| The Premier Insurance Company of Pakistan
Limited |
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| BOARD
OF DIRECTOR |
|
|
| Chairman
and Chief Executive |
|
| Mr.
Zahid Bashir |
|
|
| Directors |
|
| Mr.
Maqbul Ahmad |
|
| Mr.
Khalid Bashir |
|
| Mr.
Shamim Anwar |
|
| Mr.
Mohammad Javed Amin |
|
| Mr.
Shaukat Shafi |
|
| Mr.
Khurram Mazhar |
|
| Mr.
M. Talib Ali |
|
|
| Adviser |
|
| Mr.
A. U. Siddiqui |
|
|
| General
Manager |
|
| Mr.
N. A. Qureshi |
|
|
| Dy.
General Manager |
|
| Mrs.
N. K. Hasan |
|
| M.B.E.,
L.L. B., F.C.I.I. (London) |
|
| A.I.
Arb., M. Inst. A.M. (U.K.) |
|
|
| Attorney |
|
| Mr.
S. Zahid Ali |
|
|
| Asstt.
General Managers |
|
| Mr. Fazlur Rehman |
|
| Mr. M. Ishaque Azim |
|
| Mr.
Afzal-ur-Rahman |
|
| Mr.
M. K. Baig |
|
| Mr.
Latif A. Bhatti |
|
|
| Chief
Accountant and Secretary |
|
| Mr.
B. I. Zanjani |
|
|
| Auditors |
|
| Messrs
Mushtaq and Company |
|
| Chartered
Accountants |
|
|
| Legal
Advisers |
|
| Messrs
Mansoor-uI-Arfin & Co. |
|
| Advocates |
|
|
| Registered
& Head Office |
|
| P.O.
Box No. 4140, Wallace Road, |
|
| Karachi-74000,
Pakistan |
|
| Phones:
2416331-3 (PABX) |
|
| Cable:
"PRINSCOP" Karachi |
|
| Telex:
21630 "PRINS" PK |
|
| Fax:
(92-21) 2416572 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the 48th Annual General Meeting of the Company will be
held at Raffia Choudri Memorial Centre |
|
| (ground
floor), Sidco Avenue Centre, Stratchen Road, 264, R. A. Lines, Karachi, on
the 22nd June, 2000 at 11:00 a.m. to |
|
| transact
the following business: |
|
|
| ORDINARY
BUSINESS: |
|
|
| 1.
To confirm the Minutes of the last Annual General Meeting held on the 21st
June, 1999; |
|
|
| 2.
To receive, consider and approve the audited Balance Sheet and Revenue and
Profit and Loss Accounts for the |
|
| year
ended 31st December, 1999 and the Directors' and Auditors' Reports thereon; |
|
|
| 3.
To approve Cash Dividend @ 25%, as recommended by the Board of Directors; |
|
|
| 4.
To appoint auditors for the year 2000 and fix their remuneration; |
|
|
| 5.
To transact any other business with the permission of the Chair. |
|
|
| By
Order of the Board |
|
|
| B.
I. ZANJANI |
|
| Secretary |
|
|
| Karachi,
26th May, 2000 |
|
|
| N.B. |
|
| i)
The Share Transfer Book of the Company will remain closed from 15th June to
26th June, 2000 (both days |
|
| inclusive). |
|
|
| ii)
Transfers received at the Company's Registered Office before the close of
business on 14th June, 2000 will, if in |
|
| order,
be registered in time for the transferees to receive dividend. |
|
|
| iii)
A member entitled to attend and vote at the Annual General Meeting is
entitled to appoint a Proxy who must be |
|
| a
member of the Company to attend and vote on his behalf under the Articles of
Association of the Company. |
|
|
| iv)
The instrument appointing a proxy must be deposited at the Registered Office
of the Company atleast 48 hours |
|
| before
the time of the meeting. |
|
|
| v)
Shareholders, who are not liable to pay Zakat at source, are requested to
send necessary affidavits for exemption |
|
| as
prescribed under Zakat and Ushr Ordinance 1980 by 14th June, 2000, if not
already sent. |
|
|
| vi)
Shareholders are requested to bring Entry Card with them, duly filled in, and
deliver it to the Incharge of Shares |
|
| Department
before participating in the meeting. |
|
|
| vii)
Shareholders of CDC Participant/Sub-Account holders are requested to bring
with them their original National |
|
| Identity
Card (with a photocopy) along with the Participants' ID numbers and their
account number (duly verified) |
|
| at
the time of attending the Annual General Meeting in order to facilitate
identification of the respective shareholders. |
|
|
|
| REPORT
OF THE DIRECTORS TO SHAREHOLDERS |
|
|
| Your
Directors have pleasure in presenting the 48th Annual Report together with
audited Fire, Marine and Motor & Miscellaneous |
|
| Revenue
Accounts, Profit & Loss Account for the year ended 31st December, 1999
and the Balance Sheet as at 31st Dec., 1999. |
|
|
| REVENUE
ACCOUNTS |
|
|
| Fire,
Marine and Motor & Miscellaneous departments have produced reasonable
profits. Efforts will continue to improve upon |
|
| the
performance despite adverse market conditions. |
|
|
| PROFIT
& LOSS ACCOUNT |
|
|
| The
net underwriting profit in respect of all the three Revenue Accounts worked
out to Rs. 52,29i ,959. Income from other |
|
| sources
such as Interest and Dividends, Sale of Assets and Capital Gain on Investment
amounted to Rs. 13, 560,87z~. After |
|
| meeting
expenses not applicable to any particular account, Bonus to Staff, Gratuity
to Staff, other charges, Depreciation, |
|
| provisions
for Taxation and after bringing forward the balance from last year a sum of
Rs. 43,464,047 is available for |
|
| appropriation. |
|
|
| Your
Directors recommended the following appropriation' |
|
|
| General
Reserve |
|
Rs. 10,000,000 |
|
| Proposed
Dividend |
|
Rs. 25,096,500 |
|
| Balance
carried forward to Balance Sheet |
|
Rs. 8,367,547 |
|
|
| DIVIDEND |
|
|
| Your
Directors recommended that a Cash Dividend @ 25% be declared for the year
ended 31st December, 1999. |
|
|
| PERSONNEL |
|
|
| Your
Directors also wish to place on record their appreciation of the loyal and
devoted services rendered by Officers, |
|
| Field
Force and Staff of the Company. |
|
|
|
For and on behalf of the
Board |
|
|
|
ZAHID BASHIR |
|
|
Chairman and |
|
| Karachi,
26th May, 2000 |
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT TO THE SHAREHOLDERS |
|
|
| We
have audited the annexed Balance Sheet of THE PREMIER INSURANCE COMPANY OF
PAKISTAN LIMITED as at |
|
| December
31, 1999 and the annexed Fire, Marine and Motor and Miscellaneous Insurance
Revenue Accounts, the Profit and |
|
| Loss
Account, and the Profit and Loss Appropriation Account and the Statement of
Changes in Financial Position (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 purpose of the 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,
1 984, |
|
|
| (b)
In our opinion: |
|
| (i)
the Balance Sheet, Revenue Accounts, Profit and Loss Account and the Profit
and Loss Appropriation Account |
|
| together
with the Notes thereon have been drawn up in conformity with the Companies
Ordinance, 1984 |
|
| and
Insurance Law and are in agreement with the books of account and are further
in accordance with |
|
| accounting
policies consistently applied; |
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's
business; and |
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year were in accordance |
|
| with
the objects of the Company; |
|
|
| (c)
In our opinion and to the best of our information and according to the
explanations given to us Fire, Marine and |
|
| Motor
and Miscellaneous Revenue Accounts, the Balance Sheet and Profit and Loss
Account and Statement |
|
| of
Changes in Financial Position (Cash Flow Statement), together with the Notes
forming part thereof, give the |
|
| information
required by the Companies Ordinance, 1984 and Insurance Law in the manner so
required and |
|
| respectively
give a true and fair view of the state of the Company's affairs as at
December 31, 1999 and of |
|
| the
profit and the changes in financial position (cash flow statement) for the
year then ended; |
|
|
| (d)
In our opinion Zakat deductible at source under the Zakat and Ushr Ordinance,
1980 was deducted by the |
|
| Company
and deposited in the Central Zakat
Fund established under Section 7 of that Ordinance; |
|
| We have verified the Cash and Bank Balances of the Company by actual
inspection or the production of certificates; |
(e) |
|
|
| (f)
We have verified the investments by actual inspection or by the production of
certificates from the bankers or |
|
| brokers
with whom the documents were deposited except those which were awaiting
transfer in the Company's |
|
| name
where all the supporting documentation has been examined by us; |
|
|
| (g)
As per Regulation 11 of part I of the Third Schedule of the Insurance Act
1938, we certify that the Company |
|
| has
not paid to any person any commission in any form outside Pakistan in respect
of the insurance business |
|
| transacted
by the Company in Pakistan and that the Company has not received outside
Pakistan from any |
|
| commission
in any form in respect of any business re-insured abroad; |
|
|
| (h)
As per Section 40C(2) of the Insurance Act, 1938 read with Notes 1 (d), 1 (e)
and 1 (h), we certify that all expenses |
|
| of
Management wherever incurred whether directly or indirectly, and all charges
incurred in respect of Fire, Marine |
|
| and
Motor and Miscellaneous Insurance Business transacted in Pakistan, have been
fully debited to the respective |
|
| Revenue
Accounts as expenses. |
|
|
|
MUSHTAQ & COMPANY |
|
| Karachi,
26th May, 2000 |
|
Chartered Accountants |
|
|
| DIRECTORS'
CERTIFICATES |
|
|
| (A)
Certificate of the Directors and Principal Officer as required under
Regulations 7 (a) and (b) of Part I of the First |
|
| Schedule
of the Insurance Act (as amended): |
|
|
| We
certify that: |
|
| 1.
Investments have been valued in the Balance Sheet at cost and/or at Book
Value. Market Values of Investments |
|
| have
been ascertained, wherever applicable, from published Quotations as on 31 st
December, 1999 except in |
|
| cases
where market quotations are not available have been taken at Face Value
and/or at Book Value; |
|
| 2.
The values of assets have been reviewed as at 31 st December, 1999 and that
in our belief the assets set-forth |
|
| in
the Balance Sheet are shown in the aggregate at amounts not exceeding their
realisable or market value under |
|
| several
headings enumerated therein except for investments which have been valued at
cost and/or at Book Value. |
|
|
| (B)
Certificate as required under Section 40 C (2) of the Insurance Act (as
amended): |
|
| We
certify that all expenses of management wherever incurred whether directly or
indirectly in respect of Fire, Marine |
|
| and
Motor & Miscellaneous business transacted in Pakistan have been fully
debited in the respective Revenue Accounts |
|
| as expenses. |
|
|
|
ZAHID BASHIR |
|
MAQBUL AHMAD |
|
|
Chairman and |
|
M. TALIB ALI |
|
| Karachi,
26th May, 2000 |
|
Chief Executive |
|
Directors |
|
|
|
| Fire
Revenue Account for the year ended 31st December, 1999 |
|
|
|
|
December 31 |
December 31 |
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
| Claims
under Policies |
|
| Less
Re-insurances: |
|
|
| Paid
during the year |
|
14,434,862 |
9,444,695 |
|
|
| Total
estimated liabilities in |
|
| respect
of outstanding claims |
|
| at
the end of the year whether |
|
| due
or intimated |
|
49,321,000 |
49,282,000 |
|
|
---------- |
---------- |
|
|
63,755,862 |
58,726,695 |
|
|
| less:
Outstanding at the |
|
| end
of the previous year |
|
49,282,000 |
41,545,000 |
|
|
---------- |
---------- |
|
|
14,473,862 |
17,181,695 |
|
|
| Commission |
|
(9,346,934) |
(10,472,721) |
|
|
| Expenses
of Management |
|
20,519,699 |
19,042,979 |
|
|
| Profit
transferred to |
|
| Profit
and Loss Account |
|
42,517,663 |
37,461,713 |
|
|
| Balance
of Account |
|
| at
the end of the year as |
|
| shown
.in the Balance Sheet: |
|
|
| Reserve
for Unexpired Risks, |
|
| being
40% of the premium |
|
| income
of the year |
|
27,1 75,060 |
27,401,700 |
|
|
---------- |
---------- |
|
| Total |
|
95,339,350 |
90,615,366 |
|
|
| Balance
of Account at the |
|
| beginning
of the year · |
|
| Reserve for Unexpired Risks |
|
27,401,700 |
68,504,250 |
|
| Premium
Less Re-insurances |
|
67,9.37,650 |
68,504,250 |
|
|
---------- |
---------- |
|
| Total |
|
95,339,350 |
90,615,366 |
|
|
========== |
========== |
|
| Auditors
Report to Shareholders |
|
|
|
| (See
annexed report of date) |
|
|
MUSHTAQ & COMPANY |
|
ZAHID BASHIR |
|
MAQBUL AHMAD |
|
B.I. ZANJANI |
|
|
Chartered Accountants |
|
Chairman and |
|
M. TALIB ALI |
|
Chief Accountant |
|
|
Chief Executive |
|
Directors |
|
and Secretary |
|
| Karachi,
26th May, 2000 |
|
|
|
|
|
| Marine
Revenue Account for the year ended 31st December, 1999 |
|
|
|
December 31 |
December 31 |
|
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Claims
under Policies |
|
| Less
Re-insurances: |
|
|
| Paid
during the year |
|
8,031,1 25 |
6,477,806 |
|
|
|
|
| Total
estimated liabilities in |
|
|
|
| respect
of outstanding claims |
|
|
|
| at the end of the year whether |
|
10,414,000 |
11,885,000 |
|
| due
or intimated |
|
|
|
|
----------- |
----------- |
|
|
18,445,125 |
18,362,806 |
|
|
|
|
| less:
Outstanding at the |
|
|
|
| end
of the previous year. |
|
11,885,000 |
10,935,000 |
|
|
----------- |
----------- |
|
|
6,560,125 |
7,427,806 |
|
|
| Commission |
|
(2,838,685) |
(2,832,970) |
|
|
| Expenses
of Management |
|
4,632,904 |
4,690,408 |
|
|
| Profit
transferred to |
|
| Profit
and Loss Account |
|
7,598,232 |
7,233 |
|
|
| Balance
of Account |
|
| at
the end of the year as |
|
| shown
in the Balance Sheet: |
|
|
| Reserve
for Unexpired Risks, |
|
| being
40% of the premium |
|
| income
of the year |
|
6,135,045 |
6,750,008 |
|
|
---------- |
---------- |
|
| Total |
|
22,087,621 |
23,268,393 |
|
|
========== |
========== |
|
| Balance
of Account at the |
|
| beginning
of the year · |
|
|
| Reserve
for Unexpired Risks |
|
6,750,008 |
6,393,374 |
|
| Premium
Less Re-insurances |
|
15,337,613 |
16,875,019 |
|
|
---------- |
---------- |
|
| Total |
|
22,087,621 |
23,268,393 |
|
|
========== |
========== |
|
| Auditors
Report to Shareholders |
|
| (See
annexed report of date) |
|
|
MUSHTAQ & COMPANY |
|
ZAHID BASHIR |
|
MAQBUL AHMAD |
|
B.I. ZANJANI |
|
|
Chartered Accountants |
|
Chairman and |
|
M. TALIB ALI |
|
Chief Accountant |
|
|
Chief Executive |
|
Directors |
|
and Secretary |
|
| Karachi,
26th May, 2000 |
|
|
|
|
|
| Motor
and Miscellaneous Revenue Account for the year ended 31st December, 1999 |
|
|
|
December 31 |
December 31 |
|
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Claims
under Policies |
|
| Less
Re-insurances: |
|
|
| Paid
during the year |
|
36,754,600 |
45,405,530 |
|
|
| Total
estimated liabilities in |
|
| respect
of outstanding claims |
|
| at
the end of the year whether |
|
| due
or intimated |
|
22,147,000 |
22,784,000 |
|
|
----------- |
----------- |
|
|
58,901,600 |
68,189,530 |
|
|
| less:
Outstanding at the |
|
| end
of the previous year |
|
22,784,000 |
27,314,000 |
|
|
|
36,117,600 |
40,875,530 |
|
|
| Commission |
|
4,656,813 |
5,760,638 |
|
|
| Expenses
of Management |
|
19,523,424 |
16,458,632 |
|
|
| Profit
/ (Loss) transferred to |
|
| Profit
and Loss Account |
|
2,176,064 |
(4,431,822) |
|
|
| Balance
of Account |
|
| at
the end of the year as |
|
| shown
in the Balance Sheet: |
|
|
| Reserve
for Unexpired Risks, |
|
| being
40% of the premium |
|
| income
of the year |
|
25,857,978 |
23,686,933 |
|
|
---------- |
---------- |
|
| Total |
|
88,331,879 |
82,349,911 |
|
|
========== |
========== |
|
| Balance
of Account at the |
|
| beginning
of the year · |
|
| Reserve for Unexpired Risks |
|
23,686,933 |
23,132,578 |
|
| Premium
Less Re-insurances |
|
64,644,946 |
59,217,333 |
|
|
---------- |
---------- |
|
| Total |
|
88,331,879 |
82,349,911 |
|
|
========== |
========== |
|
| Auditors
Report to Shareholders |
|
| (See
annexed report of date) |
|
|
MUSHTAQ & COMPANY |
|
ZAHID BASHIR |
|
MAQBUL AHMAD |
|
B.I. ZANJANI |
|
|
Chartered Accountants |
|
Chairman and |
|
M. TALIB ALI |
|
Chief Accountant |
|
|
Chief Executive |
|
Directors |
|
and Secretary |
|
| Karachi,
26th May, 2000 |
|
|
|
|
| Profit
and Loss Account for the year ended 31st December, 1999 |
|
|
|
December 31 |
December 31 |
|
|
|
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Expenses
of Management |
|
| (not
applicable to any |
|
| particular
Account) |
|
|
| Directors'
Fee |
|
30,000 |
9,500 |
|
| Bonus
to Staff |
|
4,048,769 |
7,487,231 |
|
| Staff
Gratuity |
|
442,905 |
414,400 |
|
| Zakat Paid |
|
80,014 |
83,905 |
|
| Depreciation |
|
3,928,173 |
3,827,838 |
|
| Provision
for Taxation |
|
|
| Current Year: |
|
189,165,801 |
113,326,281 |
|
| Prior Year: |
|
12,364,775 |
16,125,862 |
|
|
---------- |
---------- |
|
|
21,281,355 |
29,452,143 |
|
|
| Balance
being Profit for the year |
|
| carried
to Profit and Loss |
|
| Appropriation
Account |
|
36,041,617 |
13,157,671 |
|
|
---------- |
---------- |
|
| Total |
|
65,852,833 |
54,432,688 |
|
|
| Interest
and Dividend |
|
| (not
applicable to any |
|
| particular
Account) |
|
|
| In Pakistan |
|
12,910,224 |
11,859,810 |
|
| Less
Income Tax |
|
326,015 |
328,698 |
|
|
---------- |
---------- |
|
|
12,584,209 |
11,513,112 |
|
| Profit
on Sale of Assets |
|
920,253 |
1,251,625 |
|
| Capital
Gain on Investments |
|
56,412 |
1,386,919 |
|
| Profit/(Loss)
transferred from:- |
|
| Fire
Revenue Account |
|
42,517,663 |
37,461,713 |
|
| Marine
Revenue Account |
|
7, 598,232 |
7, 233,141 |
|
| Motor
& Miscellaneous |
|
2,176,064 |
(4,431,822) |
|
|
---------- |
---------- |
|
| Total |
|
65,852,833 |
54,432,688 |
|
|
========== |
========== |
|
|
|
| Profit
and Loss Appropriation Account for the year ended 31st December 1999 |
|
|
|
December 31 |
December 31 |
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
|
|
| General
Reserve |
|
10,000,000 |
-- |
|
| Proposed
Dividend |
|
25,096,500 |
16,731,000 |
|
|
| Reserve
for Issue of Bonus |
|
| Shares |
|
-- |
16,731,000 |
|
| Balance
at the end of the year |
|
| as
shown in Balance Sheet |
|
8,367,547 |
7,422,430 |
|
|
---------- |
---------- |
|
| Total |
|
43,464,047 |
40,884,430 |
|
|
========== |
========== |
|
|
| Balance
brought forward |
|
| from
last year |
|
7,422,430 |
27,726,759 |
|
|
| Balance
for the year |
|
| brought
forward from |
|
| Profit
& Loss Account |
|
36,041,617 |
13,157,671 |
|
|
---------- |
---------- |
|
| Total |
|
43,464,047 |
40,884,430 |
|
|
========== |
========== |
|
| Auditors
Report to Shareholders |
|
| (See
annexed report of date) |
|
|
MUSHTAQ & COMPANY |
|
ZAHID BASHIR |
|
MAQBUL AHMAD |
|
B.I. ZANJANI |
|
|
Chartered Accountants |
|
Chairman and |
|
M. TALIB Ali |
|
Chief Accountant |
|
|
Chief Executive |
|
Directors |
|
and Secretary |
|
| Karachi,
26th May, 2000 |
|
|
|
| Balance
Sheet as at 31st December, 1999 |
|
|
| CAPITAL
AND LIABILITIES |
|
December 31 |
December 31 |
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
|
(Notes) |
|
| SHAREHOLDER |
