| Delta Insurance Company Limited |
|
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Board
of Directors & Management |
|
| Notice
of Meeting |
|
| Director's
Report |
|
| Auditor's
Report |
|
| Balance Sheet |
|
| Profit
and Loss Account |
|
| Fire
Revenue Account |
|
| Marine
Revenue Account |
|
| Motor
Revenue Account |
|
| Misc.
Revenue Account |
|
| Notes
to The Accounts |
|
| Pattern
of Shareholdings |
|
| Company
Offices |
|
|
|
| BOARD
OF DIRECTOR |
|
|
| Chairman / |
|
|
| Chief Executive |
|
Masood T. Baghpatee |
|
| Director |
|
S.M. Shafi Baghpatee |
|
|
|
Mansur Khalid |
|
|
|
S.M. Nadeem |
|
|
|
S.M. Mohsin |
|
|
|
Syed Nasir Iqbal |
|
|
|
Muhammad Shahid |
|
|
| Registered
Office |
101-1st Floor, Baghpatee
Building. |
|
|
|
Altaf Hussain Road, |
|
|
|
New Challi, |
|
|
|
Karachi-74000. |
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|
|
Telephone:- 2410114,
2410115, 2410116 |
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|
|
Fax: 2422292 |
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|
|
E-mail:
deltains@cyber.net.pk |
|
|
mtb@khi.compol.com |
|
|
| MANAGEMENT |
|
|
| Mr.
Masood T. Baghpatee |
Chairman / Chief
Executive |
|
| Mr. Tariq Saeed |
|
Executive Director |
|
| Mr.
Shahid Baghpatee |
Executive Director |
|
| Mr.
Syed Asif Ali |
S.E.V.P. & Managing
Director |
|
| Mr.
S. Dabir Hasan |
Company Secretary |
|
| Mr.
S. Manzoor Ali |
Manager (Admin.) |
|
| Mr. Ain-ul-Haq |
|
Manager
Underwriting/Claims |
|
| Shaikh
Muhammad Noman |
Manager Marketing |
|
| Suleman Khan |
|
Manager Claims |
|
|
|
|
| Auditors:- |
|
M/s Mohammad Zuberi &
Co. |
|
|
|
Chartered Accountants |
|
|
|
142- Al-Amna Plaza, |
|
|
|
Opp. Capri Cinema, |
|
|
|
M.A. Jinnah Road,
Karachi. |
|
|
| Bankers:- |
|
Bolan Bank Limited |
|
|
|
Allied Bank of Pakistan
Limited |
|
|
|
National Bank of Pakistan |
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the Twelfth Annual General Meeting of DELTA |
|
| INSURANCE
COMPANY LIMITED will be held on 30th June 2001 at 12:30 p.m. at |
|
| 101,
1st floor, Baghpatee Building, Altaf Hussain Road, New Challi, Karachi-74000
to |
|
| transact
the following business. |
|
|
| 1.
To read and confirm the minutes of the Extra ordinary Generally Meeting held
on |
|
| February 3, 2001. |
|
|
| 2.
To receive and adopt the audited accounts of the company for the year ended |
|
| December
31, 2000 together with Directors and Auditors report thereon. |
|
|
| 3.
To appoint Auditors and fix their remuneration. The present auditors M/s. |
|
| Mehmood
Zuberi & Co-Chartered Accountants, being eligible, offer themselves |
|
| for
re-appointment. |
|
|
| 4.
To transact any other business with the permission of the chair. |
|
|
|
|
By the order of the Board |
|
|
|
|
|
|
|
(S. DABIR HASAN) |
|
| Karachi:
June 08, 2001 |
|
Company Secretary |
|
|
| NOTE: |
|
|
| 1.
The share transfer book of the company will remain closed from 21st June 2001 |
|
| (both
days inclusive). |
|
|
| 2.
A member of the company entitled to attend and vote may appoint any member as |
|
| his/her
proxy to attend the vote on his/her behalf PROXIES MUST BE |
|
| RECEIVED
AT THE HEAD OFFICE OF THE COMPANY NOT LESS THAN |
|
| 48
HOURS BEFORE THE TIME OF THE MEETING. |
|
|
| 3.
Share holder are requested to inform the company of any change in address |
|
| immediately. |
|
|
|
| DIRECTORS
REPORT |
|
|
| Your
Directors have pleasure in presenting the Twelfth Annual Report alongwith |
|
| Audited
Accounts of the company for the year ended December 31, 2000. |
|
|
| Your
Company achieved favourable results despite the adverse economic conditions |
|
| and
slump business activities prevailing in the country and sustained a profit of |
|
| Rs. 1,358,153.00 |
|
|
| Moreover
one of our Associated Companies M/s. TRISTAR SHIPPING LINES LTD. |
|
| is
in the revival position and we are hopeful for a bright future soon. |
|
|
| The
present Auditors, M/s. Mahmood Zubari & Co. Chartered Accountants, retire
and |
|
| being
eligible, offer themselves for reappointment. |
|
|
| We
thank our customers for their patronage and the confidence they have reposed
in |
|
| the
Company. We are also grateful to the Controller of Insurance and his
Department, |
|
| Pakistan
Insurance Corporation, State Bank of Pakistan, Overseas reinsurers and |
|
| banks
for their supportive attitude. |
|
|
| We
also thank and also wish to place on record our appreciation of the legal
& |
|
| devoted
services rendered by our executives. staff and field workers for their loyal
and |
|
| dedicated
efforts to the company. |
|
|
|
|
MASOOD T. BAGHPATEE |
|
| Karachi:
8th June, 2001 |
|
Chairman / Chief Executive |
|
|
|
|
| AUDITORS
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Delta Insurance Company Limited as
at |
|
| December
31, 2000 the fire, marine, motor and miscellaneous insurance revenue
accounts, |
|
| profit
and loss appropriation account together with the notes forming part thereof,
for the year |
|
| ended
on that date and we state that we have obtained all the information and
explanation |
|
| which
to the best of our knowledge and belief were necessary for the purpose of our
audit and |
|
| after
due verification thereof, we report that: |
|
|
| a)
in our opinion: |
|
|
|
|
| i)
Proper books of account have been kept by the Company as required by the |
|
| Companies
Ordinance, 1984; |
|
|
|
|
| ii)
The annexed balance sheet, the fire, marine, motor and miscellaneous
insurance |
|
| business
revenue accounts, profit and loss account and profit and loss |
|
| appropriation
account together with notes thereto have been drawn up in |
|
| conformity
with the provisions of the Insurance Act, 1938 and are in agreement |
|
| with
books of accounts and are further in accordance with the accounting policies |
|
| consistently
applied. |
|
|
|
|
|
|
| iii)
The expenditure incurred during the year was for the purpose of the company's
business. |
|
|
|
|
| iv)
The business conducted, investments made and expenditure incurred during the |
|
| year
were in accordance with the objects of the Company. |
|
|
| b)
In our opinion and to the best of our information and according to the
explanation given |
|
| to
us and as shown by the books of the Company and the annexed. Balance Sheet,
the |
|
| fire,
marine, motor and miscellaneous insurance business revenue accounts, profit
and |
|
| loss
account and profit and loss appropriation account together with the notes
forming |
|
| part
thereof, give the information required by the Insurance Act, 1938, in the
manner so |
|
| required,
and the balance sheet, profit and loss account give respectively, a true and
fair |
|
| view
of the state of the Company's affairs as at December 31, 2000. |
|
|
|
| (c)
We further report that:- |
|
|
|
|
|
|
| i)
We have verified the cash and bank balance and investments by actual
inspection |
|
| or
by the production of certificates or other documents. |
|
|
|
|
|
| ii)
As per section 40C(2) of the Insurance Act, 1938 all expenses of management |
|
| wherever
incurred whether directly or indirectly, in respect of fire, marine, motor |
|
| and
miscellaneous insurance business transacted in Pakistan have been fully |
|
| debited
to the respective accounts as expenses, and |
|
|
|
|
|
| iii)
As per regulation 11 of part I of the Third Schedule of Insurance Act, 1938,
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. |
|
|
| (d)
Without qualifying our opinion we draw attention to note 6 to the accounts
concerning |
|
| balance
due from an associated company amounting to Rs.30.667 million which are |
|
| doubtful
for recovery for which no provision has been made in the accounts. |
|
|
|
|
for MAHMOOD ZUBERI & CO. |
|
|
|
|
|
|
|
|
Naseem Akhtar |
|
| Karachi
08 June, 2001 |
|
B.Com. A.C.A. |
|
|
|
|
|
|
|
| BALANCE
SHEET AS AT DECEMBER 31, 2000 |
|
|
|
|
Note |
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
| CAPITAL |
|
|
|
| AUTHORISED |
|
| 5,000,000.00
Ordinary shares of Rs. 10 each |
|
50,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
Subscribed and paid-up 4,000,000.00 Ordinary |
|
| shares
of Rs. 10 each fully paid in cash |
|
40,000,000 |
40,000,000 |
|
|
|
|
| REVENUE
RESERVE |
|
| General Reserve |
|
|
1,200,000 |
1,200,000 |
|
| Reserve
for diminution in value of investment |
|
300,000 |
300,000 |
|
| Un-appropriated
(Loss)/Profit |
|
|
(4,772,059) |
(6,130,212) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(3,272,059) |
(4,630,212) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
36,727,941 |
35,369,788 |
|
|
|
|
| BALANCE
ACCOUNTS |
|
|
|
| Fire Insurance |
|
|
851,231 |
1,969,828 |
|
| Marine
Insurance |
|
|
72,558 |
471,044 |
|
| Motor
Insurance |
|
|
158,368 |
487,556 |
|
| Miscellaneous
Insurance |
|
|
80,261 |
3,130,392 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,162,418 |
6,058,820 |
|
|
|
|
|
|
| LIABILITIES
& PROVISIONS |
|
| Estimated
liability in respect of |
|
| outstanding
claims whether due or |
|
| intimated |
|
6 |
7,985,656 |
7,829,519 |
|
| Amount
due to other persons or bodies |
|
|
| Carrying on Insurance
business |
7 |
7,042,715 |
9,089,391 |
|
| Sundry creditors (including
outstanding |
8 |
11,041,172 |
10,915,322 |
|
| and
accrued expenses) |
|
|
|
| Directors Loan |
|
9 |
1,029,390 |
478,390 |
|
| Provision
for taxation |
|
|
4,540,585 |
4,510,525 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
31,639,518 |
32,823,147 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
69,529,877 |
74,251,755 |
|
|
|
|
========== |
========== |
|
|
|
|
| These
accounts should be read in conjunction with annexed notes, which form an
integral |
|
| part
of these accounts. |
|
|
|
MASOOD T. BAGHPATEE |
|
S.M. NADEEM |
|
MAHMOOD ZUBERI & CO. |
|
|
Chairman/Chief Executive |
|
Director |
|
Auditor |
|
|
|
| BALANCE
SHEET AS AT DECEMBER 31 2000 |
|
|
|
|
Note |
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
| INVESTMENT: |
|
| Government
Securities |
|
|
350,055 |
350,055 |
|
| (Deposited
with State Bank of Pakistan) |
|
|
|
| Ordinary
Shares of listed companies in corporation in |
|
|
| Pakistan |
|
|
77,310 |
77,310 |
|
|
------------------ |
------------------ |
|
|
|
427,365 |
427,365 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Agent
balances & outstanding premium |
10 |
35,600,794 |
38,931,710 |
|
| Interest
& Profit accrued but not due |
11 |
58,981 |
65,258 |
|
| Amounts
due from other persons or bodies |
12 |
26,437,968 |
26,812,968 |
|
| carrying
on insurance business |
|
|
|
|
| Advances.
deposits, prepayments and other |
13 |
2,346,688 |
2,782,133 |
|
| receivables |
|
|
|
|
| Advance
Income Tax |
|
|
23,691 |
-- |
|
|
|
|
|
| CASH
AND BANK BALANCES |
|
|
|
|
| On
fixed deposit accounts with banks |
14 |
1,400,000 |
1,900,000 |
|
| At
banks on current account |
|
15 |
444,752 |
180,234 |
|
| In hand |
|
16 |
3,573 |
508101.00 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
66,316,448 |
71,180,404 |
|
|
|
|
| ADMINISTRATIVE
FIXED ASSETS |
|
| Furniture,
Fixtures, Office Equipments and |
|
|
| Vehicles
(At cost less depreciation) |
17 |
2,486,065 |
2,343,986 |
|
| Office Building |
|
|
300,000 |
300,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,786,065 |
2,643,986 |
|
|
|
|
------------------ |
------------------ |
|
|
69,529,877 |
74,251,755 |
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with annexed notes, which form an
integral |
|
| part
of these accounts. |
|
|
|
MASOOD T. BAGHPATEE |
|
S.M. NADEEM |
|
MAHMOOD ZUBERI & CO. |
|
|
Chairman/Chief Executive |
|
Director |
|
Auditor |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
| Expenses
of management |
|
|
|
| (not
applicable to any |
|
|
|
| particular
fund or account) |
|
1,780,552 |
2,249,473 |
|
|
|
|
|
|
|
| Depreciation |
|
352,788 |
287,408 |
|
|
| Zakat
deducted at source |
|
30,000 |
47,500 |
|
|
|
|
|
|
|
| Outstanding
premium etc. |
|
|
|
|
|
| written off |
|
-- |
45,957,141 |
|
|
| Provision
for taxation |
|
30,060 |
5,000,000 |
|
|
|
|
|
|
|
| Net
Profit carried down |
|
|
1,358,153 |
-- |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
3,551,552 |
53,541,522 |
|
|
|
========== |
========== |
|
|
| Interest
on T.D.R. |
|
|
142,237 |
-- |
|
| Dividend
on investments |
|
|
78 |
230,939 |
|
| Less:
Income Tax thereon |
|
|
-- |
19,656 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
142,315 |
211,283 |
|
| Misc. Income |
|
|
1,018,656 |
-- |
|
| Gain
on sale of fixed assets |
|
|
28,866 |
50,080 |
|
| Liability
of amount due to |
|
|
|
| re-insurers
and sundry |
|
|
|
| creditors
written back. |
|
|
-- |
45,957,141 |
|
|
|
| Fire Insurance |
|
|
(107,205) |
768.01 |
|
| Marine
Insurance |
|
|
183,388 |
268.60 |
|
| Motor
Insurance |
|
|
(60,642) |
(138,957) |
|
| Miscellaneous
Insurance |
|
|
2,346,175 |
(619,366) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,361,175 |
278,287 |
|
| Balance
for the year |
|
|
|
|
| carried down |
|
|
-- |
7,044,731 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,551,552 |
53,541,522 |
|
|
========== |
========== |
|
|
|
| PROFIT
AND LOSS APPROPRIATION ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Balance
at the end of the |
|
|
|
|
|
| year
carried to B/Sheet |
|
(4,772,059) |
7,044,731 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(4,772,059) |
7,044,731 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| Balance
brought forward |
|
|
|
| From
Previous Year |
|
|
(6,130,212) |
914,519 |
|
| Profit
for the year |
|
|
|
|
| transferred to |
|
|
|
|
| Profit
& Loss Account |
|
|
1,358,153 |
6,130,212 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(4,772,059) |
7,044,731 |
|
|
========== |
========== |
|
|
|
MASOOD T. BAGHPATEE |
|
S.M. NADEEM |
|
MAHMOOD ZUBERI & CO. |
|
|
Chairman/Chief Executive |
|
Director |
|
Auditor |
|
|
|
| FIRE
INSURANCE REVENUE ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31 2000 |
|
|
|
|
|
|
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
| Claim
under policies in |
|
|
|
| Pakistan
Less re-insurance |
|
|
|
| Paid
during the year |
|
|
42,410 |
(115,604) |
|
|
| Estimated
Liability in |
|
|
|
| respect
of outstanding |
|
|
|
| claims
at the end of year |
|
|
|
| whether
due or intimated. |
|
|
2,632,208 |
2,667,296 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,674,618 |
2,551,692 |
|
| Less:
Outstanding at the |
|
| end
of the previous year |
|
2,667,299 |
2,075,863 |
|
|
|
------------------ |
------------------ |
|
|
|
7,322 |
475,829 |
|
| Expenses
of Management |
|
| (Less
administrative |
|
| Surcharge) |
|
|
4,008,907 |
3,674,850 |
|
|
| Commission |
|
(662,349) |
986,866 |
|
|
|
|
| Profit/(Loss)
transferred to |
|
|
| Profit
& Loss Account |
|
(107,205) |
768,009 |
|
|
|
|
| Reserved
for unexpired risks |
|
| being
40% of the premium |
|
| income
for the year |
|
|
851,231 |
1,969,828 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,097,906 |
7,875,382 |
|
|
========== |
========== |
|
|
| Balance
of account at the |
|
| beginning
of the year. |
|
|
|
|
| Reserve
for unexpired risks |
|
1,969,828 |
2,950,811 |
|
|
|
|
| Premium
in Pakistan Less |
|
| Re-insurance |
|
|
2,128,078 |
4,924,571 |
|
|
------------------ |
------------------ |
|
|
4,097,906 |
7,875,382 |
|
|
========== |
========== |
|
|
| We
certify that all expenses of management, wherever incurred whether directly
or indirectly. |
|
| in
respect of the fire Insurance Business transacted by the Company in Pakistan,
have been |
|
| fully
debited in the above revenue account as expenses. |
|
|
|
MASOOD T. BAGHPATEE |
|
S.M. NADEEM |
|
MAHMOOD ZUBERI & CO. |
|
|
Chairman/Chief Executive |
|
Director |
|
Auditor |
|
|
|
| MARINE
INSURANCE REVENUE ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 2000 |
|
|
|
|
2000 |
1999 |
|
|
|
|
Rupees |
Rupees |
|
|
| Claim
under policies in |
|
|
|
| Pakistan
Less re-insurance |
|
|
|
|
|
|
| Paid
during the year |
|
1,125 |
360,804 |
|
|
|
|
|
| Estimated
Liability in |
|
|
|
| respect
of outstanding |
|
|
|
| claims
at the end of year |
|
|
|
| whether
due or intimated. |
|
1,285,044 |
1,270,341 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,286,169 |
1,631,145 |
|
|
|
|
|
|
|
| Less:
Outstanding at the |
|
|
|
| end
of the previous year |
|
1,270,341 |
1,278,297 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
15,828 |
352,848 |
|
|
|
|
|
|
| Expenses
of Management |
|
|
|
| (Less
administrative |
|
|
|
| Surcharge) |
|
375,855 |
1,303,979 |
|
|
|
|
|
|
