| Asia Insurance Company Limited |
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| Annual
Report 2000 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that the 21st Annual General Meeting of Asia Insurance
Company Limited, will be held |
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| at
its Registered Office Asia Insurance House, 7-Egerton Road, Lahore on Friday,
29-06-2001 at 10.00 A.M to |
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| transact
the following business:- |
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| 1.
To confirm the minutes of 20th Annual General Meeting held on 30-06-2000. |
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| 2.
To receive, consider and adopt the audited accounts of the Company for the
year ended 31st |
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| December,
2000 together with Director's and Auditor's report thereon. |
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| 3.
To appoint auditors uptill the next Annual General Meeting and to fix their
remuneration. The |
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| retiring
Auditors M/S Sher Muhammad Khan and Company, Chartered Accountants, being |
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| eligible,
offer themselves for reappointment. |
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| 4.
To elect Nine Directors of the Company for a period of three years in
accordance with the |
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| provisions
of the Companies Ordinance, 1984, in place of following retiring Directors: |
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| 1.
Mr. Pervez Saadat |
2. Mr. Jahengir Shahid |
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| 3.
Mr. Tariq Saadat |
4. Sh. Akhtar Sayeed |
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| 5.
Mr. Nabeel Zafar Sheikh |
6. Mr. Zafar Iqbal Sheikh |
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| 7.
Mr. Asim Haleem Sheikh |
8. Mr. Muhammad Ashraf
Sheikh |
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| 9.
Mrs. Ghazala Imran |
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| The
Board of Directors has fixed the number of elected Directors as Nine. All the
retiring Directors shall be |
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| eligible
to offer themselves for re-election. |
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| 5.
To transact any other business with the permission of the Chair. |
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B Y ORDER OF THE BOARD |
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Sd/- |
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|
MAHMOOD AKHTAR |
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| Lahore:
07-06-2001. |
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COMPANY SECRETARY |
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| NOTES: |
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| 1.
The share transfer books of the Company will remain closed from 22nd June,
2001 to 29th June, 2001 |
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| (both
days inclusive). |
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| 2.
A member entitled to attend speak and vote at the meeting is entitled to
appointed a proxy to attend |
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| speak
and vote for him/her. |
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| 3.
An instrument of proxy and Power of Attorney or the Authority (if any) under
which it is signed or a |
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| notarially
certified copy of such power of Authority, in order to be valid, must be
deposited at the |
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| Registered
Office of the Company not less than 48 hours before the time of the Meeting. |
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| 4.
Any person who seeks to contest an election to the Office of Director, should
file with the Company, not |
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| later
than 14 days before the date of AGM at which election is to be held, a notice
of his intention to |
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| offer
himself for election as Director u/s 178 of the Companies Ordinance, 1984. |
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| 5.
Members are requested to notify any change in their address immediately. |
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| COMPANY
INFORMATION |
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| Chairman |
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Parvez Saadat Sheikh |
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| Chief Executive |
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Zafar Iqbal Sheikh |
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|
B.Com (Hon) M.B.A
A.C.I.I. (London) |
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| Directors |
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Tariq Saadat |
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Jehangir Shahid |
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Sh. Akhtar Sayeed |
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Nabeel Zafar Shaikh |
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|
Asim Haleem Sheikh |
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Mohammad Ashraf |
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|
Ghazala Imran (PIC
Nominee) |
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| Legal Advisor |
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Ahmed Hussain Shah
Bokhari |
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| Company
Secretary |
Mahmood Akhtar |
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| Auditors |
|
Sher Muhammad Khan &
Co., |
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|
Chartered Accountants |
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| Registered
& Head Office |
Asia Insurance House
7-Egerton Road, |
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|
Lahore-54000 |
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Phones: 6363692-93,
6304092-93 |
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Fax: 92-42-6368966 |
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| BRANCH
NETWORK |
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| JAIL
ROAD - LAHORE |
216-Eden Centre |
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Phone: 7576034 Fax:
7560437 |
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| EGERTON
ROAD - LAHORE |
7-Egerton Road, |
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Phone: 6311956 Fax:
6314373 |
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| QUEENS
ROAD - LAHORE |
3rd Floor, Mumtaz Centre |
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Phone: 63 70665 |
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| SIALKOT |
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Opp: Nishat Cinema
Kutchery Road, |
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Phone: 587609 Fax: 263753 |
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| FAISALABAD |
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P-89, Usmanabad Near Rex
City Plaza, |
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Phone: 732062 |
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| RAWALPINDI |
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Al-Abbas Market, Adamjee
Road, |
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Phone: 565227 Fax: 584697 |
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| MARDAN |
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Bank Road, |
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Phone: 62639 |
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| KARACHI |
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4th floor, Haji Adam
Chambers, |
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Altaf Hussain Road, |
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Phones:
2411798-2420511-2420872 |
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Fax: 2422 782 |
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| DIRECTORS'
REPORT TO THE SHARE HOLDERS |
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| On
behalf of your Directors, it is my pleasure to present the 21st Annual Report
and the Audited Accounts of the |
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| Company
for the year ended 31st December, 2000. The salient features of the working
of the Company during the |
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| year
are as under. |
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| The
year 2000 was a very difficult year for the entire Insurance Industry and
your Company was no exception. We |
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| were
able to only maintain the same level of business as in the previous year due
to sluggish level of economic activity |
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| in
the country, but, due to increase in claims and management expenses our
underwriting balance showed a red |
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| figure.
We have taken remedial measures and hope next year would be a better year for
us. |
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| FINANCIAL
RESULTS |
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| During
the year under review the net loss suffered by the Company is Rs. 1,682,043
and after accounting of |
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| unappropriated
profit of Rs. 564,154 brought forward from the previous year and income tax
of Rs. 272, 730 paid |
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| during
the year, there is a deficit of Rs. 1,390,619 carried to balance sheet. |
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| The
Department wise performance was as follows: |
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| FIRE
DEPARTMENT |
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| The
net premium of this department was Rs. 2.94 M as against Rs. 4.33 M last
year. The Claims ratio was 26.19% as |
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| compared
to 15.88% in 1999. The underwriting loss was Rs. 0.203 M as compared to the
underwriting profit of |
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| Rs.0.466
Min 1999. |
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| MARINE
DEPARTMENT |
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| The
net premium of this department was Rs. 7.00 M as against Rs. 7.28 M last
year. The Claim ratio was 16.17% as |
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| compared
to 15.17% in 1999. There was underwriting profit of Rs. 1.381 M as against
profit of Rs. 1.762 M last year. |
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| MOTOR
DEPARTMENT |
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| The
net premium of this department was Rs. 8.83 M as against Rs. 7.10 M last
year. The Claim ratio was 53.25% as |
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| against59.78%
in 1999. There was underwriting loss of Rs. 1.96 M as compared to loss of Rs.
2.31 M in 1999. |
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| AUDITORS |
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| The
Company's Auditors Sher Muhammad Khan & Co., Chartered Accountants retire
and offer themselves for |
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| reappointment. |
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| MISCELLANEOUS |
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| Pattern
of Shareholding is set out on separate page. |
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| ACKNOWLEDGEMENT |
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| Your
Directors are thankful to the Controller of Insurance, Pakistan Insurance
Corporation, and the Overseas |
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| reinsurers
for their whole hearted support and Cooperation. The above results would not
have been possible without |
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| the
support of your Company's esteemed Clients and the efforts of the officers,
field force and the staff of your |
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| Company.
Your Directors record their indebtedness and thanks for this support. |
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On behalf of Board of Directors |
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|
PARVEZ SAADAT |
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| Lahore:
19th May, 2001 |
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Chairman |
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| AUDITORS'
REPORT TO THE MEMBERS |
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| We
have audited the annexed Balance Sheet of "ASIA
INSURANCE COMPANY LIMITED" as at December 31, |
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| 2000
and the annexed Fire, Marine, Motor and Miscellaneous Insurance Revenue
Accounts, the Profit and Loss |
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| Account,
Profit and Loss Appropriation Account, Statement of Changes in Equity and
Cash Flow Statement, |
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| together
with the notes forming part thereof, for the year then ended and we state
that:- |
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| i)
Depreciation to the extent of Rs. 1,643,990/- on House Property has not been
provided in these |
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| accounts
resulting in understatement of net loss to that extent. |
|
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| ii)
Provision of Income Tax for the year 2000 of Rs. 1.65 Million has not been
provided. |
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| Subject
to the foregoing remarks, we have obtained all the information and
explanations which to the best of our |
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| knowledge
and belief, were necessary for the purposes of our audit. |
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| It
is the responsibility of the Company's management to establish and maintain a
system of Internal Control and |
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| prepare
and present the above said statements in conformity with the approved
accounting standards and the |
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| requirements
of the Insurance Ordinance, 2000. Our responsibility is to express an opinion
on these statements |
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| based
on our audit. |
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| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These standards |
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| require
that we plan and perform the audit to obtain reasonable assurance about
whether the above said statements |
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| are
free of any material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts |
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| and
disclosures in the above said statements. An audit also includes assessing
the accounting policies and |
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| significant
estimates made by management, as well as, evaluating the overall presentation
of the above said |
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| statements.
We believe that our audit provides a reasonable basis for our opinion and
after due verification, we report that:- |
|
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| a).
In our opinion:- |
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| i)
proper books of account as required by the Companies Ordinance, 1984 have
been kept by the |
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| company; |
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|
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| ii)
the Balance Sheet, Revenue Accounts, Profit and Loss Account, Profit and Loss
Appropriation |
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| Account,
Statement of Changes in Equity and Cash Flow Statement together with the
notes thereon, |
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| have
been drawn up in conformity with the provisions of the Insurance Ordinance,
2000 and are in |
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| agreement
with the books of accounts and are further in accordance with the accounting
policies |
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| consistently
applied; |
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|
|
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| iii)
the expenditure incurred during the year was for the purpose of the Company's
business; and |
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| iv)
the business conducted, investments made and the expenditure incurred during
the year were in |
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| accordance
with the objects of the Company. |
|
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| b).
Except for the foregoing remarks, in our opinion and to the best of our
information and according to the |
|
| explanations
given to us, the Balance Sheet, Fire, Marine, Motor and Miscellaneous
Insurance Revenue |
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| Accounts,
the Profit and Loss Account, Profit and Loss Appropriation Account, the
Statement of Changes in |
|
| Equity
and Cash Flow Statement together with the notes forming part thereof, give
the information required |
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| by
the Insurance Ordinance, 2000, in the manner so required, and respectively
give a true and fair view of the |
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| state
of the Company's affairs as at December 31, 2000 and of the Loss, the changes
in equity and its cash |
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| flows
for the year then ended. |
|
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| c)
We have verified the Cash in Hand and Cash with Banks and the company's
Investments by actual inspection |
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| or
by the production of certificates or other documents; |
|
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| d)
We certify that all expenses of Management wherever incurred whether directly
or indirectly in respect of |
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| Fire,
Marine, Motor and Miscellaneous Insurance Business transacted in Pakistan
have been fully debited in |
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| the
respective Revenue Accounts as expenses. |
|
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| e)
We certify that the company has not paid to any person any commission in any
form outside Pakistan in |
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| respect
of the insurance business transacted by the company in Pakistan and that the
company has not |
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| received
outside Pakistan from any person any commission in any form in respect of any
business, reinsured |
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| abroad. |
|
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| f)
In our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
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|
Sher Muhammad Khan & Co. |
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| Lahore:
20-05-2001 |
|
Chartered Accountants |
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| BALANCE
SHEET AS AT DECEMBER 31, 2000 |
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| CAPITAL
AND LIABILITIES. |
|
NOTE |
2000 |
1999 |
|
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|
| SHARE
CAPITAL. |
|
| Authorised. |
|
|
| 2,500,000
Shares of Rs. 10/- each. |
|
25,000,000 |
25,000,000 |
|
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|
========== |
========== |
|
| Issued,
Subscribed and Paid-Up. |
|
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| 2,500,000
Shares of Rs. 10/- each. |
|
25,000,000 |
25,000,000 |
|
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| RESERVES. |
|
| General. |
|
|
|
2,500,000 |
2,500,000 |
|
|
| (Loss)/Profit |
|
|
|
(1,390,619) |
564,154 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,109,381 |
3,064,154 |
|
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| SURPLUS
ON REVALUATION OF FIXED ASSETS |
3 |
15,052,459 |
15,052,459 |
|
|
|
|
|
|
|
| BALANCE
OF ACCOUNTS |
|
| Fire
Insurance Account. |
|
1,177,566 |
1,732,255 |
|
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| Marine
Insurance Account. |
|
2,802,047 |
2,914,299 |
|
|
| Motor
Insurance Account. |
|
3,534,604 |
2,842,802 |
|
|
| Miscellaneous
Insurance Account. |
|
64,106 |
157,004 |
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|
------------------ |
------------------ |
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|
|
|
7,578,323 |
7,646,360 |
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| LIABILITIES
AGAINST ASSETS SUBJECT TO FINANCE LEASE |
4 |
1,399,761 |
885,835 |
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| CURRENT
LIABILITIES AND PROVISIONS |
|
| Estimated
Liability in respect of |
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| outstanding
claims whether |
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| due
or intimated. |
|
1,731,664 |
1,325,676 |
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|
|
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|
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| Agent's
Balances. |
|
1,158,130 |
1,080,777 |
|
|
| Amount
due to other persons or |
|
|
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| bodies
carrying on insurance business. |
|
2,498,667 |
2,450,824 |
|
|
| Current
Maturity of long term Liabilities. |
|
1,001,589 |
1,212,055 |
|
|
| Sundry
Creditors (including |
|
|
|
| outstanding
and accrued expenses). |
|
2,337,899 |
2,732,490 |
|
|
| Premium
Deposits. |
|
5,908,752 |
4,107,249 |
|
|
| Bank Overdraft. |
|
|
927,621 |
1,533,542 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
15,564,322 |
14,442,613 |
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|
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|
------------------ |
------------------ |
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|
|
|
Rupees |
65,704,246 |
66,091,421 |
|
|
|
|
|
========== |
========== |
|
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| PROPERTY
AND ASSETS. |
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|
| INVESTMENT
AT COST. |
|
| Deposit
with State Bank of Pakistan. |
|
| Defence
Saving certificates. |
|
|
100,000 |
100,000 |
|
| National
Investment Trust Units. |
|
|
255,000 |
255,000 |
|
| 11%
Government of Pakistan |
|
|
| Loan 2001. |
|
|
|
50,000 |
50,000 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
405,000 |
405,000 |
|
|
| Ordinary
Shares Joint Stock |
|
|
| Companies. |
|
|
1,114,975 |
1,114,975 |
|
| National
Investment Trust Units. |
|
6,002 |
-- |
|
| Defence
Saving certificates. |
|
100,000 |
100,000 |
|
|
|
------------------ |
------------------ |
|
|
|
1,625,977 |
1,619,975 |
|
|
|
|
|
| House Property. |
|
|
5 |
32,879,804 |
32,879.80 |
|
|
| FURNITURE,
FIXTURE, OFFICE |
|
| EQUIPMENTS
AND VEHICLES. |
|
|
3,773,457 |
4,032,240 |
|
| ASSETS
SUBJECT TO FINANCE LEASE. |
|
3,530,069 |
2,801,055 |
|
|
|
| CURRENT
ASSETS. |
|
| Outstanding
Premium. |
|
5,954,790 |
6,372,676 |
|
| Amount
due from other persons |
|
|
| or
bodies carrying on Insurance |
|
|
| business. |
|
8,099,505 |
8,164,587 |
|
| Sundry Debtors. |
|
2,417,238 |
2,185,254 |
|
| Agent's
Balances. |
|
1,420,217 |
1,119,857 |
|
|
|
|
| Cash at Banks: |
|
| Deposit
Accounts. |
|
5,103,750 |
6,544,720 |
|
| Current
Accounts. |
|
899,439 |
371,253 |
|
|
|
------------------ |
------------------ |
|
|
|
6,003,189 |
6,915,973 |
|
|
|
------------------ |
------------------ |
|
|
|
23,894,939 |
24,758,347 |
|
|
------------------ |
------------------ |
|
|
|
Rupees |
65,704,246 |
66,091,421 |
|
|
========== |
========== |
|
|
| DIRECTOR'S
CERTIFICATE: |
|
|
| We certify that:- |
|
|
| 1.
Investments have been shown in Balance Sheet at cost |
|
| or book value. |
|
|
|
|
|
|
| 2.
The value of Assets has been reviewed as at December |
|
| 31,
2000 and that in our belief the assets set forth in the |
|
| Balance
Sheet are shown in the aggregate at amounts |
|
| not
exceeding their Realisable Value or Market Value |
|
| under
the several headings. |
|
|
|
|
Director |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 2000. |
|
|
|
|
2000 |
1999 |
|
|
| Expenses
of Management (not |
|
| applicable
to any fund or |
|
|
|
| account). |
|
450,000 |
450,000 |
|
|
|
|
| Director's
Fee and Travelling. |
|
9,800 |
16,910 |
|
|
|
|
|
| Bonus to Staff. |
|
|
424,909 |
393,452 |
|
| Zakat. |
|
|
6,250 |
55,354 |
|
|
|
|
|
|
| Exchange Loss. |
|
|
1,411 |
-- |
|
|
|
|
|
|
| Depreciation. |
|
|
698,190 |
797,912 |
|
| Depreciation
on Leased Assets. |
|
|
642,705 |
515,945 |
|
| Loss
on Sale of Investment. |
|
|
-- |
698,531 |
|
|
|
|
------------------ |
------------------ |
|
|
Rupees |
2,233,265 |
2,928,104 |
|
|
|
========== |
========== |
|
|
|
|
|
| Interest
and Dividend. |
|
|
380,880 |
15,878,181 |
|
| Less:
Income Tax deducted at source. |
|
35,983 |
47,006 |
|
|
|
------------------ |
------------------ |
|
|
|
|
3,448.97 |
540,812 |
|
|
| Profit/(Loss)
transferred from: |
|
| Fire
Revenue Account. |
|
|
(202,359) |
466,510 |
|
| Marine
Revenue Account. |
|
|
1,381,965 |
1,762,924 |
|
| Motor
Revenue Account. |
|
|
(1,960,574) |
(2,314,537) |
|
| Miscellaneous
Revenue Account. |
|
|
(227,312) |
246,774 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(1,008,280) |
161,671 |
|
|
| Profit
on Sale of Fixed Assets. |
|
|
818,941 |
580,836 |
|
| Rental Income. |
|
|
395,664 |
344,240 |
|
| Loss
for the year carried to |
|
|
| Profit
and Loss Appropriation Account. |
|
1,682,043 |
1,300,545 |
|
|
------------------ |
------------------ |
|
|
|
Rupees |
2,233,265 |
2,928,104 |
|
|
========== |
========== |
|
|
|
| PROFIT
AND LOSS APPROPRIATION ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 2000. |
|
|
| Income
Tax Assessment |
|
| year 1997-98. |
|
|
20,125 |
-- |
|
|
|
|
| Income
Tax Paid Assessment |
|
| Year 2001-2002. |
|
|
125,000 |
-- |
|
|
|
|
|
|
| Income
Tax Deducted at Source. |
|
|
127,605 |
113,203 |
|
|
|
|
|
|
| Loss
for the year Brought Down |
|
|
|
|
| from
Profit and Loss Account. |
|
|
1,682,043 |
1,300,545 |
|
|
|
|
| Balance
Carried to Balance Sheet |
|
|
-- |
564,154 |
|
|
|
|
------------------ |
------------------ |
|
|
|
Rupees |
1,954,773 |
1,977,902 |
|
|
|
|
========== |
========== |
|
|
| Balance
Brought Forward from previous year. |
|
564,154 |
1,581,273 |
|
|
| Determined
Income Tax Refund upto |
|
| (Assessment
year 1999-2000) |
|
|
-- |
396,629 |
|
|
|
|
| Balance
Carried to Balance Sheet. |
|
|
1,390,619 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
Rupees |
1,954,773 |
1,977,902 |
|
|
========== |
========== |
|
|
|
Director |
|
Director |
|
|
|
| FIRE
INSURANCE REVENUE ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 2000 |
|
|
|
|
2000 |
1999 |
|
|
| CLAIMS
UNDER POLICIES (Less: Re-Insurance). |
|
| Paid
during the year. |
|
657,335 |
693,053 |
|
| Estimated
Liability in respect of |
|
|
| outstanding
claims at the end of |
|
|
| the
year whether due or intimated. |
|
340,808 |
227,131 |
|
|
|
------------------ |
------------------ |
|
|
|
998,143 |
920,184 |
|
| Less:
Outstanding at the end of the previous year. |
|
227,131 |
232,214 |
|
|
|
------------------ |
------------------ |
|
|
|
777,072 |
687,970 |
|
|
| Expenses
of Management. |
|
3,213,382 |
3,168,091 |
|
| Profit
Transferred to Profit and Loss Account |
|
-- |
466,510 |
|
| Balance
of Account at the end of the |
|
| year
as shown in the Balance Sheet |
|
| Reserve
for Un-expired Risks being |
|
|
| 40%
of the premium Income of the year. |
|
1,177,566 |
1,732,255 |
|
|
|
|
------------------ |
------------------ |
|
|
Rupees |
5,161,960 |
6,054,826 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| BALANCE
OF ACCOUNT AT THE |
|
|
|
