| Union Insurance Company of Pakistan Limited |
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| Board
of Directors |
|
| MOHAMMAD
NAEEM |
|
Director |
|
| NAVID
RAFFIQ |
|
Director |
|
| FAZAL
REHMAN |
|
Director |
|
| JAVAID
MUSTAFA |
|
Director |
|
| FIDA
HUSSAIN SAMOO |
|
Director |
|
| SYED
FAYYAZ MAZHAR |
|
Director |
|
| NISHAT
RAFFIQ |
|
President and |
|
|
Chief Executive |
|
|
|
| Management |
|
| NISHAT
RAFFIQ |
|
President and |
|
|
Chief Executive |
|
|
| KHURSHID
ANWAR |
|
General Manager |
|
| MUNIR
HUSSAIN |
|
Chief Accountant |
|
|
| Reg
Office: 3rd Floor, AI-Falah Building, Shahrah-e-Quaid-e-Azam, Lahore. |
|
| Head
Office: 9th Floor, Adamjee House, I. I. Chundrigar Road, Karachi. |
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the 36th Annual General Meeting' will be held at 3rd
Floor AI-Falah Building |
|
| the
Mall Lahore on 30th June 2000 at 11 A.M. to consider the Following Agenda :- |
|
|
| 1.
To confirm the Minutes of the last Meeting. |
|
|
| 2.
To receive and adopt the Directors report and Audited Accounts for the year
ended 31st |
|
| December
1999. |
|
|
| 3.
To appoint Auditors for the year 2000 and fix their remuneration. |
|
|
| 4.
To elect seven Directors including chief Executive for a period of three
years in accordance |
|
| with
Section 178 of the Companies Ordinance 1984. The Directors have fixed the
number |
|
| of
Directors of to be elected at Seven under section 178 (1). |
|
|
| i)
The retiring Directors are Messrs. Mohammad Naeem. Navid Raffiq, Fazal
Rehman, Javaid |
|
| Mustafa,
Fida Hussain Samoo, Syed Fayyaz Mazhar and Nishat Raffiq. |
|
|
| Any
Person who seeks to contest election shall file with the Company at '~
Registered |
|
| office
a notice of his intention to offer himself for election. Such notice must be
filed not |
|
| later
than 14-days-before the-date of the
AGM. |
|
|
| SPECIAL
BUSINESS |
|
| 5.
Resolved that Authorised capital of the Company be and is hereby .increased
from-Rs. |
|
| 50,000,000
to Rs. 80,000,000 divided in to 8000000 ordinary shares of Rs. 10/= each |
|
| and
the necessary alterations in the Memorandum and Article of Association. |
|
|
| 6.
To consider any other business with the permission of the chair. |
|
|
|
BY ORDER OF THE BOARD |
|
|
Union Insurance Company
of Pakistan Limited. |
|
|
| NOTE :- |
|
|
| a)
The share transfer books of the Company will remain closed from 21st June,
2000 to |
|
| 30th
June 2000 (both days inclusive) · |
|
|
| b)
Member unable to attend the General Meeting may. send proxy form duly stamped
and |
|
| attested
to the Company, so as to reach the Company's ~ not later than 48 hours |
|
| before
the Meeting. |
|
|
| c)
A statement under section 160 (1) (b) of the Companies-Ordinance, 1984
showing-material |
|
| facts
in respect of special business is attached with the notice. |
|
|
| d)
Share holders are requested to notify any change in address. |
|
|
|
| DIRECTORS'
REPORT TO THE SHARE HOLDERS |
|
|
| Your
Directors are pleased to present to the members the 36th Report together with
audited |
|
| accounts
of the Company for the year ended on 31st December' 1999. |
|
|
| We
are closing the year under report once again in a situation where the
circumstances which |
|
| made
the working of the company unviable continue unabated. However, determined
efforts are |
|
| being
.made to remove the impediments and to bring back the company on the path of
progress. |
|
|
| SHARE
CAPITAL: |
|
| The
paid-up capital of the company is being raised to Rs. 49.56 Millions from Rs.
27.56 Millions in |
|
| the
years 2000 by issuance of Right shares and the issue is in the process of
completion. |
|
|
| Your
Directors have also decided to increase the Authorised capital from Rs. 50.00
Millions to |
|
| Rs.
80.00 Millions. |
|
|
| The
class wise operational results are given below:- |
|
|
| FIRE
DEPARTMENT: |
|
| This
Department produced a net premium income of Rs. 2,707,660/- as against Rs.
1,975,852/- in |
|
| the
preceding year. The incurred claims have however, reduced to Rs. 314,677/- as
compared to |
|
| Rs. 607,772/-. |
|
|
| MARINE
DEPARTMENT: |
|
| This
Department earned a net premium income of Rs. 374,929/- as against Rs.
1,019,506/- in the |
|
| preceding
year. The incurred claims have however, reduced to Rs. 66,821/- as compared
to |
|
| Rs.
172,807/- in the preceding year. |
|
|
| MOTOR
AND MISCELLANEOUS DEPARTMENT: |
|
| This
Department earned a net premium income of Rs. 1,858,272/- as compared to Rs.
1,324,200/ |
|
| -
in the preceding year. The incurred claims have increased to Rs. 483,362/- as
compared to |
|
| Rs.
284,830/- in the year 1998. |
|
|
| AUDITORS: |
|
| M/s.
Gangat & Company Chartered Accountants retire and being eligible have
offered them- |
|
| selves
for re-appointment. |
|
|
| ACKNOWLEDGMENT: |
|
| Your
Directors are thankful to the Controller of Insurance, State Bank of
.Pakistan, Securities and |
|
| Exchange
Commission of Pakistan, Pakistan Insurance Corporation, Our Re-Insurers
abroad |
|
| M/s.
EUROPARE, M/s. ASIAN RE, M/S BIMEH IRAN, brokers M/s. PANA HARRISON RE-IN- |
|
| SURANCE
BROKER PTE LTD. Singapore & M/s. CAMERON RICHARD & SMITH INSURANCE |
|
| SERVICES
LTD, LONDON for their continued support and advices in respect of our
re-insurance |
|
| requirements. |
|
|
| Your
Directors wish to record their appreciation of the loyal services of the
officers, staff and field |
|
| force
of your company during the year under report. |
|
|
| Our
thanks are also due to our esteemed clients for their continued confidence
reposed by them |
|
| in
the Company. |
|
|
|
For and on behalf of the |
|
|
Board of Directors |
|
|
|
NISHAT RAFFIQ |
|
|
Chief Executive |
|
| Karachi
Dated : 6th June, 2000. |
|
|
|
| Auditors'
Report to the Members |
|
|
| We
have audited the annexed. Balance Sheet of UNION. INSURANCE COMPANY-OF
PAKISTAN. LIMITED |
|
| as
at December 31, 1999 and the related Fire, Marine, Motor and Miscellaneous
Revenue ,Account, the |
|
| Profit
and loss Account, and the Profit and Loss Appropriation Account and the 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 our audit and , after due verification. there of, we report that : |
|
|
| a)
In our opinion, proper books of account have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
| b)
In our opinion : |
|
|
| i)
the Balance Sheet, the Revenue Accounts, the Profit and Loss Account and the
Profit |
|
| and
Loss Appropriation Account have been drawn up in conformity with ~ Insurance
Act, |
|
| 1938,
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, |
|
| the
Balance Sheet, Revenue Accounts, Profit and loss account, Profit and Loss
Appropriation Account |
|
| and
the Cash Flow Statement, together with the notes forming part there of, give
the information |
|
| required
by the Insurance Act, 1938 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
loss |
|
| and
the Cash flow Statement for the year then ended; and |
|
|
| d)
In our opinion, no Zakat was deductible at source under the Zakat and ushr
Ordinance, 1980. |
|
|
| We
further state that : |
|
|
| a)
we have verified cash, stamps and bank balances of the Company and all
securities relating to |
|
| the
company's investments by actual inspection or by the production of
certificates; |
|
|
| b)
as per section 40C(2) of the Insurance Act 1938 we certify that to the best
of our knowledge |
|
| and
belief and subject to the contents of note 6, all the expenses of management
and all charges |
|
| incurred
whether directly or indirectly in respect of Fire, Marine, Motor and
Miscellaneous Insurance |
|
| Business
transacted in Pakistan have been fully debited in the respective Revenue
Accounts as |
|
|
| c)
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 person any commission in any form in
respect of |
|
| any
business reinsured abroad. |
|
|
|
|
GANGAT & CO |
|
| Karachi
Dated : 6th June, 2000 |
|
Chartered Accountants |
|
|
|
|
| Fire
Revenue Account For The Year Ended December 31, 1999 |
|
|
| PARTICULARS |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Claims
under policies, less reinsurances |
|
| Paid
during the year |
|
315,320 |
315,241 |
|
|
| Estimated
liability in respect of outstanding |
|
| claims
at the end of the year whether due or |
|
| intimated |
|
501,222 |
501,865 |
|
|
----------- |
----------- |
|
|
|
816,542 |
817,106 |
|
|
| Less:
Outstanding at the end of the previous year |
|
501,865 |
209,334 |
|
|
----------- |
----------- |
|
|
314,677 |
607,772 |
|
|
| Commission |
|
-- |
265,528 |
|
| Expenses
of management |
|
2,552,256 |
2,475,133 |
|
| (Loss)
transferred to Profit and Loss Account |
|
(439,066) |
(754,067) |
|
| 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 |
|
1,083,064 |
790,341 |
|
|
----------- |
----------- |
|
|
3,510,931 |
3,384,707 |
|
|
========== |
========== |
|
| Balance
of account at the beginning |
|
| of the year: |
|
|
| Reserve
for unexpired risks |
|
790,341 |
1,408,855 |
|
|
| Premium
less reinsurances |
|
2,707,660 |
1,975,852 |
|
|
| Commission |
|
|
12,930 |
-- |
|
|
----------- |
----------- |
|
|
3,510,931 |
3,384,707 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of this Revenue Account |
|
|
| We
Certify that all expenses of management wherever incurred, whether directly
or indirectly, |
|
| and
all charges incurred in respect of Fire Insurance business transacted by the
Company in |
|
| Pakistan
have been fully debited in the above Revenue Account as expenses. |
|
|
|
GANGAT & CO |
|
NISHAT RAFFIQ |
|
JAVAID MUSTAFA |
|
FAZAL REHMAN |
|
SYED FAYYAZ MAZHAR |
|
Chartered Accountants |
|
President & |
|
Director |
|
Director |
|
Director |
|
Chief Executive |
|
|
|
| Marine
Revenue Account For The Ended December 31, 1999 |
|
|
| PARTICULARS |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Claims
under policies, less reinsurances |
|
| Paid
during the year |
|
117,203 |
69,014 |
|
|
| Estimated
liability in respect of outstanding |
|
| claims
at the end of the year whether due or |
|
| intimated |
|
419,133 |
469,515 |
|
|
---------- |
---------- |
|
|
536,336 |
538,529 |
|
|
| Less:
Outstanding at the end of the previous year |
|
469,515 |
365,722 |
|
|
---------- |
---------- |
|
|
66,821 |
172,807 |
|
|
| Commission |
|
-- |
21,292 |
|
| Expenses
of management |
|
179,703 |
784,727 |
|
| Profit
transferred to Profit and Loss Account |
|
406,138 |
108 |
|
| 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 |
|
149,972 |
407,802 |
|
|
---------- |
---------- |
|
|
802,634 |
1,386,736 |
|
|
========== |
========== |
|
| PARTICULARS |
|
|
|
| Balance
of account at the beginning |
|
| of the year' |
|
|
| Reserve
for unexpired risks |
|
407,802 |
367,230 |
|
|
| Premium
less reinsurances |
|
374,929 |
1,019,506 |
|
|
| Commission |
|
19,903 |
-- |
|
|
---------- |
---------- |
|
|
802,634 |
1,386,736 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of this Revenue Account |
|
|
|
|
|
| We
Certify that all expenses of management wherever incurred, whether directly
or indirectly, |
|
| and
all charges incurred in respect of Marine Insurance business transacted by
the Company in |
|
| Pakistan
have been fully debited in the above Revenue Account as expenses. |
|
|
|
GANGAT & CO |
|
NISHAT RAFFIQ |
|
JAVAID MUSTAFA |
|
FAZAL REHMAN |
|
SYED FAYYAZ MAZHAR |
|
Chartered Accountants |
|
President & |
|
Director |
|
Director |
|
Director |
|
Chief Executive |
|
|
|
| Motor
and Miscellaneous Revenue Account For The Year Ended December 31, 1999 |
|
|
| PARTICULARS |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Claims
under policies, less reinsurances |
|
| Paid
during the year |
|
645,672 |
243,557 |
|
|
| Estimated
liability in respect of outstanding |
|
| claims
at the end of the year whether due or |
|
| intimated |
|
115,080 |
277,390 |
|
|
---------- |
---------- |
|
|
760,752 |
520,947 |
|
|
| Less:
Outstanding at the end of the previous year |
|
277,390 |
236,117 |
|
|
---------- |
---------- |
|
|
483,362 |
284,830 |
|
|
| Commission |
|
--- |
223,707 |
|
| Expenses
of management |
|
1,701,804 |
1,440,766 |
|
| (Loss')
transferred to Profit and Loss Account |
|
(478,566) |
(452,513) |
|
| 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 |
|
743,308 |
529,680 |
|
|
---------- |
---------- |
|
|
2,449,908 |
2,026,470 |
|
|
========== |
========== |
|
|
| Balance
of account at the beginning |
|
| of the year: |
|
|
| Reserve
for unexpired risks |
|
529,680 |
702,270 |
|
|
| Premium
less reinsurances |
|
1,858,272 |
1,324,200 |
|
|
| Commission |
|
61,956 |
-- |
|
|
---------- |
---------- |
|
|
2,449,908 |
2,026,470 |
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of this Revenue Account |
|
|
|
|
|
| We
Certify that all expenses of management wherever incurred, whether directly
or indirectly, and all charges |
|
| incurred
in respect of Motor and Miscellaneous Insurance business transacted by the
Company in Pakistan |
|
| have
been fully debited in the above Revenue Account as expenses. |
|
|
|
GANGAT & CO |
|
NISHAT RAFFIQ |
|
JAVAID MUSTAFA |
|
FAZAL REHMAN |
|
SYED FAYYAZ MAZHAR |
|
Chartered Accountants |
|
President & |
|
Director |
|
Director |
|
Director |
|
Chief Executive |
|
|
|
| Profit
and Loss Account For The Year Ended December 31, 1999 |
|
|
| EXPENDITURES |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Expenses
of management (not applicable to any |
|
| particular
fund or account) |
|
283,907 |
426,140 |
|
| ·
Directors' Meeting fees |
|
4,000 |
5,500 |
|
| Depreciation |
|
2,414,592 |
2,954,234 |
|
|
| Provision
for Taxation - Current |
|
24,704 |
-- |
|
| - prior |
|
52,577 |
-- |
|
|
----------- |
----------- |
|
|
77,281 |
-- |
|
|
----------- |
----------- |
|
|
2,779,780 |
3,385,874 |
|
|
========== |
========== |
|
|
|
|
|
| INCOME |
|
|
|
|
| Dividend
and interest |
|
182,323 |
275,481 |
|
|
| Profit
/ (Loss) transferred from Revenue |
|
| Accounts |
|
| Fire Revenue |
|
(439,066) |
(754,067) |
|
| Marine
Revenue |
|
406,138 |
108 |
|
| Motor
and Miscellaneous Revenue |
|
(478,566) |
(452,513) |
|
|
----------- |
----------- |
|
| Profit
on sale of assets |
|
(511,494) |
(1,206,472) |
|
| Net
loss for the year carried to profit & loss |
|
3,108,951 |
4,420 |
|
| appropriation
Account |
|
|
4,312,445 |
|
|
----------- |
----------- |
|
|
2,779,780 |
3,385,874 |
|
|
========== |
========== |
|
|
|
|
|
GANGAT & CO |
|
NISHAT RAFFIQ |
|
JAVAID MUSTAFA |
|
FAZAL REHMAN |
|
SYED FAYYAZ MAZHAR |
|
Chartered Accountants |
|
President & |
|
Director |
|
Director |
|
Director |
|
Chief Executive |
|
|
|
|
|
|
|
| Profit
and Loss Appropriation Account For The Year Ended December 31, 1999 |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Balance
brought down |
|
3,108,951 |
4,312,445 |
|
| Balance
brought forward from the last year |
|
7,984,238 |
3,671,793 |
|
|
----------- |
----------- |
|
|
11,093,189 |
7,984,238 |
|
|
========== |
========== |
|
|
|
|
| Balance
at end of the year as shown in |
|
| the
balance sheet |
|
11,093,189 |
7,984,238 |
|
|
----------- |
----------- |
|
|
11,093,189 |
7,984,238 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of this Profit & Loss Account |
|
|
|
GANGAT & CO |
|
NISHAT RAFFIQ |
|
JAVAID MUSTAFA |
|
FAZAL REHMAN |
|
SYED FAYYAZ MAZHAR |
|
Chartered Accountants |
|
President & |
|
Director |
|
Director |
|
Director |
|
Chief Executive |
|
|
|
| Balance
Sheet As At December 31, 1999 |
|
|
|
1999 |
1998 |
|
| CAPITAL
AND LIABILITIES |
|
Rupees |
Rupees |
|
|
| SHARE
CAPITAL: |
|
|
| AUTHORISED |
|
| 5,000,000
(1998:3, 000,000) ordinary shares |
|
50,000,000 |
30,000,000 |
|
| of
Rs. 10/- each |
|
========== |
========== |
|
|
|
| ISSUED
SUBSCRIBED AND PAID UP |
|
| 2,653,750
ordinary shares of Rs. 10/-each |
|
26,537,500 |
26,537,500 |
|
| issued
as Fully paid Bonus Shares |
|
|
1,025,000 |
1,025,000 |
|
|
----------- |
----------- |
|
|
27,562,500 |
27,562,500 |
|
| RESERVE
AND CONTINGENCY ACCOUNTS . |
|
| General
Reserve |
|
3,250,000 |
3,250,000 |
|
| Investment
fluctuation reserve |
|
11,059 |
11,059 |
|
| Reserve
for exceptional losses |
|
52,000 |
52,000 |
|
| Reserve
for bad and doubtful debts |
|
140,000 |
140,000 |
|
| Reinsurance
ceded reserve |
|
1,161,784 |
447,590 |
|
|
----------- |
----------- |
|
|
4,614,843 |
3,900,649 |
|
| BALANCE
OF FUNDS AND ACCOUNTS : |
|
| Fire
Insurance 'Business Account |
|
1,083,064 |
790,341 |
|
| Marine
Insurance Business Account |
|
149,972 |
407,802 |
|
| Motor
and Miscellaneous Insurance Business Account |
|
743,308 |
529,680 |
|
|
----------- |
----------- |
|
|
1,976,344 |
1,727,823 |
|
|
| LIABILITIES
AND PROVISIONS: |
|
| Estimated
liability in respect of outstanding |
|
| claims
whether due or intimated |
|
1,035,435 |
1,248,770 |
|
| Amount
due to other persons or bodies carrying |
|
|
|
| on
insurance business |
|
1,479,700 |
1,862,340 |
|
| Sundry
creditors including outstanding |
|
|
|
| and
accrued expenses |
|
1,765,899 |
647,746 |
|
|
972,060 |
1,311,356 |
|
| Premium
deposits and agents' balances |
|
77,281 |
-- |
|
| Provision
for taxation |
|
26,264 |
26,264 |
|
| Unpaid
dividend |
|
----------- |
----------- |
|
|
5,256,639 |
5,098,476 |
|
|
----------- |
----------- |
|
|
39,410,326 |
39,287,448 |
|
|
========== |
========== |
|
| PROPERTY
AND ASSETS |
|
| INVESTMENTS
(NOTE: 3) |
|
| N.I.T.
Units and Defence Saving Certificates |
|
| Ordinary
Shares of Companies |
|
| incorporated
in Pakistan |
|
351,200 |
351,200 |
|
|
| Statutory
Deposit at State Bank of Pakistan |
|
64,870 |
64,870 |
|
|
----------- |
----------- |
|
|
416,070 |
416,070 |
|
| FIXED
ASSETS: |
|
| (At
cost less depreciation) |
|
|
