| Asia Insurance Company Limited |
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| Annual
Report 1999 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that the 20th Annual General Meeting of Asia Insurance
Company Limited, will be held |
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| at
the Registered Office of the Company at Asia Insurance House, 7-Egerton Road,
Lahore at 10.00 A.M on |
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| Friday,
June 30, 2000 to transact the following Ordinary and Special Business:- |
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| A.
ORDINARY BUSINESS |
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| 1.
To confirm the minutes of previous General Meeting. |
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| 2.
To receive, consider and adopt the Accounts of the Company for the year ended
December |
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| 31,
1999 together with the Report of the Auditors and Directors thereon. |
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| 3.
To appoint auditors for the year ending December31, 2000 and to fix their
remuneration. |
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| 4.
To transact any other business with the permission of the Chair. |
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| B.
SPECIAL BUSINESS |
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| 5.
To consider and approve remuneration payable to. the directors and the chief
executive of the |
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| Company
as approved by the Board. |
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| 6.
To consider and approve investment in associated Company. |
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| (See
appended statement as required under section 160 (1) (b) of the Companies
Ordinance, 1984, in |
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| respect
of above mentioned Special Business). |
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|
BY ORDER OF THE BOARD |
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|
MAHMOOD AKHTAR |
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| Lahore:
June 02, 2000. |
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COMPANY SECRETARY |
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| NOTES: |
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| 1.
The share transfer books of the Company will remain closed from 23rd June,
2000 to 30th June, 2000 |
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| (both
days inclusive). |
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| 2.
A member entitled to attend, speak and vote at the meeting is' entitled to
appoint a proxy to attend, |
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| speak
and vote for him/her. |
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| 3.
An instrument of proxy and the Power of Attorney of the Authority (if any)
under which it is signed or a |
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| notarially
certified copy of such power of authority, in order to be valid, must be
deposited at the |
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| Registered
Office of the Company not less than 48 hours before the time of the Meeting. |
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| 4.
Members are requested to notify any change in their address immediately. |
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| STATEMENT
UNDER SECTION 160 OF THE COMPANIES |
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| ORDINANCE,
1984, REGARDING THE SPECIAL BUSINESS: |
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| Item
No. 5 of Agenda - Remuneration of Chief Executive / Directors |
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| 1.
According to Government regulations, it is necessary to obtain Shareholders
approval for the holding |
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| of
office of profit by any of the Directors as well as of their remuneration. It
is therefore proposed to |
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| consider
and if thought fit, to pass with or without modification the following as an
Ordinary |
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| Resolution. |
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|
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| 2.
"Resolved that approval be and is hereby given for the holding of office
of profit with the Company by |
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| the
Chief Executive and Directors, namely Mr. Zafar Iqbal Sheikh and Mr. Nabeel
Zafar Shaikh |
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| respectively
and payment of remuneration to the Chief Executive upto Rs. 600, 000 and Rs.
120,000 to |
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| Director
per annum as approved by the Board Effective 1st July, 2000, in accordance
with their |
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| respective
contracts of service and the rules of the Company". |
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| Mr.
Zafar Iqbal Sheikh, Chief Executive and Mr. Nabeel Zafar Shaikh Director are
interested in this |
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| business
to the extent of the remuneration payable to them individually. |
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| Item
No. 6 of Agenda - to consider and approve investment in associated Company. |
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| 2.
The Company has decided to purchase shares of Pioneers (Pvt) Ltd., For and up
to Rs. 500, 000 with a |
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| view
to making attractive returns which Pioneers (Pvt) Ltd., Plan to make in the
near future. |
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| The
shareholders are requested to consider and if thought fit, to pass with or
without modification the |
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| following
special resolution: |
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| 1.
"Resolved that the Chief Executive of the Company be and is hereby
authorised to make |
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| investment
upto Rs. 500, 000 in shares of Pioneers (Pvt) Ltd., To at the face value of
the shares". |
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| This
special resolution be and is hereby passed for the purpose of Compliance of
Section 208 of the |
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| Companies
Ordinance 1984. |
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| "Mr.
Zafar Iqbal Sheikh, Mr. Tariq Saadat and Mr. Jehangir Shahid Directors of
your Company are also |
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| Directors
of Pioneers (Pvt) Ltd. They are therefore interested in this business". |
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| According
to SRO No.634 (I)/96 dated July 30, 1996 the following information is
required to be |
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| annexed
with the special resolution for approval of the investment for the purpose of
Section 208 of the |
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| Companies
Ordinance, 1984. |
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| A)
In case of Equity lnvestment |
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| (i)
Name of lnvestee Companies |
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Pioneers (Pvt) Ltd., |
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| (ii)
Nature, amount and extent of Investment. |
Equity investment total
amount of |
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|
Investment would be up to
Rs. 500,000, |
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|
Approximately 6.5 % of
the equity in |
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|
Pioneers (Pvt) Ltd., |
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| (iii)
Price at which shares to be purchased. |
Face value. |
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| (iv)
Source of Funds from where Shares will be |
From own funds. |
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| Purchased. |
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| (v)
Period for which investment will be made. |
Short term investment. |
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| (vi)
Purpose of Investment |
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Capital gain. |
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| (vii)
Benefits likely to accrue to the Company |
Dividend income when
declared. |
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| And
The Shareholders from the proposed |
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| Investment. |
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| COMPANY
INFORMATION |
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| Chairman |
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Parvez Saadat Sheikh |
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| Chief Executive |
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Zafar Iqbal Sheikh |
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|
B.Com (Hon)
M.B.A.A.C.I.I. (London) |
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| Directors |
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Tariq Saadat |
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Jehangir Shahid |
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Sh. Akhtar Sayeed |
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Nabeel Zafar Shaikh |
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|
Asim Haleem Sheikh |
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|
Mohammad Ashraf |
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|
Ghazala Imran (PIC
Nominee) |
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| Joint President |
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Muhammad Rafi |
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| Legal Advisor |
|
Maqsood Hassan |
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| Company
Secretary |
Mahmood Akhtar |
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| Auditors |
|
Sher Muhammad Khan &
Co., |
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|
Chartered Accountants |
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| Registered
& Head Office |
Asia Insurance House
7-Egerton Road, |
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|
Lahore-54000 |
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Phones: 6363692-93,
6304092-93, 6306057 |
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Fax: 92-42-6368966 |
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| BRANCH
NETWORK |
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| JAIL
ROAD- LAHORE |
216-Eden Centre |
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Phone: 7576034 Fax:
7560437 |
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| EGERTON
ROAD - LAHORE |
7-Egerton Road, |
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Phone: 6311956 Fax:
6314373 |
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| QUEENS
ROAD - LAHORE (I) |
3rd Floor, Mumtaz Centre |
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Phone: 6370665 |
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| QUEENS
ROAD - LAHORE (II) |
35-Raja Chambers |
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Phone: 7554409 |
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| SIALKOT (I) |
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Opp: Nishat Cinema
Kutchery Road, |
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Phone: 587609 Fax: 263753 |
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| SIALKOT (II) |
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Vains Mansion Room No. 9
Paris Road, |
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Phones: 26 75 72-263 753 |
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| FAISALABAD |
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P-89, Usmanabad Near Rex
City Plaza, |
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Phone: 732062 |
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| GUJRAT |
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Railway Road, Opp: HBL
Railway Road Branch |
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Phone: 513533 |
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| RAWALPINDI |
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Al-Abbas Market, Adamjee
Road, |
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Phone: 565227 Fax: 584697 |
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| MARDAN |
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Bank Road, |
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Phone: 62639 |
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| KARACHI |
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4th floor, Haji Adam
Chambers, |
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|
Altaf Hussain Road, |
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Phones:
2411798-2420511-2420872 |
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Fax: 2422782 |
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| DIRECTOR'S
REPORT |
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| On
behalf of your Directors, it is my pleasure to present the 20th Annual Report
and the Audited Accounts of the |
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| Company
for the year ended 31st December, 1999. The salient Features of the working
of the Company during the |
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| year
are as under. |
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| There
is no respite to the deteriorating law and order condition prevailing in the
Country which has adversely |
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| impacted
the growth and profitability of the company. Your company continues to make
all possible efforts to control |
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| and
minimise the loss ratios by improving its underwriting policies, but the
claims on account of thefts, dacoities |
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| continue
to adversely affect Motor Department results. Moreover despite all possible
efforts the expenses continue |
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| to
increase unabated due to prevalent inflationary trends. In the above scenario
the future of insurance industry is not |
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| very
bright, nevertheless, your Company is making all out efforts to improve the
working for the coming years. |
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| FINANCIAL
RESULTS AND APPROPRIATION |
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| During
the year under review the net loss suffered by the Company is Rs. 1,300,545
and after accounting of |
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| unappropriated
profit of Rs. 1,581,273 brought forward from the previous year and income tax
refund Rs. 396,629/- |
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| the
total amount available is Rs. 677,357/- and proposed its appropriation as
under:- |
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| Income
Tax Paid & Provision. |
|
Rs. 113,203 |
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| Balance
Carried to Balance Sheet. |
Rs. 564,154 |
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| The
Department wise performance was as follows:- |
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| FIRE
DEPARTMENT |
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| The
net premium of this department was Rs. 4.33 M as against Rs. 4.25 M last
year. The Claims ratio was 15.88% as |
|
| compared
to 24.76% in 1998. The underwriting profit was Rs. 0.466 M as compared to Rs.
0.921 M in 1998. |
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|
| MARINE
DEPARTMENT |
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| The
net premium of the department was Rs. 7. 28 M as against Rs. 7. 54 M last
year. The Claims ratio was 15.17% as |
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| compared
to 14.30% in 1998. There was underwriting profit of Rs. 1. 762 M as against
profit of Rs. 1.619 M last year. |
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| MOTOR
DEPARTMENT |
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| The
net premium of this department was Rs. 7.10 M as against Rs. 6. 76 M in 1998.
The Claims ratio was 59.78% as |
|
| against53.58%
in 1998. There was underwriting loss of Rs. 2.31 M as compared to loss of Rs.
1.27M in 1998. |
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| AUDITORS |
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| The
Company's Auditors Sher Muhammad Khan & Co., Chartered Accountants retire
and offer themselves for |
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| reappointment. |
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| MISCELLANEOUS |
|
| Pattern
of Shareholding is set out on separate page. |
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| ACKNOWLEDGMENT |
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| Your
Directors are thankful to the Controller of Insurance, Pakistan Insurance
Corporation and the Overseas |
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| reinsurers
for their whole hearted support and Cooperation. The above results would not
have been possible without |
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| the
support of your Company's esteemed Clients and the efforts of the officers,
field force and the staff of your |
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| Company.
Your Directors record their indebtedness and thanks for this support. |
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|
On behalf of Board of Directors |
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|
PARVEZ SAADA T |
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| Lahore:
2ND JUNE, 2000. |
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Chairman |
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| AUDITOR'S
REPORT TO THE SHAREHOLDERS |
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| We
have audited the annexed Balance Sheet of "ASIA INSURANCE COMPANY
LIMITED" as at December |
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| 31,
1999 and the annexed Fire, Marine, Motor and Miscellaneous Insurance Revenue
Accounts, the Profit and |
|
| Loss
Account, the Profit and loss Appropriation Account and the Sources and
Application of Funds |
|
| Statement,
together with the Notes forming part thereof, for the year then ended and we
state that :- |
|
|
| Depreciation
to the extent of Rs. 1,645,990/- on House Property have not been provided in
these |
|
| accounts
resulting in understatement of net loss to that extent. |
|
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| Subject
to the foregoing remarks, 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, after
due verification thereof, |
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| we report that:- |
|
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| 1.
In our opinion:- |
|
|
| a)
Proper books of account as required by the Companies Ordinance, 1984 have
been kept by the |
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| company; |
|
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| b)
The annexed Balance Sheet, Revenue Accounts, the Profit and Loss Accounts and
the 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; |
|
|
| c)
The expenditure incurred during the year was for the purpose of the Company's
business: |
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|
|
|
| d)
The business conducted, investments made and expenditure incurred during the
year were in |
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| accordance
with the objects of the Company; |
|
|
| e)
In our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
| 2.
Except for the foregoing remarks in our opinion and to the best of our
information and according to the |
|
| explanations
given to us, the Balance Sheet, Fire, Marine, Motor and Miscellaneous
Insurance |
|
| Revenue
Accounts, the Profit and Loss Account, the Profit and Loss Appropriation
Account and the |
|
| Sources
and Application of Funds Statement, together, with the 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 December 31, 1999 and the Loss and the
Sources and |
|
| Application
of Funds statement for the year then ended. |
|
|
| 3.
We further report that; |
|
|
| a)
We have verified the Cash in Hand and with Banks, and the Company's
Investments by actual |
|
| inspection
or by the production of certificates or other documents; |
|
|
| b)
As per section 40 C (2) of the Insurance Act, 1938 all expenses of Management
wherever incurred |
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| 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 |
|
| expenses. |
|
|
| c)
As per regulation 11 of 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
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. |
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|
| Dated
19-05-2000 |
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| 9-A
(3rd Floor) Imtiaz Plaza, |
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|
Sher Muhammad Khan & |
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| company |
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| 85-Shahrah-e-Quaid-e-Azam, |
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|
Chartered Accountants |
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| BALANCE
SHEET AS AT DECEMBER 31, 1999 |
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|
| CAPITAL AND LIABILITIES. |
NOTES |
|
NOTES |
1999 |
1998 |
|
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| SHARE
CAPITAL |
|
|
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| Authorised. |
|
|
|
|
|
|
|
| 2,500,000
Shares of Rs. 10/- each. |
|
|
25,000,000 |
25,000,000 |
|
| Issued,
Subscribed and Paid-Up. |
|
|
------------------ |
------------------ |
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| 2,500,000
Shares of Rs. 10/- each |
|
|
25,000,000 |
25,000,000 |
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|
|
|
| RESERVES |
|
|
|
| Genera/Reserve. |
|
2,500,000 |
2,500,000 |
|
| Unappropriated
Profit. |
|
|
564,154 |
1,581,273 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,064,154 |
4,081,273 |
|
| SURPLUS
ON REVALUATION OF FIXED ASSETS |
3 |
15,052,459 |
15,052,459 |
|
|
|
|
|
|
|
| BALANCE
OF ACCOUNTS |
|
|
| Fire
Insurance Account. |
|
1,732,255 |
1,700,864 |
|
| Marine
Insurance Account. |
|
2,914,299 |
3,017,780 |
|
| Motor
Insurance Account. |
|
|
2,842,802 |
2,706,176 |
|
| Miscellaneous
Insurance Account. |
|
|
157,004 |
469,420 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,646,360 |
7,894,240 |
|
| LIABILITIES
AGAINST ASSETS SUBJECT TO FINANCE LEASE |
4 |
885,835 |
1,403,228 |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES AND PROVISIONS |
|
|
| Estimated
Liability in respect of |
|
|
|
| outstanding
claims whether |
|
|
|
| due
or intimated. |
|
|
1,325,676 |
1,754,010 |
|
|
|
|
|
|
| Agents
Balances |
|
|
1,080,777 |
884,680 |
|
| Amount
due to other persons or |
|
|
|
| bodies
carrying on insurance |
|
|
|
| Business. |
|
|
|
2,450,824 |
4,843,628 |
|
| Current
Portion of long term Liabilities. |
|
1,212,055 |
824,279 |
|
| Sundry
Creditors (including |
|
|
|
| outstanding
and accrued expenses) |
|
2,732,490 |
3,001,551 |
|
| Premium
Deposits. |
|
|
4,107,249 |
3,496,684 |
|
| Bank Overdraft. |
|
|
|
1,533,542 |
844 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
14,442,613 |
14,805,676 |
|
|
|
|
------------------ |
------------------ |
|
|
Rupees |
66,091,421 |
68,236,876 |
|
|
|
|
========== |
========== |
|
|
| PROPERTY
AND ASSETS: |
|
|
|
|
|
|
|
|
| INVESTMENT
AT COST |
|
|
|
| Deposit
with State Bank of Pakistan. |
|
|
| Defence
Saving certificates. |
|
100,000 |
100,000 |
|
| National
In vestment Trust Units. |
|
255,000 |
255,000 |
|
| 11%
Government of Pakistan |
|
|
| Loan 2001. |
|
50,000 |
50,000 |
|
|
|
------------------ |
------------------ |
|
|
|
405,000 |
405,000 |
|
|
|
|
| Ordinary
Shares Joint Stock |
|
|
|
| Companies. |
|
|
1,114,975 |
1,114,975 |
|
| National
Investment Trust Units. |
|
|
-- |
1,764,628 |
|
| Defence
Saving certificates. |
|
|
100,000 |
100,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,619,975 |
3,384,603 |
|
|
|
|
|
| House Property |
|
5 |
32,879,804 |
17,056,249 |
|
| ADVANCE
FOR PURCHASE OF BUILDING. |
|
|
-- |
15,000,000 |
|
|
|
|
|
| FURNITURE,
FIXTURE, OFFICE |
|
|
| EQUIPMENTS
AND VEHICLES. |
|
|
4,032,240 |
5,272,494 |
|
| ASSETS
SUBJECT TO FINANCE LEASE. |
|
|
2,801,055 |
2,424,446 |
|
|
|
|
|
| CURRENT
ASSETS. |
|
|
|
| Outstanding
Premium. |
|
6,372,676 |
8,276,518 |
|
| Amount
due from other persons |
|
|
| or
bodies carrying on Insurance |
|
|
| business. |
|
8,164,587 |
7,438,558 |
|
| Sundry
Debtors. |
|
2,185,254 |
1,487,290 |
|
| Agents
Balances. |
|
1,119,857 |
722,152 |
|
|
|
|
| Cash at Banks: |
|
|
|
| Deposit
Accounts. |
|
6,544,720 |
6,573,653 |
|
| Current
Accounts. |
|
371,253 |
600,913 |
|
|
|
------------------ |
------------------ |
|
|
|
6,915,973 |
7,174,566 |
|
|
|
------------------ |
------------------ |
|
|
|
24,758,347 |
25,099,084 |
|
|
|
|
------------------ |
------------------ |
|
|
Rupees |
66,091,421 |
68,236,876 |
|
|
|
|
========== |
========== |
|
|
| DIRECTOR'S
CERTIFICATE: |
|
|
|
| We
certify That:- |
|
| 1.
Investments have been shown in Balance Sheet at cost |
|
| or book value. |
|
|
|
| 2.
The value of Assets has been reviewed as at December |
|
| 31,
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 Value or Market Value |
|
| under
the Several headings. |
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
TARIQ MAHMOOD |
|
ZAFAR IQBAL SHEIKH |
|
|
Manager Accounts |
|
Chief Executive |
|
|
|
PARVEZ SAADAT |
|
|
Chairman |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED DECEMBER 31, 1999 |
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
| Expenses
of Management (not |
|
|
|
| applicable
to any fund or |
|
|
|
| Account). |
|
|
|
450,000 |
450,000 |
|
|
|
|
| Director's
Fee and Travelling. |
|
|
16,910 |
1,500 |
|
|
|
|
| Bonus to Staff. |
|
|
393,452 |
753,483 |
|
| Preliminary
Expenses Written off. |
|
-- |
43,312 |
|
| Zakat. |
|
|
55,354 |
68,144 |
|
|
|
|
|
| Under
writing Expenses. |
|
|
-- |
225,000 |
|
| Depreciation. |
|
|
797,912 |
1,175,920 |
|
| Depreciation
on leased assets. |
|
|
515,945 |
431,061 |
|
| Loss
on Sale of Investment. |
|
|
698,531 |
-- |
|
|
|
|
| Profit
for the year carried to |
|
|
|
| Profit
and Loss Appropriation Account. |
|
|
-- |
1,229,430 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
Rupees |
2,928,104 |
4,377,850 |
|
|
|
|
========== |
========== |
|
| Interest
and Dividend. |
|
|
587,818 |
763,877 |
|
| Less:
Income Tax Deducted at Source |
|
|
47,006 |
23,567 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
540,812 |
740,310 |
|
|
|
|
| Profit
(Loss) transferred from: |
|
|
|
|
|
| Fire
Revenue Account. |
|
466,510 |
921,498 |
|
| Marine
Revenue Account. |
|
1,762,924 |
1,619,418 |
|
| Motor
Revenue Account. |
|
(2,314,537) |
(1,274,189) |
|
| Miscellaneous
Revenue Account. |
|
246,774 |
(2,886) |
|
|
|
------------------ |
------------------ |
|
|
|
|
161,671 |
1,263,841 |
|
| Miscellaneous
Income. |
|
|
-- |
3,100 |
|
| Exchange
Profit. |
|
|
-- |
45,308 |
|
| Profit
on Sale of Assets. |
|
|
580,836 |
2,325,291 |
|
|
|
|
|
|
| Rental Income |
|
|
344,240 |
-- |
|
|
|
|
| Loss
for the year Carried to |
|
|
|
| Profit
and Loss Account Appropriation Account. |
|
|
1,300,545 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
Rupees |
2,928,104 |
4,377,850 |
|
|
|
|
|
|
========== |
========== |
|
|
|
