| Adamjee Insurance Company Limited |
|
|
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
|
| BOA
RD OF DIRECTORS |
|
|
|
| MOHAMED
HANIF ADAMJEE |
Chairman |
|
|
| ABDUL
HAMID ADAMJEE |
Director |
|
|
| ABDUL
RAZAK ADAMJEE |
Director |
|
|
| IQBAL
ADAMJEE |
Director |
|
|
| I.A. RAFIQUI |
|
Director |
|
|
| AKHTAR K. ALAVI |
Director |
|
|
| MIAN
ASIF SAID |
Director |
|
|
| SAAD M. ALI |
|
Director |
|
|
| MOHAMMED
CHOUDHURY |
Managing Director &
Chief Executive |
|
|
|
|
|
| Secretary/General
Manager |
A. AZIZ CHASHMWALA
B.Com., LL.B. |
|
| Executive
Director (Finance) |
SYED ZIAUDIN AHMED,
M.Com., |
|
|
|
|
| General
Manager |
l. A, RAFIQUI |
|
|
|
AKHTAR K. ALAVI, A.C.I.I. (London) |
|
|
M. U. MOHAMMADI |
|
|
MOIEZ M. SHAIKHALI |
|
|
SULTAN A. SIDDIQI, B.A. |
|
|
MOHAMMED NASEEM, A.C.I.I.
(London) |
|
|
JABBAR AKHTAR, M.A.,
LL.B., F.C.I.I. (London) |
|
|
MIRZA ALI MAHMOOD., B.E.
(Mech. & Elec.) |
|
|
SAL1M RAFIK SIDIKI, B.A.
(Hons.), M.A. (Eco.) |
|
|
KHAWAJA KHALID MUSTAFA,
M.A. |
|
|
CAPT. MAHMOOD SULTAN,
Master Mariner, F.I.C.S. (London), F.C.I.I. (London), |
|
|
Chattered Ship Broker
Chattered Insurer |
|
|
|
|
|
ABDUL RAZAK RAHIMTULLAH
BRAMCHARI |
|
|
MOHAMMED ANWAR ABDULLA,
A.C.I.I. (London), Chartered Insurer |
|
|
SYED BASIT HUSSAN, B.
Corn. |
|
|
TAHIR AHMED, B.E. (Met.),
M.B.A., A.C.I.I. (London), Chattered Insurer |
|
|
JAMEEL KHAN, M.A., LL.B. |
|
|
|
|
| General
Manager (Car Clinic) |
MOHAMMED SALEEM |
|
| General
Managers (Development) |
ABDUL AZIZ KHADELI,
B.Com. |
|
|
SHAMSUL ARFEEN QURESHI,
B. Corn. |
|
| Joint
General Managers |
AHSAN MAHMOOD ALVI,
F.C.A. (England & Wales) |
|
|
M. JAHANGIR CHUGHTAI,
M.A. |
|
|
ABDUL HAMID, B. Com.,
F.C.I.I. (London), Chattered Insurer |
|
|
IQBAL MOHAMMAD, B.A. |
|
|
SHAMSUL HAQUE, A.C.I.I.
(London) |
|
|
M. IQBAL VAKIL., B.Com. |
|
|
S.M.M. RIZVI, B.A. |
|
|
T.A. ABBASI, B.Com. |
|
|
AUSTEN B. FREITAS |
|
|
MOHAMMED EUSOPH JAMAL,
M.B.A. |
|
|
TINKU 1. JOHNSON, B.E.
(Mech.), M.B.A. |
|
|
|
|
| Jt.
General Managers |
MAHMOOD A. WAHAB, B.A. |
|
| (development |
|
MAZHAR SALEEM |
|
|
ZERSIS RUSTOM BIRDIE |
|
|
ALTAF A. KARIM, B.A. |
|
|
|
|
|
| AUDITORS |
|
FORD, RHODES, ROBSON,
MORROW |
|
|
Chartered Accountants,
Karachi. |
|
|
|
|
| HEAD OFFICE |
|
Adamjee House |
|
|
|
R O. Box No.4850 |
|
|
I. I. Chundrigar Road,
Karachi |
|
|
Phone |
|
:PABX 2412623 (4 Lines) |
|
|
Fax |
|
: (92-21) 2412627 |
|
|
Telex |
|
:21594 & 29719 AIC PK |
|
|
Gable |
|
: ADAMJINSUR |
|
|
E-mail |
|
:
info@adamjeeinsurance.com |
|
|
Website: www.
Adamjeeinsurance.com |
|
|
|
|
| DEPUTY
GENERAL MANAGERS |
SYED KHADIM ALI, B.Com.,
LL.B. |
|
|
M. QASIM KAZMI, B.A. |
|
|
EDRIS H.M. GOAWALA,
B.Com., A.C.I.I. (London), Chartered Insurer |
|
|
SAEED JAN AWAN, M.Com. |
|
|
SYED AGHA HAIDER, M.A. |
|
|
MOHD YOUSUF, B.Com |
|
|
SYED ABDUL KHALIQUE, M.A.
(Eco.) |
|
|
RAMESH MULRAJ BHERWANI,
B.A. |
|
|
SALEEM TARIQ AHMED |
|
|
NAQI ZAMIN ALI, B.Sc.
(Hons) |
|
|
ATEEQ AHMED KHAN, M.Sc.
(Agri. Eco.) |
|
|
SYED KAISER ABBAS |
|
|
ABDUL HAMEED BHURI |
|
|
M. BASHIR SEJA, B. Com. |
|
|
A. SATTAR MOHAMMAD, B.A. |
|
|
GHULAM ABBAS |
|
|
JALALUDDIN ALVI, M.A. |
|
|
CAPT. SALEEM AHMED,
Master Mariner, M.I.C.S. (London), |
|
|
M.C.I.T. (London),
A.C.I.I. (London) |
|
|
A. RAHIM A. GHANI, B.Com. |
|
|
A. G. NAWAZ |
|
|
|
PARVAIZ SIDDIQ, M.B.A.,
F.C.I.I. (London), Chattered Insurer |
|
|
IMTIAZ AHMED PIRACHA,
B.Sc. |
|
|
|
|
|
|
|
| DEPUTY
GENERAL MANAGERS |
ALI MOHD. DADA |
|
| (DEVELOPMENT) |
ABDULLAH HAMID |
|
|
A, W. KARIM |
|
|
|
|
|
| ASST.
GENERAL MANAGERS |
NADEEM AHMED |
|
|
SHAHID A. ZAIDI |
|
|
SYED YOUSUF HUSSAIN, B.
Corn. |
|
|
SHAHEEN H. SUMAR (Mrs.),
MA. (Eco.) |
|
|
KHALID M. MIRZA, B.Com. |
|
|
MOHD. IBRHIM KAPADIA,
M.B.A. (USA), A.C.I.1. (London) |
|
|
IRFAN CHOUDHURY B.Sc.
Hon. (England) |
|
|
CAPT. AZHAR EHTESHAM
AHMED, Master Mariner |
|
|
KHALID HAMID, B.E.
(Elec.), A.C.I.I. (London), Chartered Insurer |
|
|
SALIM RAZAK BRAMCHARI,
B.Com., A.C.I.I. (London) |
|
|
QAMAR AHMED, B.A. |
|
|
JAWAD AHMED JAFRI, M.A.
(Eco.), A.C.I.1. (London), Chartered Insurer |
|
|
MOHAMMAD IQBAL DADA. MA.
(Eco.), A.C.I.I. (London) |
|
|
MOHAMMAD AMIN GHANI |
|
|
AKBAR ALI RAJAN |
|
|
JAVED ASLAM A. REHMAN,
B.A. |
|
|
MUHAMMAD MAZHAR SHAH,
B.A. |
|
|
MIAN FAISAL USMAN,
M.B.A., A.C.I.I. (London) |
|
|
|
|
| ASS.
GENERAL MANAGERS |
SYED ALI JAFFERY |
|
| (DEVELOPMENT) |
ABDUL KARM WAQAR, B.Com. |
|
|
ARSHAD HUSSAIN |
|
|
ABDUL SATTAR A. ABDULLAH |
|
|
MOHAMMAD UMER MEMON |
|
|
ALI MOHD. SHEKHA, B.A. |
|
|
MOHAMMAD IBRAHIM |
|
|
MOHD. SALEEM KHAN |
|
|
SULEMAN LAKHANI |
|
|
JAWAD USMANI |
|
|
ASGHAR JALIL |
|
|
|
ALI MOHD. HAJI
RAHIMTULLAH |
|
|
TABASSUM ELAHI |
|
|
MOHD YOUNUS, B. Com. |
|
|
ABDUL WAHID |
|
|
ANJUM SALEEM, B. Com. |
|
|
|
NAJMA NAEEM (Mrs.) |
|
|
|
|
|
|
| NOTICE
OF THE THIRTY-NINTH ANNUAL GENERAL MEETING |
|
|
| NOTICE
is hereby given that the Thirty-ninth Annual General Meeting of the Company
will be held at the Raffia Choudri Memorial |
|
| Centre,
Sidco Avenue Centre (Ground Floor), Stratchen Road, 264 - R.A. Lines, Karachi
on Wednesday the June 28, 2000 at 11.00 a.m.. |
|
| to
transact the following business:- |
|
|
| 1.
To receive and adopt Directors' and Auditors' Reports and Statement of
Account for the year ended December 31, 1999. |
|
| 2.
To approve the final dividend recommended by the Directors. |
|
| 3.
To consider and if thought fit to pass the following resolution as Ordinary
Resolution: |
|
|
| RESOLVED:- |
|
|
| i)
"That a sum of Rs. 42,940,890 out of the Company's Reserve for issue of
Bonus Shares be capitalised and applied in paying |
|
| up
in full to issue at par 4,294,089 fully paid Ordinary Shares of Rs. 10 each
to be allotted as Bonus Shares to and |
|
| amongst
the holders of the Ordinary Shares of the Company whose names appear in the
Register of Members of the Company |
|
| at
the close of business on June 12, 2000 in the proportion of one Ordinary
Shares for every ten Ordinary Shares held |
|
| and
that such new shares shall rank pari
passu as regards future dividends and in all other respects with the existing |
|
| Ordinary
shares of the company." |
|
|
| ii)
"That all fractions of Bonus Shares arising on such allotment be
consolidated and sold through the Company's broker and |
|
| that
the net proceeds thereof be distributed pro-rata to the members entitled
thereto." |
|
|
| iii)
"That for the purpose of giving effect to the foregoing, the directors
be and are hereby authorized to give such directions |
|
| as
may be necessary and to settle any
questions or difficulties that may arise in regard to the distribution of the
Bonus |
|
| Shared
or the sale proceeds of the fractions as the directors in their discretion
shall deem fit." |
|
|
| 4.
To appoint Auditors and fix their remuneration. |
|
|
| 5.
Special Business: |
|
|
|
| To
consider and, if thought fit, to pass the following resolution as Special
Resolution. |
|
| RESOLVED: |
|
| i)
"Thin the Authorised Share Capital of the Company be increased from Rs.
500,00,000 divided into 50,000,000 shares of |
|
| Rs.
10 each to Rs. 1,500,000,000 divided into 150,000,000 shares of Rs, 10
each." |
|
| ii)
"That consequent upon the said increase in Authorized Share Capital of
the Company, Clause 5 of the Memorandum of |
|
| Association'
and Article 4 of the 'Articles of Association' of the Company be and are
hereby amended to read as follows: |
|
|
| CLAUSE
5 OF THE MEMORANDUM OF ASSOCIATION |
|
| The
Authorised Share Capital of the Company is Rs. 1,500,000,000 divided into
150,000,000 shares of Rs. 10 each, with |
|
| rights,
privileges and conditions attaching thereto as arc provided by the
regulations of the Company for the time being with |
|
| power
to increase and reduce the Capital of the Company in such manner as may for
the time being be provided by the reg- |
|
| ulations
of the Company, |
|
|
| ARTICLE
4 OF THE ARTICLES OF ASSOCIATION |
|
| The
Authorised Share Capital of the Company is Rs. 1,500,000,000 divided into
150,000,000 shares of Rs. 10 each." |
|
|
| (See
annexed a statement under Section 160 of the Companies Ordinance, 1984 in
respect of above mentioned Special Business) |
|
|
|
By Order of the Board |
|
| Karachi:
May 16, 2000 |
|
A. AZIZ CHASHMAWALA |
|
|
| Notes:
(a) The Shares Transfer Books of the company will remain closed from June 13,
2000 to June 28, 2000 (both days |
|
| inclusive). |
|
| (b)
A member entitled to attend and vote at the General Meetings entitled to
appoint another member as a proxy to attend and vote |
|
| instead of him. |
|
| (c)
The instrument appointing a proxy must be received at the Registered Office
of the company not less than 48 hours |
|
| before
the time appointed for the Meeting. A member shall not be entitled to appoint
more than one proxy. If a member |
|
| appoints
more than one proxy and more than one instruments of proxy are deposited by
member with the Company, |
|
| all
such instrument of proxy shall be rendered invalid. |
|
| (d)
CDC shareholders are requested to bring with them their original Passport or
National Identity Card along with the |
|
| Participant's
ID number and their account number at the time of attending the Annual
General Meeting in order to facilitate identification |
|
| of
the respective shareholders. |
|
|
|
|
| STATEMENT
UNDER SECTION 160 OF THE COMPANIES ORDINANCE, 1984 |
|
| Regarding item 5 of the annexed Notice of
General Meeting |
|
|
| The
Authorised Share Capital of the Company is being increased from Rs. 500,000,000 to Rs. 1,500,000,000 to
enable |
|
| the
company to expand its capital base to facilitate the issue of further
capital, commensurate with the company's business |
|
| as
the directors may deem necessary from time to time. |
|
|
| 20
YEARS' PROFIT APPROPRIATION AT A GLANCE |
|
| 1980 TO 1999 |
|
|
|
(In Million of Rupees) |
|
|
| YEAR ENDED |
DIVIDEND |
|
BONUS SHARES |
|
|
General |
Gross |
Retained |
Profit |
|
| December 31, |
Rate |
Amount |
Rate |
Amount |
Reserve |
Premium |
Premium |
After Tax |
|
|
% |
Rs |
% |
Rs |
|
RS |
Rs |
Rs |
|
| 1980 |
40.0 |
4.07 |
20.0 |
2.03 |
5.00 |
185.44 |
138.96 |
1,087 |
|
|
| 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.l 7 |
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 |
65,297 |
377.98 |
50.04 |
|
| 1988 |
40.0 |
27.75 |
15.0 |
10.4 |
5.00 |
78,934 |
461.01 |
43.38 |
|
| 1989 |
45.0 |
35.90 |
10.0 |
7.97 |
8.00 |
82,251 |
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 |
22.2 |
60.00 |
1,399.83 |
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 |
2045.05 |
1,210.37 |
176.08 |
|
|
|
| 1995 |
35.0 |
69.95 |
25.0 |
49.96 |
67.00 |
2,458.22 |
1,536.85 |
186.55 |
|
| 1006 |
33.0 |
87.44 |
25.0 |
62.45 |
72.00 |
2,855.83 |
1,894.00 |
221.87 |
|
|
|
| 1997 |
35.0 |
109.3 |
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 |
|
| 1990 |
22.5 |
96.62 |
10.0 |
42.94 |
44.00 |
3511.13 |
2,417.96 |
183.50 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total |
792.5 |
884.38 |
428 |
462.06 |
661 |
26.840.79 |
17,471.89 |
2,007.55 |
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
39.60% |
44.22 |
21.40% |
23.10 |
33.05 |
1,342.04 |
873.59 |
100.38 |
|
|
| Appropriation
over 20 years |
|
|
|
|
| on
average profit basis |
44.1% |
|
23.0% |
32.9% = 100% |
|
|
|
|
|
|
|
|
| THIRTY-NINTH
REPORT OF THE DIRECTORS |
|
| FOR
THE YEAR ENDED DECEMBER 31, 1999 |
|
|
|
| THE
SHAREHOLDERS |
|
| ADAMJEE
INSURANCE COMPANY LIMITED |
|
|
| We
take pleasure in presenting to you our 39th Annual |
|
| Report
and Accounts for the year 1999. The country con. |
|
| tinues
to suffer from economic stagnation as a result of |
|
| monetary
sanctions imposed by the World Bank, IMF, |
|
| ADB
etc, consequent upon the nuclear blasts in May 1998, |
|
| As
such, there was no growth in 1999 in the premium |
|
| income
written in Pakistan. The overseas premium |
|
| income,
however, recorded some improvement. The |
|
| Company's
premium income, in the aggregate, rose by 9% |
|
| over 1998. |
|
|
| Despite
difficult conditions, your Company has been able |
|
| to
produce reasonable profit which is evident from the fol- |
|
| lowing table:- |
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Gross
Direct Premium |
|
3,511,128,226 |
3,220,121,720 |
|
|
| Premium
Retained |
|
2,417,957,292 |
2,142,076,783 |
|
|
|
|
|
| Net
Claims Paid and Outstanding |
1,446,996,961 |
1,525,285,300 |
|
|
|
|
|
| Commission
and Discount |
|
142,979,012 |
163,095,615 |
|
|
|
|
|
| Expenses
of Management |
|
552,481,998 |
508,600,698 |
|
|
| Premium Reserve Strain (net
charge) |
112,474,445 |
(26,827,233) |
|
|
|
|
|
| Pre-tax Profit |
|
260,500,377 |
207,398,135 |
|
|
|
| UNDERWRITING
PERFORMANCE |
|
| As
will be noticed from the above table, there has been |
|
| some
improvement in all areas, namely premium retained, |
|
| claims paid and outstanding and
commission/discount |
|
| over
the previous year. The expenses of management |
|
| increased
from Rs. 508 million in 1998 to Rs. 552 million |
|
| during
the year, largely due to normal annual increase and |
|
| impact
of inflation. The pre-tax profit increased from |
|
| Rs,
207 million in 1998 to Rs. 260 million during the year |
|
| under review. |
|
|
| FIRE
BUSINESS |
|
| The
gross direct premium increased modestly to Rs. 899 |
|
| million
in 1999 from Rs. 860 million in 1998. Fortunately, |
|
| the
Company did not suffer any major losses, resulting in |
|
| a
1ower claims ratio of46% compared to 56% in 1998. The |
|
| underwriting
profit increased from Rs. 63 million in 1998 |
|
| to
Rs. 99 million in 1999 or 5.7% higher than the last year. |
|
| The
expenses of management together with commission |
|
| amounted
to Rs. 160 million in 1999 as against Rs. 174 |
|
| million in 1998. |
|
|
| MARINE
BUSINESS |
|
| The
marine cargo gross premium increased from Rs. 451 |
|
| million
in 1998 to Rs. 512 million in 1999. The lower |
|
| claims
ratio of 36% to the retained premium enabled the |
|
| Company
earn a profit of Rs. 131 million compared to |
|
| Rs.
96 million in 1998. |
|
|
| Because
of adverse claims experience in hull business in |
|
| the
preceding years, your Company wrote a lower |
|
| premium
income of Rs. 81 million compared to Rs, 125 |
|
| million
last year. The Company suffered an underwriting |
|
| loss
of Rs. 71 million in 1999 against Rs. 30 million in |
|
| 1998. |
|
|
| The
marine business, in the aggregate, therefore produced |
|
| a
lower profit of Rs. 60 million in 1999 against Rs. 66 |
|
| million in 1998. |
|
|
| MOTOR
BUSINESS |
|
| The
gross direct premium income increased from |
|
| RS,
1.119 billion in 1998 to Rs. 1.368 billion in 1999. |
|
| Because
of highly adverse claims experiences in the |
|
| proceeding
ycara7 abundant caution is being exercised in the |
|
| acceptance
of business and claim settlements. As a |
|
| consequence,
claims ratio declined to 65% from 88% last |
|
| year,
After sustaining losses of Rs, 31 million and Rs, 95 |
|
| million
in 1997 and 1998 respectively, the Company |
|
| earned
a small profit of Rs. 14 million in
1999. |
|
|
| MISCELLANEOUS
BUSINESS |
|
| Miscellaneous
business consists of engineering bonding |
|
| and
surety, bankers' insurance, burglary and theft, kidnap |
|
| &
ransom, medical insurance etc. The direct premium |
|
| income,
in the aggregate, amounted to Ks, 650 million in |
|
| 1999
compared to Rs. 664 million last year. Nevertheless, |
|
| due
to improvement in the claims and management |
|
| expense
ratios this year, the profit increased to Rs. 78 |
|
| million
compared to Rs. 57 million in 1998. |
|
|
| OVERSEAS
OPERATIONS |
|
| The
premium income from our overseas branches in U.A.E. |
|
| and
Saudi Arabia aggregated to Rs. 783 million in 1999 |
|
| compared
to Rs. 618 million in the preceding year. Since |
|
| motor
business constitutes 70% of the total business, efforts |
|
| are
being made to develop other lines of business to produce |
|
| larger profits,
Experience has shown motor business |
|
| generally
less profitable compared to other classes of |
|
| business. |
|
|
| INVESTMENT
AND MONEY MANAGEMENT |
|
| The
stock market which had shown declining trend in |
|
| 1998
started recovering from the beginning of the current |
|
| year.
The Karachi Stock Exchange Index which stood at |
|
| 952.42
points on January 2, 1999 rose to 1,054.67 points |
|
| on
June 30, 1999 and 1,408.91 points on December 30, |
|
| 1999.
This improvement in stock exchange which |
|
| occurred
in the later part of the year was not quite enough |
|
| to
enable your Company book adequate capital gains. |
|
|
| In
the above backdrop, in order to avert diminution in the |
|
| value
of its investments in stocks/shares, as witnessed in |
|
| 1998,
your Company invested during the year most of its |
|
| surplus
funds in the Government Securities. Of the total |
|
| investments
of Rs. 81,159,073, a sum of Rs. 60 million |
|
| alone
was invested in Defence Savings Certificates, which |
|
| now
stand at around Rs. 357 million. The overall invest- |
|
| merits
stand at Rs. 1.586 billion in 1999 compared to |
|
| Rs.
1.505 billion in 1998. |
|
|
| During
the year, the investment income from dividends, |
|
| bonus
shares, interest, capital gains etc. aggregated to |
|
| Ks.
222 million compared to Rs. 237 million in 1998. Due |
|
| to
adverse stock market conditions, capital gains of Rs. 17 |
|
| million
only could be realised compared to Rs. 56 million |
|
| in 1998. |
|
|
| PROFIT
FOR THE YEAR |
|
| Due
to improvement in the underwriting operations, your |
|
| Company
earned a pre-tax profit of Rs. 260 million corm- |
|
| pared
to Rs. 207 million in 1998. Through Finance Act, |
|
| 1999, tax
rate was raised from 30% to 33% in the case of |
|
| insurance
companies. |
|
|
| The
dividend income which was subject to 5% tax only, |
|
| now
attracts much higher tax rate of 33%. The tax provi- |
|
| sion
for the year has thus increased considerably to Rs. 77 |
|
| million
against a provision of Rs. 11 million in 1998. The |
|
| after-tax
profit, as a result, declined to Rs. 183 million in |
|
| 1999
compared to Rs. 196 million last year. As the |
|
| Government
has not so far refunded large income tax |
|
| refunds
due to the Company, interest on such tax refunds |
|
| amounting
to Rs. 57 million, has been included in income |
|
| as
provided in the Income Tax Ordinance, 1979. |
|
|
| ALLOCATION
OF PROFIT |
|
| The
profit for the year (inclusive of the balance of profit of |
|
| Rs.
418,787 brought forward from last year) aggregated to |
|
| Rs.
183,919,164 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 propose |
|
| appropriation
of the profit in the following manner:- |
|
|
|
Rupees |
|
|
| i)
Interim dividend (already paid) (3 15% |
|
64,411,329 |
|
|
| ii)
Proposed final dividend @ 7.5% |
|
32,205,665 |
|
|
| iii)
Reserve for issue of bonus shares in the |
|
| ratio
of one ordinary share for every |
|
| ten
ordinary shares held (10%) |
|
42,940,890 |
|
| iv)
General Reserve |
|
44,000,000 |
|
|
| v)
Balance to be carried forward |
|
361,280 |
|
|
----------- |
|
| Total: |
|
183,919,164 |
|
|
========== |
|
|
|
|
| PAID-UP
CAPITAL AND RESERVES |
|
| As
you are aware, your Company all along has been a |
|
| growth-oriented
Company, following a very firm policy |
|
| with
regard to development of capital-base, financial and |
|
| technical
reserves etc. to achieve growth in business. It |
|
| may
be of interest to point out here that the paid-up |
|
| capital
together with financial and technical reserves |
|
| which
stood at Rs. 1,374 million in 1994 increased to |
|
| Rs.
2,669 million in 1999 or 94% increase over 5 years' period. |
|
|
