value of Depreciable Assets 253,813,515 10,101,491 (4,726,000) 6,340,421 (13,527,976) 252,001,451
Balance as at Charge for the Disposals/ Increase/ Eliminations Total as at

01.01.2015 Year Transfers Decrease 31.12.2015
in Revaluation
Depreciation
Motor Vehicles 10,177,460 3,469,849 (119,333) (13,527,976)
Computer Equipment 55,757,301 2,569,440 58,326,741
Other Equipment 39,221,144 10,494,919 49,716,063
Total Depreciation 152,376,643 22,235,722 (119,333) (13,527,976) 160,965,056
Carrying Amount 101,436,872 91,036,395

in Revaluation
6.7.2 Leasehold Property, Plant & Equipment

Cost/Valuation
Motor Vehicles 13,950,700 1,008,263 (6,118,963) 8,840,000
Other Equipment 4,313,000 4,313,000
18,263,700 1,008,263 (6,118,963) 13,153,000
Balance as at Charge for the Disposals/ Increase/ Eliminations Total as at

01.01.2015 Year Transfers Decrease 31.12.2015
in Revaluation
Depreciation
Motor Vehicles 2,993,588 3,125,376 (6,118,963)
Generator 515,164 862,600 1,377,764
3,508,752 3,987,976 (6,118,963) 1,377,764
Carrying Amount 14,754,949 11,775,236
2015 2014
Rs. Rs.
6.7.3 Net Book Values

Freehold 91,036,395 101,436,872
Leasehold 11,775,236 14,754,949
Total Carrying Amount of Property, Plant & Equipment 102,811,631 116,191,821

112
6.7.4 Acquisition of Property, Plant & Equipment During the Year Company
During the year, the Company acquired Property, Plant & Equipment to the aggregate value of Rs. 10,101,491/- (2014 Rs. 44,114,031/-)
for cash considerations.
6.7.5 Fully-Depreciated Property, Plant & Equipment in Use Company

Company Property, Plant & Equipment includes fully-depreciated assets having a gross carrying amount of Rs. 97,487,792/-
(2014 Rs. 90,671,773/-). The initial cost of fully-depreciated Property, Plant & Equipment which are still in use as at Reporting date,
is as follows:
6.7.6 Revaluation
Company
The Companys entire class of motor vehicles were revalued on 31st December 2015 by De Silva Motor Engineers (Pvt) Ltd., which is a
professional valuation organisation. Valuation was made on the basis of open market value which is the Level One in the fair value
hierarchy. The revaluation surplus was transferred to the revaluation reserve. The carrying amount of revalued motor vehicles that
would have been included in the Financial Statements had the assets been carried at cost would have been as follows:
2015 2014
Rs. Rs.
Cost 34,031,371 39,347,263

Accumulated Depreciation (18,083,055) (39,347,263)
Carrying Value 15,948,316
Group
The Amna Takaful Lifes entire class of motor vehicles were revalued on 31st December 2015 by De Silva Motor Engineers (Pvt) Ltd.,
which is a professional valuation organisation. Valuation was made on the basis of open market value which is the Level One in the
fair value hierarchy. The revaluation surplus was transferred to the Revaluation Reserve. The carrying amount of revalued motor
vehicles that would have been included in the Financial Statements had the assets been carried at cost would have been as follows:
2015 2014
Rs. Rs.
Cost 3,817,011 3,817,011

Accumulated Depreciation (1,081,486) (318,084)
Carrying Value 2,735,525 3,498,927
6.8 Property, Plant & Equipment Pledged as Security for Liabilities

The Property, Plant & Equipment pledged as securities for liabilities during the year, has been disclosed in Note 45 to the
6.9 Title Restriction on Property, Plant & Equipment

There are no restriction that existed on the title of the Property, Plant & Equipment of the Company as at the Reporting date.
6.10 Assessment of Impairment

The Board of Directors has assessed the potential impairment indicators of Property, Plant & Equipment as at 31st December 2015.
Based on the assessment, no impairment indicators were identied.
6.11 Capitalisation of Borrowing Costs

There were no capitalised borrowing costs relating to the acquisition of Property, Plant & Equipment during the year.
6.12 Temporarily Idle Property, Plant & Equipment

There were no temporarily idle Property, Plant & Equipment as at the year ended 31st December 2015.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
7. Improvements to Leasehold Buildings

Balance as at 1st January 297,513 297,513
Amortised During the Year (297,513) (297,513)
Balance as at 31st December
7.1 Improvements to Leasehold Buildings represent the expenses incurred for the renovation and enhancement made to the
leasehold building. These expenses were amortised to the Comprehensive Income Statement over the lease period, which was
10 years commencing from 1st April 2004. Subsequent expenditure, if any, was amortised over the remaining period.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
8. Investment Property
Balance as at 1st January 101,800,000 110,050,000 101,800,000 110,050,000
Transferred to Amna Takaful Life Ltd. (43,683,333)
Transferred from Amna Takaful Life Ltd. 25,333,333
Disposals (35,800,000) (12,750,000) (17,450,000) (12,750,000)
Net Gain from Fair Value Adjustment 7,500,000 4,500,000 7,500,000 4,500,000
Balance as at 31st December 73,500,000 101,800,000 73,500,000 101,800,000
8.1 Investment property amounting to Rs. 43,683,333/- in 2014 (2015 Nil) belonging to Family Takaful Fund has been restricted as per
the provisions in Section 38 of the Regulation of Insurance Industry Act No. 43 of 2000 and will only be used to discharge liabilities of
Insurance Contract Liability Family Takaful Fund.
8.2 During the nancial year, the Company has incurred direct operating expenses on the investment property to the aggregate value
of Rs. 1,728,897/-.

114
8.3 Fair Value Hierarchy

The fair value of investment property was determined by external, independent property Valuers, P.P.T. Mohideen (FIV, MRICS) having
appropriate recognised professional qualications and recent experience in the location and category of the property being valued.
The independent valuers provide the fair value of the Groups investment property portfolio annually. The Company's entire class of
investment properties were revalued on 31st December 2015.
The fair value measurement for investment property of Rs. 73,500,000/- has been categorised as a Level 3 fair value, based on the
inputs to the valuation technique used.
8.4 Valuation Technique

In determining the fair value, the current condition of the properties, further usability and associated redevelopment requirements
have been considered. The Valuers have also made reference to market evidence of transaction prices for similar properties, with
appropriate adjustments for size and location. The appraised fair values are approximated within appropriate range of values which
are as follows:
Extent Value Per Perch/

Address 2015 Sq. ft. Value
Rs. Rs.
General Takaful Fund

a. Yalegoda Estate, Piligalla, Kandy Land 50 Perches 10,000,000 200,000 per Perch
Building 1485 sq.ft. 2,000,000 1,350 per sq.ft.
b. 58/19, Ramyaweera Mawatha, Orugodawatta Land 39 Perches 19,500,000 500,000 per Perch
Shareholders Fund
c. 107/15, Buthgamuwa Road, Rajagiriya Building 1700 sq.ft. 42,000,000 24,706 per sq. ft.
Holding Number of Shares Cost
2015 2014 2015 2014 2015 2014

% % Rs. Rs.
9. Investment in Subsidiaries
Amna Global Ltd. 100 100 33,333 33,333 37,125,000 37,125,000
Amna Takaful Life Ltd. 100 500,000,000 120,000,000 500,000,000 120,000,000
Amna Takaful Maldives PLC 51.39 10,402,558 587,197,352
1,124,322,352 157,125,000
9.1 Amna Takaful PLC invested Rs. 380 Mn in Amna Takaful Life Ltd. during the year in order to meet its regulatory minimum
capital requirements.
9.2 The Family Takaful business was transferred from Amna Takaful PLC to Amna Takaful Life Ltd. w.e.f. 1st January 2015 in-line
with the IBSL Guidelines for segregation of composite insurance companies.
9.3 Amna Global Ltd., a fully-owned Subsidiary of Amna Takaful PLC, transferred shares of Amna Takaful (Maldives) PLC, being
51.39% of the total shares of Amna Takaful (Maldives) PLC to Amna Takaful PLC without any purchase consideration. The Board of
Directors decided the fair value of a share at six Maldivian Ruyaa based on an independent valuation.
However, the said gain on purchase of Subsidiary is not included in consolidated investment and other income, since it is not realised
in Group perspective.
The details of the above transaction are as follows:
Purpose/Rationale Transaction Date Parties Relationship Fair Value per Share No. of Shares Transaction Value
Rs.
Restructuring of 31 December Amna Takaful (Maldives) PLC

Amna Takaful Group 2015 Subsidiaries Six Maldivian Ruyaa 10,402,558 587,197,352
Amna Global Ltd.
The assumption used for the fair value is expected multiple of 2.5 times of net assets value per share. The following table
demonstrates the sensitivity to a reasonably possible change in the key assumption employed with all other factors held consistent in
the fair value measurement.
Change in Expected Multiple Sensitivity

Rs.
10% Increase in Expected Multiple 59,187,744

10% Decrease in Expected Multiple (58,336,818)
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
10. Financial Assets

Financial Assets at Fair Value Through Prot and Loss (Note 10.3.1) 89,461,575 113,201,213 590,889 107,127,360
Available-for-Sale Financial Assets (Note 10.3.2) 201,757,955 279,338,549 57,588,578 130,779,745
Loans and Receivable (Note 10.3.3) 2,157,165,011 1,361,855,933 662,433,871 912,459,704
2,448,384,541 1,754,395,695 720,613,338 1,150,366,809
10.1 Fair value through prot or loss investments and available-for-sale investments have been valued at fair value. Loans and
Receivable are valued at amortised cost.
10.2 Investments amounting to Rs. 639,857,030/- (2014 Rs. 590,098,533/-) belonging to Family Takaful Fund has been restricted as
per the provisions in Section 38 of the Regulation of Insurance Industry Act No. 43 of 2000 and will only be used to discharge liabilities
of Family Takaful (Long-Term Insurance) Fund.

116
10.3 Classication of Financial Assets

Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
10.3.1 Financial Assets at Fair Value Through Prot and Loss

Investments in Equity Securities (Note 10.3.1) 89,461,575 113,201,213 590,889 107,127,360
89,461,575 113,201,213 590,889 107,127,360
10.3.2 Available-for-Sale Financial Assets

Investments in Equity Securities Quoted (Note 10.3.2) 52,630,726 47,931,557
Unit Trust 141,684,259 219,255,865 57,063,578 125,076,596
Investments in Equity Securities Unquoted (Note 10.3.3) (**) 7,442,970 6,972,979 525,000 525,000
Treasury Bills 5,178,149 5,178,149
201,757,955 279,338,549 57,588,578 130,779,745
** The Company carries the unquoted nancial assets at cost, since such nancial assets do not have a market price in an active market and in the absence of any similar securities with
observable market data, fair value of the same cannot be measured reliably.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
10.3.3 Loans and Receivable

Repurchase Agreements 672,132,329 337,141,540 374,818,222 311,675,306
Murabaha Investments 312,507,579 170,760,615
Mudharaba Investments 1,164,384,833 842,255,763 279,511,677 589,489,433
Advances to Company Ofcers (Note 10.3.4) 8,140,270 11,698,015 8,103,972 11,294,965
2,157,165,011 1,361,855,933 662,433,871 912,459,704
10.3.4 Advances to Company Ofcers

Balance at the Beginning of the Year 11,698,015 11,188,105 11,294,965 10,283,558
Loans Granted During the Year 10,044,932 9,078,236 9,654,365 8,639,185
Less: Repayments During the Year (11,227,818) (8,568,326) (10,470,498) (7,627,779)
Balance at the End of the Year 10,515,129 11,698,015 10,478,831 11,294,964
Less: Provision for Impairment (Note 10.3.5) (2,374,859) (2,374,859)
8,140,270 11,698,015 8,103,972 11,294,964
10.3.5 Provision for Impairment

Balance at the Beginning of the Year
Charge for the Year (2,374,859) (2,374,859)
Balance at the End of the Year (2,374,859) (2,374,859)
Group Company
2015 2014 2015 2014
Number of Market Number of Market Number of Market Number of Market

Shares Value Shares Value Shares Value Shares Value
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
10.4 Investments in
Equity Securities
10.4.1 Quoted
Access Engineering PLC 252,000 7,438,200 197,490 6,339,429 127,490 4,092,429
Caltex Lubricants PLC 20,050 6,897,200 40,100 16,023,960 40,100 16,023,960
Ceylon Glass PLC 301,209 1,837,375 442,171 2,166,637 442,171 2,166,638
Ceylon Tea Services PLC 5,500 3,960,000 5,500 3,960,000
Chevron Lubricants Lanka PLC 3,900 1,558,442
Colombo Dockyard PLC 22,341 3,353,384 58,549 11,299,957 58,549 11,299,957
Dhivehi Raajjeyege Gulhun PLC 2,000 1,544,191 2,000 1,188,266
Dialog Axiata PLC 1,479,000 15,825,300 100,000 1,330,000 100,000 1,330,000
Dipped Products PLC 28,500 3,135,000
Haycarb PLC 10,000 1,649,000 10,000 1,730,000 10,000 1,730,000
Hemas Holdings PLC 18,900 1,404,270 18,900 1,404,270
Hemas Power PLC 52,200 944,820 52,200 944,820
Kelani Cables PLC 20,000 1,788,000 20,000 1,788,000
Kelani Valley Plantations PLC 11,100 777,000 11,100 821,400 11,100 821,400
Kotagala Plantations PLC 33,196 590,889 45,300 1,431,480 33,196 590,889 45,300 1,431,480
Lanka IOC PLC 91,700 3,402,070 6,100 366,000 6,100 366,000
Renuka Agri Foods PLC 842,909 3,455,927 842,909 4,045,963 842,909 4,045,963
Renuka Foods PLC 1,878 50,145
Renuka Shaw Wallace PLC 529,021 14,124,861 529,021 14,124,861
Singer Sri Lanka PLC 32,053 4,420,109 32,053 3,779,049 32,053 3,779,049
Sunshine Holdings PLC 60,000 3,240,000 60,000 3,240,000
Textured Jersey Lanka PLC 693,000 24,601,500 673,400 13,872,040 623,400 12,842,040
Tokyo Cement Company
(Lanka) PLC Voting 15,070 738,430 255,070 16,554,043 255,070 16,554,043
Tokyo Cement Company
(Lanka) PLC Non-Voting 248,000 9,796,000 110,500 5,182,450 110,500 5,182,450
At Fair Value Through Prot
or Loss 89,461,575 113,201,213 590,889 107,127,360
10.4.2 Quoted
Amna Bank PLC 9,398,344 52,630,726 9,398,344 47,931,557
Available-for-Sale Investments
at Fair Value 52,630,726 47,931,557

118
Group Company
2015 2014 2015 2014
Number of Cost Number of Cost Number of Cost Number of Cost

Shares Shares Shares Shares
10.4.3 Unquoted
Cleanco (Pvt) Ltd. 35,000 525,000 35,000 525,000 35,000 525,000 35,000 525,000
Pak Kuwait Takaful Co Ltd. 500,000 6,917,970 500,000 6,447,979
Available-for-Sale Investments
at Fair Value 7,442,970 6,972,979 525,000 525,000
10.5 Financial Instruments Fair Value and Risk Management

Fair Value Hierarchy for Assets Carried at Fair Value
The different levels have been dened as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The following table shows the fair value hierarchy of the nancial assets carried at fair value:
10.5.1 Accounting Classications and Fair Values

The following table shows the carrying amounts and fair values of nancial assets and nancial liabilities.
The nancial assets not measured at fair value are nancial instruments for which their carrying amounts are a reasonable
approximation of fair value, because for example, they are short-term in nature or repriced to current market rates frequently.
Carrying Amount Fair Value
31st December 2015 Loans and Available- Fair Value Total Level 1 Level 2 Level 3 Total
Receivables for-sale Through
Prot or Loss
Group
Financial Assets Measured at Fair Value
Equity Securities Quoted 52,630,726 89,461,575 142,092,301 142,092,301 142,092,301
Equity Securities Unit Linked 104,724,075 104,724,075 104,724,075 104,724,075
Unit Trust 141,684,259 141,684,259 141,684,259 141,684,259
Unit Trust Unit Linked 21,572,040 21,572,040 21,572,040 21,572,040
215,887,025 194,185,650 410,072,675 246,816,376 163,256,299 410,072,675
Financial Assets Not Measured at Fair Value

Repurchase Agreements 672,132,329 672,132,329
Mudharaba Investments 1,164,384,833 1,164,384,833
Advances to Company Ofcers 8,140,270 8,140,270
Repurchase Agreements Unit Linked 7,601,395 7,601,395
Mudharaba Investments Unit Linked 920,285,004 920,285,004
3,085,051,410 3,085,051,410
Receivables for-sale Through
Prot or Loss
10.5.2 Company
Financial Assets Measured at
Fair Value
Equity Securities Quoted 590,889 590,889 590,889 590,889
Unit Trust 57,063,578 57,063,578 57,063,578 57,063,578
57,063,578 590,889 57,654,467 590,889 57,063,578 57,654,467
Financial Assets Not

Measured at Fair Value
Mudharaba Investments 279,511,677 279,511,677
662,433,871 662,433,871
Receivables for-Sale Through
Prot or Loss
10.5.3 Group
Fair Value
Equity Securities Quoted 47,931,557 113,201,213 161,132,770 161,132,770 161,132,770
Unit Trust 219,255,865 219,255,865 219,255,865 219,255,865
Treasury Bills 5,178,149 5,178,149 5,178,149 5,178,149
293,509,421 190,576,464 484,085,885 238,508,021 245,577,864 484,085,885


Repurchase Agreements
Unit Linked 8,251,733 8,251,733
Mudharaba Investments
Unit Linked 496,400,505 496,400,505
1,866,508,171 1,866,508,171

120
Receivables for-Sale Through
Prot or Loss
10.5.4 Company
Fair Value
Equity Securities Quoted 107,127,360 107,127,360 107,127,360 107,127,360
Unit Trust 125,076,596 125,076,596 125,076,596 125,076,596
Treasury Bills 5,178,149 5,178,149 5,178,149 5,178,149
151,398,595 184,502,611 335,901,206 184,502,611 151,398,595 335,901,206


Mudharaba Investments
Unit Linked 496,400,505 496,400,505

Repurchase Agreements
Unit Linked 8,251,733 8,251,733
1,417,111,942 1,417,111,942
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
11. Premium (Contribution) Receivable

Contribution (Premiums) Receivable from Participants 420,754,574 353,891,382 214,981,377 235,095,843
Contribution (Premium) Receivable from Agents,
Brokers and Intermediaries 107,687,530 156,029,139 107,687,530 156,029,139
Contribution (Premium) Receivable Net 528,442,104 509,920,521 322,668,907 391,124,982
The Board of Directors has assessed potential impairment loss of premium receivable as at 31st December 2015. Based on
the assessment, no impairment provision has been made in the Financial Statements as at the Reporting date in respect of
premium receivable.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
12. Other Assets

Other Receivables 62,027,032 92,453,573 49,154,637 99,500,325
Deposits, Advances and Prepayments 72,928,389 69,846,993 36,135,667 45,320,612
134,955,421 162,300,566 85,290,304 144,820,937
12.1 Other Assets amounting to Rs. 28,015,499/- (2014 Rs. 19,771,455/-) belonging to Family Takaful (Long-Term Insurance) Fund has
been restricted as per the provisions in Section 38 of the Regulation of Insurance Industry Act No. 43 of 2000 and will only be used to
discharge liabilities of Family Takaful (Long-Term Insurance) Fund.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
13. Other Assets Unit Linked

Other Receivables 37,971,813 34,401,147 34,401,147
37,971,813 34,401,147 34,401,147
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
14. Financial Assets Unit Linked

Financial Assets at Fair Value Through Prot and Loss (Note 14.1) 104,724,075 77,375,251 77,375,251
Available-for-Sale (Note 14.2) 21,572,040 21,143,850 21,143,850
Loans and Receivable (Note 14.3) 927,886,399 504,652,239 504,652,239
1,054,182,514 603,171,340 603,171,340
14.1 Financial Assets at Fair Value Through Prot and Loss

Investment in Equity Securities (Note 14.4) 104,724,075 77,375,251 77,375,251
104,724,075 77,375,251 77,375,251
14.2 Available-for-Sale
Unit Trust 21,572,040 21,143,850 21,143,850
21,572,040 21,143,850 21,143,850
14.3 Loans and Receivables

Repurchase Agreements 7,601,395 8,251,733 8,251,733
Mudharaba Investments 920,285,004 496,400,505 496,400,505
927,886,399 504,652,238 504,652,238

122
Group
2015 2014
Number of Market Number of Market

Shares Value Shares Value
Rs. Rs.
14.4 Investments in Equity Securities Unit Linked

Access Engineering PLC 485,474 11,214,449 303,484 9,741,836
Asiri Surgical Hospital PLC 12,432 211,344
Chevron Lubricants Lanka PLC 6,500 2,236,000 6,500 2,597,400
Coco Lanka PLC 320,325 6,694,793
Colombo Dockyard PLC 22,948 3,444,495 22,948 4,428,964
Dialog Telekom PLC 1,929,000 20,640,300 24,090 320,397
Piramal Glass Ceylon PLC 522,240 3,185,664 522,240 2,558,976
Renuka Agri Foods PLC 915,690 4,395,312
Singer (Sri Lanka) PLC 80,868 11,151,697 80,868 9,534,337
Sunshine Holdings PLC 226,100 12,209,400
Textured Jersey PLC 685,000 24,317,500 655,000 13,493,000
Tokyo Cement Company (Lanka) PLC Voting 82,080 4,021,920 82,080 5,326,992
Tokyo Cement Company (Lanka) PLC Non-Voting 334,500 13,212,750 125,000 5,862,500
Dipped Products PLC 41,000 4,510,000
Lanka IOC PLC 183,000 6,789,300
104,724,075 77,375,251
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
15. Cash and Cash Equivalents in Cash Flow Statement

15.1 Components of Cash and Cash Equivalents
Cash and Bank Balances 133,915,913 131,984,293 47,709,756 106,977,062
Cash and Bank Balances Unit Linked 46,639,393 95,837,468 95,837,467
Bank Overdrafts (4,271,030)
Investments in Government Securities 668,132,328 294,792,729 372,818,222 270,037,760
848,687,634 518,343,460 420,527,978 472,852,290
15.2 Cash and Bank balances amounting to Rs. 49,237,670/- (2014 Rs. 14,585,065/-) belonging to Family Takaful Fund, has been
restricted as per the provisions in Section 38 of the Regulation of Insurance Industry Act No. 43 of 2000 and will only be used to
discharge liabilities of Family Takaful (Long-Term Insurance) Fund.
Company
2015 2014
Number of Rs. Number of Rs.

Shares Shares
16. Stated Capital

Fully Paid Ordinary Shares Voting (Note 16.1) 1,500,001,080 1,650,001,188 1,000,000,720 1,250,000,900
All issued shares carry equal voting rights. The holders of ordinary shares are entitled to receive dividends as declared from time to time and
are entitled to one vote per share at meetings of the Company.
16.1 Right Issue of Ordinary Shares

In December 2014, shareholders of the Company at a general meeting, approved a rights issue of 500,000,360 ordinary shares with
1 ordinary share for every two existing ordinary shares, at an exercise price of Rs. 0.80 per share.
As at 31st December 2014, 19,961,815 ordinary shares amounting to Rs. 15,969,452/-, was subscribed and paid, which is accounted for
under the Prepaid Share Reserve (Note 17.3).
Balance 480,038,545 ordinary shares were subscribed and paid in January 2015. Allotment of the subscribed shares was concluded in
January 2015.
Effect on the Stated Capital after the conclusion of the Right Issue is as follows:
No. of Shares Rs.
Stated Capital prior to Right Issue 1,000,000,720 1,250,000,900

Right Issue 500,000,360 400,000,288
Stated Capital after Right Issue Fully Paid 1,500,001,080 1,650,001,188
17. Other Reserves

Reserves consists of the following:
17.1 Revaluation Reserve

The Revaluation Reserve relates to the revaluation of Property, Plant & Equipment (Refer Note 6).
17.2 Translation Reserve

The Translation Reserve comprises all foreign currency differences arising from the translation of the Financial Statements of
foreign operations.

124
17.3 Prepaid Share Reserve

The Prepaid Share Reserve consists of the ordinary shares subscribed and paid for the Right Issue (Note 16.1). 19,961,815 ordinary
shares amounting to Rs. 15,969,452/-, were subscribed and paid as at 31st December 2014.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
18. Revenue Reserve

Accumulated Prot/(Losses)
Balance as at 1st January (120,935,104) (157,557,286) (256,730,243) (296,843,346)
Net Prot for the Year (301,188,689) 67,692,779 265,287,934 63,720,424
Changes in Other Comprehensive Income (6,231,798) (26,146,606) (3,637,811) (19,526,854)
Dened Benet Plan Actuarial Losses, net of Deferred Tax (1,295,296) (4,923,991) 1,061,120 (4,080,467)
Transfer of Revaluation Reserve on Disposal 3,145,078 3,145,078
Balance as at 31st December (426,505,809) (120,935,104) 9,126,078 (256,730,243)
19. Insurance Contract Liabilities Non-Life

The General Takaful Fund (Non-Life Insurance Reserve) as shown in the Statement of Financial Position represents the following:
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
19.1 Unearned Contribution (Premium)

Gross 642,319,029 571,005,778 556,358,819 503,297,375
Retakaful (Reinsurance) (76,143,389) (70,593,210) (76,143,389) (70,593,210)
Net 566,175,640 500,412,568 480,215,430 432,704,165
19.2 Gross Claims Reserve

Claims Outstanding 125,464,859 97,197,418 65,275,611 65,954,554
Claims Incurred But Not Reported (IBNR) 50,977,919 27,544,315 42,569,745 21,583,643
176,442,778 124,741,733 107,845,356 87,538,197
Insurance Provision 742,618,418 625,154,301 588,060,786 520,242,362
19.3 General Takaful (Insurance) Technical Reserves

General Insurance (Non-Life) Provision 742,618,418 625,154,301 588,060,786 520,242,362
Retakaful (Reinsurance) Receivable on Outstanding Claims 20,719,129 23,050,324 20,719,129 23,050,324
763,337,547 648,204,625 608,779,915 543,292,686
The Incurred But Not Reported (IBNR) claim reserve has been actuarially computed by NMG Consulting as per SLFRS 04. The valuation
is based on internationally accepted valuation methods, which analyses the past experience and pattern of the claims. Based on the
actuarys recommendations, the Company has provided Rs. 42,569,745/- (2014 Rs. 21,583,643/-) for IBNR claims reserve and there was
no requirement for Unexpired Risk Reserve for the year (2014 Nil).
20. Insurance Contract Liabilities Family Takaful Fund

The Family Takaful Fund (Life Insurance Reserve) as shown in the Statement of Financial Position represents the following:
Group Group/Company
2015 2014
Rs. Rs.
20.1 Insurance Contract Liabilities Family Takaful Fund

Participant Investment Fund PIF 484,166,678 477,474,380
Participant Tabarru Fund PTF & Group Fund GF 82,197,857 67,137,837
Unearned Premium Group Family Takaful 8,346,453 6,598,719
574,710,988 551,210,935
20.2 Insurance Contract Liabilities Family Takaful Unit Linked

Unit Fund ULIP 1,164,276,281 708,368,416
Participant Tabarru Fund & Group Fund ULIP 27,519,065 22,430,394
1,191,795,346 730,798,810
20.3 Insurance Provision Long-Term (Family Takaful Fund)

Long duration contract liabilities are included in the Long-Term Insurance (Life Insurance) Fund, resulting primarily from
traditional participating Long-Term (Life) insurance products. Short duration contract liabilities are primarily accident and
health insurance products.
The insurance provision has been based upon the following:

- Prot rate is consistent by product, throughout the year of valuation. The rate prot assumed was 2% p.a. (2014 2% p.a.)
- Mortality rates based in published mortality tables adjusted for actual experience by geographic area and modied to allow
the variations (based on gender) in policy form. The mortality table employed was the English Assured Lives Mortality Table
A67/70 (Ultimate).
- Surrender rates based upon actual experience by geographic area and modied to allow for variations in policy form.
The amount of prot to be credited to the participants is determined annually by Amna Takaful Life Ltd. The prot includes the
participants share of net income that is required to be allocated by the contract.
The valuation of the Insurance Provisions (Family Takaful Fund), as at 31st December 2015, was made by Zainal Abidin Mohd. Kassim
(FIA) for and on behalf of Actuarial Partners Consulting Sdn. Bhd. (formerly known as Mercer Zainal Consulting Sdn. Bhd), Malaysia.
In accordance with the Actuarys Report, the fund balances are as follows:
2015 2014
Rs. Rs.
Surplus of the Fund 14,410,497 23,675,591

14,410,497 23,675,591
In the opinion of the Consultant Actuary, the provision is adequate to cover the liabilities pertaining to Long-Term Insurance
(Family Takaful) Fund. No valuation has been carried out on Participating Investment Fund, since it represents an accumulation of
investments made by the policyholders.

126
20.4 Liability Adequacy Testing (LAT)

A Liability Adequacy Test (LAT) for Life Insurance Contract Liability was carried out by Zainal Abidin Mohd. Kassim (FIA) for and on
behalf of Actuarial Partners Consulting Sdn. Bhd. (formerly known as Mercer Zainal Consulting Sdn. Bhd.), Malaysia as at December
2015 as required by SLFRS 4 Insurance Contracts. When performing the LAT, all contractual cash ows were discounted and this
amount was compared with the carrying value of the liability. According to the Consultant Actuarys report, assets are sufciently
adequate as compared to the discounted cash ow reserves and in contrast to the reserves as at 31st December 2015.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
21. Employee Benets

Employee Benets Gratuity
Net Benet Expense (Note 21.1) 8,004,970 11,927,643 4,151,417 10,838,599
34,852,086 31,376,351 28,836,424 29,214,242
Payments during the year (4,606,777) (4,529,235) (4,361,777) (4,529,235)
21.1 Net Benet Expense

Included in Prot or Loss
Interest Cost 2,714,761 2,190,238 1,996,570 2,072,201
Current Service Cost 3,994,913 3,226,566 3,215,967 3,099,082
6,709,674 5,416,804 5,212,537 5,171,283
Included in Other Comprehensive Income

Actuarial Losses/(Gains) on Obligations (2,373,177) 6,510,839 2,607,353 5,667,316
Transferred from/(to) Amna Takaful Life Ltd. 3,668,473 (3,668,473)
Actuarial Losses/(Gains) on Obligations 1,295,296 6,510,839 (1,061,120) 5,667,316
Net Benet Expense 8,004,970 11,927,643 4,151,417 10,838,599
The gratuity liability was actuarially valued under the Projected Unit Credit Cost Method by Piyal S. Goonetilleke (Fellow of the Society
of Actuaries USA) in 2015 as required by LKAS 19 Employee Benets.
Principal actuarial assumptions used for the Group and the Company are as follows:
% Per Annum
2015 2014
a. Discount Rate 9.5 9.5

b. Salary Increase 8.5 8.5
c. Incidence of Withdrawals 15 15
d. Future Mortality 55 Years 55 Years
The Liability is not externally funded.

21.2 Sensitivity of Assumptions Employed in Actuarial Valuations

Reasonably possible changes at the Reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the dened benet obligation by the amounts shown below:
31st December 2015 31st December 2014
Increase Decrease Increase Decrease
Discount Rate (1% Movement) 28,827,343 31,824,726 23,504,980 25,999,811

Future Salary Growth (1% Movement) 31,763,463 28,858,820 25,955,257 23,504,980
Although, the analysis does not take account of the full distribution of cash ows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
22. Other Liabilities Unit Linked

Advances Received 10,236,562 7,900,264 7,900,264
Other Creditors 11,037,487 6,253,532 6,253,532
Retakaful Payable 18,162,710 5,962,365 5,962,365
39,436,759 20,116,161 20,116,161
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
23. Other Liabilities

Accrued Liabilities 20,108,198 24,015,739 15,965,417 12,883,815
Commission Payable 33,519,962 33,648,877 1,946,292 17,731,334
Other Creditors 204,526,028 148,554,126 21,945,512 75,759,133
Income Tax Payable 4,276,889 19,477,775 8,569,003
Retakaful Payable 184,520,639 172,626,620 47,093,811 73,371,887
446,951,716 398,323,137 86,951,032 188,315,171

128
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
24. Subordinated Debt

Unsecured Subordinated Redeemable Debt 200,000,000 200,000,000
200,000,000 200,000,000
The details of the above Instrument are as follows:
Issue Date Purpose/Rationale Invested Party Relationship Face Value Prot Rate Interest Payable Repayment Maturity Date
Frequency Terms
31st December To meet the Risk-Based Amna Holdings Ltd. Parent 200,000,000 11% Annually 5 Years 31st December
2015 Capital Requirements 2020
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
25. Murabaha Facility

Opening Balance 367,398 367,398
Repayments (367,398) (367,398)
Unamortised Murabaha Prot
Net Liability
25.1 Extended Murabaha, Facility represents the facility obtained from Amna Investments Ltd. to nance improvements made to leasehold
buildings during 2004. This facility was settled over the 10 years commencing from April 2004 to April 2014 in monthly instalments of
Rs. 114,050/- each payable at the end of every month and the liability has been fully settled as at 31st December 2015.
25.2 No assets of the Company has been pledged against this facility.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
26. Finance Lease Liability

Opening Balance 18,882,902 6,317,700 18,882,902 6,317,700
Lease Obtained 17,521,837 17,521,837
Repayments (5,849,864) (4,956,635) (5,849,864) (4,956,635)
13,033,038 18,882,902 13,033,038 18,882,902
Unamortised Prot (2,291,336) (4,336,523) (2,291,336) (4,336,523)
Net Liability 10,741,702 14,546,379 10,741,702 14,546,379
Address 1 Year or Less 1-5 Years Total

Rs. Rs. Rs.
26.1 Maturity Analysis

Gross Liability 4,482,850 8,550,188 13,033,038
Unamortised Prots (1,318,379) (972,957) (2,291,336)
Net Liability 3,164,471 7,577,231 10,741,702
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
27. Gross Written Contribution

Long-Term Policies
Family Takaful 144,657,085 161,730,510 161,730,510
Mortgage and Group Family Takaful 48,581,912 35,209,592 35,209,592
Unit Linked 735,054,781 482,088,822 482,088,822
928,293,778 679,028,924 679,028,924
General Takaful (Insurance)

Motor 1,062,747,375 966,757,358 1,020,946,906 935,810,967
Fire 443,617,808 339,532,308 120,003,406 117,059,371
Marine 125,220,575 116,760,897 39,691,239 36,023,671
Medical 182,960,161 157,512,326 182,960,161 157,512,326
Miscellaneous 494,769,501 392,416,210 183,843,663 129,862,646
2,309,315,420 1,972,979,099 1,547,445,375 1,376,268,981
3,237,609,198 2,652,008,024 1,547,445,375 2,055,297,907

130
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
28. Income from Investments

Investment Income (Note 28.1) 178,673,119 195,363,853 43,428,491 201,102,044
Fair Value Gain on Investment Properties 7,500,000 4,500,000 7,500,000 4,500,000
Loss on Disposal of Investment Property (3,050,000) (3,750,000) (1,450,000) (3,750,000)
Fair Value Gain/(Loss) on Gold Investments 360,275 360,275
Net Realised Capital Gain or (Losses) 5,905,288 32,367,768 1,389,121 31,489,604
Unrealised Capital Gain or (Losses) (3,304,885) 28,097,037 (4,086,119) 41,855,410
185,723,522 256,938,933 46,781,493 275,557,333
28.1 Investment Income

Dividend Income 19,366,762 7,828,596 9,298,084 37,544,048
Income from Murabaha Investment 14,058,463 13,910,146
Income from Mudharaba Investments 115,030,203 116,152,179 20,992,575 106,796,330
Rent Income from Properties 626,130 626,130
Interest Income from investment in Government Securities (Note 28.2) 27,412,226 35,451,596 10,247,670 34,740,330
Transferred to Prot or Loss 2,805,465 21,395,206 2,890,162 21,395,206
178,673,119 195,363,853 43,428,491 201,102,044
28.2 Interest income from Government Securities has been recognised based on a special approval given by the Council of Islamic
Scholars of the Company in 2009.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
29. Other Income

Prot on Disposal of Property, Plant & Equipment 245,327 92,903 250,383 39,750
Sundry Income 44,191,113 25,290,283 9,123,746 5,901,654
Salvage Income 1,395,550 1,067,325 1,395,550 1,067,325
Exchange Gain/(Loss) (2,913,815) (590,431) (2,846,667) (574,247)
Technical Fee Income 7,431,378 5,932,138
50,349,553 31,792,218 7,923,012 6,434,482
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
30. Revenue
Gross Written Contribution (Premium) 3,237,609,198 2,652,008,024 1,547,445,375 2,055,297,907
Less: Contribution (Premium) Ceded to Retakaful Companies (Reinsurers) (666,752,524) (539,791,021) (262,451,331) (241,277,531)
Net Written Contribution (Premium) 2,570,856,674 2,112,217,003 1,284,994,044 1,814,020,376
Net Change in Reserve for Unearned Contribution (Premium) (59,483,158) (30,816,411) (47,511,263) (42,440,999)
Net Earned Contribution (Premium) 2,511,373,516 2,081,400,592 1,237,482,781 1,771,579,377
Income from Investments 185,723,522 256,938,933 46,781,493 275,557,333
Fair Value Gains and Losses 4,539,234 14,020,670 747,649 (1,868,352)
Fair Value of Investment Transferred 587,197,352
Other Income 50,349,553 31,792,218 7,923,012 6,434,482
Total Revenue Including Fair Value of Investment Transferred 2,751,985,825 2,384,152,413 1,880,132,287 2,051,702,840
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
31. Insurance Claims and Benets (NET)

General Takaful (Insurance)
Gross Claims Incurred
Motor 826,651,283 525,293,615 822,593,282 521,984,806
Fire 18,538,580 124,468,988 19,026,144 129,901,858
Marine 28,451,371 1,691,663 5,114,206 13,590,915
Medical 126,597,168 97,199,012 126,597,168 97,199,012
Miscellaneous 157,096,287 127,223,964 20,064,934 18,421,026
1,157,334,689 875,877,242 993,395,734 781,097,617
Retakaful (Reinsurance) Recoveries (27,816,653) (141,254,133) (27,816,653) (141,254,133)
General Insurance Claims and Benets (Net) 1,129,518,036 734,623,109 965,579,081 639,843,484
Family Takaful (Long-Term Insurance)

Claims Incurred 49,065,081 36,701,037 36,701,037
Surrenders 129,949,361 90,445,333 90,445,333
Policy Maturities 13,344,183 8,592,585 8,592,585
Interim Payments/Part Withdrawals 15,213,137 25,498,790 25,498,790
Long-Term Insurance Claims and Benets 207,571,762 161,237,744 161,237,744
1,337,089,798 895,860,854 965,579,081 801,081,229

132
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
32. Other Operating, Investment Related and

Administration Expenses
Staff Expenses (Note 32.1) 365,169,398 334,712,693 216,199,261 266,699,932
Administration and Establishment Expenses 309,018,942 290,147,046 145,740,323 238,990,550
Selling Expenses 87,750,852 54,373,957 48,905,337 43,565,036
Depreciation 31,022,378 29,087,542 26,223,697 26,073,748
Consultancy Fees 41,275,176 31,367,777 24,997,400 21,894,268
Travel Expenses 134,802,731 117,728,986 98,587,098 115,058,199
969,039,477 857,418,001 560,653,116 712,281,734
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
32.1 Staff Expenses

Wages, Salaries and Bonuses 233,180,934 214,122,012 134,272,388 174,159,177
Contribution to Dened Contribution Plans EPF and ETF 43,345,427 41,232,636 34,200,865 39,665,502
Staff Welfare 61,100,698 53,171,460 29,881,387 29,258,616
Staff Training 15,930,581 15,371,625 9,443,666 13,935,042
Medical Claims 4,902,084 5,398,156 3,188,418 4,510,312
Gratuity 6,709,674 5,416,804 5,212,537 5,171,283
365,169,398 334,712,693 216,199,261 266,699,932
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
33. Amortisation
Improvements to Leasehold Buildings 297,513 297,513
Intangible Asset 5,141,517 5,359,414 2,656,153 3,790,830
5,141,517 5,656,927 2,656,153 4,088,343
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
34. The Prot from Operations for the Year is Stated

after Charging/(Crediting) the Following:
Directors Emoluments Executive 22,384,785 4,630,455 10,236,826 4,630,455
Non-Executive 7,298,188 2,369,885 2,992,460 2,369,885
Auditors Remuneration (Fees) Audit 2,546,056 2,104,842 750,000 1,250,000
Non-Audit 1,795,980 1,421,500 1,442,980 1,421,500
Depreciation 31,022,377 29,087,542 26,223,697 26,073,748
Donations 261,063 179,450 261,063 10,444
Advertisement Costs 87,750,852 44,791,706 48,905,337 43,565,036
Amortisation of Intangibles 6,704,017 6,921,914 2,656,153 3,790,830
Reversal in Provision for Contribution Receivable (1,885,166) (1,885,166)
Staff Cost 365,169,398 334,712,693 216,199,261 266,699,932
Prot on Disposal of Property, Plant & Equipment 245,327 92,903 250,383 39,750
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
35. Finance Cost

Extended Murabaha Prot 5,026 5,026
Prot Markup on Lease (Ijara) Facility 2,371,332 2,416,146 1,941,399 2,416,146
Overdrafts and Others 2,272,334
2,371,332 4,693,506 1,941,399 2,421,172

134
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
36. Income Tax Expense

Current Income Tax (9,684,085) (13,904,257)
(9,684,085) (13,904,257)
Deferred Tax 884,133 34,683,770 31,599,296

884,133 34,683,770 31,599,296
(8,799,952) 20,779,513 31,599,296
Recognised in Prot or Loss (9,113,439) 16,581,602 30,012,448

Recognised in Other Comprehensive Income 313,487 4,197,910 1,586,848
(8,799,952) 20,779,512 31,599,296
36.1 Tax Reconciliation Statement

Accounting Prot before Tax (271,386,698) 86,429,267 265,287,933 33,707,976
Aggregate Disallowed Items 91,635,141 62,233,679 55,653,776 52,384,998
Aggregate Allowable Expenses (256,990,058) (152,865,960) (616,086,850) (143,798,014)
Taxable (Loss)/Prot (436,741,615) (4,203,014) (295,145,141) (57,705,040)
36.1.1 Amna Takaful PLC is liable for income tax at 28% (2014 28%) on the taxable income for the year of assessment 2015/16.
36.1.2 Amna Global Ltd. is liable for income tax at 10% (2014 10%) on the taxable income for the year of assessment 2015/16.
36.1.3 Amna Maldives PLC is liable for income tax at 15% (2014 15%) on the taxable income for the year of assessment 2015/16.
36.1.4 Amna Takaful Life Ltd. is liable for income tax at 28% (2014 28%) on the taxable income for the year of assessment 2015/16.
36.1.5 Income tax assessment relating to years of assessment 2010/11, 2011/12 and 2012/13:
The Department of Inland Revenue has Raised an Assessment for the Following Years of Assessment:
- Year of Assessment 2010/11: Assessing the General Insurance business to pay an income tax liability of Rs. 578,898/- inclusive of
penalty and a assessment on the Life Insurance business, which however has nil balance to pay. The Company has lodged a valid
appeal against the said assessment.
- Year of Assessment 2011/12: An intimation on the Life Insurance business, which however has nil balance to pay. The Company has
lodged a valid appeal against the said intimation.
- Year of Assessment 2012/13: Assessing the Life Insurance business to pay an income tax liability of Rs. 188,249/- and the Company
has lodged a valid appeal against the said assessment.
- Directors are of the view that it has followed due process and acted in accordance with the prevailing laws in its tax submissions for
years of assessment 2010/11, 2011/12 and 2012/13 and therefore, the above assessments have no rationale or basis in law.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
36.2 Deferred Tax Asset

Tax Losses Brought Forward (General Takaful) 1,593,214,107 574,795,585 914,876,686 574,795,585
Tax Losses of which Deferred Tax Asset was Not Recognised (1,224,902,105) (210,620,186) (540,768,779) (214,991,847)
Available-for-Sale Financial Assets 20,657,918
Dened Benet Obligation 24,685,007 24,685,007 24,474,647 24,685,007
413,654,927 388,860,406 398,582,553 384,488,745
Deferred Tax Assets @ 28% 115,823,379 108,880,914 111,603,115 107,656,848
Recognised Deferred Tax Asset 115,823,379 107,656,848 111,603,115 107,656,848
Deferred Tax Liability

Property, Plant & Equipment (45,519,362) (35,937,287) (37,976,268) (35,937,287)
Available-for-Sale Financial Assets (3,546,564) (3,546,564)
Revaluation Gain Fair Value (1,008,263) (1,008,263)
Fair Value Gain of Investment Property (7,500,000) (7,500,000)
Total Taxable Temporary Differences (57,574,189) (35,937,287) (50,031,096) (35,937,287)
Deferred Tax Liability @ 28% (16,120,774) (10,062,440) (14,008,707) (10,062,440)
Net Deferred Tax Asset 99,702,606 98,818,473 97,594,408 97,594,408
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
36.3 Movement in Temporary Differences

During the Year
Recognised in Total Comprehensive Income

Tax Losses Brought Forward 3,585,010 30,531,904 1,472,944 30,531,904
Dened Benet Obligation 642,549 2,552,736 91,009 2,552,735
Property, Plant & Equipment (2,682,981) (261,278) (570,915) (1,485,343)
Available-for-Sale Financial Assets (660,445) (993,038)
884,133 32,823,361 31,599,296

136
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that future taxable prot will be available
against which the losses can be utilised. Signicant management judgement is required to determine the amount of deferred tax assets
that can be recognised, based on the likely timing and the level of future taxable prots together with future tax planning strategies.
However, the Company has recorded a deferred tax asset of Rs. 97,594,408/- as recognised in last nancial year up to the extent that it
will be recognised within foreseeable future.
In the Financial Statements, the deferred tax asset has been recognised only for the general insurance segment and no deferred tax
asset is recognised for the life segment on the tax losses amounting to Rs. 678,337,421/-.
37. Earnings Per Share

37.1 Basic earnings per share is calculated by dividing the net prot/(loss) for the year attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the year. However, the surplus/(decit) of the General Takaful Fund is
also taken under the prot/(loss), which is not a part of the prot attributable to shareholders.
37.2 The following reect the income and share data used in the basic earnings per share computations:
Group Company
2015 2014 2015 2014
Amount used as the Numerator:

Net Prot Attributable to Ordinary Shareholders (Rs.) (301,188,689) 67,692,778 266,428,175 63,720,424
Number of Ordinary Shares used as Denominator: Number Number Number Number

Weighted Average Number of Ordinary Shares in Issue 1,488,096,310 1,000,000,720 1,488,096,310 1,000,000,720
Earnings per Share (Rs.) (0.20) 0.07 0.18 0.06
37.3 There were no potential dilutive ordinary shares outstanding at any time during the year. Therefore, diluted earning per share is
same as basic earnings per share shown above.
38. Related Party Disclosures

The Group carries out transactions in the ordinary course of its business with parties who are dened as related parties in Sri Lanka
Accounting Standard LKAS 24 Related Party Disclosures. Transactions with related parties were made on the basis of the price lists
in force with non-related parties, but subject to approved discounts. Outstanding balances with related parties other than balances
relating to investment related transactions as at the Reporting date are unsecured and interest free. Settlement will take place in
cash. Such outstanding balances have been included under respective assets and liabilities. Details of related party transactions are
reported below:
(A) Transactions with the Parent, Subsidiaries and Fellow Subsidiaries

Group
2015 2014
Relationship Nature of Transaction Rs. Rs.
Ultimate Parent Takaful Premium 686,992 384,128

Takaful Premium Receivable 18,532
Claims Paid 415,218
Parent Investment in Equity 248,529,837 6,259,327

Fund Management Fees 1,750,000 1,684,070
Issue of Subordinated Debts (Note 24) 200,000,000
Reimbursement Cost 2,589,748 40,989,907
Current Account Settlements 20,123,412 36,348,131
Wakalah Payable 6,427,484
Wakalah Expenses 127,699
Other Related Companies Takaful Premium 78,314,166 27,523,808

Claims Paid 7,325,029 6,948,715
Takaful Premium Receivable 20,617,473 21,635,522
Reimbursement Cost 25,724,074
Subsidiaries Investment in Equity 380,000,000 120,000,000

Takaful Premium 4,661,961 761,032
Claims Paid 1,733,853 460,856
Takaful Premium Receivable 1,649,567 8,940
Management Fee 8,400,000 996,991
Current Account Settlement 209,736,953 5,214,030
Current Account Balance 11,832,030 544,145
Dividend 17,930,929 30,000,000

138
Company
Relationship Nature of Transaction 2015 2014

Rs. Rs.
Ultimate Parent Takaful Premium 686,992 384,128

Takaful Premium Receivable 18,532
Claims Paid 415,218
Parent Investment in Equity 248,529,837 6,259,327

Fund Management Fees 1,750,000 1,214,689
Investments in Subordinated Debts 200,000,000
Reimbursement Cost 1,523,287
Current Account Settlements 2,751,588
Other Related Companies Takaful Premium 78,314,166 27,523,808

Claims Paid 7,325,029 6,948,715
Takaful Premium Receivable 20,617,473 21,635,522

Reimbursement Cost (1,049,115)
Subsidiaries Investment in Subsidiary 380,000,000 120,000,000

Takaful Premium Received 3,961,372 761,032
Claims paid 1,283,853 8,940
Takaful Premium Receivable 1,649,567 460,856
Claims Received 450,000
Management Fee 8,400,000
Current Account Settlement 191,370,370
Current Account Balance 11,832,030 2,269,022
Dividend 5,000,000 30,000,000
Fair Value of Investment Transferred 587,192,352
(B) Compensation of Key Management Personnel

The total compensation to those individuals classied as Key Management Personnel, being those having authority and responsibility
for planning, directing and controlling the activities of the Company.
According to Sri Lanka Accounting Standard LKAS 24 Related Party Disclosure, Key Management Personnel (KMP) are those
having authority and responsibility for planning, directing and controlling the activities of the entity. Accordingly, the Directors
(including Executive and Non-Executive Directors) of the Company and its Parent have been classied as Key Management Personnel
of the Group.
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
Salary and Other Short-Term Benets 38,702,440 27,227,791 19,744,286 20,285,791

Contributions Made by the Company to Provident Fund and Trust Fund 1,625,016 2,087,065 889,500 2,087,065
Non-Cash Benets 3,120,000 3,300,000 2,160,000 3,300,000
43,447,456 32,614,856 22,793,786 25,672,856
(C) Transactions with Other Related Parties

Transactions entered into with entities that are connected via close members of the family of KMP are disclosed as follows. Close
members of the family include immediate family members including spouse and dependents.
Group Company
Nature of Transaction 2015 2014 2015 2014

Rs. Rs. Rs. Rs.
Takaful Premium 342,767 27,713 342,767 27,713

Outstanding Premium
Claims Paid 800 800
342,767 28,513 342,767 28,513
39. The Segregation of the Life and General Insurance Business Under Section 53 of the Regulation of
Insurance Industry (Amendment) Act No. 3 of 2011
In terms of Section 53 of the Regulation of Insurance Industry (Amendment) Act No. 3 of 2011, all composite insurance companies
are required to split their Life and Non-Life Insurance business into two separate legal entities. In consultation with the insurance
industry, Insurance Board of Sri Lanka (IBSL) has brought forward the deadline for compliance to 1st January 2015 and has set out a
timetable with key milestones leading to the completion of the process by that date.
Amna Takaful PLC, following the due process stipulated by the IBSL and having obtained approvals from all relevant parties including
District Courts, incorporated a fully-owned subsidiary Amna Takaful Life Ltd. on 10th July 2014 and transferred its Family Takaful (Life
Insurance) Business to its newly formed Subsidiary with effect from 1st January 2015. Accordingly, Amna Takaful PLC has become
a General Insurance Company as well as the Holding Company of Amna Takaful Life Ltd. which is now a licensed Life Insurance
Company. Therefore, Amna Takaful PLC is providing both Life and General Insurance solutions under a group structure now which
was under a single company as a composite insurer till 31st December 2014. Accordingly, from the Group point of view, there is no
discontinuation of operations since the Group would continue both life and general business.
Amna Takaful PLC initially invested Rs. 120 Mn in-line with the regulatory requirements in the said Subsidiary Company on
6th August 2014. Subsequently, through a Rights Issue detailed in Note 16.1, a further investment of Rs. 380 Mn was made in the
Subsidiary Company in January 2015 in order to meet its regulatory minimum capital requirements. Accordingly, total stated capital
of Amna Takaful Life Ltd. is Rs. 500 Mn as at the Reporting date.
The comparison for 2014 under the Company column includes the life nancial results.

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40. PRINCIPAL SUBSIDIARIES

As at 31st December 2015
The following disclosure excerpt highlights the Group composition and the proportion of ownership interests held by NCI:
Principal Activities Class of Shares Held Proportion of Class Group Interest Non-Controlling
Company and Country of Incorporation/Operation Held by the Company Interest
% % %
Sri Lanka
Amna Takaful Life Ltd. Life Insurance Ordinary 100 100 100
Amna Global Ltd. Asset/Investment
Management Ordinary 100 100 100
Maldives
Amna Takaful (Maldives) PLC General Takaful
Insurance Ordinary 51 55 45
40.1 Summary of nancial information for subsidiaries that have non-controlling interests that are material to the Group.
The following table summarises the information relating to the Groups subsidiary that has material NCI, before any intragroup
eliminations:
31st December 2015 Amna Takaful (Maldives) PLC

Rs.
NCI Percentage (%) 45

Total Assets 881,974,124
Total Liabilities 426,926,091
Net Assets 455,048,033
Carrying Amount of NCI 205,893,655
Revenue 365,826,366
Prot 45,974,559
OCI 42,436,561
Total Comprehensive Income 88,411,120
Prot Allocated to NCI 20,688,552
OCI Allocated to NCI 19,096,453
Cash Flows from Operating Activities 90,671,392
Cash Flows from Investment Activities (62,214,341)
Cash Flows from Financing Activities (Dividends to NCI: Rs. 10,579,851/-) (23,353,973)
Net Increase (Decrease) in Cash and Cash Equivalents 5,103,078
31st December 2014 Amna Takaful Maldives PLC

Rs.
NCI Percentage (%) 45

Total Assets 700,395,878
Total Liabilities 310,248,185
Net Assets 390,147,693
Carrying Amount of NCI 176,688,500
Revenue 309,821,216
Prot 78,484,647
OCI 6,875,116
Total Comprehensive Income 85,359,763
Prot Allocated to NCI 35,318,091
OCI Allocated to NCI (3,564,406)
Cash Flows from Operating Activities 185,537,031
Cash Flows from Investment Activities (182,257,261)
Cash Flows from Financing Activities (Dividends to NCI: Rs. 10,016,086/-) (22,334,766)
Net Increase (Decrease) in Cash and Cash Equivalents (19,054,995)
41. Risk Management

41.1 Overview
All entities face uncertainty and the challenge for the Company is to determine how much uncertainty to accept as it strives to grow
stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Primarily, risk
management framework enables management to effectively deal with uncertainty and associated risk and opportunity, enhancing the
capacity to build value.
41.2 Risk Management Framework

Amna Takaful PLCs risk management framework forms an integral part of the management and Board processes and decision-
making framework across the Company. The Company has a robust Enterprise Risk Management Framework to mitigate the identied
risks exposed at multiple levels of the operation. We believe, while having the governance practices and the Standard Operating
Procedures (SOPs), having the right people at the right place will mitigate more than half the risks.
However, the Board of Directors has the overall responsibility for the establishment and oversight of the Companys risk management
framework and thus, their approval is necessary for the Risk management Strategies. The Companys risk management framework
categorised into four lines of defence as follows:
1. Front Line People Risk awareness of the people in the front line is the rst line of defence.
2. Policies and Procedures The Standard Operating Procedures will mitigate the risks at operational level.
3. Key Personnel Appointing key personnel at the key positions will assist mitigating through right decision-making and approval
controls at senior management level.
4. Governance The governance practices to mitigate the risks at Board level.
The Board has appointed a Subcommittee (Board Risk Committee) to monitor closely the affairs of Risk Management of the Company.

142
This section discusses the salient features of the risks exposed by the Company in terms of nancial instruments and other areas as
an insurance company. The nancial instruments of the Company are exposed to the following Risks:
1. Financial Risk
2. Market Risk
3. Insurance Risk
41.3 Financial Risk

41.3.1 Capital Management
a. Objectives and Policies

The Company has established the following capital management objectives, policies and approaches to manage the risks that affect
its capital position:
- Optimise capital utilisation within the regulatory and Shariah guidelines.

- To maintain the required level of solvency of the Company, thereby providing a degree of security to policyholders.
- To allocate capital efciently and support the development of business by ensuring that returns on capital employed meets the
requirements of its shareholders, policyholders and other stakeholders.
- To retain nancial exibility by maintaining strong liquidity.
- To align the prole of assets and liabilities, taking account of risks inherent in the business.
ATPLC currently has stated capital worth Rs. 1.65 Bn which is well above the minimum regulatory requirement of the IBSL. Operations
of the Company are also subject to statutory requirements of the IBSL (Capital, investments, solvency etc.,) of which, adaptations are
made to internal processes from time to time as and when regulations are amended. Such regulations not only prescribe approval
and monitoring of activities, but also impose certain restrictive provisions on events such as capital adequacy and solvency to
minimise the risk of default and insolvency on the part of the insurance companies to meet unforeseen liabilities. Furthermore,
the Company rmly adheres to Islamic nance principles i.e. the strict adherence of Shariah guidelines in terms of investments,
marketing activities and so on and restrictions in borrowing capital etc., give more stability to the nancial strength of the Company.
b. Approach to Capital Management

Capitals of all investments are maintained strictly within the investment guidelines of the Insurance Board of Sri Lanka. This primarily
helps the Company to maintain the required levels of solvency at all the times at different funds. In meeting the objectives mentioned
above, the Capital management and asset allocation decisions are reviewed and approved by the Executive Committee and the Board
Investment Committee which meet regularly on a monthly basis. The Board Investment Committee operates under clear terms of
reference to thoroughly analyse the new investment proposals, review the past performance and provide guidance in terms of future
investments and movements of assets. The Company also has appointed a leading wealth management specialist to manage part of
the investment folio since 2011.
41.3.2 Credit Risk

Credit risk is the risk that one party to a nancial instrument will cause a nancial loss to the other party by failing to discharge an
obligation.
How credit risk could arise 1. Premium receivable

2. Reinsurance receivable
3. Investments in debt securities
The following policies and procedures are in place to mitigate the Companys exposure to credit risk:
z The Company has a stringent credit policy and a detailed SOP outlining the authority and approval limits to manage credit granted
to customers.
z All Reinsurers are selected based on the ratings as required by IBSL.
z The Investment Committee evaluates the exposure and the new investments in instruments in order to reduce the risks.
z The executive committee regularly reviews the credit position of the Company i.e. out-standings and over-dues. In addition the
Company also ensures that there are sufcient provisions created in the case of doubtful debts.
Financial Asset Government F&B Telco Manufacturing, Others Total

2015 Industry Analysis
Services Management Chemicals,
Power and
Construction
Assets
Financial Assets at Fair Value
through Prot or Loss
Investments in Equity Securities 3,455,927 38,009,791 135,780,237 16,939,695 194,185,649

Investments in Equity Securities 52,630,726 52,630,726
Unit Trust 163,256,299 163,256,299
Unquoted 6,917,970 525,000 7,442,970

Total Credit Exposure 2,456,726,112 163,256,299 679,733,724 3,455,927 38,009,791 136,305,237 27,454,824 3,054,941,913
Financial Asset Government F&B Telco Manufacturing, Others Total

2014 Industry Analysis
Services Management Chemicals,
Power and
Construction
Assets
Financial Assets at Fair Value
through Prot or Loss
Investments in Equity Securities 22,180,969 2,518,266 57,145,573 31,356,405 113,201,213

Unit Trust 219,255,865 219,255,865
Unquoted 525,000 525,000
Treasury Bills 5,178,149 5,178,149

Total Credit Exposure 1,066,160,441 219,255,865 343,555,161 22,180,969 2,518,266 57,670,573 42,736,022 1,754,077,293

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Credit Exposure
The Group's maximum exposure to credit risk for the components of the Statement of Financial Position as at 31st December 2015 and
2014, is the carrying amounts of respective nancial instruments.
Neither Past Due Past Due but Individually As at 31st

Nor Impaired Not Impaired Impaired December 2015
Rs. Rs. Rs. Rs.
Financial Assets
Financial Assets at Fair Value through Prot or Loss

Unit Trust 163,256,299 163,256,299
Unquoted Investments 7,442,970 7,442,970
Treasury Bills

Other Assets Related to Financial Risk

Retakaful (Reinsurance) Receivables 40,366,534 40,366,534
Contribution (Premium) Receivable 528,442,104 528,442,104
Cash and Cash Equivalents 180,555,306 180,555,306
Total Credit Exposure 4,254,305,857 4,254,305,857
Neither Past Past due but Individually As at 31st

due nor Impaired not impaired impaired December 2014
Rs. Rs. Rs. Rs.
Financial Assets
Financial Assets at Fair Value through Prot or Loss

Unit Trust 240,399,715 240,399,715
Treasury Bills 5,178,149 5,178,149

Other Assets Related to Financial Risk

Contribution (Premium) Receivable 509,920,521 509,920,521
Cash and Cash Equivalents 227,821,761 227,821,761
Total Credit Exposure 3,193,358,028 3,193,358,028
The following table provided information regarding the credit risk exposure on investments of the Group as at 31st December 2015 as
a percentages of respective credit ratings of the investee. AAA is considered the highest possible rating, while assets that fall outside
the range of AAA to BBB are classied as speculative grade. No credit exposure limits were exceeded by the Group during the year.
Investment in Repurchase Agreements are Government Securities and can be categorised as risk free investment. Further, investments
in shares and units are not considered, since credit rating is not applicable.
Credit Rating Exposure

%
AAA 79
AA 1
AA- 6
BB 14

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41.4 Market Risk

Market risk involves all the uctuations in the demand and supply forces in the capital and insurance markets for ATPLC. The capital
market forces determine interest rates, equity prices, yield on other investment assets, while the market forces in the insurance
market determines the net premiums and gross premium values. Further, prices of goods and services in general i.e., ination,
determines the cost of administration.
41.4.1 Interest Rate Risk

Interest rate risk is the risk that the value or future cash ows of a nancial instrument will uctuate because of changes in the
market interest rates. Floating rate instruments expose the Company to cash ow interest risk, whereas xed interest rate instruments
expose the Company to fair value interest risk.
The Company invests in to Treasury Bills primarily to meet the mandatory requirement of the investment Insurance Board of Sri Lanka
and to park the cash inow within the admissible assets category until a suitable option is identied within the available time space.
41.4.2 Equity Risk

Listed equity investments are prone to market risk arising from uncertainties faced in the future values of the securities. In order
to diversify its risk the Company has a diversied investment policy based on fundamental analysis which has helped balance the
uncertainty faced. It is also notable that the Company invests only in white list equity securities i.e. Shariah compliant securities
which are of sound fundamental value giving the Company greater security in its invested equity securities.
Amna Takaful Equity Exposure (Group) Quoted
Sector 2015 2014
Exposure Sector Weight Exposure Sector Weight

Rs. % Rs. %
Beverage and Foods 3,455,927 1.4 19,146,213 8.0

Chemicals 1,649,000 0.7 1,730,000 0.7
Construction 27,686,528 11.2 34,407,587 14.4
Diversied Holdings 0.0 17,798,490 7.5
Financial Services 52,630,726 21.3 62,056,417 26.0
Healthcare 0.0 211,344 0.1
Manufacturing 96,253,339 39.0 84,387,041 35.4
Plantation 1,367,889 0.6 2,252,880 0.9
Power 10,191,370 4.1 366,000 0.2
Telecommunication 38,009,791 15.4 2,838,663 1.2
Trading 15,571,806 6.3 13,313,386 5.6
246,816,376 238,508,021
Amna Takaful Equity Exposure (Company)
Sector 2015 2014
Exposure Sector Weight Exposure Sector Weight

Rs. % Rs. %
Beverage and Foods 0.00 8,005,963 7.47

Chemicals 0.00 1,730,000 1.61
Construction 0.00 15,392,386 14.37
Diversied Holding 0.00 5,589,090 5.22
Financial Services 0.00 14,124,861 13.19
Manufacturing 0.00 54,557,131 50.93
Plantation 590,889 100.00 2,252,880 2.10
Power 0.00 366,000 0.34
Telecommunication 0.00 1,330,000 1.24
Trading 0.00 3,779,049 3.53
590,889 107,127,360
41.4.3 Currency Risk

Currency risk is the risk of loss resulting from changes in exchange rates. The Companys principle operation is based in Sri Lanka;
therefore it is not exposed to the nancial impact arising from changes in the exchange rates of various currencies.
41.5 Insurance Risk

Being an insurance Company, risks related to the insurance business i.e. Insurance Risk, becomes primary in the list. Insurance is
all about managing risks on behalf of the customers. In that context, we have identied the following three major risk areas under
this Category:
z Underwriting Risks
z Claims Risks
z Reinsurance Risk
In addition to the above Life insurance is specically subject to the following risks:
1. Mortality Risk risk of loss arising due to policyholder is death experience being different than expected.
2. Morbidity Risk risk of loss arising due to policyholder is health experience being different than expected.
3. Investment Return Risk risk of loss arising from actual returns being different than expected.
4. Expense Risk risk of loss arising from expense experience being different than expected.
5. Policyholder Decision Risk risk of loss arising due to policyholder experiences (lapses and surrenders) being different
than expected.
In order to mitigate such risk, the Company has adopted the following strategy. The Company strategy is driven by the comprehensive
screening of policyholders in order to ascertain current medical status, family medical history, the key been the comprehensive
screening of participants. Further, the Company ensures that the overall risk is reduced by diversifying the product portfolio across
widespread geographical and industry wide segments.
The Company also rejects the payment of fraudulent claims once fully exhausting its investigative capacity. The insurance risk
described above is also affected by the contract holders right to pay reduced premiums or no future premiums, to terminate the
contract completely. As a result, the amount of insurance risk is also subject to contract holder behaviour.

148
41.5.1 Underwriting Risks

In Insurance, underwriting risk may either arise from an inaccurate assessment of the risks entailed in writing an insurance policy,
or from factors wholly out of the Underwriter's control. As a result, the policy may cost the Insurer much more than it has earned
in premiums.
How We Manage It
i. Price The Company has strict pricing mechanisms which need to be adhered in respect of various classes of products. Whilst
pricing is periodically reviewed in respect of market activity it is notable that discounting is strictly monitored with authority
levels only at the highest level whilst also been on a multi-level basis.
ii. Exposure The Company fully ensures that the Company does not underwrite risk which does not suit its risk prole and further
ensures all high volume non-motor risks are reinsured.
iii. Personnel The Company ensures that all Underwriting personnel in both General and Life are adequately trained. Further,
all staff inclusive of underwriting staff have been given specic Key Performance Indicators (KPIs) with regard to revenue and
protability of product segments. The Life segment has its own in-house Actuary, who reviews the Life business closely and
guides the management when taking crucial product based decisions.
Further it should be noted that the Company monthly monitors product protability of all main classes of insurance.
41.5.2 Claims Risk

The key risk facing insurance companies is the claims risk where an extremely high amount of risks i.e., a signicantly high claims ratio
in comparison to the earned premium could drastically affect Company performance.
How We Manage It
Countenance of adverse risk of the same is in effect with strict claims management with proper policy documentation at underwriting
level and thorough inspection at claims level been fully emphasised in Key Performance indicators of all staff levels.
41.5.3 Reinsurance Risk

Insurance companies in events where sum insured is extremely high in comparison to premium earned decide on reinsuring the
policy with another insurer in order to mitigate/share its loss in the case of disaster. The risk borne would add up to the premium
foregone in the event that disaster does not occur to the said policy.
How We Manage It
The Board Risk Committee annually reviews the list of reinsurers to ensure that the Companys exposure is hedged to maximum effect,
whilst periodically monitoring the nancial status and condition of the same. The Company employs pre-agreed treaty insurance
agreements to hedge against day-to-day insurance exposure, whilst engages in facultative insurance to hedge against extraordinary
insurance risks in the line of day-to-day business.
Statement of Reinsurance Arrangements (General Insurance) Outward Treaty Reinsurance
Class of Business Name of the Reinsurer Reinsurers Rating Name of the Date of Rating
Country of Origin Rating Agency
Credit Financial Strength
Marine Swiss Retakaful Switzerland AA- A+ (Superior) A.M. Best 11-Dec-2015

Aa3 Aa3 (Excellent) Moody's 18-Dec-2105
AA- AA- (Very Strong) S&P 30-Dec-2015
Labuan Reinsurance (L) Ltd. Malaysia A- A- (Excellent) A.M.Best 25-Nov-2015
General Insurance Corporation of India India A- A- (Excellent) A.M.Best 6-May-2015
Trust International Insurance and Kingdom of
Reinsurance B.S.C.(c) Trust Re Bahrain A- A- (Excellent) A.M.Best 21-Dec-2105
Emirates Retakaful Ltd. Dubai, UAE BBB+ B++ A.M.Best 9-Dec-2015
Fire Swiss Retakaful Switzerland AA- A+ (Superior) A.M. Best 11-Dec-2015

Reinsurance B.S.C. (c) Trust Re Bahrain A- A- (Excellent) A.M.Best 21-Dec-2015
Motor Swiss Retakaful Switzerland AA- A+ (Superior) A.M. Best 11-Dec-2015

Reinsurance B.S.C.(c) Trust Re Bahrain A- A- (Excellent) A.M.Best 21-Aug-2015
Liability Swiss Retakaful Switzerland AA- A+ (Superior) A.M. Best 11-Dec-2015

General Insurance Corporation of India India A- A- (Excellent) A.M.Best 25-Nov-2015
A- A- (Excellent) A.M.Best 6-May-2015

150
Class of Business Name of the Reinsurer Reinsurers Rating Name of the Date of Rating
Country of Origin Rating Agency
Credit Financial Strength
1. Miscellaneous Swiss Retakaful Switzerland AA- A+ (Superior) A.M. Best 11-Dec-2015

2. Travel PA Ironshore Malaysia A (Excellent) A.M.Best 31-Jul-2015
3. Engineering Swiss Retakaful Switzerland AA- A+ (Superior) A.M. Best 11-Dec-2015

41.6 Liquidity Risk

Liquidity risk is when a possibility arises that an entity will encounter difculty in meeting obligations associated with nancial
instruments. The Company has a standard set of guidelines set up by an Investment Policy under the purview of the Investment
Committee which is followed in accordance with the IBSL guidelines.
The following policies and procedures are in place to mitigate the Companys exposure to liquidity risk:
z The Company maintains a diverse maturity prole in its assets, in order to ensure sufcient funding available to meet insurance and
investment contracts obligations.
z The Investment Committee regularly reviews the liquidity levels and takes appropriate action to improve the liquidity whilst
ensuring maximum possible yield and efciency in investments.
z Efcient forecasting of future commitments and making investments to meet the payouts to mitigate any possible liquidity concerns.
Maturity prole of Group investments based on remaining maturity is given below:
Within One Year 1-3 Years 3-5 Years More Than No Stated Total
Maturity Analysis 2015 5 Years Maturity
Assets
Unit Trust 163,256,299 163,256,299
Murabaha Investments 287,029,836 663,876 1,274,366 23,539,500 312,507,578
Contribution (Premium) Receivables 528,442,104 528,442,104
Total 4,000,463,304 663,876 1,274,366 30,982,470 4,033,384,016
Liabilities
Subordinated Debt 200,000,000 200,000,000
Finance Lease Liability 4,482,850 8,550,188 13,033,038
Total 490,871,325 8,550,188 200,000,000 699,421,513
Within One Year 1-3 Years 3-5 Years More Than No Stated Total
Maturity Analysis 2014 5 Years Maturity

Unit Trust 240,399,715 240,399,715
Treasury Bills 5,178,149 5,178,149
Total 2,448,642,766 6,972,979 2,455,615,745
Liabilities
Finance Lease Liability 5,849,864 13,033,038 18,882,902
Total 424,289,162 13,033,038 437,322,200

152
42. Commitments and Contingencies

42.1 Commitments
The Company does not have signicant capital commitments as at the Reporting date.
42.2 Contingencies
A contingent liability at a fair value of Rs. 273.5 Mn has been determined from ve claims where, the Company's liability on the
retention after recovery of reinsurance is assessed at Rs. 25 Mn, if any. The said claims are subject to legal proceeding.
The Group operates in the insurance industry and is subject to legal proceedings in the normal course of business. While it is not
practicable to forecast or determine the nal results of all pending or threatened legal proceedings, management does not believe
that such proceedings (including litigation) will have a material effect on its results and nancial position.
The Group is also subject to insurance solvency regulations in all the territories where it operates and has complied with all these
solvency regulations. There are no contingencies associated with the Groups compliance or lack of compliance with such regulations.
43. Transfer Pricing

Provision on transfer pricing under Sections 104 and 104 (A) of the Inland Revenue Act No. 10 of 2006 covers the transactions with
associated undertakings, since compliance reporting will be enforced from the year of assessment 2015/16.
During the nancial year, certain transactions including provision of insurance solutions and placement of deposits have taken place
with parent entity (Associated undertaking). The Group is of the view that the transactions with its related entities have taken place on
arms length price.
As the aggregate value of transactions of each companies with associated undertaking is more than Rs. 50 Mn, the Group is required
to maintain separate documentation as prescribed by Transfer Pricing Regulations. The Companies are in the process of seeking
professional advice from tax consultants to prepare required documentations to comply with Transfer Pricing Regulation.
44. Events Occurring After the Reporting Date

There have been no event occurring after the Reporting date that require adjustments to or disclosures in these Financial Statements.
45. Assets Pledged

The following assets have been pledged as security for liabilities.
Carrying Amount Pledged Included Under
2015 2014
Nature of Assets Nature of Liability Rs. Rs.
Leased Vehicles Pledged against Finance

Lease Liabilities 8,840,000 10,957,113 Property, Plant & Equipment
Repurchase Agreements Bank Guarantee for a

Performance Bond 1,000,000 1,000,000 Financial Assets Shareholders Fund
46. Comparative Information

Comparative information has been restated where necessary to conform with the current year presentation. The comparison for 2014
under the Company column includes the life nancial results.
153
GROUP VALUE ADDED STATEMENT

2015 2014
Rs. Mn Rs. Mn
Net Earned Contribution (Premium) 2,511 2,081

Investment and Other Income 241 303
2,752 2,384
Net Claims and Benets (1,337) (896)

Cost of External Services (807) (691)
Total Value Added 608 797
To Employees as Salaries and Other Benets 365 335

To the Government as Taxes 9 (17)
Increase in Family Takaful (Long-Term Insurance) Fund 483 347
Retained with the Business

- Depreciation 31 29
- In Reserves (281) 103
Total Value Added 608 797
154
SHARE INFORMATION
1. Analysis of the Distribution of Shareholders as at 31st December 2015
Resident Non-Resident Total
No. of No. of No. of

Shareholding Shareholders No. of Shares % Shareholders No. of Shares % Shareholders No. of Shares %
1 - 1,000 2,372 876,791 0.06 4 2,100 0.00 2,376 878,891 0.06
1,001 - 10,000 2,451 11,378,560 0.76 6 33,050 0.00 2,457 11,411,610 0.76
10,001 - 100,000 1,265 42,275,016 2.82 6 362,000 0.02 1,271 42,637,016 2.84
100,001 - 1,000,000 283 83,061,054 5.54 5 1,845,805 0.12 288 84,906,859 5.66
Over 1,000,000 29 1,358,264,856 90.55 1 1,901,848 0.13 30 1,360,166,704 90.68
6,400 1,495,856,277 99.72 22 4,144,803 0.28 6,422 1,500,001,080 100.00
The percentage of shares held by the public as at 31st December 2015 was 24.23% (31st December 2014 24.51%), where the number
of shareholders was 6,412 (31st December 2014 6,477).
2. Top 20 Shareholders as at 31st December 2015

2015 2014
No. of Shares % No. of Shares %
Amna Holdings Ltd. 901,422,761 60.09 600,047,315 60.00

Amna Bank PLC 228,794,572 15.25 151,651,000 15.17
Expolanka Holdings PLC 79,096,234 5.27 52,730,823 5.27
Dr. Thirugnanasambandar Senthilverl 60,716,800 4.05 21,943,826 2.19
Falcon Trading (Pvt) Ltd. 19,739,001 1.32 12,190,486 1.22
Carlines Holdings (Pvt) Ltd. 9,607,044 0.64 4,230,347 0.42
Hitihami Koralage Pushpakumara 7,406,053 0.49 5,830,856 0.58
Osman Kassim 5,425,568 0.36 2,560,079 0.26
Kalugala Eraj Hasitha De Alwis 5,348,674 0.36 3,565,783 0.36
Abdul Majeed Mohamedu Risvi 4,582,511 0.31
Seylan Bank PLC/Jayantha Dewage 4,143,182 0.28 3,166,589 0.32
Mrs. Pattini Deva Ashoka Swarna Kanthie Beruwelage 3,220,800 0.21 2,147,200 0.21
Mrs. Riffat Kassim 3,000,000 0.20 2,000,000 0.20
Kallara Wijetunga Mudiyansalage Sardatissa 2,602,651 0.17 1,500,000 0.15
Nandadeva Perera 2,539,486 0.17 4,000,000 0.40
Gajath Chrysantha Goonetilleke 2,500,000 0.17 1,650,000 0.16
Mohamed Hussain Mohamed Nazeer 2,410,174 0.16 1,445,000 0.14
Mrs. Nabeela Haroon 2,250,000 0.15 1,500,000 0.15
Waldock Mackenzie Ltd./M.I. Samsudeen 2,244,202 0.15 41,975 0.00
Mubasher Financial Services Bsc 1,901,848 0.13 2,928,712 0.29
1,348,951,561 89.93 875,129,991 87.51
155 Share Information
3. Investor Ratios
Group Company
2015 2014 2015 2014

Rs. Rs. Rs. Rs.
Earnings/(Loss) per Share (0.20) 0.07 0.18 0.06

Dividend per Share
Net Assets per Share 0.87 1.19 1.13 1.04
4. Market Value of Shares

2015 2014
Rs. Mn Rs. Mn
Highest Value 1.80 2.10

Lowest Value 1.20 1.20
Year-end Value 1.50 1.80
156
TEN YEAR SUMMARY

Group
31.12.2015 31.12.2014 31.12.2013 31.12.2012 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Statement of Income for the Year ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000
Gross Written Contribution (Premium) 3,237,609 2,652,008 2,373,301 2,153,770 1,613,979 1,173,348 1,160,895 1,023,864 808,999 679,961
Net Earned Contribution (Premium) 2,511,374 2,081,401 1,964,884 1,618,797 1,253,696 945,650 817,128 746,567 512,058 400,143
Income from Investments and
Other Income 240,612 302,752 184,024 204,744 80,866 69,896 47,732 64,275 48,202 30,015
Net Claims Incurred (1,337,090) (895,861) (929,340) (778,767) (652,614) (517,552) (476,266) (378,319) (345,858) (186,340)
Net Commission Incurred (226,904) (187,263) (130,096) (84,304) (65,589) (20,691) (34,036) (23,384) (5,754) 14,474
Expenses (976,552) (867,768) (757,034) (686,400) (555,622) (437,392) (345,744) (397,479) (300,845) (207,180)
(Long-Term Insurance) Fund (482,827) (346,831) (221,141) (167,048) (131,213) (75,283) (60,820) (60,818) (60,881) (38,532)
Prot/(Loss) before Taxation 271,387 86,429 111,298 107,022 (70,476) (35,372) (52,005) (49,157) (153,077) 12,581
Income Tax Expenses (9,113) 16,582 46,560 (16,689) (918) (1,060)
Net Prot/(Loss) for the Year (280,500) 103,011 157,857 90,333 (71,394) (35,372) (52,005) (49,157) (153,077) 11,521
Basic Earnings/(Loss) per Share (Rs.) (0.20) 0.07 0.13 0.06 (0.09) (0.05) (0.10) (0.98) (3.27) 0.92
157 Ten Year Summary
General Insurance Business

31.12.2015 31.12.2014 31.12.2013 31.12.2012 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Statement of Income for the Year ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000
Gross Written Contribution (Premium) 2,309,315 1,972,979 1,830,315 1,789,011 1,296,082 933,192 953,798 835,188 678,013 589,067
Net Earned Contribution (Premium) 1,603,309 1,416,151 1,426,921 1,261,846 942,842 713,535 614,051 559,563 394,132 316,365
Other Income 110,409 165,763 118,458 170,769 71,615 46,610 31,683 51,341 32,559 15,541
Net Claims Incurred (1,129,518) (734,623) (749,794) (698,422) (569,253) (446,969) (406,636) (326,946) (311,620) (160,379)
Net Commission Incurred (129,582) (113,552) (82,355) (67,852) (45,946) (637) (15,962) (1,295) 4,882 25,856
Expenses (744,069) (647,310) (594,987) (559,319) (469,734) (347,911) (275,141) (331,822) (273,029) (184,802)
Prot/(Loss) before Taxation (289,451) 86,429 118,243 107,022 (70,476) (35,372) (52,005) (49,157) (153,077) 12,581
Long-Term Insurance Business

Statement of Income for the
Year Ended
Gross Written Contribution (Premium) 928,294 679,029 542,986 364,759 317,897 240,156 207,097 188,676 130,986 90,894
Net Earned Contribution (Premium) 908,064 665,250 537,963 356,951 310,854 232,115 203,077 187,005 117,926 83,778
Other Income 130,203 136,988 65,566 33,975 9,251 23,286 16,049 12,934 15,643 14,475
Net Claims Incurred (207,572) (161,238) (179,545) (80,345) (83,361) (70,583) (69,630) (51,374) (34,237) (25,960)
Net Commission Incurred (97,322) (73,711) (47,741) (16,452) (19,643) (20,054) (18,074) (22,089) (10,636) (11,382)
Expenses (232,484) (220,458) (162,046) (127,081) (85,888) (89,481) (70,603) (65,658) (27,816) (22,379)
(Long-Term Insurance) Fund (482,827) (346,831) (221,141) (167,048) (131,213) (75,283) (60,820) (60,818) (60,881) (38,532)
Prot/(Loss) before Taxation 18,064 (6,945)
Ten Year Summary
158
Group
31.12.2015 31.12.2014 31.12.2013 31.12.2012 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Statement of Financial Position as at Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000 Rs. 000
Assets
Financial Assets 2,448,385 1,754,470 1,655,539 1,877,583 993,838 809,489
Investments 73,500 101,800 173,531 184,105 750,946 88,853 573,210 621,147 503,477 161,509
Financial Assets Unit Linked 1,054,183 603,171 351,189 124,446 90,697
Intangible Assets 24,703 24,159 29,002 29,199 40,365 25,681 28,692 30,307 15,077 4,775
Property, Plant & Equipment 123,231 127,570 96,720 83,385 39,654 49,610 56,534 55,199 57,498 38,469
Other Assets 937,383 1,000,999 916,957 532,335 578,647 525,610 568,858 351,377 340,834 411,271
Other Assets Unit Linked 84,611 130,239 38,810 17,401 7,372
Total Assets 4,745,995 3,742,407 3,261,750 2,848,454 2,501,519 1,499,243 1,227,294 1,058,030 916,886 616,024
Liabilities
Insurance Provision Non-Life
(General Takaful Fund) 742,618 625,154 698,682 597,736 454,936 374,619 346,430 203,274 177,297 127,730
Insurance Provision Long-Term
(Family Takaful Fund) 574,711 551,211 550,220 577,899 494,321 413,141 335,186 274,364 213,225 152,003
Insurance Provision Long-Term
(Family Takaful Fund)
Unit Linked 1,191,795 730,799 380,958 138,447 50,364
Other Liabilities 687,939 443,988 329,820 433,522 550,861 543,217 357,060 361,539 259,657 291,507
Other Liabilities - Unit Linked 39,437 20,116 9,042 2,985 2,176
Total Liabilities 3,236,500 2,371,268 1,968,722 1,750,589 1,552,658 1,330,977 1,038,676 839,177 650,179 571,240
Shareholders Equity
Equity Attributable to
Equity Holders of the Parent
Stated Capital 1,650,001 1,250,001 1,250,001 1,250,001 1,250,001 500,000 500,000 500,000 500,000 125,000
Other Reserves 80,105 65,949 30,128 30,140 14,711 17,505 20,648
Accumulated Prot/(Loss) (426,506) (121,500) (142,051) (324,619) (417,740) (367,112) (334,280) (282,264) (233,293) (80,216)
1,303,601 1,194,450 1,138,078 955,522 846,971 150,393 186,368 217,736 266,707 44,784
Minority Interest 205,894 176,689 154,951 142,343 101,889 17,873 2,250 1,117
Total Equity 1,509,494 1,371,139 1,293,028 1,097,865 948,861 168,266 188,618 218,853 266,707 44,784
Total Equity and Liabilities 4,745,995 3,742,407 3,261,750 2,848,454 2,501,519 1,499,243 1,227,294 1,058,030 916,886 616,024
159 Ten Year Summary
Amna Takaful Life Ltd./Long-Term (Family Takaful) Insurance Business

31.12.2015 31.12.2014 31.12.2013 31.12.2012 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Statement of Financial Position as at Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000
Assets
Financial Assets 1,089,313 590,099 506,956 539,756 328,486 424,414
Investments 43,683 71,908 73,463 161,666 50,750 327,066 273,439 182,860 88,552
Financial Assets Unit Linked 1,054,183 603,171 351,189 124,446 90,697
Intangible Assets 18,408 21,977 23,744 8,490 202
Property, Plant & Equipment 14,932 1,744 4,734 7,723
Other Assets 84,611 64,612 37,992 43,936 27,420 10,913 18,400 11,951 40,180 79,275
Other Assets Unit Linked 142,504 130,239 38,810 17,401 7,372
Total Assets 2,403,951 1,431,804 1,006,855 799,002 615,641 486,077 369,187 313,868 239,253 168,029
Liabilities
Family Takaful Fund Balance
(Insurance Provision
Long-Term) 574,711 551,211 550,220 577,899 494,321 413,141 335,186 274,364 213,225 152,003
Family Takaful Fund (Insurance
Provision Long-Term) 1,191,795 730,799 380,958 138,447 50,364
Other Liabilities 82,414 129,678 66,636 79,171 23,251 72,936 34,001 39,504 26,028 16,026
Other Liabilities Unit Linked 39,437 20,116 9,042 3,485 47,705
Total Liabilities 1,888,357 1,431,804 1,006,855 799,002 615,641 486,077 369,187 313,868 239,253 168,029
Shareholders Equity
Equity Attributable to Equity
Holders of the Parent
Stated Capital 500,000
Other Reserves 2,169
Accumulated Prot/(Loss) 13,424
Total Equity 515,594
Total Equity and Liabilities 2,403,951 1,431,804 1,006,855 799,002 615,641 486,077 369,187 313,868 239,253 168,029
160
BRANCH NETWORK
Head Ofce Kaduruwela Muttur Ratnapura
No. 660 - 1/1, Galle Road, No. 379 A, Main Street, No. 05, Main Street, Muttur. No. 310/1, Main Street,
Colombo 03. Kaduruwela. (T) - +94 26 750 1150 Kudugalwatta, Ratnapura.
(T) - +94 11 750 1000 (General) (T) - +94 27 750 1120 (T) - +94 45 750 1100
(F) - +94 11 259 7429 (General) Negombo
(E) - info@takaful.lk Kalmunai No. 121 1/1, St. Josephs Street, Trincomalee
(W) - www.takaful.lk Negombo. No. 71, Thirugnanasambanthar
No. 32, Mallika Building,
Main Street, Kalmunai. (T) - +94 31 750 1121 Street, Trincomalee.
Akkaraipattu (T) - +94 26 750 1100
(T) - +94 67 750 1116
No. 77, Main Street, Pettah
Akkaraipattu. Kalpitiya No. 51-53, 1st Floor, Vavuniya
(T) - +94 67 750 1100 Bankshall Street, Colombo 11. No. 6/80, 1st Cross Street,
No. 208, Main Street, Kalpitiya.
(T) - +94 32 750 1100 (T) - +94 11 750 1212 Vavuniya.
Akurana (T) - +94 24 750 1100
No. 207/B, Matale Road, Kalutara Puttalam
Akurana. No. 161, Main Street, No. 47, Mannar Road,
(T) - +94 81 750 1150 Kalutara South, Kalutara. Puttalam.
(T) - +94 34 750 1132 (T) - +94 32 750 1124
Anuradhapura
No. 81, Bank Site, Kandy
Anuradhapura. No. 111-1/1, Kotugodella Jaffna
(T) - +94 25 750 1103 Street, Kandy.
(T) - +94 81 750 1100
Batticaloa
No. 23, Bar Street, Batticaloa. Kattankudy
(T) - +94 65 750 1100 No. 287, Main Street,
Kattankudy.
Dehiwala (T) - +94 65 750 1118
No. 142, Galle Road, Dehiwala. Vavuniya
(T) - +94 11 750 1275 Kinniya
Kinniya Trincomalee
No. 124, Main Street, Kinniya.
Galle (T) - +94 26 750 1115 Muttur
Anuradhapura
No. 41, Sri Devamittha
Mawatha, China Garden, Galle. Kurunegala Kalpitiya
Kaduruwela
(T) - +94 91 750 1128 No. 7, South Circular Road, Puttalam
Kurunegala.
Gampola (T) - +94 37 750 1110 Batticaloa
No. 134/A, Kandy Road, Kattankudi
Gampola. Matale Kurunegala
(T) - +94 81 750 1104 Matale Kalmunai
No. 106, King's Street, Matale. Akurana
(T) - +94 66 750 1101 Negombo Kandy
Hambantota Mawanella Gampola Akkaraipattu
No. 104, Tissa Road, Matara Pettah Head Ofce
Hambantota. No. 36/1, St. Thomas
(T) - +94 47 750 1100 Mawatha, Matara. Dehiwala
(T) - +94 41 750 1130 Kalutara Ratnapura
Jaffna
No. 249/1, 1st Floor, Mawanella
Power House Road, Jaffna. No. 207, New Kandy Road, Hambantota
(T) - +94 21 750 1100 Mawanella. Galle
(T) - +94 35 750 1107 Matara
161
GLOSSARY
Acquisition Expenses General Takaful (Insurance) General Insurance Business (General Takaful)
All expenses which vary with and are primarily related to the Insurance business falling within the classes of insurance
acquisition of the new insurance contracts and the renewal of specied as General Insurance Business, under the Regulation
existing insurance contracts. of Insurance Industry Act No. 43 of 2000.
Acquisition Expenses Family Takaful (Life) Ijara (Leasing)

All expenses which vary with and are primarily related to the A contract under which, the Bank buys and leases out
acquisition of new insurance contracts. equipment required by its client for a rental fee. The duration of
the lease and rental fees are agreed in advance. Ownership of
the equipment remains with the Bank and only the usufruct is
Actuary transferred to the client. The client is gifted the item at the end
An expert concerned with the application of probability of the lease period, based on a separate understanding taken
and statistical theory to problems of insurance, investment, by the Bank to gift the asset subject to certain conditions.
nancial management and demography.
Insurance Provision Family Takaful (Long-Term)

Claims The fund or funds to be maintained by an insurer in respect
The amount payable under a contract of insurance arising of its Long-Term Insurance Business in accordance with the
from the occurrence of an insured event, such as, the Regulation of Insurance Industry Act No. 43 of 2000.
destruction or damage of property and related death or
injuries, the incurring of hospital or medical bills, death or
Insurance Provision General Takaful (Insurance)
disability of the insured, the maturity of an endowment policy
and the amount payable on the surrender of a policy. This includes net unearned premium, provisions for unexpired
risks, outstanding claims reserve and IBNR reserve.
Claims Incurred
Life Insurance Business (Family Takaful)
The aggregate of all claims paid during the accounting period
together with attributable claims handling expenses, where Insurance business falling within the classes of insurance
appropriate, adjusted by the claims outstanding provisions at specied as Long-Term Insurance, under the Regulation of
the beginning and the end of the accounting period. Insurance Act No. 43 of 2000.
Claims Incurred But Not Reported (IBNR) Mudharaba
A reserve to cover the expected cost of losses that have This is an agreement made between two parties. The Investor,
occurred by the Balance Sheet date but have not yet been who provides 100% of the capital for the project and the
reported to the insurer. Mudharib manages the entire project, using his entrepreneurial
skills. The Investor has no control over the management of
the project. Prots arising from the project are distributed
Claim Outstanding General Takaful (Insurance) Business according to a predetermined ratio. Losses are borne by the
The amount provided to cover the estimated ultimate cost of provider of the capital.
settling claims arising out of events which have occurred by the
Balance Sheet date including claims handling expenses, less
Net Earned Premium
amounts already paid in respect of those claims.
Gross written premium adjusted for the reinsurance incurred
and for the increase or decrease in unearned premium.
Commissions
A payment made to intermediaries in return for selling and
Premium (Contribution)
servicing an insurers products.
The consideration payable by the insured for an insurance
contract.
Earned Premium
Written premium adjusted by the unearned premium provisions
Retakaful (Reinsurance)
at the beginning and the end of the accounting period.
Transfer of all or part of the risk assumed by an insurer under
one or more insurance to another insurer, called the Reinsurer.
Glossary
162
Shariah Surrender
Is the code of law for the Islamic way of life which has been The act of cancelling of an insurance contract before it reaches
derived from the Quran and the Sunnah (The Practice of the its date of maturity.
Holy Prophet Muhammad Peace be upon him).
Takaful
Shariah Advisory Council (SAC) Is an Arabic word, which means guaranteeing each other. It is
This comprising Shariah Scholars or/and well versed a system of risk management based on the principle of mutual
personnel in Shariah, which ensures Shariah compliance in assistance (TA-AWUN) and contributions (Tabarru) where the
the operations of the Company. The SAC advises the Company risk is shared collectively by the group voluntarily.
on all Shariah matters in its business activities and involves
in endorsing and validating relevant documentation, such as
Underwriting
products manuals, policy terms and conditions, marketing
The process of selecting which risks an insurance company can
materials, sales illustrations, etc.
cover and deciding the premium and terms of acceptance.
Solvency Margin Family Takaful (Life)

Unearned Premium/Unearned Premium Reserve
The difference between the value of assets and the value of
It represents the portion of premium already entered in
liabilities, required to be maintained by the insurer who carries
the accounts as due but which relates to a period of risk
on Long-Term insurance business, determined as per Solvency
subsequent to the Balance Sheet date.
Margin (Long-Term Insurance) Rules, 2002.
Written Premium
Solvency Margin General Takaful (Insurance)
Total premium received or due from all insurance contracts
The difference between the value of the assets and the value
during a period.
of the liabilities required to be maintained by the insurer who
carries on general insurance business as per Solvency Margin
(General Insurance) Rules, 2004.
163
NOTICE OF MEETING
NOTICE IS HEREBY GIVEN that the Seventeenth Annual General 4. Appointment of new Directors in terms of Article 90 of the
Meeting of Amna Takaful PLC will be held on 18th May 2016 at Articles of Association of the Company
9.30 a.m. at the Committee Room B, Bandaranaike Memorial a. Mohamed Rizwan Mohamed Nayeem who has been
International Conference Hall (BMICH), Baudhaloka Mawatha, appointed to the Board since the last Annual General
Colombo 7, for the following purposes: Meeting being eligible, offers himself for re-election
1. To receive and consider the Annual Report of the Board of as a Director.
Directors on the affairs of the Company for the year ended b. Mohamed Hassan Sattar Kassim who has been
31st December 2015 and the Report of the Auditors thereon. appointed to the Board since the last Annual General
2. Re-election of Directors by Rotation in terms of Article 83 of Meeting being eligible, offers himself for re-election
the Articles of Association of the Company as a Director.
a. To re-elect Dr. Aboobacker Admani Mohamed Haroon as
a Director of the Company, who retires as per Article 83 5. To reappoint the retiring Auditors, M/s. Ernst & Young,
of the Articles of Association of the Company and being Chartered Accountants for the ensuing year and to authorise
eligible, offers himself for re-election as a Director. the Directors to determine their remuneration.
3. Re-election of Directors in terms of Section 211 of the By Order of the Board,

Companies Act No. 07 of 2007 Amna Takaful PLC
z To re-elect Dr. Ifthikarudeen Ahamed Ismail and the following
resolution to be passed for this purpose, if thought t:
IT IS HEREBY RESOLVED: To re-elect Dr. Ifthikarudeen Ahamed

Ismail who is 78 years of age as a Director in terms of Section Managers & Secretaries (Pvt) Ltd.
211 of the Companies Act No. 07 of 2007 and it is specically Secretaries
declared that the age limit of 70 years referred to, in Section
210 of the Companies Act No. 7 of 2007 shall not apply to the 22nd April 2016
said Dr. Ahamed.
z To re-elect M.H.M. Raq and the following resolution to be
passed for this purpose, if thought t. Notes:
1. A member entitled to attend and vote at the above meeting
IT IS HEREBY RESOLVED: To re-elect M.H.M. Raq who is 70 is entitled to appoint a proxy to attend and vote in his/her
years of age as a Director in terms of Section 211 of the behalf. A proxy need not be a member of the Company.
Companies Act No. 07 of 2007 and it is specically declared
2. A Form of Proxy is enclosed for this purpose.
that the age limit of 70 years referred to, in Section 210 of the
Companies Act No. 07 of 2007 shall not apply to the said 3. The instrument appointing a proxy must be completed
and deposited at the Registered Ofce of the Company,
M.H.M. Raq.
No. 660, 1/1, Galle Road, Colombo 3, not less than forty-eight
z To re-elect Dato Mohd. Fadzli Yusof and the following hours prior to the time appointed for holding the meeting.
resolution to be passed for this purpose, if thought t.
IT IS HEREBY RESOLVED: To re-elect Dato Mohd. Fadzli Yusof

who is 71 years of age as a Director in terms of Section 211
of the Companies Act No. 07 of 2007 and it is specically
declared that the age limit of 70 years referred to, in Section
210 of the Companies Act No. 07 of 2007 shall not apply to the
said Dato Mohd. Fadzli Yusof.
164
NOTES
165 Notes
Notes
166
FORM OF PROXY
I/We the undersigned ..........................................................................................................................................................................................................................
bearing NIC No. ......................................................................................., of ........................................................................................................................................
......................................................................................................................................................................................................................................................................
being a member/members of Amna Takaful PLC, hereby appoint ......................................................................................................................................
..................................................................................................................................... of ...........................................................................................................................
............................................................................................................................................................................................. or failing him,
Tyeab Akbarally of Colombo or failing him
Osman Kassim of Colombo or failing him
Dato Mohd. Fadzli Yusof of Malaysia or failing him
Dr. A.A.M. Haroon of Colombo or failing him
M.H.M. Raq of Colombo or failing him
M. Ehsan Zaheed of Colombo or failing him
A.S.M. Muzzammil of Colombo or failing him
Dr. I.A. Ismail of Colombo or failing him
R. Gopinath of Colombo
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 18th May
2016 at 9.30 a.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 ... 2016.
Signature
INSTRUCTIONS AS TO COMPLETION
1. 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 afxed and attested in the
manner prescribed by its Articles of Association.
2. The full name and address of the proxyholder and of the shareholder appointing the proxyholder should be entered legibly in the
Form of Proxy.
3. The duly completed Form of Proxy must be deposited at the Registered Ofce of the Company at No. 660 1/1, Galle Road,
Colombo 3, not later than 48 hours prior to the time appointed for the holding of the meeting.
4. In the case of a proxy signed by an Attorney, the relevant Power-of-Attorney or a certied copy thereof should also accompany the
completed Form of Proxy and must be deposited at the Registered Ofce of the Company.
CORPORATE INFORMATION
Name of The Company Auditors

Amna Takaful PLC Ernst & Young
Chartered Accountants
Legal Status
Public quoted company with limited liability incorporated Consultant Actuaries General Insurance
in Sri Lanka on 7th December 1998. Registered under the NMG Financial Services Consulting Pte Ltd.
Companies Act No. 07 of 2007 on 27th June 2007. 65 Chulia Street
#37-07/08, OCBC Centre
Company Registration Number Singapore 049513
PQ 23
Consultant Actuaries Long-Term Insurance
Tax Payer Identification Number (TIN) Actuarial Partners Consulting Sdn. Bhd.
Suite 17.02 Kenanga International
134007958
Jalan Sultan Ismail 50250
Kuala Lumpur, Malaysia
Stock Exchange Listing
The shares of the Company are listed in the Second Board of Reinsurance Panel
the Colombo Stock Exchange, Sri Lanka on 27th November 2006.
Swiss Re
Stock Exchange Code for Amna Takaful PLC shares is ATL.
Emirates Re
GIC Retakaful
Directors Labuan Reinsurance (L) Ltd.
Tyeab Akbarally Chairman Trust International Bahrain
Osman Kassim Ironshore
M.H.M. Rafiq SCOR Re
Dato Mohd Fadzli Yusof Hannover Re
Dr. A.A.M. Haroon
Ehsan Zaheed Secretaries
A.S.M. Muzzammil
Managers & Secretaries (Pvt) Ltd.
Dr. I.A. Ismail
R. Gopinath
Principal Bankers
Shariah Advisory Council Amna Bank PLC/Pan Asia Bank/NDB Bank/Bank of Ceylon
Commercial Bank/Sampath Bank/HNB Bank/Nations Trust
Mufti M.I.M. Rizwe Chairman
Bank/Deutsche Bank
Ash-Sheikh Fazil Farook
Ash-Sheikh Murshid Mulaffar Secretary
Chief Executive Officer Amna Takaful PLC

M. Fazal Ghaffoor
Chief Executive Officer Amna Takaful Life Ltd.

A. Reyaz Jeffrey
Registered Office
No. 660 1/1, Galle Road, Colombo 03, Sri Lanka
Subsidiaries
No. 660 1/1, Galle Road, Colombo 03, Sri Lanka
Amna Global Ltd.
No. 6, Glen Aber Place, Colombo 04, Sri Lanka
Amna Takaful (Maldives) PLC
3rd Floor, H. Mialani, Sosun Magu, Male, Republic of Maldives
a
$PDQD7DNDIXO,QVXUDQFH
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Amana Takaful PLC 2015

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1JPOFFSJOH4QJSJU

OUR VISION OUR VALUES

Group Value Added Statement 153

2015 2014 Growth

Life (Family) Takaful

698 750 928

2011 2012 2013 2014 2015

General Takaful General Takaful Family Takaful Family Takaful

GROUP CHAIRMANS STATEMENT

TOTAL GROSS WRITTEN PREMIUM

I am pleased to welcome all our shareholders to the Annual

added impetus. Each of the Group companies individually contributed positively

Business Results to explore creative solutions within the Shariah compliant

22nd April 2016

CHIEF EXECUTIVE OFFICERS REVIEW

GROSS WRITTEN PREMIUM

Peace be Upon You All.

Productivity improvements through cost containment, energy

MESSAGE FROM THE HEAD OF AMNA TAKAFUL LIFE LTD.

GROSS WRITTEN PREMIUM

I consider it a privilege to present the business review

eld talent continues to independent operations.

enhance penetration as well Revenue

ATLL will also commence Bancassurance with Amna

A performance-driven ethos is now well entrenched in the 22nd April 2016

01 Tyeab Akbarally 04 Dato Mohd Fadzli Yusof

Association of Sri Lanka and the Seafood Exporters Association

He has served as Principal of Zahira College, Colombo, CEO

M. Fazal Ghaffoor A. Reyaz Jeffrey Zaid Ibnu Aboobucker

Adel Hashim M. Fawas Farook M. Farhan Jabir

M.S.M. Iqbal Rinaz Niyas A.H.M. Dilshad

Business Operations Management (BOM) and Other Corporate Management

M.Z.M. Nazim Kester Amarasinghe Rizvan Ahamed

Nalin Sakalasooriya Shamail Annam Azmy Saly

M.G.M. Ansari A.L.M. Inamulla Roshan Ranasinghe

Sumedha Mirihana Rushdi Zarook Dr. Yusry Mohideen

Shahul Hameed Farook Thilak Nishantha Ahmed Ajfar

M.H. Mohamed Aslam Shaheer Rasooldeen Manesha Marambe

U.G. Janaka Wijayakumara M.N. Ashique Mohammad Omar Mustafa

Thasleen Ammon M.F.M. Hismy M. Jibrath

Amna Takaful Life Ltd.

N. Shahnaz Deen Shaul Hameed Asif Nimalika Sooriyaarachchi M. Sathik Niyas

W. Sawan Rangana Rodrigo R. Priyanthi Newmen Sabeeh Feisal

MANAGEMENT DISCUSSION AND ANALYSIS

The Company Amna Takaful Life Ltd. (ATLL)

The ownership of ATM was transferred from AGL to ATPLC as

Amna Global Ltd. (AGL)

Porters 5 Force Analysis

Management Discussion and Analysis

Ination remained at single digit levels for the seventh

Management Discussion and Analysis

ATLL 928.29 679.03 36.7

ATPLCs strategic plan to shift the portfolio mix to a 60:40 ratio

700 1,400 General Business Growth Analysis 2014-2015

Marine 39.69 36.02 10.2

Hull 66.35 31.49 110.7

Engineering 38.04 32.18 18.2

Miscellaneous 47.37 43.91 7.9

Medical 182.96 157.51 16.2

Total 1,547.45 1,376.25 12.4

FAMILY TAKAFUL GWP FAMILY TAKAFUL FUND

ATLL Fund Movement Investment Income

200 Depreciation 30.10 26.60 13.2

Consultancy Fees 29.13 21.89 33.1

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