| Adamjee Insurance Company Limited |
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| 38th
Annual Report |
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| for
the year ended December 31, 1998 |
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| BOARD
OF DIRECTORS |
|
MOHAMED HANIF ADAMJEE |
Chairman |
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ABDUL HAMID ADAMJEE |
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Director |
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ABDUL RAZAK ADAMJEE |
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Director |
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ABDUL GAFFAR ADAMJEE |
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Director |
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IQBAL ADAMJEE |
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Director |
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I.A. RAFIQUI |
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Director |
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MOHAMMED CHOUDHURY |
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Managing Director & |
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Chief Executive |
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| General
Managers |
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I.A. RAFIQUI |
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A. K. ALAVI, A.C.I.I.
(London) |
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M.U. MOHAMMADI |
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MOIEZ M. SHAIKHALI |
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SULTAN A. SIDDIQI, B.A. |
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MOHAMMED NASEEM, A.C.I.I.
(London) |
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SYED ZIAUDDIN AHMED,
M.Com., F.C.A. |
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JABBAR AKHTAR, M.A,
LL.B., F.C.I.I. (London) |
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MIRZA ALl MAHMOOD, B.E.
(Mech. & Elec.) |
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SALIM RAFIK SIDIKI, B.A.
(Hons.), M.A. (Eco.) |
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KHAWAJA KHALID MUSTAFA,
M.A. |
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CAPT. MAHMOOD SULTAN,
Master Mariner, F.I.C.S. (London), F.C.I.I. (London), |
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Chartered Ship Broker,
Chartered Insurer |
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ABDUL RAZAK RAHIMTULLAH
BRAMCHARI |
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MOHAMMED ANWAR ABDULLAH,
A.C.I.I. (London), Chartered Insurer |
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| General
Manager (Car Clinic) |
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MOHAMMED SALEEM |
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| General
Manager (Development) |
ABDUL AZIZ KHADELI,
B.Com. |
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| Joint
General Managers |
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SYED BASIT HUSSAIN,
B.Com. |
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TAHIR AHMED, B.E. (Met.),
M.B.A., A.C.I.I. (London), Chartered Insurer |
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JAMEEL KHAN, M. A., LL.B. |
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AHSAN MAHMOOD ALVI,
F.C.A. (England & Wales) |
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SYED MOHAMMAD NAZIM
KAZMI, B.A., Chartered Insurer |
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M. JAHANGIR CHUGHTAI,
M.A. |
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ABDUL HAMID, B. Corn.,
F.C.I.I. (London), Chartered Insurer |
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IQBAL MOHAMMAD, B.A. |
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NASIMUDDIN, M.A.,
A.C.I.I. (London) |
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SHAMSUL HAQUE, A.C.I.I.
(London) |
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M. IQBAL VAKIL, B.Com. |
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S.M.M. RIZVI, B.A. |
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T.A. ABBASI, B.Com. |
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AUSTEN B. FREITAS |
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| Jr.
General Managers |
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SHAMSUL ARFEEN QURESHI,
B. Corn. |
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| (Development.) |
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MAHMOOD A. WAHAB, B.A. |
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MAZHAR SALEEM |
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|
ZERSIS RUSTOM BIRDIE |
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| Secretary/Joint |
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| General
Manager |
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A. AZIZ CHASHMAWALA,
B.Com., LL.B. |
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| AUDITORS |
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FORD, RHODES, ROBSON,
MORROW |
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Chartered Accountants,
Karachi. |
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| HEAD
OFFICE |
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Adamjee House |
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P.O. Box No.4850 |
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I. I. Chundrigar Road,
Karachi |
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Phone: PABX 2412623 (4
Lines) |
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Fax: (92-21) 2412627 |
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Telex: 21594 & 29719
AIC PK |
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Cable: ADAMJINSUR |
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E-mail:
adamjeeins@cyber.net.pk |
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Website:
http://www.adamjeeinsurance.com |
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| DEPUTY
GENERAL MANAGERS |
SYED KHADIM ALI, B.Com.,
LL.B. |
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M. QASIM KAZMI, B.A. |
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MOHAMMED EUSOPH JAMAL,
M.B.A. |
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EDRIS H.M. GOAWALA,
B.Com., A.C.I.1. (London), Chartered Insurer |
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SAEED JAN AWAN, M.Com. |
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SYED AGHA HAIDER, M.A. |
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T1NKU I. JOHNSON, B.E.
(Mech.), M.B.A. |
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MOHD. YOUSUF, B.Com. |
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SYED ABDUL KHALIQUE, M.A.
(Eco.) |
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RAMESH MULRAJ BHERWANI,
B.A. |
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SALEEM TARIQ AHMED |
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NAQI ZAMIN ALI, B.Sc.
(Hons) |
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ATEEQ AHMED KHAN, M.Sc.
(Agri. Eco.) |
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SYED KAISER ABBAS |
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ABDUL HAMEED BHURI |
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M. BASHIR SEJA, B.Com. |
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A. SATTAR MOHAMMADI, B.A. |
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GHULAM ABBAS |
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JALALUDDIN ALVI, M.A. |
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CAPT. SALEEM AHMED,
Master Mariner, M.I.C.S. (London), |
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M.C.I.T. (London),
A.C.I.I. (London) |
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| DEPUTY
GENERAL MANAGERS |
ALTAF A. KARIM, B. A. |
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| (DEVELOPMENT) |
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ALI MOHD. DADA |
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| ASST.
GENERAL MANAGERS |
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A. RAHIM A. GHANI, B.Com. |
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A.G. NAWAZ |
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PARVAIZ SIDDIQ, M.B.A.,
F.C.I.I. (London), Chartered Insurer |
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BURHANUDDIN KHAN, B.Com. |
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SYED FARHAT HUSSAIN
RIZIVI, B.A., A.C.I.I. (London) |
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NADEEM AHMED |
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SHAHID A. ZAIDI |
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IMTIAZ AHMED PIRACHA, B.
Sc. |
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SYED YOUSUF HUSSSAIN,
B.Com. |
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SHAHEEN H. SUMAR (Mrs.),
M.A. (Eco.) |
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KHALID M. MIRZA, B.Com. |
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MOHD. IBRAHIM KAPADIA,
M.B.A. (USA), A.C.I.I. (London) |
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IRFAN CHOUDHURY, B.Sc.
Hon (England) |
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CAPT. AZHAR EHTESHAM
AHMED, Master Mariner |
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KHALID HAMID, B.E.
(Elec.), A.C.I.I. (London), Chartered Insurer |
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SALIM RAZAK BRAMCHARI,
B.Com., A.C.I.I. (London) |
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QAMAR AHMED, B.A. |
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JAWAD HMD JAFARI, M.A.
(Eco.), A.C.I.I. (London), Chartered Insurer |
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MOHAMMAD IQBAL DADA, M.A.
(Eco.), A.C.I.I. (London) |
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| ASST.
GENERAL MANAGERS |
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ABDULLAH HAMID |
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| (DEVELOPMENT) |
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A.W. KARIM |
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SYED ALI JAFFERY |
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ABDUL KARIM WAQAR, B.Com. |
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ARSHAD HUSSA1N |
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ABDUL SATTAR A. ABDULLAH |
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MOHAMMAD UMER MEMON |
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ALl MOHD. SHEKHA, B.A. |
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MOHAMMED IBRAHIM |
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MOHD. SALEEM KHAN |
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SULEMAN LAKHANI |
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JAWED USMANI |
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ASGHAR JALIL |
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ALl MOHD. HAJI
RAHIMUTULLAH |
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TABASSUM ELAHI |
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MOHD. YOUNUS, B. Com. |
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ABDUL WAHID |
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| NOTICE
OF THE THIRTY-EIGHTH ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that the Thirty-eighth Annual General Meeting of the Company
will be held at the Raffia Choudri Memorial |
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| Centre,
Sidco Avenue Centre (Ground Floor), Stratchen Road, 264 - R.A. Lines, Karachi
on Wednesday the June 30, 1999 at 11.00 a.m. |
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| to
transact the following business:- |
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| 1.
To receive and adopt Directors' and Auditors' Reports and Statement of
Accounts for the year ended December 31, 1998. |
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| 2.
To approve the final dividend recommended by the Directors. |
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| 3.
To consider and if thought fit to pass the following resolution as Ordinary
Resolution: |
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| RESOLVED:- |
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| i)
"That a sum of Rs. 39,037,170 out of the Company's Reserve for issue of
Bonus Shares be capitalised and applied in |
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| paying
up in full to issue at par 3,903,717 fully paid Ordinary Shares of Rs. 10
each to be allotted as Bonus Shares to |
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| and
amongst the holders of the Ordinary Shares of the Company whose names appear
in the Register of Members of |
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| the
Company at the close of business on June 10, 1999 in the proportion of one
Ordinary Share for every ten Ordinary |
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| Shares
held and that such new shares shall rank pari passu as regards future
dividends and in all other respects with the |
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| existing
Ordinary Shares of the Company." |
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|
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| ii)
"That all fractions of Bonus Shares arising on such allotment be
consolidated and sold through the Company's broker |
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| and
that the net proceeds thereof be distributed pro-rata to the members entitled
thereto." |
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| iii)
"That for the purpose of giving effect to the foregoing, the directors
be and are hereby authorised to give such |
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| directions
as may be necessary and to settle any questions or difficulties that may
arise in regard to the distribution of |
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| the
Bonus Shares or the sale proceeds of the fractions as the directors in their
discretion shall deem fit." |
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| 4.
To appoint Auditors and fix their remuneration. |
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| 5.
Special Business: |
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| To
approve the remuneration of working directors including the Chief Executive. |
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| (See
appended a statement under section 160(l}(b) oft he Companies Ordinance,
1984, in respect of above mentioned Special |
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| Business). |
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| 6.
To elect nine Directors of the Company as fixed by the Board in accordance
with the provisions of the Companies Ordinance, |
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| 1984,
for a term of three years commencing from June 30, 1999. The retiring
directors are: Mr. Mohamed Hanif Adamjee, |
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| Mr.
Abdul Hamid Adamjee, Mr. Abdul Razak Adamjee, Mr. Abdul Gaffar Adamjee, Mr.
Iqbal Adamjee, Mr. I.A. Rafiqui and |
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| Mr.
Mohammed Choudhury. Ali the retiring Directors are eligible to offer
themselves for re-election. |
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By Order of the Board |
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|
A. AZIZ CHASHMAWALA |
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| Karachi:
May 17, 1999 |
|
Secretary |
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| Notes: (a) |
The Shares Transfer Books
of the Company will remain closed from June 11, 1999 to June 30, 1999 (both
days |
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|
inclusive). |
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| (b) |
A member entitled to
attend and vote at the General Meeting is entitled to appoint another member
as a proxy to attend |
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|
and vote instead of him. |
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| (c) |
The instrument appointing
a proxy must be received at the Registered Office of the Company not less
than 48 hours |
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|
before the time appointed
for the Meeting. A member shall not be entitled to appoint more than one
proxy. If a member |
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|
appoints more than one
proxy and more than one instruments of proxy are deposited by a member with
the Company, |
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|
all such instruments of
proxy shall be rendered invalid. |
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| (d) |
Any member who seeks to
contest election to the office of director, whether he is retiring director
or otherwise, shall |
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file with the Company
Secretary, not later than 14 days before the date of the Meeting, a notice of
his intention to offer |
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|
himself for election as a
director. |
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| (e) |
CDC shareholders are
requested to bring with them their National Identity Card alongwith the
Participant's ID number |
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|
and their account number
at the time of attending the Annual General Meeting in order to facilitate
identification of the |
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|
respective shareholders. |
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| STATEMENT
UNDER SECTION 160 OF THE COMPANIES ORDINANCE, 1984 |
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| Regarding
item 5 of the annexed Notice of General Meeting |
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| The
shareholders' approval will be sought for payment of remuneration and the
provision of certain facilities to the full time working |
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| Directors
including Chief Executive/Managing Director in accordance with their terms
and conditions of service with the Company. |
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| On
their appointment/re-appointment it is proposed to pass the following
resolutions as Ordinary Resolutions: |
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| i)
"Resolved that the
remuneration of the Chief Executive/Managing Director, Mr. Mohammed
Choudhury, consisting of |
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| monthly
salary of Rs. 165,000 with house rent allowance at 45% of salary subject to
annual increment not exceeding ten per |
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| cent.
Bonus, retirement benefits, medical, leave fare assistance and other
benefits, perquisites and facilities incidental or |
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| relating
to his office will be paid/provided in accordance with Company's rules from
time to time in force." |
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| ii)
"Resolved that the
remuneration of the full time working Director, Mr. I.A. Rafiqui, consisting
of monthly salary of Rs. |
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| 46,450
with house rent and other allowances of Rs. 21,500 subject to annual
increment not exceeding fifteen per cent. Bonus, |
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| retirement
benefits, medical, leave fare assistance and other benefits, perquisites and
facilities incidental or relating to his |
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| office
will be paid/provided in accordance with Company's rules from time to time in
force.." |
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| iii)
"Resolved that in the event
of any of the aforesaid offices falling vacant or additional full time
working Director(s) is/are |
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| appointed,
the approval hereby given for the respective offices, shall be equally
applicable to any other person(s) appointed/to |
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| fill
such vacancy." |
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| Mr.
Mohammed Choudhury and Mr. I.A. Rafiqui are interested in this business to
the extent of their respective remuneration, benefits |
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| and facilities. |
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| 20
YEARS' PROFIT APPROPRIATION AT A GLANCE - 1979 TO 1998 |
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(In Million of Rupees) |
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| YEAR ENDED |
DIVIDEND |
BONUS SHARES |
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|
General |
Gross |
Retained |
Profit |
|
| December 31, |
Rate |
Amount |
Rate |
Amount |
Reserve |
Premium |
Premium |
After Tax |
|
|
% |
Rs |
% |
Rs |
Rs |
Rs |
Rs |
Rs |
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|
| 1979 |
50.0 |
3.81 |
33.3 |
2.54 |
9.51 |
147.72 |
100.10 |
16.01 |
|
| 1980 |
40.0 |
4.07 |
20.0 |
2.03 |
5.00 |
185.44 |
138.96 |
10.87 |
|
| 1981 |
50.0 |
6.10 |
25.0 |
3.05 |
5.00 |
223.04 |
150.33 |
14.40 |
|
| 1982 |
45.0 |
6.87 |
33.3 |
5.09 |
8.00 |
276.55 |
185.17 |
20.42 |
|
| 1983 |
40.0 |
8.14 |
40.0 |
8.14 |
7.50 |
317.26 |
222.48 |
23.23 |
|
| 1984 |
35.0 |
9.97 |
30.0 |
8.55 |
9.50 |
350.89 |
248.62 |
27.75 |
|
| 1985 |
55.0 |
20.38 |
30.0 |
11.12 |
6.00 |
405.46 |
246.03 |
37.50 |
|
| 1986 |
37.5 |
18.07 |
20.0 |
9.63 |
8.50 |
504.76 |
306.49 |
36.25 |
|
| 1987 |
37.5 |
21.68 |
20.0 |
11.56 |
16.50 |
652.97 |
377.98 |
50.04 |
|
| 1988 |
40.0 |
27.75 |
15.0 |
10.40 |
5.00 |
789.34 |
461.01 |
43.38 |
|
| 1989 |
45.0 |
35.90 |
10.0 |
7.97 |
8.00 |
822.51 |
510.37 |
52.05 |
|
| 1990 |
40.0 |
35.11 |
10.0 |
8.77 |
10.00 |
942.32 |
610.11 |
53.67 |
|
| 1991 |
50.0 |
48.27 |
15.0 |
14.48 |
39.00 |
1,096.03 |
675.25 |
101.65 |
|
| 1992 |
40.0 |
44.41 |
20.0 |
22.20 |
60.00 |
130,983 |
788.86 |
126.35 |
|
| 1993 |
40.0 |
53.29 |
20.0 |
26.64 |
75.00 |
1,750.78 |
1,140.48 |
155.09 |
|
| 1994 |
40.0 |
63.95 |
25.0 |
39.97 |
72.00 |
2,045.05 |
1,210.37 |
176.08 |
|
| 1995 |
35.0 |
69.95 |
25.0 |
49.96 |
67.00 |
2,458.22 |
1,536.85 |
186.55 |
|
| 1996 |
35.0 |
87.44 |
25.0 |
62.45 |
72.00 |
2,855.83 |
1,894.00 |
221.87 |
|
| 1997 |
35.0 |
109.30 |
25.0 |
78.07 |
103.00 |
3,123.26 |
2,208.49 |
290.50 |
|
| 1998 |
30.0 |
117.11 |
10.0 |
39.04 |
40.00 |
3,220.12 |
2,142.08 |
196.40 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total |
820.0 |
791.57 |
451.6 |
421.66 |
626.51 |
23,477.38 |
15,154.03 |
1,840.06 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Average |
41.0% |
39.58 |
22.6% |
21.08 |
31.33 |
1,173.87 |
757.70 |
92.00 |
|
|
|
|
|
|
| Appropriation
over 20 years |
|
| on
average profit basis |
43.0% |
|
22.9% |
34.1% = 100% |
|
|
|
| THIRTY-EIGHTH
REPORT OF THE DIRECTORS |
|
| FOR
THE YEAR ENDED DECEMBER 31, 1998 |
|
|
| THE
SHAREHOLDERS |
|
| ADAMJEE
INSURANCE COMPANY LIMITED |
|
|
| We
have pleasure in presenting to you our 38th Annual Report and Accounts for
the year 1998. Following nuclear |
|
| tests
on May 28, 1998 by Pakistan, economic sanctions were imposed by international
monetary agencies which |
|
| crippled
the economic growth and business activities of the country. Despite these
difficulties, your Company |
|
| strived
hard and managed to earn reasonable profit through prudent underwriting of
business and better |
|
| management
of investment portfolio. The following table shows the Company's performance
during the year under |
|
| review:- |
|
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|
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|
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|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Gross
Direct Premium |
|
3,220,121,720 |
3,123,263,728 |
|
| Premium
Retained |
|
2,142,076,783 |
2,208,497,599 |
|
| Net
Claims Paid and Outstanding |
|
1,525,285,300 |
1,450,903,769 |
|
| Commission
and Discount |
|
165,098,618 |
187,716,202 |
|
| Expenses
of Management |
|
508,600,698 |
457,430,915 |
|
| Premium
Reserve Strain (net charge) |
|
(26,827,233) |
124,702,881 |
|
| Net
Profit (After Tax) |
|
196,398,135 |
290,502,267 |
|
|
|
|
| UNDERWRITING
PERFORMANCE |
|
|
|
|
|
| The
gross direct premium continued to increase and amounted to Rs. 3.220 billion
during the year compared |
|
| to
Rs. 3.123 billion earned in the preceding year. It may be pointed out here
that in 1997, the Company had written |
|
| a
premium income of Rs. 176 million at its London branch. Following adverse
claims experience, the branch |
|
| has
ceased to write business w.e.f. January 1, 1998. If the business which
emanated from London branch in 1997 is |
|
| excluded,
the growth in business in 1998 would work out to 9% over 1997 which appears
to be satisfactory. |
|
|
|
|
|
|
| The
net premium, however, declined slightly from Rs. 2.208 billion in 1997 to Rs.
2.142 billion in 1998, |
|
| mainly
due to decrease in the motor business during the year as a result of
discontinuance of our London branch |
|
| operations
which had largely written motor business in 1997. Claims continued to show
deterioration during the |
|
| year
and loss ratio rose to 71% in 1998 against 65% in the preceding year. The
increase in loss ratio was mainly due |
|
| to
much higher claims arising from increase in thefts and snatching of vehicles
under motor business. The |
|
| other
classes of business, namely, Fire, Marine Cargo & Miscellaneous showed
improved results in 1998 |
|
| over 1997. |
|
|
|
|
|
| The
Company, as a matter of policy, makes adequate provision in respect of losses
Incurred But Not Reported |
|
| (IBNR)
so that the incurred claims of the Company in the aggregate, as reflected in
the accounts, depict true picture |
|
| of
its claim experience during the year. |
|
|
|
|
| FIRE
BUSINESS |
|
|
|
|
| The
gross direct premium in the fire department showed modest growth over 1997.
It increased from Rs. 844 |
|
| million
in 1997 to Rs. 860 million in 1998. Fortunately, there were no major fire
losses and consequently the |
|
| incurred
claims ratio was about the same, that is, around 56% in 1998 compared to 55%
in the previous year. |
|
| Although,
the management expenses together with commission and discount increased
slightly over 1997, |
|
| the
overall profit increased satisfactorily to Rs. 63 million during the year
compared to Rs. 47 million in 1997. |
|
|
|
|
| MARINE
BUSINESS |
|
|
|
|
| The
marine cargo premium registered steady growth and rose to Rs. 451 million in
1998 against Rs. 413 million in |
|
| the
previous year. The claims experience was equally good as it declined to 42%
of the premium in 1998 |
|
| compared
to 49% in 1997. The net profit, eventually, increased to Rs. 96 million in
1998 compared to Rs. 90 |
|
| million
earned last year. |
|
|
|
|
| The
marine hull premium showed modest increase during the year, largely due to
the Company becoming selective |
|
| in
the underwriting of business. It stood at Rs. 125 million during the year
against Rs. 117 million in 1997. Various |
|
| measures
undertaken by your Company in this regard, helped it in improving loss ratio
over the previous year. |
|
| As
a consequence, the underwriting loss was contained at a much lower amount of
Rs. 38 million in 1998 in |
|
| comparison
to Rs. 72 million suffered last year. |
|
|
| The
overall profit from marine business, however, increased to Rs. 67 million in
1998 against Rs. 18 million |
|
| only
earned last year which is indeed satisfactory. |
|
|
|
|
|
| MOTOR
BUSINESS |
|
|
|
|
|
|
|
|
|
| The
motor premium income amounted to Rs. 1.119 billion in 1998 compared to Rs.
1.188 billion in 1997. The |
|
| apparent
decline in premium income is due to the Company discontinuing writing
business in London |
|
|
| branch
where most of the business pertained to motor insurance. Snatching and thefts
of vehicles in the country |
|
| were
alarmingly high during the year under report which, along with equally bad
overseas claims experience, |
|
| increased
the overall motor loss ratio to 88% of the premium compared to 64%, last
year. For the first time, |
|
| the
Company suffered a heavy loss of over Rs. 95 million in 1998 compared to Rs.
31 million in 1997 which wiped |
|
| off
the profits in other classes of business by the like amount. |
|
|
|
|
|
|
|
| Unless
there is adequate reduction in the incidence of car-snatching/thefts, there
are no prospects of the motor |
|
| business,
making any profit, in the foreseeable future. |
|
|
|
|
|
|
|
| MISCELLANEOUS
BUSINESS |
|
|
|
|
|
|
|
|
|
| The
miscellaneous business which consists of engineering, bonding and surety,
bankers' insurance, |
|
|
| burglary
and theft, kidnap & ransom, medical insurance etc. continued to grow
satisfactorily. The direct premium |
|
| income
under this head increased from Rs. 561 million in 1997 to Rs. 664 million in
1998 or 18% increase over the |
|
| previous
year. The claims, in the aggregate, despite growth in business, were
contained at Rs. 161 million in |
|
| 1998
compared to Rs. 178 million last year. These improvements in the premium
income and claims enabled |
|
| the
Company to make a higher profit of Rs. 57 million in 1998 compared to Rs. 53
million earned in 1997. |
|
|
|
|
|
| OVERSEAS
OPERATION |
|
|
|
|
|
|
| Our
business operations in the UAE and Kingdom of Saudi Arabia, in the aggregate,
continued to grow |
|
| satisfactorily
and recorded a growth rate of 30% over the previous year. In fact, the
overseas premium income |
|
| accounted
for over 19% of the overall premium income of the Company which is indeed
encouraging. Likewise, the |
|
| underwriting
profit from overseas operations increased satisfactorily over the previous
year, thus contributing |
|
| adequately
to the overall profitability of the Company. |
|
|
|
|
|
|
| INVESTMENT
AND MONEY MANAGEMENT |
|
|
|
|
|
|
| The
Company continued to pursue its policy of investing its surplus funds in
stocks/shares and Government |
|
| securities
in order to improve its overall investment portfolio. Since the stock market
remained highly |
|
|
| depressed
for the most part of the year, it was a good opportunity for the Company to
purchase stocks/shares of |
|
| good
companies at economic rates. The fresh investment in stocks/shares aggregated
to Rs. 156 million during the |
|
| year.
In order to book capital gains, the Company disinvested stocks/shares of over
Rs. 19 million during |
|
| the year. |
|
|
|
|
|
|
| PROFIT
FOR THE YEAR |
|
|
|
|
|
|
| Due
to higher claim ratio, particularly in motor business, the underwriting
profit was much lower than our |
|
| expectations,
but slightly better at Rs. 91 million in 1998 compared to Rs. 88 million last
year. The after-tax profit |
|
| amounted
to Rs. 196 million this year, compared to Rs. 290 million in 1997. As
reported last year, the income tax |
|
| refunds,
this year too, contributed significantly to the overall profit of the
Company. |
|
|
|
|
|
|
| ALLOCATION
OF PROFIT |
|
|
|
|
|
|
| The
profit for the year (inclusive of the balance of profit of Rs. 169,328
brought forward from last year) |
|
|
| aggregated
to Rs. 196,567,463 after making all such provisions as are required under
various statutes, in |
|
| particular,
in respect of income tax, depreciation, employees' old-age benefits, staff
bonus/gratuity etc. |
|
|
| Your
directors are pleased to propose appropriation of the aforesaid profit, in
the following manner:- |
|
|
|
|
|
|
|
|
|
|
Rupees |
|
|
|
|
|
| i) Interim dividend
(already paid) @ 15% |
|
58,555,753 |
|
|
| ii)
Proposed final dividend @ 15% |
|
58,555,753 |
|
|
| iii)
Reserve for issue of bonus shares in the |
|
|
|
| ratio
of one ordinary share for every |
|
|
|
| ten
ordinary shares held |
|
|
39,037,170 |
|
|
| iv)
General Reserve |
|
|
40,000,000 |
|
|
| v)
Balance to be carried forward |
|
|
418,787 |
|
|
|
|
|
------------------ |
|
|
|
|
|
Total: |
196,567,463 |
|
|
|
========== |
|
|
|
|
|
| PAID-UP
CAPITAL AND RESERVES |
|
|
|
|
|
|
| Y |
