| Pakistan Guarantee Insurance Company Limited |
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| Annual
Report 1999 |
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| CONTENTS |
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| Company
Information |
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| Management |
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| Offices |
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| Notice
of Annual General Meeting |
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| Directors'
Report |
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| Auditors'
Report |
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| Balance Sheet |
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| Profit
& Loss Account |
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| Cash
Flow Statement |
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| Fire
Insurance Revenue Account |
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| Marine
Insurance Revenue Account |
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| Motor
& Miscellaneous Insurance Revenue Accounts |
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| Notes
to the Accounts |
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| Classified
Summary of Assets |
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| Pattern
of Shares held by Shareholders |
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| COMPANY
INFORMATION |
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| BOARD
OF DIRECTORS |
Mr. Said Ahmed |
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Chairman |
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Mr. Shakil Raza Syed |
Managing Director & |
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Chief Executive |
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Mr. Mian Mohammad Hanif
Esq. |
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Mr. Mohammad Rashid |
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Mr. Mohammad Tayyab |
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Mr. Shafiq Ahmed Shaikh |
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Mr. Sajjad Haider |
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Mr. Azher Majid Shaikh |
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Mr. Hunaid Husain Lakhani |
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Mr. Mohammad Ali |
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Mr. Shaikh Mohammad
Munawwar |
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Mr. Saleem-ul-Hassan |
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Mr. Yousuf Jan Mohammad |
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| COMPANY
SECRETARY |
Mr. Mushtaque Ahmed |
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| AUDITORS |
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Hameed Chaudhri &
Company, |
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Chartered Accountants. |
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5th Floor, Karachi
Chambers, |
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Hasrat Mohani Road, |
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Karachi. |
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| BANKERS |
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United Bank Limited |
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National Bank of Pakistan |
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Allied Bank Limited |
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Habib Bank A.G. Zurich |
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Prime Commercial Bank |
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| REGISTERED
OFFICE |
7, Bank Square, Lahore. |
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Telephone: 7235281,
7235442 |
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: 7357748, 7358024 |
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: 7356778, 7358007 |
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Fax : (042) 7323051 |
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P.O. Box : 1028 |
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| HEAD OFFICE |
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Al-Falah Court, 3rd &
5th Floors, |
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I.I. Chundrigar Road,
Karachi. |
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Telephone : 2636111--15 |
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Fax : (92-21) 2638740 |
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P.O. Box : 5436 |
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| MANAGEMENT |
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| CHAIRMAN |
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| Mr. Said Ahmed |
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| MANAGING
DIRECTOR & |
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| CHIEF
EXECUTIVE |
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| Mr.
Shakil Raza Syed |
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| ASSISTANT
GENERAL MANAGER |
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| Mr.
Absar Azim Burney, A.M.P.I.M. |
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| Mr.
Muhammad Ashraf Bhatti |
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| (Chartered
Insurer) A.C.I.I. & M.B.A. |
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| Mr.
M. Ilyas Malik |
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| CHIEF
MANAGER |
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| Mr.
S. Mujahid Hussain Shah |
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| Mr.
Mushtaque Ahmed |
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| Mr.
Hamid Raza Khan, F.C.I.C. |
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| DEPUTY
CHIEF MANAGER |
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| Mr.
Ahmed Saeed Hashmi |
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| Mr.
Mirza Obaidullah Baig |
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| M.A.
(Soc), B.Sc., PGD (CIS) |
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| Mr.
M. Shahabuddin |
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| HEAD
OF HEALTH DIVISION |
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| Dr.
Muhammad Shafi Ahmed |
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| M.B.B.S. |
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| Dr.
Ghazala Rashid (Faisalabad Division) |
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| M.B.B.S. |
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| MANAGER |
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| Mr.
M. Fayyaz Bedaar |
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| Mr.
M. Afzel Khan |
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| Mr.
S.M. Mohsin Naqvi |
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| OFFICES |
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| KARACHI |
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| Mr.
S. Mujahid Hussain Shah |
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| Chief
Manager (Marketing) |
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| 3rd
Floor, AI-Falah Court, |
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| I.I.
Chundrigar Road, |
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| Karachi. |
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| Phone:
2636111-15, Direct Ph.: 2631090 |
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| Fax:
(92-21) 2638740 |
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| ZONAL
OFFICE, LAHORE |
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| Mr.
Mohammad Ashraf Bhatti |
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| (Chartered
Insurer) A.C.I.I. & M.B.A. |
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| Assistant
General Manager |
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| 7, Bank Square, |
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| Lahore. |
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| Phone:
7356778, 7358007 |
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| 7235281, 7235442 |
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| 7357748, 7358024 |
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| Fax:
(042) 7323051 |
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| P.O. Box: 1028 |
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| FAISALABAD |
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| Mr.
M. Ilyas Malik |
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| Assistant
General Manager |
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| 23,
Chartered Bank Building, |
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| Railway Road, |
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| Faisalabad. |
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| Phone: 634451 |
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| Fax:
(041) 634452 |
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| MULTAN |
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| Mr.
Qamar Raza Zaidi |
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| Regional
Manager |
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| United Square, |
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| S.P. Chowk, |
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| 91-A,
Musarat Road, |
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| Multan Cantt. |
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| Phone: 547308 |
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| LARKANA |
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| Mr.
Ahmed Ali Solangi |
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| Area Manager |
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| Opp.
Larkana Medical Centre, |
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| Station Road, |
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| Larkana. |
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| Phone: 457144 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that the 35th Annual General Meeting of the Company will be
held at the |
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| Registered
Office of the Company situated at 7, Bank Square, Lahore on Friday, 30th
June, 2000 at |
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| 12:30
P.M. to transact the following business:- |
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| 1.
To confirm the Minutes of the 34th Annual General Meeting held on 30th June,
1999. |
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| 2.
To receive, consider and adopt the Audited Accounts for the year ended 31st
December, 1999 |
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| together
with Directors and Auditors Report thereon. |
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| 3.
To appoint Auditors for the year ending December 31, 2000 and to fix their
remuneration. The |
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| present
Auditors M/s. Hameed Chaudhri & Company, Chartered Accountants stand
retire and offer |
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| themselves
for re-appointment. |
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| 4.
To transact any other business with the permission of the Chairman. |
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By Order of the Board |
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|
Mushtaque Ahmed |
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| Karachi:
8th June, 2000. |
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(Company Secretary) |
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| NOTES: |
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| a)
The Share Transfer Books of the Company will remain closed from June 24, 2000
to June 30, |
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| 2000
(both days inclusive). |
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| b)
A member entitled to vote at the meeting may appoint another member as his /
her proxy to |
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| attend
the meeting and vote on his / her behalf. Proxies in order to be effective,
must be received |
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| by
the Company at least 48 hours before the meeting. |
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| c)
Shareholders are requested to notify any change in their address immediately. |
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| DIRECTORS
REPORT TO THE SHAREHOLDERS |
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| On
behalf of the Board of Directors of your Company |
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| and
myself it gives me great pleasure to welcome |
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| you
to 35th Annual General Meeting and to present |
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| to
you Annual Report on the performance of your |
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| Company
together with the audited accounts for |
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| the
year ended 31st December, 1999. |
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| The
economic trends during the year1999 continued |
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| to
remain under pressure. G.D.P. growth showed |
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| declining
trend and hovered around 3%. |
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| Manufacturing
and agriculture sectors also recorded |
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| reduced
growth. Trading indicators were no better. |
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| These
trends had their toll on the Insurance Industry |
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| in
particular on the medium and small insurance |
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| companies.
The law and order situation particularly |
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| in
Sindh and Karachi hardly showed any tangible |
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| improvement
with the result that incidents of vehicle |
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| snatching
continued to remain at a high level. These |
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| adverse
factors had their effect on the operations |
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|
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| of
Pakistan Guarantee Insurance Co. Ltd. Although |
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| the
underwriting operations of the Company showed |
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| a
lower trend we were able to reduce the loss |
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| appreciably
i.e. from Rs. 8,906,588/- in 1998 to |
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| Rs.
3,445,657/- in the year under review. The decline |
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| in
losses is primarily due to better underwriting |
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| strategy
and a more selective business approach. |
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| The
operating results in the current year and last |
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| year
and appropriations also are summarized below: |
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1999 |
1998 |
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| Profit/(Loss)
for the year ended |
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| 31st
December, 1999 |
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(3,445,657) |
(8,906,588) |
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| Add:
Balance Profit/(Loss) |
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| brought
forward from |
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| previous year |
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(10,081,785) |
(279,390) |
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| Sum
available for |
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| appropriation |
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(13,527,442) |
(9,185,978) |
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| Add/(Less): |
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| Provision
of Taxation |
|
93,084 |
(895,807) |
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| Unappropriated
Profit/ |
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| (Loss)
carried forward |
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(13,434,358) |
(10,081,785) |
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| UNDERWRITING
RESULTS |
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| The
Company's earning of gross premium |
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| amounted
to Rs. 31,102,361/- during the year under |
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| review
as compared to Rs. 37,651,214/- during the |
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| year
1998. The decline is primarily due to the |
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| economic
scenario in the country described in the |
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| introductory
remarks in this report. Net premium |
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| income
amounted to Rs. 17,368,174/- at the end |
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| of
the year as against Rs. 21,713,761/- in the |
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| previous
year resulting in a decline of 20%. We |
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| would
like to emphasis here that the new |
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| management
acquired control of the Company |
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| towards
the middle of the year and had thus about |
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| six
months within which to reflect the impact of |
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| their
policy strategies. The basic priority of the new |
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| management
was to go for quality business rather |
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| than
a quantitative approach. The new management |
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| has
also introduced two new underwriting products, |
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| namely
students' insurance and medical health |
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| schemes.
These have had considerable and |
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| extensive
acceptance. The effects of these trends |
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| will
hopefully be reflected in future operational results. |
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| The
details of the various accounts are set out below:- |
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|
1999 |
|
1998 |
|
|
|
| Gross Premium |
|
31,102,361 |
(17%) |
37,651,214 |
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| Net Premium |
|
17,368,174 |
(20%) |
21,713,761 |
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|
|
|
|
|
|
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| Fire
Revenue Account |
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| Net Premium |
|
5,029,889 |
(50%) |
10,157,303 |
|
| Profit/(Loss) |
|
2,298,635 |
|
(1,080,637) |
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|
| Marine
Revenue |
|
| Account |
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| Net
Premium |
|
3,027,303 |
(49%) |
5,974,097 |
|
| Profit |
|
1,951,960 |
|
170,310 |
|
|
| Miscellaneous
Revenue |
|
| Account |
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| Net Premium |
|
9,310,982 |
(67%) |
5,582,361 |
|
| Profit/(Loss) |
|
(2,908,865) |
|
(6,446,658) |
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|
| CLAIMS
PAYMENT |
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| The
claims payment on Company's own account |
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| amounted
to Rs. 6,955,692/- for the year 1999 as |
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| against
Rs. 9,299,329/- during the previous year |
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| registering
a decrease of 25%. The largest |
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| contributory
factor on this account has been heavy |
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| claims
on account of motor cars including motor |
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| bike
thefts as has already been mentioned above. |
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| MANAGEMENT
EXPENSES |
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| The
Company's Management expenses amounted |
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| to
Rs. 17,216,502/- during the year under review |
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|
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| as
against Rs. 21,636,845/- during the previous |
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|
|
| year
registering a decline of 21%. The decline is |
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|
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| primarily
due to the action taken by your Company |
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|
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| to
a right sizing of the staff resulting in retrenchment |
|
|
| of
staff and closure of 15 non-productive branches |
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|
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| and
sub-branches out of 19 branches. The cost |
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|
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| of
this exercise amounted to Rs. 1,526,721/- The |
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|
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| results
of this exercise will be further reflected in |
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|
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| the
management expenses in the next year and |
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|
|
| years after. |
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| INVESTMENT
AND TERM DEPOSITS |
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| The
Company's investments and term deposits with |
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| banks
and financial institutions are shown below:- |
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|
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|
1999 |
1998 |
1997 |
1996 |
|
|
|
|
| TDR |
|
1,494,052 |
3,586,257 |
5,888,224 |
8,689,343 |
|
| Investments |
|
2,037,700 |
4,486,601 |
5,078,190 |
6,057,835 |
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|
------------------ |
------------------ |
------------------ |
------------------ |
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|
3,531,752 |
8,072,858 |
10,966,414 |
14,747,178 |
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|
========== |
========== |
========== |
========== |
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| The
deposits of the Company declined principally |
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|
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| due
to the timely servicing of the heavy motor and |
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|
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| other
claims of previous years which were |
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|
|
| outstanding
and lower premium income. |
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|
|
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| The
decline in investment portfolio is due primarily |
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|
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| to
sale of Orient Rice Mills' shares of the value |
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|
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| of
Rs. 2 Million under a Buy Back Arrangement |
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|
|
| as
also partly to a few disinvestments to finance |
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|
|
| expenses
of right sizing of staff mentioned above |
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|
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| as
also to some operative expenses. |
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| PROSPECTS |
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| Political
changes in October, 1999 and some |
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|
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| economic
and commercial initiatives taken by the |
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|
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| new
Govt. have generated some hopes but the |
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|
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| country's
economy still remains in recession. |
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|
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| However,
the policies announced by the new Govt. |
|
|
| hold
hopes of a turn around in the economy. |
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|
|
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| The
new management of the Company has taken |
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| several
measures for the reconstruction of the |
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| Company's
operations which are steadily having |
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| a
palliative effect on the Company's business. With |
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| the
improvement in the country's economic scenario |
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| and
the initiatives taken by the new management |
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| a
better future is hopefully expected in near future. |
|
|
| The
proposal referred to in the last Annual Report |
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| in
regard to the issue of right shares continues to |
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| receive
the serious attention of the new |
|
| management.
No headway could be made in this |
|
| regard
due to the prevailing economic recession |
|
| and
the volatility of the country's Stock Exchange. |
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| Consequently
the investment climate in the country |
|
| was
abysmally at its lowest ebb. These factors |
|
| compelled
the management to delay the issue of |
|
| right
shares. However, the Board continues to focus |
|
| its
attention to this operation as the minimum share |
|
| capital
has to be raised to the level of Rs. 50 million |
|
| by
the year 2002. The Company is now considering |
|
| achieving
this objective by staggering the right share |
|
| operation
in stages. |
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|
| BOARD
OF DIRECTORS |
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| As
a result of elections of Directors held on 30th |
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| June,
1999 a new Board was constituted. The |
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| names
of new Directors are:- |
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|
| 1)
Mr. Said Ahmed |
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| 2)
Mian Muhammad Hanif Esq. |
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| 3)
Mr. Muhammad Rashid |
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| 4)
Mr. Muhammad Tayyab |
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| 5)
Mr. Shafiq Ahmed Shaikh |
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| 6)
Mr. Sajjad Haider |
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| 7)
Mr. Azher Majid Shaikh |
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| 8)
Mr. Hunaid Hussain Lakhani |
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| 9)
Mr. Muhammad Ali (PIC) |
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| 10)
Mr. Shaikh Muhammad Munawwar |
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| 11)
Mr. Saleem-ul-Hassan |
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| 12)
Mr. Yousuf Janmohammad |
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| 13)
Mr. Shakil Raza Syed |
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|
| The
Board extends its warm welcome to the new |
|
| Directors
as well as thanks to the retiring Directors |
|
| for
their valuable contribution. |
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|
| ACKNOWLEDGMENT |
|
| We
wish to express our thanks to the Controller |
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| of
Insurance, Pakistan Insurance Corporation, |
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| Insurance
Association of Pakistan, the State Bank |
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| of
Pakistan, the Bankers, Development Finance |
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| Institutions
and our Reinsurers in particular for the |
|
| valuable
co-operation and support extended by them. |
|
|
| We
also extend our profound thanks to our valued |
|
| clients
who continue to entrust their business to |
|
| us
and sincerely trust that the confidence reposed |
|
| by
them in the Company will not only encourage |
|
| the
Company to maintain these relations but also |
|
| to
expand and strengthen them in the years to come. |
|
|
| We
also express our grateful thanks to our |
|
| shareholders
for reposing confidence in the |
|
| Company
and it will be our endeavour to ensure |
|
| that
their interests remain protected. |
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|
| We
also look forward to welcoming new customers |
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| to
our ever-widening client-base. |
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|
| We
thank all our staff for their loyal and conscien- |
|
| tious
co-operation which is an important factor |
|
| contributing
to the success of the Company. |
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|
|
|
For and on behalf of the Board |
|
|
|
|
|
|
|
(SAID AHMED) |
|
| Faisalabad:
7th June, 2000 |
|
Chairman |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of Pakistan Guarantee Insurance
Company Limited as |
|
| at
31st December, 1999 and related Fire, Marine and Miscellaneous Insurance
Revenue Accounts, Profit |
|
| and
Loss Account, Profit and Loss Appropriation Account, and Cash Flow Statement
together with the |
|
| notes
forming part thereof, for the year then ended 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 purposes of |
|
| our
audit and, after due verification thereof, we report that: |
|
|
| (a)
in our opinion proper books of account have been kept by the Company as
required by the Companies |
|
| Ordinance,
1984; |
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|
|
|
|
| (b)
in our opinion: |
|
|
|
| (i)
the Balance Sheet, Revenue Accounts, Profit and Loss Account and Profit and
Loss Appropriation |
|
| Account
have been drawn up in conformity with the law and are in agreement with the
books |
|
| of
account and are further in accordance with the accounting policies
consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of Company's
business; and |
|
|
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year were |
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| in
accordance with the objects of the Company; |
|
|
|
| (iv)
in our opinion, no Zakat was deductible at source, under Zakat and Ushr
Ordinance, 1980. |
|
|
| (c)
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, the annexed Balance Sheet, Revenue
Accounts, |
|
| Profit
and Loss Account, Profit and Loss Appropriation Account and the Cash Flow
Statement, |
|
| together
with notes forming part thereof, give the information required by the law in
the manner |
|
| so
required and respectively give a true and fair view of the state of the
Company's affairs as at |
|
| 31st
December, 1999 and of the loss and Cash Flow for the year then ended; and |
|
|
|
|
|
| (d)
we have verified cash and bank balances and the securities relating to
Company's investments |
|
| by
actual inspection or production of certificates or other documents. |
|
|
|
|
|
| (e)
as per section 40C (2) of the Insurance Act 1938, we certify that all
expenses of management |
|
| wherever
incurred whether directly or indirectly in respect of Fire, Marine and
Miscellaneous business |
|
| transacted
in Pakistan have been fully debited in the respective revenue accounts as
expenses; |
|
|
| (f)
as per regulation 11, Part 1 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
insurance |
|
| business
transacted by the Company in Pakistan and the Company has not received
outside Pakistan |
|
| from
any person any commission in respect of any business reinsured abroad. |
|
|
|
|
|
HAMEED CHAUDHRI & CO. |
|
| Karachi:
8th June, 2000 |
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT 31ST DECEMBER, 1999 |
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
RUPEES |
RUPEES |
|
| SHARE
CAPITAL AUTHORIZED |
|
|
| Authorised |
|
|
|
| 5,000,000
Ordinary Shares |
|
|
| of Rs. 10/- each |
|
|
50,000,000 |
50,000,000 |
|
|
|
========== |
========== |
|
| ISSUED,
SUBSCRIBED & PAID UP |
|
|
| 2,516,456
Ordinary Shares |
|
|
|
|
| of Rs. 10/- each |
|
|
3 |
25,164,560 |
25,164,560 |
|
| RESERVES |
|
|
|
|
|
|
| General Reserve |
|
|
|
5,000,000 |
5,000,000 |
|
| Reserve
for Exceptional Losses |
|
|
589,190 |
589,190 |
|
| Profit
& Loss Appropriation Account |
|
|
(13,434,358) |
(10,081,785) |
|
|
|
|
------------------ |
------------------ |
|
|
|
4 |
(7,845,168) |
(4,492,595) |
|
|
|
|
------------------ |
------------------ |
|
| Shareholders'
Equity |
|
|
17,319,392 |
20,671,965 |
|
| SURPLUS
ON REVALUATION OF |
|
|
|
|
| OFFICE
PREMISES |
|
|
5 |
5,409,949 |
-- |
|
| BALANCE
OF ACCOUNTS |
|
|
|
|
|
| Fire
Insurance Account |
|
|
2,011,956 |
4,062,921 |
|
| Marine
Insurance Account |
|
|
1,210,921 |
2,389,639 |
|
| Miscellaneous
Insurance Account |
|
|
3,724,392 |
2,232,944 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
6,947,269 |
8,685,504 |
|
| CURRENT
LIABILITIES |
|
|
|
| Estimated
liability in respect of outstanding |
|
|
| claims
whether due or intimated |
|
|
|
8,623,063 |
9,301,474 |
|
| Amounts
due to other persons or bodies |
|
|
| carrying
on insurance business |
|
6 |
8,694,601 |
5,094,827 |
|
| Sundry
creditors (including outstanding |
|
|
| expenses
and provident fund) |
|
|
|
1,259,365 |
1,019,725 |
|
| Provision
for taxation |
|
|
|
1,218,717 |
1,570,652 |
|
| Unclaimed
dividend |
|
|
|
61,642 |
61,642 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
19,857,388 |
17,048,320 |
|
| COMMITMENTS |
|
7 |
-- |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
49,533,998 |
46,405,790 |
|
|
|
|
|
========== |
========== |
|
|
| INVESTMENTS |
|
|
|
| Deposited
with State Bank of Pakistan |
|
|
| Federal
Investment Bonds |
|
350,000 |
350,000 |
|
|
|
|
| HELD
BY THE COMPANY |
|
|
|
| Ordinary
Shares of Joint Stock Companies |
|
8 |
1,514,733 |
3,311,783 |
|
| NIT
Units (Market Value Rs. 65,325/-) |
|
|
| (1998
-- Rs. 42,900/-) |
|
|
65,325 |
75,400 |
|
| Term
Finance Certificates (I.C.I. Pak) |
|
|
52,642 |
94,419 |
|
| Market
Value Rs. 137,970/- (1998 -- Rs. 137,970/-) |
|
|
| Certificates
of Deposit (P.I.C.I.C.) |
|
|
55,000 |
655,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,687,700 |
4,136,602 |
|
|
|
|
| OFFICE
PREMISES |
|
|
|
| (At
revalued amount less depreciation) |
|
9 |
6,630,335 |
1,569,351 |
|
|
|
|
| FURNITURE,
OFFICE EQUIPMENT & VEHICLES |
|
| (At
cost less depreciation) |
|
13 |
5,481,340 |
5,180,629 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Outstanding
premium & agents balances |
|
6 |
20,717,034 |
20,463,323 |
|
| Profit
/ Interest accrued |
|
|
40,992 |
179,772 |
|
| Amount
due from other persons or bodies |
|
|
|
| carrying
on insurance business |
|
6 |
8,693,102 |
7,763,573 |
|
| Advances,
deposits & prepayments |
|
|
919,860 |
708,764 |
|
|
|
|
| CASH |
|
|
|
| With
banks on deposit accounts |
|
1,494,052 |
3,586,257 |
|
| With
banks on current accounts |
|
3,417,791 |
2,259,335 |
|
| Cash
and stamps in hand |
|
101,792 |
208,184 |
|
|
|
------------------ |
------------------ |
|
|
|
35,384,623 |
35,169,208 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
49,533,998 |
46,405,790 |
|
|
|
|
|
|
========== |
========== |
|
| AUDITORS'
REPORT TO THE MEMBERS: |
|
|
|
| Please
see our annexed report of date |
|
|
|
|
|
|
|
|
| Karachi:
8th June, 2000. |
|
|
|
|
|
|
|
| DIRECTORS'
CERTIFICATE |
|
| We
certify that: The investments shown in the balance sheet have been valued at
cost or book value and the |
|
| market
value has been ascertained wherever applicable from the published quotation
as at 31st December, 1999. |
|
| The
value of all other assets have been reviewed as at 31st December, 1999 and in
our belief, such assets, set |
|
| forth
in the balance sheet are shown in aggregate, at the amounts not exceeding
their realizable or market value |
|
| under
several headings. |
|
|
|
| HAMEED
CHAUDHRI & CO. |
Said Ahmed |
|
Shakil Raza Syed |
|
|
Mushtaque Ahmed |
|
| CHARTERED
ACCOUNTANTS |
Chairman |
|
Managing Director & |
|
Director |
Chief Manager |
|
|
|
|
Chief Executive |
|
|
(Finance & Accounts) |
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
RUPEES |
RUPEES |
|
|
|
|
| EXPENSES
OF MANAGEMENT |
|
|
|
| (Not
applicable to any particular fund or account) |
|
|
1,939,164 |
-- |
|
| Director's
remuneration |
|
11 |
605,666 |
280,146 |
|
| Director's
meeting fees |
|
12 |
3,500 |
4,000 |
|
| Bonus to staff |
|
|
|
-- |
453,018 |
|
| Employee's
severance cost incurred |
|
|
|
|
| during the year |
|
|
1,526,721 |
-- |
|
| Company's
contribution to Provident Fund |
|
|
333,312 |
513,196 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,408,363 |
1,250,360 |
|
|
|
|
| DE
PRECIATION |
|
|
|
1,521,303 |
1,138,171 |
|
| ZAKAT |
|
|
|
20,780 |
30,625 |
|
| PROVISION
FOR DIMINUTION IN INVESTMENT |
10 |
-- |
606,008 |
|
|
|
|
| PROVISION
FOR TAXATION |
|
|
|
| Current Year |
|
|
|
85,000 |
-- |
|
| Prior Years |
|
(178,084) |
895,807 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
(93,084) |
895,807 |
|
|
|
|
| Loss
for the year carried to |
|
|
|
| Profit
& Loss Appropriation Account |
|
|
(3,352,573) |
(9,802,395) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,504,789 |
(5,881,424) |
|
|
|
|
========== |
========== |
|
| LOSS
PER SHARE |
|
14 |
(1.33) |
(3.90) |
|
|
|
|
========== |
========== |
|
|
|
|
|
| PROFIT
/ INTEREST & DIVIDEND |
|
315,942 |
1,189,901 |
|
| Less:
Income tax deducted |
|
42,704 |
43,453 |
|
|
|
------------------ |
------------------ |
|
|
|
273,238 |
1,146,448 |
|
|
|
|
| PROFIT
/ (LOSS) TRANSFERRED FROM |
|
|
| REVENUE
ACCOUNTS |
|
|
|
| Fire Insurance |
|
2,298,635 |
(1,080,637) |
|
| Marine
Insurance |
|
1,951,960 |
170,310 |
|
| Miscellaneous
Insurance |
|
(2,908,665) |
(6,446,658) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
(1,341,730) |
(7,356,985) |
|
|
|
|
| EXCESS
PROVISION FOR DIMINUTION IN |
|
|
| VALUE OF INVESTMENTS WRITTEN
BACK |
|
|
192,875 |
-- |
|
|
|
|
| PROFIT
ON SALE OF ASSETS |
|
|
654,946 |
181,828 |
|
| MISCELLANEOUS
INCOME |
|
|
42,000 |
147,285 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
2,504,789 |
(5,881,424) |
|
|
|
|
|
========== |
========== |
|
| PROFIT
AND LOSS APPROPRIATION ACCOUNT |
|
|
|
|
|
|
| Balance
Carried to the Balance Sheet |
|
|
(13,434,358) |
(10,081,785) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
(13,434,358) |
(10,081,785) |
|
|
|
|
========== |
========== |
|
| Balance
Brought Forward |
|
|
(10,081,785) |
(279,390) |
|
| Loss
for the year Brought Down |
|
|
(3,352,573) |
(9,802,395) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(13,434,358) |
(10,081,785) |
|
|
|
|
========== |
========== |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS: |
|
|
|
| Please
see our annexed report of date |
|
|
|
|
|
|
|
|
| Karachi:
8th June, 2000. |
|
HAMEED CHAUDHRI & CO. |
|
|
|
CHARTERED ACCOUNTANTS |
|
|
|
|
| Said Ahmed |
|
Shakil Raza Syed |
|
|
Mushtaque Ahmed |
|
| Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
Chief Executive |
|
|
(Finance & Accounts) |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 31ST DECEMBER, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
|
RUPEES |
RUPEES |
|
|
|
|
| Net
Cash used in operating activities |
|
A |
(2,824,461) |
5,847,045 |
|
|
|
|
------------------ |
------------------ |
|
| Return
on investments |
|
|
|
| Profit/
interest & Dividend received |
|
454,722 |
1,407,592 |
|
|
|
------------------ |
------------------ |
|
| Net
Cash inflow from return on investments |
|
454,722 |
1,407,592 |
|
|
|
|
| Taxation |
|
|
|
| Taxes
paid (including deducted at source) |
|
(494,075) |
(590,213) |
|
|
|
|
| Investing
activities |
|
|
|
| Acquisition
of investments |
|
-- |
(55,000) |
|
| Investment
sale proceeds |
|
2,641,776 |
40,582 |
|
| Purchase
of administrative fixed assets |
|
(2,424,603) |
(615,283) |
|
| Administrative
fixed assets sale proceeds |
|
1,606,500 |
1,238,600 |
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from investing activities |
|
1,823,673 |
608,899 |
|
|
|
------------------ |
------------------ |
|
| Net
cash outflow before financing activities |
|
(1,040,141) |
(4,420,767) |
|
| Financing
activities |
|
-- |
-- |
|
|
|
------------------ |
------------------ |
|
| Decrease
in cash & cash equivalents |
|
B |
(1,040,141) |
(4,420,767) |
|
|
|
|
========== |
========== |
|
|
|
|
| A.
Cash flow from operating activities |
|
|
| Net
Loss before taxation |
|
(3,402,953) |
(8,863,135) |
|
|
|
|
|
| Adjustments
for: |
|
|
|
| Depreciation
on administrative fixed assets |
|
1,521,303 |
1,138,171 |
|
| Gain
on disposal on administrative fixed assets |
|
(654,946) |
(181,828) |
|
| Profit
/ Interest & Dividend income |
|
(315,942) |
(1,189,901) |
|
| Decrease
in reserve for unexpired risk |
|
(1,738,235) |
(2,294,054) |
|
| Diminution
in value of investments |
|
|
|
| (written
back) / provided |
|
(192,875) |
606,008 |
|
|
|
------------------ |
------------------ |
|
|
|
(4,783,648) |
(10,784,739) |
|
|
|
|
|
| (Increase)
/ Decrease in operating assets |
|
|
| Outstanding
Premiums and Agents Balances |
|
(253,711) |
244,303 |
|
| Amounts
due from other persons or bodies |
|
|
|
| carrying
on insurance business |
|
(929,529) |
1,950,036 |
|
| Advances,
deposits & sundry debtors |
|
(18,576) |
1,075,286 |
|
|
|
|
------------------ |
------------------ |
|
|
|
(1,201,816) |
3,269,625 |
|
|
|
|
| Increase
/ (Decrease) in operating liabilities |
|
|
| Outstanding
claims |
|
|
(678,411) |
(881,307) |
|
| Sundry
creditors |
|
|
239,640 |
(207,492) |
|
| Amounts
due to other persons or bodies |
|
|
|
| carrying
on insurance business |
|
3,599,774 |
2,756,868 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,161,003 |
1,668,069 |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash outflow from operating activities |
|
|
(2,824,461) |
(5,847,045) |
|
|
|
|
========== |
========== |
|
|
|
|
| B.
Changes in cash & cash equivalents |
|
|
| Balance
as at 1 January |
|
6,053,776 |
10,474,543 |
|
| Decrease
in cash & cash equivalents |
|
(1,040,141) |
(4,420,767) |
|
|
|
|
|
|
------------------ |
------------------ |
|
| Balance
as at 31 December |
|
C |
5,013,635 |
6,053,776 |
|
|
|
|
========== |
========== |
|
|
|
|
| C.
Analysis of cash & cash equivalents |
|
|
| CASH |
|
|
|
|
| With
banks on deposit accounts |
|
1,494,052 |
3,586,257 |
|
| With
banks on current accounts |
|
3,417,791 |
2,259,335 |
|
| Cash
& stamps in hand |
|
101,792 |
208,184 |
|
|
|
------------------ |
------------------ |
|
|
|
5,013,635 |
6,053,776 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
HAMEED CHAUDHRI & CO. |
|
| Karachi:
8th June, 2000. |
|
CHARTERED ACCOUNTANTS |
|
|
| Said Ahmed |
|
Shakil Raza Syed |
|
|
|
Mushtaque Ahmed |
|
| Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
Chief Executive |
|
|
|
(Finance & Accounts) |
|
|
|
| FIRE
INSURANCE REVENUE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 1999 |
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
RUPEES |
RUPEES |
|
|
|
|
| CLAIMS
PAID UNDER POLICIES LESS REINSURANCES |
|
| Paid
during the year |
|
|
2,104,362 |
1,417,937 |
|
|
|
|
| Estimated
liability in respect of outstanding |
|
|
| claims
whether due or intimated |
|
|
1,377,769 |
1,546,248 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,482,131 |
2,964,185 |
|
| Less:
Outstanding at the end of previous year |
|
|
1,546,248 |
1,294,440 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,935,883 |
1,669,745 |
|
|
|
|
|
|
| COMMISSION |
|
|
(416,357) |
1,429,323 |
|
|
|
|
|
|
| EXPENSES
OF MANAGEMENT |
|
|
3,262,693 |
8,706,206 |
|
|
|
|
| PROFIT
/ (LOSS) TRANSFERRED TO |
|
|
| PROFIT
& LOSS ACCOUNT |
|
|
2,298,635 |
(1,080,637) |
|
|
|
|
|
|
| BALANCE
OF ACCOUNT AT THE END OF THE YEAR |
|
|
|
|
|
|
|
|
| Reserve
for unexpired risks being 40% |
|
|
|
|
| of
net premium income for the year |
|
|
2,011,956 |
4,062,921 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
9,092,810 |
14,787,559 |
|
|
|
|
|
========== |
========== |
|
|
| BALANCE
OF ACCOUNT AT |
|
|
|
| THE
BEGINNING OF THE YEAR |
|
|
|
|
|
|
| Reserve
for unexpired risks |
|
|
4,062,921 |
4,630,256 |
|
|
|
|
| PREMIUM
LESS RE-INSURANCES |
|
|
5,029,889 |
10,157,303 |
|
|
|
|
------------------ |
------------------ |
|
|
|
9,092,810 |
14,787,559 |
|
|
|
|
|
========== |
========== |
|
| AUDITORS'
REPORT TO THE MEMBERS: |
|
|
|
| Please
see our annexed report of date |
|
|
|
|
|
|
|
|
|
HAMEED CHAUDHRI & CO. |
|
| Karachi:
8th June, 2000. |
|
CHARTERED ACCOUNTANTS |
|
|
| We
certify that all expenses of management wherever incurred, whether directly
or indirectly and all |
|
| charges
in respect of Fire Insurance Business have been fully debited in the above
revenue account |
|
| as expenses. |
|
|
| Said Ahmed |
|
Shakil Raza Syed |
|
|
|
Mushtaque Ahmed |
|
| Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
Chief Executive |
|
|
|
(Finance & Accounts) |
|
|
|
| MARINE
INSURANCE REVENUE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 1999 |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
RUPEES |
RUPEES |
|
|
|
|
| CLAIMS
UNDER POLICIES LESS REINSURANCES |
|
|
|
|
| Paid
during the year |
|
923,682 |
826,275 |
|
|
|
|
| Estimated
liability in respect of outstanding |
|
|
| claims
whether due or intimated |
|
1,889,053 |
1,890,312 |
|
|
|
|
------------------ |
------------------ |
|
|
|
2,812,735 |
2,716,587 |
|
| Less:
Outstanding at the end of previous year |
|
1,890,312 |
1,942,335 |
|
|
|
------------------ |
------------------ |
|
|
|
922,423 |
774,252 |
|
| COMMISSION |
|
|
(632,055) |
856,525 |
|
|
|
|
|
|
| EXPENSES
OF MANAGEMENT |
|
1,963,693 |
5,120,623 |
|
|
|
|
|
| PROFIT
TRANSFERRED TO |
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
1,951,960 |
170,310 |
|
|
|
|
| BALANCE
OF ACCOUNT AT THE END OF THE YEAR |
|
|
|
|
| Reserve
for unexpired risks being 40% |
|
|
| of
net premium income for the year |
|
1,210,921 |
2,389,639 |
|
|
|
|
------------------ |
------------------ |
|
|
|
5,416,942 |
9,311,349 |
|
|
|
|
|
========== |
========== |
|
|
| BALANCE
OF ACCOUNT AT |
|
|
|
| THE
BEGINNING OF THE YEAR |
|
|
|
|
|
|
| Reserve
for unexpired risks |
|
|
2,389,639 |
3,337,252 |
|
|
|
|
| PREMIUM
LESS RE-INSURANCES |
|
|
3,027,303 |
5,974,097 |
|
|
|
|
------------------ |
------------------ |
|
|
|
5,416,942 |
9,311,349 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS: |
|
|
|
|
| Please
see our annexed report of date |
|
|
|
|
|
|
|
|
|
|
|
|
HAMEED CHAUDHRI & CO. |
|
|
| Karachi:
8th June, 2000. |
|
|
CHARTERED ACCOUNTANTS |
|
|
|
| We
certify that all expenses of management wherever incurred, whether directly
or indirectly and all |
|
| charges
in respect of Marine Insurance Business have been fully debited in the above
revenue account |
|
| as expenses. |
|
|
| Said Ahmed |
|
Shakil Raza Syed |
|
|
|
Mushtaque Ahmed |
|
| Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
Chief Executive |
|
|
|
(Finance & Accounts) |
|
|
|
| MOTOR
& MISCELLANEOUS INSURANCE REVENUE ACCOUNTS FOR THE YEAR ENDED 31ST
DECEMBER, 1999 |
|
|
MOTOR |
MISCELLANEOUS |
1999 |
1998 |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
| CLAIMS
PAID UNDER POLICIES |
|
| LESS
REINSURANCES |
|
|
|
|
|
| Paid
during the year |
|
3,999,882 |
606,177 |
4,606,059 |
7,936,424 |
|
|
|
|
| Estimated
liability in respect |
|
|
| of
outstanding claims whether |
|
|
| due or intimated |
|
4,440,347 |
915,894 |
5,356,241 |
5,864,914 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
8,440,229 |
1,522,071 |
9,962,300 |
13,801,338 |
|
|
|
|
| Less:
Outstanding at the end |
|
|
| of previous year |
|
5,054,260 |
810,654 |
5,864,914 |
6,946,006 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
3,385,969 |
711,417 |
4,097,386 |
6,855,332 |
|
| COMMISSION |
|
488,013 |
103,330 |
591,343 |
1,167,941 |
|
|
|
|
|
| EXPENSES
OF MANAGEMENT |
|
2,898,354 |
3,141,316 |
6,039,670 |
4,784,852 |
|
|
|
|
|
| LOSS
TRANSFERRED TO |
|
|
| PROFIT
& LOSS ACCOUNT |
|
(2,246,361) |
(662,504) |
(2,908,865) |
(6,446,658) |
|
|
|
|
|
| BALANCE
OF ACCOUNT AT |
|
|
| THE
END OF THE YEAR |
|
|
|
|
|
| Reserve
for unexpired risks |
|
|
| being
40% of net premium |
|
|
| income
for the year |
|
1,787,284 |
1,937,108 |
3,724,392 |
2,232,944 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
6,313,259 |
5,230,667 |
11,543,926 |
8,594,411 |
|
|
|
========== |
========== |
========== |
========== |
|
|
| BALANCE
OF ACCOUNT AT |
|
|
| THE
BEGINNING OF THE YEAR |
|
|
|
|
|
| Reserve
for unexpired risks |
|
1,845,048 |
387,896 |
2,232,944 |
3,012,050 |
|
|
|
|
| PREMIUM
LESS RE-INSURANCES |
4,468,211 |
4,842,771 |
9,310,982 |
5,582,361 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
6,313,259 |
5,230,667 |
11,543,926 |
8,594,411 |
|
|
|
========== |
========== |
========== |
========== |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS: |
|
|
|
| Please
see our annexed report of date |
|
|
|
|
|
|
|
|
|
|
|
HAMEED CHAUDHRI & CO. |
|
| Karachi:
8th June, 2000. |
|
CHARTERED ACCOUNTANTS |
|
|
| We
certify that all expenses of management wherever incurred, whether directly
or indirectly and all |
|
| charges
in respect of Motor and Miscellaneous Insurance Business have been fully
debited in the above |
|
| revenue
account as expenses. |
|
|
| Said Ahmed |
|
Shakil Raza Syed |
|
|
|
Mushtaque Ahmed |
|
| Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
Chief Executive |
|
|
|
(Finance & Accounts) |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 31ST DECEMBER, 1999 |
|
|
| 1.
THE COMPANY AND ITS OPERATION |
|
| The
Company was incorporated as a Public Limited Company on 20th April, 1965 and
its shares |
|
| are
quoted on Karachi Stock Exchange. The Company is carrying on general
insurance business. |
|
|
| 2.
ACCOUNTING POLICIES |
|
|
|
|
|
| 2.1
Accounting Convention |
|
|
| These
accounts have been prepared under historical cost convention, as modified by
the |
|
| revaluation
of office premises indicated in note 10. |
|
|
| 2.2
Employees' benefits |
|
|
|
| On
introduction of Provident Fund in 1984, employees are entitled to gratuity up
to the date |
|
| of
introduction of Provident Fund. The Company also operates approved
contributory provident |
|
| fund
for all its confirmed employees. |
|
|
|
| Encashable
leave is charged as and when availed / disbursed. |
|
|
| 2.3
Insurance Revenue Accounts |
|
| The
Premium earned on Fire, Marine and Miscellaneous (including Motor) insurance
business, |
|
| net
of reinsurance, after providing outstanding claims, commission and allocable
management |
|
| expenses
and adjustment of reserve for unexpired risks, is transferred to Profit and
Loss |
|
| Account. |
|
|
| 2.4
Retrocession business |
|
| Pakistan
Insurance Corporation retrocession business have been accounted for on the
basis |
|
| of
quarterly statements received upto 30 September, 1999. |
|
|
| 2.5
Estimated liability in respect of outstanding claims |
|
| The
liability in respect of outstanding claims represents estimates of claims
intimated or assessed |
|
| before
the end of the financial year less anticipated recoveries. |
|
|
| 2.6
Reserve for unexpired risks |
|
| The
Company maintains its reserve for unexpired risks at the end of the year at
40% of the |
|
| premium
income of the year, net of reinsurance. |
|
|
| 2.7 Investments |
|
| These
are stated at cost, provision for diminution in value of investment if
required, is made |
|
| on
portfolio basis at the Balance Sheet date. Gain or loss on sale of investment
is included |
|
| in
Profit and Loss Account. |
|
|
| 2.8
Office Premises, Furniture, Office Equipment and Vehicles |
|
| These
are stated at cost or valuation less accumulated depreciation. Depreciation
is calculated |
|
| on
reducing balance method, at the annual rate of 5% to 20% of written down
values, depending |
|
| upon
the class of assets. Major repairs are capitalized whereas normal repairs and
maintenance |
|
| are
charged to income currently. Vehicles acquired on lease are treated as
operating lease |
|
| and
rentals paid are charged to income currently. The full year's depreciation is
charged on |
|
| fixed
assets capitalized during the year while no depreciation is charged in the
year of disposal. |
|
|
| Profit
or loss on disposal of fixed assets is included in the Profit and Loss
Account. |
|
|
| 2.9 Taxation |
|
| Provision
for current taxation is made on the taxable income if any. |
|
|
| 2.10
Expenses of the Management |
|
| Expenses
of the management are allocated to various Revenue accounts on the basis of |
|
| net
premium income of the year. |
|
|
| Expenses
of management have been charged after deducting therefrom Administrative
Surcharge |
|
| recovered
with premium. |
|
|
| 2.11
Presentation |
|
| Figures
in these accounts have been rounded off to the nearest rupee. |
|
|
| Corresponding
figures have been rearranged, wherever necessary, for the purpose of |
|
| comparison. |
|
|
| 3.
ISSUED, SUBSCRIBED & PAID UP CAPITAL |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
RUPEES |
RUPEES |
|
|
|
|
| 2,270,728 |
Ordinary Shares of Rs. 10
each |
|
|
|
Fully Paid up in cash |
|
|
22,707,280 |
22,707,280 |
|
|
|
|
| 245,728 |
Issued as fully paid
Bonus |
|
|
|
Shares |
|
|
2,457,280 |
2,457,280 |
|
| ------------------ |
|
|
------------------ |
------------------ |
|
| 2,516,456 |
|
|
25,164,560 |
25,164,560 |
|
| ========== |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
| 4.
STATEMENT OF CHANGES IN EQUITY |
|
|
|
Share |
General |
Reserve for |
Profit & Loss |
|
|
|
Capital |
Reserve |
Exceptional |
Appropriation |
Total |
|
|
|
Losses |
Account |
|
|
|
|
|
|
|
|
Rupees |
|
|
|
|
| Balance
as at 01-01-1998 |
25,164,560 |
5,000,000 |
589,190 |
(279,390) |
30,474,360 |
|
|
| Loss
for the year |
-- |
-- |
-- |
(9,802,395) |
(9,802,395) |
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| Balance
as at 31-12-1998 |
25,164,560 |
5,000,000 |
589,190 |
(10,081,785) |
20,671,965 |
|
|
| Loss
for the year |
-- |
-- |
-- |
(3,352,573) |
(3,352,573) |
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
| Balance
as at 31-12-1999 |
25,164,560 |
5,000,000 |
589,190 |
(13,434,358) |
17,319,392 |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
| 5.
SURPLUS ON REVALUATION OF OFFICE PREMISES |
|
|
| This
surplus has arisen on account of revaluation of office premises of the
Company during the year. |
|
|
|
|
| 6.
OUTSTANDING PREMIUM & AGENTS' BALANCES AND AMOUNTS DUE TO / |
|
| FROM
OTHER PERSONS OR BODIES CARRYING ON INSURANCE BUSINESS |
|
|
|
|
| These
outstanding premium, agents' balances and amounts due to and from other
persons / bodies |
|
| carrying
on insurance business are not confirmed. In the opinion of the Management
these are |
|
| considered
to be accurately stated. |
|
|
|
|
| 7.
COMMITMENTS |
|
|
|
| The
future commitments in respect of operating leases rentals are Rs. 1,983,504/-
(1998 |
|
| --
Rs. 1,233,597/-). |
|
|
|
|
| 8.
INVESTMENT IN ORDINARY SHARES/CERTIFICATES OF JOINT STOCK COMPANIES/MODARABAS |
|
|
| No. of Shares |
|
Face Value |
Book Value |
|
|
| 1998 |
1999 |
|
Rupees |
1999 in Rupees |
1998 in Rupees |
|
|
|
|
|
|
|
ASSOCIATED UNDERTAKING -
LISTED |
|
|
|
| 2,952 |
2,952 |
BABA FARID SUGAR MILLS
LTD. |
10 |
16,670 |
16,670 |
|
|
| 88,804 |
88,804 |
GOLDEN ARROW SELECTED
STOCK FUND LTD. |
5 |
402,147 |
402,147 |
|
|
| 9,000 |
9,000 |
FEROZ SONS LABORATORIES
LTD. |
10 |
111,812 |
111,812 |
|
|
|
LISTED COMPANIES AND
MODARABAS |
|
|
|
|
MODARABAS |
|
|
|
|
| 17,801 |
17,801 |
B.R.R INTERNATIONAL
MODARABA |
10 |
161,975 |
161,975 |
|
|
| 2,000 |
2,000 |
EQUITY INTERNATIONAL
MODARABA |
10 |
20,225 |
20,225 |
|
|
| 100 |
100 |
FIRST GRINDLAYS MODARABA |
10 |
1,168 |
1,168 |
|
|
| 37,960 |
37,960 |
FIRST HABIB MODARABA |
|
5 |
181,105 |
181,105 |
|
|
| 60 |
60 |
FIRST IBRAHIM MODARABA |
|
10 |
559 |
559 |
|
|
| 6,000 |
6,000 |
L.T.V. CAPITAL MODARABA |
|
5 |
37,800 |
37,800 |
|
|
| 225 |
225 |
L.T.V. REDEEMABLE
CERTIFICATES |
100 |
22,500 |
22,500 |
|
|
| 4,200 |
4,200 |
UDL MODARABA |
|
10 |
55,640 |
55,640 |
|
|
|
LEASING |
|
|
|
|
| 250 |
250 |
CAPITAL ASSETS LEASING
CO. LTD. |
10 |
2,633 |
2,633 |
|
|
| 3,000 |
3,000 |
PARAMOUNT LEASING CO.
LTD. |
10 |
30,375 |
30,375 |
|
|
| 8250.00 |
8250.00 |
SAUDI PAK. LEASING CO.
LTD. |
|
10 |
94,620 |
94,620 |
|
|
|
SECURITIES CO./BANKS |
|
|
|
|
| 2,137 |
2,137 |
CRESCENT INVESTMENT BANK
LTD. |
10 |
43,210 |
43,210 |
|
|
| 312 |
312 |
MUSLIM COMMERCIAL BANK
LTD. |
10 |
7,305 |
7,305 |
|
|
| 500 |
500 |
TRUST SECURITIES &
BROKERAGE |
10 |
5,075 |
5,075 |
|
|
| 2,531 |
2,531 |
UNION BANK LTD. |
|
10 |
43,800 |
43,800 |
|
|
| 500 |
500 |
PLATINUM COMMERCIAL BANK
LTD. |
10 |
5,075 |
5,075 |
|
|
|
TEXTILE SPINNING |
|
|
|
|
| 5,000 |
5,000 |
ACCORD TEXTILE MILLS LTD. |
|
10 |
50,000 |
50,000 |
|
|
| 625 |
625 |
AZAM TEXTILE MILLS LTD. |
|
10 |
6,225 |
6,225 |
|
|
| 1,000 |
1,000 |
DATA TEXTILE MILLS LTD. |
|
10 |
14,400 |
14,400 |
|
|
| 3,000 |
3,000 |
IDRESS TEXTILE MILLS LTD. |
|
10 |
30,450 |
30,450 |
|
|
| 1,000 |
1,000 |
ISHTIAQ TEXTILE MILLS
LTD. |
|
10 |
11,750 |
11,750 |
|
|
| 500 |
500 |
J.K. SPINNING MILLS LTD. |
|
10 |
5,000 |
5,000 |
|
|
| 220 |
220 |
NISHAT (CHUNAIN) LTD. |
|
10 |
1,835 |
1,835 |
|
|
| 500 |
500 |
I TATA TEXTILE MILLS LTD. |
|
10 |
5,000 |
5,000 |
|
|
| 2,990 |
2,990 |
UMER FABRICS LTD. |
|
10 |
48,500 |
48,500 |
|
|
|
TEXTILE WEAVING |
|
|
|
|
| 500 |
500 |
KOHINOOR WEAVING |
|
10 |
5,000 |
5,000 |
|
|
| 4,100 |
4,100 |
PEARL FABRICS LTD. |
|
10 |
26,240 |
26,240 |
|
|
|
TEXTILE COMPOSITE |
|
|
|
|
| 3,000 |
3,000 |
MIAN TEXTILE INDUSTRIES
LTD. |
10 |
26,325 |
26,325 |
|
|
| 503 |
503 |
NISHAT MILLS LTD. (NISHAT
TEK. LTD./ |
10 |
11,620 |
11,620 |
|
|
|
SYNTHETIC & RAYON |
|
|
|
|
| 750 |
750 |
PAKISTAN SYNTHETIC LTD. |
|
10 |
4,750 |
4,750 |
|
|
| 1,000 |
1,000 |
SUNSHINE CLOTH LTD. |
|
10 |
10,100 |
10,100 |
|
|
|
SUGAR & ALLIED |
|
|
|
|
| 1,000 |
1,000 |
SANCHAR SUGAR MILLS LTD. |
|
10 |
16,100 |
16,100 |
|
|
|
CEMENT |
|
|
|
|
| 1,107 |
1,107 |
D.G. KHAN CEMENT CO. LTD. |
|
10 |
34,090 |
34,090 |
|
|
| 4,077 |
4,077 |
PIONEER CEMENT LTD. |
|
10 |
41,070 |
41,070 |
|
|
| 500 |
500 |
LUCKY CEMENT CO. LTD. |
|
10 |
10,500 |
10,500 |
|
|
|
FUEL & ENERGY |
|
|
|
|
| 900 |
900 |
HAROON OILS LTD. |
|
10 |
16,110 |
16,110 |
|
|
| 1,000 |
1,000 |
HUB POWER CO. LTD. |
|
10 |
13,335 |
13,335 |
|
|
| 4,348 |
5000.00 |
SUI NORTHERN GAS
PIPELINES LTD. |
10 |
90,905 |
90,905 |
|
|
| 3,801 |
4,181 |
SUI SOUTHERN GAS CO. LTD. |
|
10 |
73,500 |
73,500 |
|
|
|
ENGINEERING |
|
|
|
|
| 5,000 |
5,000 |
MULTIPOLE INDUSTRIES LTD. |
|
10 |
50,750 |
50,750 |
|
|
|
AUTO & ALLIED
ENGINEERING |
|
|
|
| 166 |
166 |
ALLIED MOTORS |
|
10 |
581 |
581 |
|
|
| 525 |
525 |
HONDA ATLAS CARS PAKISTAN
LTD. |
10 |
10,075 |
10,075 |
|
|
| 2,000 |
2,000 |
INDUS MOTOR CO. LTD. |
|
10 |
60,150 |
60,150 |
|
|
| 3,000 |
3,000 |
SUZUKI MOTOR CYCLES LTD. |
|
10 |
31,050 |
31,050 |
|
|
|
CHEMICALS &
PHARMACEUTICALS |
|
|
|
| 500 |
500 |
FAUJI FERTILIZER CO. LTD. |
|
10 |
7,500 |
7,500 |
|
|
| 1,000 |
1,000 |
F.F.C. JORDAN FERTILIZERS
CO. LTD. |
10 |
15,075 |
15,075 |
|
|
| 28,080 |
28,080 |
ICI PAKISTAN LTD. |
|
10 |
445,250 |
445,250 |
|
|
|
LEATHERS & TANNERIES |
|
|
|
|
| 145 |
145 |
SERVICES SHOES LTD. |
|
10 |
3,980 |
3,980 |
|
|
|
FOODS & ALLIEDS |
|
|
|
|
| 1,500 |
1,500 |
SUNFLO CIR-RUSS LTD. |
|
10 |
12,550 |
12,550 |
|
|
|
GLASS & CERAMICS |
|
|
|
|
| 132 |
132 |
MEDI GLASS LTD. |
|
10 |
705 |
705 |
|
|
|
TRANSPORT &
COMMUNICATION |
|
|
|
| 100 |
100 |
PAKISTAN
TELECOMMUNICATION CO. LTD. |
10 |
3,000 |
3,000 |
|
|
|
MISCELLANEOUS |
|
|
|
|
| 2,000 |
2,000 |
TRI PACK FILMS LTD. |
|
10 |
50,600 |
50,600 |
|
|
|
COST |
|
|
2,487,765 |
2,487,765 |
|
|
|
LESS: PROVISION OF
DIMINUTION OF INVESTMENT |
973,252 |
1,176,202 |
|
|
|
MARKET VALUE |
|
|
1,514,513 |
1,311,563 |
|
|
|
OTHERS |
|
|
|
|
| 100 |
100 |
NISHAT INDUSTRIES LTD. |
|
10 |
220 |
220 |
|
|
|
ASSOCIATED UNDERTAKING -
UNLISTED |
|
|
|
| 200,000 |
-- |
ORIENT RICE MILLS LTD. |
|
10 |
-- |
2,000,000 |
|
|
|
|
|
|
|
|
220 |
2,000,220 |
|
|
| ------------------ |
------------------ |
|
|
|
|
------------------ |
------------------ |
|
|
| 472,251 |
273,646 |
|
|
|
|
1,514,733 |
3,311,783 |
|
|
| ========== |
========== |
|
|
|
========== |
========== |
|
|
|
| 9.
OFFICE PREMISES |
|
|
|
| The
Company's office premises were revalued on 20 December, 1999 on fair market
value basis |
|
| by
Mr. Yousuf Ali Mirza of 'Meerza Surveyors', Karachi. This revaluation showed
a surplus of |
|
| Rs.
5,409,949/- over the net book value of these assets on that date. |
|
|
|
| The
amount of revaluation surplus included in the net book value of office
premises as at |
|
| 31
December, 1999 is given below. |
|
|
|
|
|
Office |
|
|
|
|
Premises |
|
|
|
|
Rupees |
|
| Cost
before current revaluation |
|
2,557,242 |
|
| Accumulated
depreciation |
|
987,891 |
|
| Net book value |
|
|
1,569,351 |
|
| Revaluation |
|
|
6,979,300 |
|
|
|
|
------------------ |
|
| Revaluation
surplus |
|
5,409,949 |
|
|
|
|
========== |
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
RUPEES |
RUPEES |
|
|
|
|
| 10.
AUDITOR'S REMUNERATION |
|
| Audit Fee |
|
|
18,500 |
18,500 |
|
| Certificate
of Returns |
|
|
9,000 |
9,000 |
|
| Consultancy
Charges |
|
|
12,500 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
40,000 |
27,500 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 11.
EXECUTIVES' REMUNERATION |
|
|
|
|
|
|
Chief
Executive |
Executive |
|
|
1999 |
1998 |
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
|
|
| Managerial
remuneration |
|
|
| and allowances |
|
382,258 |
127,700 |
1,004,761 |
768,600 |
|
| House
rent & utilities |
|
180,883 |
141,805 |
496,650 |
493,223 |
|
| Reimbursement
of medical |
|
|
|
| expenses |
|
9,992 |
-- |
304,100 |
-- |
|
| Other expenses |
|
32,533 |
10,641 |
16,406 |
45,852 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
605,666 |
280,146 |
1,821,917 |
1,307,675 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
| Number
of persons |
|
1 |
1 |
4 |
4 |
|
|
|
========== |
========== |
========== |
========== |
|
|
|
|
| The
Chief Executive and Four (1998 -- Four) Executives are provided with the
Company maintained |
|
| cars
and telephones at residence. |
|
|
|
|
|
| 12.
DIRECTORS' MEETING FEE |
|
|
| Meeting Fee |
|
3,500 |
4,000 |
|
|
|
------------------ |
------------------ |
|
| Number |
|
7 |
4 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 13.
DISPOSAL OF FIXED ASSETS |
|
|
|
|
Original |
Accumulated |
Written Down |
Sale |
Profit / |
|
|
| Particulars |
|
Cost |
Depreciation |
Value |
Proceeds |
(Loss) |
Remarks |
|
|
|
|
| a) Suzuki Swift |
|
300,000 |
281,545 |
18,455 |
80,000 |
61,545 |
Negotiation |
|
| b) Suzuki Swift |
|
315,000 |
287,254 |
27,746 |
160,000 |
132,254 |
Negotiation |
|
| c) Suzuki Swift |
|
325,000 |
272,493 |
52,507 |
150,000 |
97,493 |
Negotiation |
|
| d)
Mitsubishi Lancer |
450,000 |
358,250 |
91,750 |
160,000 |
68,250 |
Negotiation |
|
| e)
Toyota Corolla |
615,000 |
384,600 |
230,400 |
425,000 |
194,600 |
Negotiation |
|
| f)
Toyota Corolla |
525,000 |
361,819 |
163,181 |
250,000 |
86,819 |
Negotiation |
|
| g) Honda CD-70 |
|
45,000 |
15,312 |
29,688 |
21,000 |
(8,688) |
Negotiation |
|
| h)
Yamaha YB-100 |
45,000 |
42,651 |
2,349 |
19,000 |
16,651 |
Negotiation |
|
| i)
Yamaha YB-100 |
55,000 |
32,600 |
22,400 |
15,500 |
(6,900) |
Negotiation |
|
| j) Honda CD-70 |
|
40,000 |
29,614 |
10,486 |
21,000 |
10,514 |
Negotiation |
|
| k)
Nissan Sunny |
450,000 |
419,310 |
30,690 |
190,000 |
159,310 |
Negotiation |
|
| l)
Furniture & Fixture |
1,283,772 |
1,011,870 |
271,902 |
115,000 |
(156,902) |
Negotiation |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
4,448,772 |
3,497,318 |
951,554 |
1,606,500 |
654,946 |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
| PARTICULARS
OF PURCHASERS |
|
|
| a)
Mr. D.M. Qureshi |
House No. A-134, Block
No. A, North Nazimabad, Karachi. |
|
| b)
Mr. M. Iqbal Butt |
1595/14, Dastagir
Society, Karachi-38. |
|
| c)
Mr. M. Abdul Sattar |
1595/14, Dastagir
Society, Karachi-38. |
|
| d) Mr. M. Asif |
|
1595/14, Dastagir
Society, Karachi-38. |
|
| e)
Mr. Nusrat Ali |
Hassan Autos, Abdullah
Haroon Road, Saddar, Karachi. |
|
| f) Lt. Azad Iqbal |
|
House No. A-192, Sector
11-A, Gulshan-e-Usman, North Karachi. |
|
| g)
Mr. Shahid Parvez |
House No. 1/54, Shah
Faisal Colony, Karachi. |
|
| h)
Mr. Ahmed Nadeem |
M-l, Ruqayya Square,
Karachi. |
|
| i)
Mr. Ahmed Nadeem |
M-l, Ruqayya Square,
Karachi. |
|
| j) Mr. M. Akram |
|
House No. 59, Sector No.
13-G, Orangi Town, Karachi. |
|
| k)
Mr. Rehan Fareed |
A-349, Block L, North
Nazimabad, Karachi. |
|
| l)
M/s. Quality Furnitures |
Saddar, Karachi. |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
RUPEES |
RUPEES |
|
|
|
|
| 14.
LOSS PER SHARE |
|
|
|
| Losses
attributable to Ordinary Shareholders |
|
|
(3,352,573) |
(9,802,395) |
|
|
|
|
|
|
|
|
Number of
Shares |
|
|
|
|
| Weighted average
number of shares outstanding |
|
|
2,516,456 |
2,516,456 |
|
|
|
|
|
|
|
|
Rupees |
|
|
|
|
|
|
|
| Loss per Share |
|
|
|
|
(1.33) |
(3.90) |
|
|
|
|
========== |
========== |
|
|
|
|
| 15.
NUMBER OF EMPLOYEES |
|
|
|
| Average
number of persons employed during the year |
|
68 |
103 |
|
|
|
|
========== |
========== |
|
|
| Said Ahmed |
|
Shakil Raza Syed |
|
|
|
Mushtaque Ahmed |
|
| Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
Chief Executive |
|
|
|
(Finance & Accounts) |
|
|
|
| 16.
FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES |
|
|
|
| 16.1
INTEREST RATE RISK EXPOSURE |
|
|
|
|
1999 |
|
|
|
RUPEES |
|
|
|
|
INTEREST BEARING |
|
NON-INTEREST BEARING |
|
|
Upto 1 |
More than |
Sub-total |
Upto 1 |
More than |
Sub-total |
Total |
|
|
Year |
1 Year |
|
Year |
1 Year |
|
|
|
| FINANCIAL
ASSETS |
|
| Ordinary shares |
|
-- |
-- |
-- |
1,514,733 |
-- |
1,514,733 |
1,514,733 |
|
| N.I.T. Units |
|
-- |
-- |
-- |
65,325 |
-- |
65,325 |
65,325 |
|
| T.F. Cs. |
|
52,642 |
-- |
52,642 |
-- |
-- |
-- |
52,642 |
|
| C.O.D. |
|
55,000 |
-- |
55,000 |
-- |
-- |
-- |
55,000 |
|
| Outstanding
premium |
|
| &
Agents' Balances |
-- |
-- |
-- |
20,717,034 |
-- |
20,717,034 |
20,717,034 |
|
|
|
|
| Interest accrued |
|
-- |
-- |
-- |
40,992 |
-- |
40,992 |
40,992 |
|
|
| Amount
due from other |
|
| persons
/ bodies |
|
| carrying
on insurance |
|
| business |
|
-- |
-- |
-- |
8,693,102 |
-- |
8,693,102 |
8,693,102 |
|
|
| Advances,
deposits |
|
| & Pre-payments |
|
-- |
-- |
-- |
674,978 |
-- |
674,978 |
674,978 |
|
|
| Cash at banks |
|
1,494,052 |
-- |
1,494,052 |
3,516,156 |
-- |
3,516,156 |
5,010,208 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
1,601,694 |
-- |
1,601,694 |
35,222,320 |
-- |
35,222,320 |
36,824,014 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
|
|
|
|
| FINANCIAL
LIABILITIES |
|
| Estimated
liability in respect |
|
| of
outstanding claims |
|
| whether
due or intimated |
-- |
-- |
-- |
8,623,063 |
-- |
8,623,063 |
8,623,063 |
|
|
| Amounts
due to other |
|
| persons
or bodies carrying |
|
| on
insurance business |
-- |
-- |
-- |
8,694,601 |
-- |
8,694,601 |
8,694,601 |
|
|
|
|
|
| Sundry
creditors |
-- |
-- |
-- |
915,774 |
-- |
915,774 |
915,774 |
|
| Unclaimed
Dividend |
-- |
-- |
-- |
61,642 |
-- |
61,642 |
61,642 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
-- |
-- |
-- |
18,295,080 |
-- |
18,295,080 |
18,295,080 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| ON
BALANCE SHEET GAP |
1,601,694 |
-- |
1,601,694 |
16,927,240 |
-- |
16,927,240 |
18,528,934 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
1999 |
|
|
|
RUPEES |
|
|
|
|
INTEREST BEARING |
|
NON-INTEREST BEARING |
|
|
Upto 1 |
More than |
Sub-total |
Upto 1 |
More than |
Sub-total |
Total |
|
|
Year |
1 Year |
|
Year |
1 Year |
|
|
|
| FINANCIAL
ASSETS |
|
| Ordinary shares |
|
-- |
-- |
-- |
3,311,783 |
-- |
3,311,783 |
3,311,783 |
|
| N.I.T. Units |
|
-- |
-- |
-- |
75,400 |
-- |
75,400 |
75,400 |
|
| T.F. Cs. |
|
94,416 |
-- |
94,416 |
-- |
-- |
-- |
94,416 |
|
| C.O.D. |
|
655,000 |
-- |
655,000 |
-- |
-- |
-- |
655,000 |
|
| Outstanding
premium |
|
|
| &
Agents' Balances |
-- |
-- |
-- |
20,463,323 |
-- |
20,463,323 |
20,463,323 |
|
|
|
|
|
| Interest accrued |
|
-- |
-- |
-- |
179,772 |
-- |
179,772 |
179,772 |
|
|
| Amount
due from other |
|
| persons
/ bodies |
|
| carrying
on insurance |
|
| business |
|
-- |
-- |
-- |
7,763,573 |
-- |
7,763,573 |
7,763,573 |
|
|
|
|
|
| Advances,
deposits |
|
|
| & Pre-payments |
|
-- |
-- |
-- |
708,764 |
-- |
708,764 |
708,764 |
|
|
|
|
|
| Cash at banks |
|
3,586,257 |
-- |
3,586,257 |
2,463,317 |
-- |
2,463,317 |
6,049,574 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
4,335,675 |
-- |
4,335,675 |
34,965,932 |
-- |
34,965,932 |
39,301,607 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
|
|
|
|
| FINANCIAL
LIABILITIES |
|
| Estimated
liability in respect |
|
| of
outstanding claims |
|
| whether
due or intimated |
-- |
-- |
-- |
9,301,474 |
-- |
9,301,474 |
9,301,474 |
|
|
|
|
|
| Amounts
due to other |
|
|
| persons
or bodies carrying |
|
|
| on
insurance business |
-- |
-- |
-- |
5,094,827 |
-- |
5,094,827 |
5,094,827 |
|
|
|
|
|
| Sundry
creditors |
-- |
-- |
-- |
783,326 |
-- |
783,326 |
783,326 |
|
| Unclaimed
Dividend |
-- |
-- |
-- |
61,642 |
-- |
61,642 |
61,642 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
-- |
-- |
-- |
15,241,269 |
-- |
15,241,269 |
15,241,269 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| ON
BALANCE SHEET GAP |
4,335,675 |
-- |
4,335,675 |
19,724,663 |
-- |
19,724,663 |
24,060,338 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
1999 |
1998 |
|
|
|
RUPEES |
RUPEES |
|
|
| 16.2
EFFECTIVE INTEREST RATES |
|
| Deposited
with State Bank of Pakistan -- F.I.Bs. |
|
15.00% |
15.00% |
|
| Term
Finance Certificates (I.C.I. Pak) |
|
18.70% |
18.70% |
|
| Certificates
of Deposit (P.I.C.I.C.) |
|
|
14.00% |
14.00% |
|
| Deposit
Accounts |
|
|
6.75% & 5.50% |
6.75% & 5.50% |
|
|
| 16.3
CREDIT RISK |
|
| The
credit risk represents the accounting loss that would be recognised at the
reporting date if |
|
| counter
parties failed to perform as contracted. All financial assets of the Company,
except cash |
|
| in
hand, are exposed to credit risk. The Company's credit risk is concentrated
in 'Outstanding |
|
| premium
& Agents' balances' and 'Amounts due from other persons / bodies carrying
on insurance |
|
| business
i.e. 56% and 23% (1998 -- 56% and 21%) respectively. |
|
|
| 16.4
FAIR VALUE OF FINANCIAL INSTRUMENTS |
|
| The
fair value of all financial instruments reflected in the financial statements
approximate to their |
|
| carrying value. |
|
|
|
Said Ahmed |
|
Shakil Raza Syed |
|
|
|
Mushtaque Ahmed |
|
|
Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
|
Chief Executive |
|
|
|
(Finance & Accounts) |
|
|
|
| CLASSIFIED
SUMMARY OF ASSETS IN PAKISTAN |
|
| AS
AT 31ST DECEMBER, 1999 |
|
|
| FORM 'AA' |
|
|
|
|
|
|
|
|
|
|
COST / |
MARKET/ |
|
|
| CLASS
OF ASSETS |
|
BOOK VALUE |
REALISABLE |
R E M A R K S |
|
|
|
|
VALUE |
|
|
|
|
Rupees |
Rupees |
|
|
|
| Federal
Investment Bond |
|
350,000 |
350,000 |
Cost |
|
|
|
|
|
|
|
Market Value has been |
|
| Ordinary
Shares of Companies |
|
|
ascertained from |
|
| Incorporated
in Pakistan Quoted |
|
1,514,513 |
1,514,513 |
published quotations |
|
|
|
|
| Trading
suspended on |
|
|
| Stock Exchange |
|
220 |
220 |
Book Value |
|
|
|
|
| N.I.T. Units |
|
65,325 |
65,325 |
Realisable Value |
|
|
|
|
| Certificates
of Deposit (PICIC) |
|
55,000 |
55,000 |
Realisable Value |
|
|
|
|
| Term
Finance Certificates |
|
52,642 |
52,642 |
Realisable Value |
|
|
|
|
|
Revalued amount less |
|
| Office Premises |
|
6,630,335 |
6,630,335 |
depreciation |
|
|
|
|
| Furniture,
Office Equipment & |
|
|
| Vehicles |
|
5,481,340 |
5,481,340 |
Book Value |
|
|
|
|
| Agent Balances |
|
20,717,034 |
20,717,034 |
Realisable Value |
|
|
|
|
| Profit
/ Interest Accrued |
|
40,992 |
40,992 |
Realisable Value |
|
|
| Amount
due from other persons or |
|
| bodies
carrying on insurance |
|
| business |
|
8,693,102 |
8,693,102 |
Realisable Value |
|
|
|
|
| Advances,
deposits & prepayments |
919,860 |
919,860 |
Realisable Value |
|
|
|
|
| Cash
at banks on Fixed Deposits |
|
1,494,052 |
1,494,052 |
Realisable Value |
|
|
|
|
| Cash
at banks on Current Accounts |
|
| and in hand |
|
3,519,583 |
3,519,583 |
Realisable Value |
|
|
|
Said Ahmed |
|
Shakil Raza Syed |
|
|
|
Mushtaque Ahmed |
|
|
Chairman |
|
Managing Director & |
|
Director |
|
Chief Manager |
|
|
|
|
Chief Executive |
|
|
|
(Finance & Accounts) |
|
|
|
| PATTERN
OF HOLDING OF THE SHARES BY THE SHAREHOLDERS |
|
| AS
AT 31ST DECEMBER, 1999 |
|
|
| NO. OF |
|
SHAREHOLDINGS |
|
TOTAL |
|
| SHARE |
FROM |
|
TO |
SHARES |
|
| HOLDERS |
|
| 65 |
1 |
-- |
100 |
1214 |
|
| 15 |
101 |
-- |
500 |
5277 |
|
| 17 |
501 |
-- |
1000 |
12272 |
|
| 21 |
1001 |
-- |
5000 |
43946 |
|
| 3 |
5001 |
-- |
10000 |
22829 |
|
| 1 |
10001 |
-- |
15000 |
14148 |
|
| 0 |
15001 |
-- |
20000 |
0 |
|
| 3 |
20001 |
-- |
25000 |
64918 |
|
| 1 |
25001 |
-- |
30000 |
30000 |
|
| 0 |
30001 |
-- |
35000 |
0 |
|
| 0 |
35001 |
-- |
40000 |
0 |
|
| 0 |
40001 |
-- |
45000 |
0 |
|
| 1 |
45001 |
-- |
50000 |
48631 |
|
| 1 |
50001 |
-- |
55000 |
51974 |
|
| 1 |
55001 |
-- |
100000 |
74142 |
|
| 0 |
100001 |
-- |
105000 |
0 |
|
| 0 |
105001 |
-- |
110000 |
0 |
|
| 1 |
110001 |
-- |
200000 |
185840 |
|
| 0 |
200001 |
-- |
205000 |
0 |
|
| 0 |
205001 |
-- |
250000 |
0 |
|
| 2 |
250001 |
-- |
2500000 |
1961265 |
|
| ------------------ |
|
|
|
------------------ |
|
| 132 |
|
2516456 |
|
| ========== |
|
========== |
|
|
| CATEGORIES
OF |
|
NUMBER |
NUMBER OF |
PERCENTAGE |
|
| SHAREHOLDERS |
|
|
SHARES HELD |
|
|
|
|
|
| Individuals |
|
120 |
413310 |
16.42% |
|
| Investment
Companies |
|
1 |
66 |
00.00% |
|
| Insurance
Companies |
|
1 |
22029 |
00.88% |
|
| Joint
Stock Companies |
|
9 |
2080959 |
82.70% |
|
| Administrator
Abandoned Properties |
1 |
92 |
00.00 |
|
|
|
------------------ |
------------------ |
------------------ |
|
|
|
132 |
2516456 |
100.00% |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
