| Delta Insurance Company Limited |
|
|
|
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|
| Annual
Report 1999 |
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| CONTENTS |
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|
| Board
of Directors & Management |
|
| Notice
of Meeting |
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| Director's
Report |
|
| Auditor's
Report |
|
| Balance Sheet |
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| Profit
and Loss Account |
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| Fire
Revenue Account |
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| Marine
Revenue Account |
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| Motor
Revenue Account |
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| Misc.
Revenue Account |
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| Notes
to The Accounts |
|
| Cash
Flow Statement |
|
| Classified
Summary of Assets in Pakistan - Form AA |
|
| Pattern
of Shareholdings |
|
| Company
Offices |
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|
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| BOARD
OF DIRECTOR |
|
|
| Chairman/Chief
Executive Director |
Masood T. Bahgpatee |
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|
S.M. Shaft Baghpatee |
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|
Mansur Khalid |
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|
|
S.M. Nadeem |
|
|
|
S.M. Mohsin |
|
|
|
Syed Nasir Iqbal |
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|
|
Muhammad Shahid |
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|
|
| Registered
Office |
|
101-1st Floor, Baghpatee
Building, |
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|
Altaf Hussain Road, |
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|
New Challi, |
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Karachi-74000. |
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Telephone : 2410114,
2410115, 2410116, |
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Fax : 2422292. |
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| MANAGEMENT |
|
| Mr.
Mansoor T. Baghpatee |
|
Chairman / Chief
Executive |
|
| Mr.
Syed Asif Ali |
|
S.E.V.P. & Managing
Director |
|
| Mr.
S. Dabir Hasan |
|
Company Secretary |
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| Mr.
S. Manzoor Ali |
|
Manager (Admn) |
|
| Mr. Ain-ul-Haq |
|
|
Manager Underwriting /
Claims |
|
| Shaikh
Muhammad Noman |
|
Manager Marketing |
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| Auditors:- |
|
|
M/s. M. Iqbal Patel &
Co., |
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|
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|
Chartered Accountants, |
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|
1012, Uni Centre, |
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|
I.I. Chundrigar Road,
Karachi. |
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|
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| Bankers: |
|
Faysal Bank Limited. |
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|
Allied Bank of Pakistan
Limited. |
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|
|
Union Bank Limited. |
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|
|
Habib Bank Limited. |
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|
|
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| Registrar: |
|
Noble Computer Service
(Pvt) Ltd. |
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|
A1-Manzoor Building, |
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|
Dr. Ziauddin Ahmed Road, |
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|
Karachi. |
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Tel No : 2635511-14 |
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|
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| NOTICE
OF MEETING |
|
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| Notice
is hereby given that the Eleventh Annual General Meeting of DELTA INSURANCE |
|
| COMPANY
LIMITED will be held on Saturday 29 July, 2000 at 10:00 am, at 101, 1st floor |
|
| Baghpatee
Building, Altaf Hussain Road, New Challi, Karachi-74000 to transact the
following |
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| business: |
|
|
| 1.
To read and confirm the Minutes of the Tenth Annual General Meeting held on
30th June, |
|
| 1999. |
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|
|
|
|
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| To
receive and adopt the audited accounts of the company for the year ended
December |
|
| 31,
1999 together with Director's and Auditor's reports thereon. |
|
|
| 3.
To elect Directors in accordance With the provisions of section 178 and 180
of the Companies |
|
| Ordinance,
1984. The number of directors to be' elected has been fixed at Seventh (7) |
|
| by
the Board of Directors. All the retiring directors, namely, Messers Masood T.
Baghpatee, |
|
| S.M.
Shaft Baghpatee, Mansur Khalid Baghpatee, S.M. Mohsin Baghpatee, and S.M.
Nadeem |
|
| Baghpatee
being eligible, have notified their intention to offer themselves for
re-election |
|
| as
Directors and Messers Syed Nasir Iqbal and Muhammed Shahid have filed their
consent |
|
| to
contest the election as Director of the Company. |
|
|
| 4.
To appoint auditors and fix their remuneration. The present auditors M/s. M.
Iqbal Patel |
|
| &
Co. Chartered Accountants, being eligible offer themselves for reappointment. |
|
|
| 5.
To transact any other business with the permission of the Chair. |
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|
By the Order of the Board |
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|
(S. DABIR HASAN) |
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| Karachi:
04-07-2000. |
|
Company Secretary |
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|
|
| NOTE: |
|
|
| 1.
The Share transfer books of the Company will remain closed from 20th July,
2000 to |
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| 29th
July, 2000 (both days inclusive). |
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|
|
| 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.
Shareholders are requested to inform the Company of any change in address
immediately. |
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|
| DIRECTOR'S
REPORT |
|
|
| Your
Directors have pleasure in presenting the Eleventh Annual Report along with
Audited |
|
| Accounts
of the company for he year ended December 31, 1999. |
|
|
| Your
Company has, by the Grace of Allah, been able to underwrite gross premium of |
|
| Rs.
16.96 million, slightly short of last year. |
|
|
| Your
Company achieved these results despite the adverse economic conditions and
slump |
|
| business
activities prevailing in the country. Moreover, due to closure of one of our
associated |
|
| Companies,
we lost marine hull business. |
|
|
| We
are, however, hopeful for a bright economic recovery in the country with the
dedication |
|
| and
spirit expressed by the present Government. |
|
|
| During
the year under review sustained a loss amounted to Rs. 7.04 million. The
lower |
|
| underwriting
profit is mainly due to loss of marine hull premium. |
|
|
| All
the retiring directors namely, Messers Masood. T. Baghpatee, S.M. Shafi,
Mansur Khalid, |
|
| S.M.
Nadeem, and SM Mohsin, being eligible, have notified their intention to offer
themselves |
|
| for
re-election as Directors and Messrs. Syed Nasir Iqbal and Muhammed Shahid
have filed |
|
| their
consent to contest the election as Director of the Company. |
|
|
| The
present Auditors, M/s. M. Iqbal Patel & 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 re-insurers and banks for their |
|
| supportive
attitude. |
|
|
| We
also thanks our executives, staff and field workers for their loyal and
dedicated efforts |
|
| as
without their unstinted support the Company would not have achieved this
progress. |
|
|
|
|
|
|
MASOOD T. BAGHPATEE |
|
| Karachi:
4th July, 2000 |
|
Chairman / Chief Executive |
|
|
|
|
| AUDITORS
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Delta Insurance Company Limited as
at December 31, 1999. |
|
| the
fire. marine, motor and miscellaneous insurance business revenue accounts.
profit and loss appropriation account |
|
| and
cash flow statement 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 explanations 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 the 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 the year
were in accordance |
|
| with
the objects of the Company; and |
|
|
|
|
|
| v)
In our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
|
| b)
In our opinion and to the best of our information and according to the
explanations 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 and cash flow
statement give respectively, a |
|
| true
and fair view of the state of the Company's affairs as at December 31, 1999,
and its loss ,and cash |
|
| flows
for the year then ended; |
|
|
|
|
|
| c)
we further report that: |
|
|
|
|
|
| i)
We have verified the cash and bank balances and investments by actual
inspection or by |
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| 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 the 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 mad 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 and that the Company incurred net |
|
| loss
of Rs. 7.044 million during the year under review. These factors alongwith
other matters as |
|
| setforth
in the notes to the accounts raise doubt that the Company will be able to
continue as a |
|
| going concern. |
|
|
|
|
|
|
|
M. IQBAL PATEL & CO. |
|
| Karachi
04 July 2000 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT DECEMBER 31, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| CAPITAL |
|
|
|
| AUTHORIZED |
|
|
|
| 5,000,000
Ordinary Shares of R. 10/--each |
|
|
50,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| ISSUED
SUBSCRIBED & PAID UP |
|
|
| 4,000,000
ordinary shares of Rs. 10/= each |
|
|
40,000,000 |
40,000,000 |
|
| fully
paid in cash |
|
|
|
|
|
| REVENUE
RESERVES |
|
|
| General Reserve |
|
|
1,200,000 |
1,200,000 |
|
| Reserve
for diminution in value of investment |
|
|
300,000 |
300,000 |
|
| Un-appropriated
loss / profit |
|
|
(6,130,212) |
914,519 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(4,630,212) |
2,414,519 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
35,369,788 |
42,414,519 |
|
|
|
|
| BALANCE
OF ACCOUNTS |
|
|
|
| Fire insurance |
|
|
1,969,828 |
29,508,111 |
|
| Marine,
insurance |
|
|
471,044 |
12,533,181 |
|
| Motor
insurance |
|
|
487,556 |
1,328,360 |
|
| Miscellaneous
insurance |
|
|
3,130,392 |
852,609 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
6,058,820 |
6,385,098 |
|
|
|
|
| LIABILITIES
& PROVISIONS |
|
|
|
| Estimated
liability in respect of outstanding |
|
|
| Claims
whether due or intimated. |
|
|
7,829,519 |
6,977,637 |
|
| Amounts
due to other persons or bodies |
|
|
| Carrying
on insurance business. |
|
|
9,089,391 |
50,812,031 |
|
| Sundry
creditors (including outstanding and |
|
|
| accrued
expenses). |
|
|
10,915,322 |
7,523,125 |
|
| Directors Loan |
|
|
478,390 |
-- |
|
| Provision
for taxation |
|
|
4,510,525 |
604,940 |
|
|
|
|
------------------ |
------------------ |
|
|
|
32,823,147 |
65,917,733 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
74,251,755 |
114,717,350 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| These
accounts should be read in conjunction with annexed notes which form an
integral |
|
| part
of these accounts. Auditors report to the Members is annexed. |
|
|
|
|
| Karachi.
04, July 2000 |
|
|
|
|
|
|
|
|
|
|
| INVESTMENT |
|
|
|
| Government
Securities |
|
|
|
| (Deposited
with State Bank of Pakistan) |
|
|
350,055 |
350,055 |
|
| Ordinary
shares of listed companies in corporation |
|
|
| in Pakistan |
|
|
77,310 |
231,110 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
427,365 |
581,165 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Agent
balances & outstanding premiums |
|
|
38,931,710 |
33,690,079 |
|
| Interest
& Profit accrued but not due |
|
|
65,258 |
183,064 |
|
| Amounts
due from other persons or bodies |
|
|
| carrying
on insurance business |
|
|
26,812,968 |
60,886,655 |
|
| Advances,
deposits, prepayments and |
|
|
| other
receivables |
|
|
2,782,133 |
13,220,743 |
|
|
|
|
| CASH
AND BANK |
|
|
|
| On
fixed deposit accounts with banks |
|
|
1,900,000 |
2,702,000 |
|
| At
banks on current account |
|
|
180,234 |
247,122 |
|
| In hand |
|
|
508,101 |
52,202 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
71,180,404 |
110,981,865 |
|
|
|
|
|
| ADMINISTRATIVE
FIXED ASSETS |
|
|
| (at
cost less depreciation) furniture, fixtures |
|
|
| Office
equipments and Vehicles. |
|
|
|
|
|
|
2,343,986 |
3,154,320 |
|
|
|
|
3,000,001 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,643,986 |
3,154,320 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
74,251,755 |
114,717,350 |
|
|
|
|
========== |
========== |
|
|
| We certify that: |
|
|
| 1.
The investment have been stated in the balance sheet at cost or book value
and the |
|
| market
value of investments, wherever applicable, have been ascertained from |
|
| published
quotations as on December 31, 1999. |
|
|
| 2.
The value of all the assets have been reviewed as at December 31, 1999 and in
our |
|
| belief,
such assets set forth in balance sheet are shown in the aggregate at amounts |
|
| not
exceeding their realizable or market value under the several headings given |
|
| therein. |
|
|
|
|
|
S.M. NADEEM BAGHPATEE |
|
MASOOD T. BAGH PATEE |
|
|
Director |
|
Chairman / Chief Executive |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 1999 |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
|
| Expenses
of management |
|
2,249,473 |
2,129,307 |
|
|
| (not
applicable to any |
|
|
|
|
| particular
fund or account). |
|
|
|
|
|
|
|
|
|
| Deferred
costs amortized |
|
-- |
54,453 |
|
|
| Depreciation. |
|
287,408 |
513,929 |
|
|
| Zakat
deducted at source |
|
47,500 |
117,500 |
|
|
|
|
|
|
|
| Outstanding
premium |
|
|
|
|
| etc. written off |
|
45,957,141 |
-- |
|
|
| Provision
for taxation. |
|
5,000,000 |
100,000 |
|
|
|
|
|
|
|
| Net
profit carried down |
|
-- |
199,333 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
53,541,522 |
3,114,522 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| Return/interest
and |
|
|
|
|
| Dividend
on investments |
|
230,939 |
454,581 |
|
|
| Less
income tax thereon |
|
19,656 |
48,836 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
211,283 |
405,745 |
|
|
|
|
|
|
|
| Gain
on sale of fixed assets |
|
50,080 |
799,010 |
|
|
| Gain
on sale of investment |
|
-- |
1,600 |
|
|
| Miscellaneous
income |
|
-- |
2,514 |
|
|
| Liability
of amount due to |
|
|
|
|
| re-insurers
and sundry |
|
|
|
|
| creditors
written back. |
|
45,957,141 |
-- |
|
|
| Fire insurance |
|
768,009 |
(1,675,362) |
|
|
| Marine
insurance |
|
268,601 |
5,169,929 |
|
|
| Motor
insurance |
|
(138,957) |
(1,490,961) |
|
|
| Miscellaneous
insurance |
|
(619,366) |
(97,953) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
278,287 |
1,905,653 |
|
|
|
|
|
|
|
|
| Balance
for the year carried down. |
|
7,044,731 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
53,541,522 |
3,114,522 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| PROFIT
AND LOSS APPROPRIATION ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 1999 |
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
|
| Loss
for the year brought down. |
|
7,044,731 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
7,044,731 |
914,519 |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
| Balance
brought forward |
|
|
|
|
|
| from
previous year |
|
|
914,519 |
715,186 |
|
|
|
|
|
|
|
| Balance
carried forward |
|
|
6,130,212 |
199,333 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
7,044,731 |
914,519 |
|
|
|
|
|
========== |
========== |
|
|
|
| Karachi |
|
S.M. Nadeem Baghpatee |
|
Masood T Baghpatee |
|
| July 04 2000 |
|
DIRECTOR |
|
Chairman / Chief Executive |
|
|
|
| FIRE
INSURANCE REVENUE ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Claims
under policies in Pakistan. |
|
|
|
| Less
reinsurance |
|
|
|
|
|
|
| Paid
during the year. |
|
(115,604) |
265,298 |
|
|
|
|
|
| Estimated
liability |
|
|
|
| in
respect of outstanding |
|
|
|
| claims
at the end |
|
|
|
| of
the year whether due |
|
|
|
| or intimated. |
|
2,667,296 |
2,075,863 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,551,692 |
2,341,161 |
|
|
| Less:
Outstanding at the |
|
|
|
|
| end
of the previous year. |
|
2,075,863 |
1,159,056 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
475,829 |
1,182,105 |
|
|
|
|
|
|
|
| Expenses
of Management |
|
|
|
|
|
| (Less
administrative |
|
|
|
|
|
| Surcharge) |
|
3,674,850 |
5,236,216 |
|
|
| Commission |
|
986,866 |
1,245,727 |
|
|
| Profit
(loss) transferred to |
|
|
|
|
| profit
and loss account. |
|
768,009 |
(1,675,362) |
|
|
|
|
|
|
|
| Balance
of account at the |
|
|
|
|
|
| end of the year. |
|
|
|
|
|
|
|
|
|
|
| Reserve
for unexpired |
|
|
|
|
|
| risks
being 40% of the |
|
|
|
|
|
| Premium
income for the year. |
|
|
1,969,828 |
2,950,811 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,875,382 |
8,939,497 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
| Balance
of account at the |
|
|
|
|
| beginning
of the year. |
|
|
|
|
|
|
|
|
| Reserve
for unexpired risks |
|
2,950,811 |
1,562,469 |
|
|
|
|
|
|
|
| Premium
in Pakistan |
|
|
|
|
| Less
Re-insurances |
|
4,924,571 |
7,377,028 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,875,382 |
8,939,497 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
| We
certify that all expenses of management, wherever incurred whether directly
or indirectly, in respect of fire |
|
| Insurance
Business transacted by the Company in Pakistan, have been fully debited in
the above revenue account as |
|
