| THE PREMIER INSURANCE COMPANY OF PAKISTAN
LTD. |
|
|
|
|
|
|
|
| Report
and Accounts 1997 |
|
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|
|
| BOARD
OF DIRECTORS |
|
|
|
| Chairman |
|
| Zahid Bashir Esq |
|
|
| Directors |
|
|
| Maqbul
Ahmad Esq |
|
| Shamim
Anwar Esq |
|
| Mohammad
Javed Amin Esq |
|
| Shaukat
Shafi Esq |
|
| Mian
Khurram Mazhar Esq |
|
| M. Talib Ali Esq |
|
|
|
| The
Premier Insurance Company of Pakistan Limited |
|
|
| Chief
General Manager |
|
| Mr.
A. U. Siddiqui |
|
|
| General
Manager |
|
| Mr.
N. A. Qureshi |
|
|
| Dy.
General Manager |
|
| Mrs. N. K. Hasan |
|
| M.B.E.,
L.L. B., F.C.I.I. (London) |
|
| A.I.
Arb., M. Inst. A.M. (U.K.) |
|
|
| Attorneys |
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| Mr. S. Zahid Ali |
|
|
| Mr.
Mumtaz H. Khan |
|
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| Asstt.
General Managers |
|
|
| Mr. Fazlur Rehman |
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| Mr. M. Ishaque Azim |
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| Mr.
Afzal-ur-Rahman |
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| Mr. M. K. Baig |
|
|
| Mr.
Latif A. Bhatti |
|
|
|
| Chief
Accountant and |
|
| Secretary |
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| Mr. B. I. Zanjani |
|
|
| Auditors |
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| Messrs
Mushtaq and Company |
|
| Chartered
Accountants |
|
|
| Registered
& Head Office |
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| P.O.
Box No. 4140, Wallace Road, |
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| Karachi-74000,
Pakistan |
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| Phones
:2416331-3 (PABX) |
|
| Cable:
"PRINSCOP" Karachi |
|
| Telex:
21630 "PRINS" PK |
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| Fax:
(92-21) 2416572 |
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|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the 46th Annual General Meeting of the Company will be
held at Raffia Choudri Memorial Centre (ground |
|
| floor),
Sidco Avenue Centre, Stratchen Road, 264 R.A. Lines, Karachi, on Monday the
22rid June, 1998 at 11:00 a.m. to transact |
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| the
following business: |
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| A)
ORDINARY BUSINESS: |
|
|
| 1.
To confirm the Minutes of the last Annual General Meeting held on the 25th
June, 1997; |
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|
|
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| 2.
To receive, consider and approve the audited Balance Sheet and Revenue and
Profit & Loss Accounts for the year ended |
|
| 31st
December, 1997 and the Directors' and Auditors' Reports thereon; |
|
|
| 3.
To approve Cash Dividend @ 22.5% as recommended by the Board of Directors; |
|
|
| 4.
To appoint auditors for the year 1998 and fix their remuneration; |
|
|
| 5.
To transact any other business with the permission of the Chair; |
|
|
| B)
SPECIAL BUSINESS: |
|
|
| 6.
To consider and pass with or without amendment the following resolution as
Special Resolution; |
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|
| "RESOLVED
BY WAY OF SPECIAL RESOLUTION THAT THE EXISTING ARTICLE NO. 77 OF ARTICLES OF |
|
| ASSOCIATION
OF THE COMPANY BE AND IS HEREBY SUBSTITUTED BY THE FOLLOWING WORDINGS: |
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|
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| 77.
Remuneration of Directors: |
|
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| The
remuneration to be paid to any Director other than the regularly paid Chief
Executive and full time working director(s) |
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| for
attending the meeting of the Directors or a Committee of Directors shall from
time to time be determined by the Board |
|
| of
Directors in accordance with law." |
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|
By Order of the Board |
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|
B.I. ZANJANI |
|
| Karachi,
21st May, 1998 |
|
Secretary |
|
|
| N.B.
I) The Share Transfer Book of the Company will remain closed from 20th June
to 4th July 1998 (both days inclusive). |
|
|
| ii)
Transfers received at the Company's Registered Office before the close of
business on 19th June, 1998 will, if in order, |
|
| be
registered in time for the transferees to receive dividend. |
|
|
| iii)
A member entitled to attend and vote at the Annual General Meeting is
entitled to appoint a Proxy who must be a member |
|
| of
the Company to attend and vote on his behalf under the Articles of
Association of the Company. |
|
|
|
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| iv)
The instrument appointing a proxy must be deposited at the Registered Office
of the Company atleast 48 hours before |
|
| the
time of the meeting. |
|
|
| v)
Shareholders, who are not liable to pay Zakat at source, are requested to
send necessary affidavits for exemption as |
|
| prescribed
under Zakat and Ushr Ordinance 1980 by 19th June, 1998, if not already sent. |
|
|
| vi)
Shareholders are requested to bring Entry Card, duly filled in, and deliver
it to the Incharge Shares Department before |
|
| participating
in the meeting. |
|
|
| Statement
under Section 160 of the Companies Ordinance, 1984, |
|
| regarding
the Special Business (Item No. 6 of the Notice) |
|
|
| In
term of Article No. 77 of the Articles of Association of the Company the
Sitting Fee of Directors for attending the meetings is Rs. |
|
| 500/-
only which is to be enhanced to a respectable amount, as proposed by the
Directors in the Board Meeting of 27th August, 1997 |
|
| to
put this as a Special Resolution for approval before the forthcoming General
Meeting. |
|
|
| The
Directors of the Company are interested in this business only to the extent
of enhancement of sitting fee. |
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|
|
| REPORT
OF THE DIRECTORS TO SHAREHOLDERS |
|
|
| Your
Directors have pleasure in presenting the 46th Annual Report together with
audited Fire, Marine and Motor & |
|
| Miscellaneous
Revenue Accounts, Profit & Loss Account for the year ended 31 st
December, 1997 and the Balance Sheet |
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| as
at 31st December, 1997. |
|
|
| REVENUE
ACCOUNTS |
|
|
| Fire
and Marine Departments have produced profits, and it can reasonably be
expected that this trend will continue for better. Motor |
|
| Vehicle
business which forms part of Miscellaneous Revenue Account has shown heavy
losses due to total losses/partial losses |
|
| by
accident, let alone robbery and theft so commonly practiced in the local
market. Nevertheless, it is hoped that the situation will |
|
| improve
with passage of time depending on law and order situation. |
|
|
| PROFIT
& LOSS ACCOUNT |
|
|
| The
net underwriting profit in respect of all the three Revenue Accounts comes to
Rs. 40,623,473. Income from other sources such |
|
| as
Interest and Dividends and Sale of Assets and Capital Gain on Investment
amounted to Rs. 17,535,811. After meeting expenses |
|
| not
applicable to any particular account, Bonus to Staff, Gratuity to Staff and
after making adequate provisions for Depreciation, |
|
| Income
Tax and other charges and bringing forward the balance from last year a sum
of Rs. 56,549,134 is available for appropriation. |
|
|
| Your
Directors recommended the following appropriation: |
|
|
| General Reserve |
|
|
Rs. 10,000,000 |
|
| Proposed
Dividend |
|
|
Rs. 18,822,375 |
|
| Balance
carried forward to Balance Sheet |
|
Rs. 27,726,759 |
|
|
|
|
| DIVIDEND |
|
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| Your
Directors recommend that a Dividend at 22.5% be declared for the year ended
31st December, 1997. |
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| PERSONNEL |
|
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| Your
Directors also wish to place on record their appreciation of the loyal and
devoted services rendered by Officers, Field Force |
|
| and
Staff of the Company. |
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|
|
|
| AUDITORS'
REPORT TO THE SHAREHOLDERS |
|
|
| We
have audited the annexed balance sheet of M/s. THE PREMIER INSURANCE COMPANY
OF PAKISTAN LIMITED as at |
|
| December
31,1997 and the annexed Fire, Marine and Motor and Miscellaneous Insurance
Revenue Accounts. The Profit and Loss |
|
| Account
and the Profit and Loss Appropriation Account and the Statement of changes in
financial position (cash flow statement) |
|
| together
with the notes forming part thereof for the year then ended and we state that
we have obtained all the information and |
|
| explanations
which to the best of our knowledge and belief were necessary for the purpose
of the audit and, after due verification |
|
| thereof,
we report that: |
|
|
| (a)
In our opinion, proper books of account have been kept by the Company as
required by the Companies Ordinance, 1984; |
|
|
| (b)
In our opinion: |
|
|
| (i)
the Balance Sheet, Revenue Accounts, Profit and Loss Account and the Profit
and Loss Appropriation Account |
|
| together
with the notes thereon have been drawn up in conformity with the Companies
Ordinance, 1984 and |
|
| Insurance
Law and are in agreement with the books of account and are further in
accordance with accounting policies |
|
| consistently
applied; |
|
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's
business; and |
|
|
|
|
| (iii)
the business conducted, Investments made and the expenditure incurred during
the year were in accordance |
|
| with
the objects of the Company; |
|
|
|
|
|
| (c)
In our opinion and to the best of our information and according to the
explanations given to us Fire, Marine and |
|
| Motor
and Miscellaneous Revenue accounts, the Balance Sheet, Profit and Loss
Account and Statement of Changes |
|
| in
financial position (cash flow statement), together with the notes forming
part thereof, give the information required |
|
| by
the Companies Ordinance, 1984 and Insurance Law in the manner so required and
respectively give a true and |
|
| fair
view of the state of the company's affairs as at December 31, 1997 and of the
profit and changes in financial |
|
| position
(cash flow statement) for the year then ended; |
|
|
| (d)
In our opinion Zakat deductible at source under the Zakat and Ushr Ordinance,
1980 was deducted by the Company |
|
| and
deposited in the Central Zakat Fund established under Section 7 of that
ordinance; |
|
|
| (e)
We have verified the Cash and Bank Balances of the Company by actual
inspection or by the production of certificates; |
|
|
| (f)
We have verified the investments by actual inspection or by the production of
certificates from the bankers or brokers |
|
| with
whom the documents were deposited except those which were awaiting transfer
in the Company's name where |
|
| all
the supporting documentation has been examined by us; |
|
|
| (g)
As per Regulation 11 of part I of the Third Schedule of the Insurance Act
1938, we certify that the Company has |
|
| not
paid to any person any commission in any form outside Pakistan in respect of
the insurance business transacted |
|
| by
the Company in Pakistan and that the Company has not received outside
Pakistan from any person any |
|
| commission
in any form in respect of any business re-insured abroad; |
|
|
| (h)
As per Section 40C (2) of the Insurance Act, 1938 read with Notes l(d), l(e)
and l(h), we certify that all expenses |
|
| of
Management wherever incurred whether directly or indirectly, and all charges
incurred in respect of Fire, Marine |
|
| and
Motor and Miscellaneous Insurance Business transacted in Pakistan, have been
fully debited to the respective |
|
| Revenue
Accounts as expenses. |
|
|
|
|
|
|
|
MUSHTAQ & COMPANY |
|
| Karachi,
21st May, 1998 |
|
Charted Accountants |
|
|
|
|
| DIRECTORS'
CERTIFICATES |
|
|
| (A)
Certificate of the Directors and Principal Officer as required under
Regulations 7 (a) and (b) of Part I of the First |
|
| Schedule
of the Insurance Act (as amended): |
|
|
|
| We certify that: |
|
|
| 1.
(a) Investments have been valued in the Balance Sheet at cost and/or at Book
Value. Market Values of Investments have |
|
| been
ascertained, wherever applicable, from published Quotations as on 31 st
December, 1997 except in cases where |
|
| market
quotations are not available have been taken at Face Value and/or at Book
Value; |
|
|
| (b)
Investment in the Shares of a concern in Bangla Desh amounted to Rs.312,115
at cost and/or at Book Value has |
|
| been
written-off as it was neither registered with any of the Stock Exchanges nor
it is being quoted or traded in Pakistan. |
|
| Thus,
it lost its value. The Government also allowed such write-off of capital
assets loss in East Pakistan. |
|
|
| 2.
The values of assets have been reviewed as at 31st December, 1997 and that in
our belief the assets set-forth in the Balance |
|
| Sheet
are shown in the aggregate at amounts not exceeding their realisable or
market value under several headings |
|
| enumerated
therein except for investments which have been valued at cost and/or at Book
Value. |
|
|
| (B)
Certificate as required under Section 40 C (2) of the Insurance Act (as
amended): |
|
| We
certify that all expenses of management wherever incurred whether directly or
indirectly in respect of Fire, Marine and Motor |
|
| &
Miscellaneous business transacted in Pakistan have been fully debited in the
respective Revenue Accounts as expenses. |
|
|
| A. U. SlDDIQUI |
|
|
ZAHID BASHIR |
|
| Chief
General Manager |
|
Chairman |
|
|
|
|
|
|
|
|
|
SHAUKAT SHAFI |
|
| Karachi,
21 st May, 1998 |
|
M. TALIB ALl |
|
|
|
|
Directors |
|
|
|
| Fire
Revenue Account for the year ended 31st December, 1997 |
|
|
|
December 31 |
December 31 |
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
|
|
|
| Claims
under Policies |
|
|
|
|
| less
Re-insurances: |
|
|
|
|
|
|
|
| Paid
during the year |
|
9,343,267 |
15,023,748 |
|
|
|
|
|
| Total
estimated liability in |
|
|
|
| respect
of outstanding claims |
|
|
|
| at
the end of the year whether |
|
|
|
| due or intimated |
|
41,545,000 |
42,342,000 |
|
|
|
-------------------- |
-------------------- |
|
|
|
|
50,888,267 |
57,365,748 |
|
|
|
|
|
| less
Outstanding at the |
|
|
|
| end
of the previous year |
|
42,342,000 |
41,387,000 |
|
|
|
-------------------- |
-------------------- |
|
|
8,546,267 |
15,978,748 |
|
|
|
|
|
| Commission |
|
(15,272,182) |
(12,911,816) |
|
|
|
|
|
| Expenses
of Management |
|
17,328,152 |
13,986,131 |
|
|
|
|
|
| Profit
transferred to |
|
|
|
| Profit
and Loss Account |
|
42,481,723 |
33,718,876 |
|
|
|
|
|
| Balance
of Account |
|
|
|
| at
the end of the year as shown |
|
|
|
| in
the Balance Sheet: |
|
|
|
|
|
|
|
| Reserve
for Unexpired Risks, |
|
|
|
| being
40% of the premium |
|
|
|
| income
of the year |
|
22,111,116 |
19,917,287 |
|
|
|
-------------------- |
-------------------- |
|
|
Total |
75,195,076 |
70,689,226 |
|
|
|
============ |
============ |
|
|
|
|
|
|
|
|
|
|
|
December 31 |
December 31 |
|
|
|
|
|
1997 |
1996 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
|
|
|
|
| Balance
of Account at the |
|
|
|
|
|
|
| beginning
of the year: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reserve
for Unexpired Risks |
|
19,917,287 |
20,896,009 |
|
|
|
|
|
|
|
|
|
|
|
| Premium
less Re-insurances |
|
55,277,789 |
49,793,217 |
|
|
|
|
|
|
|
-------------------- |
-------------------- |
|
|
|
|
Total |
75,195,076 |
70,689,226 |
|
|
|
|
============ |
============ |
|
|
|
|
|
|
|
|
|
| Auditors
Report to Shareholders |
A.U. SlDDIQUI |
|
ZAHID BASHIR |
|
| (See
annexed report of date) |
Chief General Manager |
Chairman & Chief
Executive |
|
|
| MUSHTAQ
& COMPANY |
B. I, ZANJANI |
|
SHAUKAT SHAFI |
|
| Chartered
Accountants |
Chief Accountant &
Secretary |
M. TALIB ALl |
|
|
|
|
|
Directors |
|
|
| Karachi,
21st May, 1998 |
|
|
|
| Marine
Revenue Account for the year ended 31st December, 1997 |
|
|
|
December 31 |
December31 |
|
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Claims
under Policies |
|
|
|
| less
Re-insurances: |
|
|
|
|
|
| Paid
during the year |
|
8,012,442 |
10,203,595 |
|
|
|
|
|
| Total
estimated liability in |
|
|
|
| respect
of outstanding claims |
|
|
|
| at
the end of the year whether |
|
|
|
| due or intimated |
|
10,935,000 |
11,884,000 |
|
|
|
|
-------------------- |
-------------------- |
|
|
|
|
18,947,442 |
22,087,595 |
|
|
|
|
|
|
|
| less:
Outstanding at the |
|
|
|
|
| end
of the previous year |
|
11,884,000 |
13,402,000 |
|
|
|
|
-------------------- |
-------------------- |
|
|
|
7,063,442 |
8,685,595 |
|
|
|
|
|
| Commission |
|
(3,113,317) |
(5,028,893) |
|
|
|
|
|
|
|
| Expenses
of Management |
|
5,009,868 |
5,798,868 |
|
|
|
|
|
|
|
| Profit
transferred to |
|
|
|
|
| Profit
and Loss Account |
|
8,891,463 |
9,970,703 |
|
|
|
|
|
| Balance
of Account |
|
|
|
| at
the end of the year as shown |
|
|
|
| in
the Balance Sheet: |
|
|
|
|
|
|
| Reserve
for Unexpired Risks, |
|
|
|
| being
40% of the premium |
|
|
|
| income
of the year |
|
6,393,374 |
8,261,394 |
|
|
|
|
-------------------- |
-------------------- |
|
|
|
Total |
24,244,830 |
27,687,667 |
|
|
|
|
|
============ |
============ |
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
December 31 |
|
|
|
|
|
|
1997 |
1996 |
|
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance
of Account at the |
|
|
|
|
|
|
|
| beginning
of the year: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reserve
for Unexpired Risks |
|
|
8,261,394 |
7,034,182 |
|
|
|
|
|
|
|
|
|
|
| Premium
Less Re-insurances |
|
|
15,983,436 |
20,653,485 |
|
|
|
|
|
|
-------------------- |
-------------------- |
|
|
|
|
Total |
24,244,830 |
27,687,667 |
|
|
|
|
============ |
============ |
|
|
|
|
|
|
|
|
|
|
| Auditors
Report to Shareholders |
A.U. SlDDIQUI |
|
ZAHID BASHIR |
|
| (See
annexed report of date) |
Chief General Manager |
Chairman & Chief
Executive |
|
|
| MUSHTAQ
& COMPANY |
B.I. ZANJANI |
|
SHAUKAT SHAFI |
|
| Chartered
Accountants |
Chief Accountant &
Secretary |
M. TALIB ALl |
|
|
|
|
|
Directors |
|
|
| Karachi,
21st May, 1998 |
|
|
|
| Motor
and Miscellaneous Revenue Account for the year ended 31st December, 1997 |
|
|
|
December 31 |
December 31 |
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
|
|
|
|
| Claims
under Policies |
|
|
|
|
|
| less
Re-insurances: |
|
|
|
|
|
|
|
|
|
| Paid
during the year |
|
36,598,440 |
33,329,659 |
|
|
|
|
| Total
estimated liability in |
|
|
| respect
of outstanding claims |
|
|
| at
the end of the year whether |
|
|
| due or intimated |
|
27,314,000 |
20,288,000 |
|
|
|
-------------------- |
-------------------- |
|
|
63,912,440 |
53,417,659 |
|
|
|
|
|
|
| less:
Outstanding at the |
|
|
|
|
|
| end of the previous year |
|
20,088,000 |
20,156,000 |
|
|
|
|
-------------------- |
-------------------- |
|
|
43,824,440 |
33,261,659 |
|
|
|
|
| Commission |
|
5,860,374 |
5,111,101 |
|
|
|
|
| Expenses
of Management |
|
18,129,407 |
15,703,788 |
|
|
|
|
| Profit
/ (Loss) transferred to |
|
|
| Profit
& Loss Account |
|
(10,749,713) |
3,886,686 |
|
|
|
|
|
|
| Balance
of Account |
|
|
|
|
|
| at
the end of the year as shown |
|
|
|
|
|
| in
the Balance Sheet: |
|
|
|
|
|
|
|
|
|
|
| Reserve
for Unexpired Risks, |
|
|
|
|
|
| being
40% of the premium |
|
|
|
|
|
| income
of the year |
|
23,132,578 |
22,365,642 |
|
|
|
|
-------------------- |
-------------------- |
|
|
Total |
80,197,086 |
80,328,876 |
|
|
|
============ |
============ |
|
|
|
|
|
|
|
|
|
December 31 |
December 31 |
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Balance
of Account at the |
|
|
|
|
| beginning
of the year: |
|
|
|
|
|
|
|
|
| Reserve
for Unexpired Risks |
|
|
22,365,642 |
24,414,771 |
|
|
|
|
|
| Premium
Less Re-insurances |
|
|
57,831,444 |
55,914,105 |
|
|
|
|
-------------------- |
-------------------- |
|
|
Total |
80,197,086 |
80,328,876 |
|
|
|
|
|
|
============ |
============ |
|
|
|
|
|
|
| Auditors
Report to Shareholders |
A.U. SlDDIQUI |
|
ZAHID BASHIR |
|
| (See
annexed report of date) |
Chief General Manager |
Chairman & Chief
Executive |
|
|
|
|
| MUSHTAQ
& COMPANY |
B.I. ZANJANI |
|
SHAUKAT SHAFI |
|
| Chartered
Accountants |
Chief Accountant &
Secretary |
M. TALIB ALl |
|
|
|
|
|
Directors |
|
|
|
|
| Karachi,
21st May, 1998 |
|
|
|
| Profit
and Loss Account for the year ended 31st December, 1997 |
|
|
|
December 31 |
December 31 |
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
|
|
| Expenses
of Management |
|
|
|
| (not
applicable to any |
|
|
|
| particular
Account) |
|
|
|
|
|
|
|
|
| Directors' Fee |
|
5,500 |
