| The Universal Insurance Company Limited |
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| Annual
Report 1999 |
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| CONTENTS |
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| Board
of Directors |
|
| Notice
of Annual General Meeting |
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| Directors'
Report to the Shareholders |
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| Growth
at Glance |
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| Auditors'
Report |
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| Balance Sheet |
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| Profit
and Loss Account |
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| Fire
Insurance Revenue Account |
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| Marine
Insurance Revenue Account |
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| Motor
and Miscellaneous Insurance Revenue Account |
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| Classified
Summary of Assets Form "AA" |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
| Pattern
of Shareholdings |
|
| Executives
(Head Office) |
|
| Branches |
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| Registered
Office: |
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| The
Universal Insurance Company Ltd. |
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| Universal
Insurance House, 63-Shahrah-e-Quaid-e-Azam, Lahore. |
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| BOARD
OF DIRECTORS |
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| CHAIRMAN |
|
Mr. Raza Kuli Khan
Khattak |
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| DIRECTORS |
|
Syed Habibul Hassan |
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|
Lt. Gen. (Retd.) Ali Kuli
Khan Khattak |
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|
Begum Zeb Gohar Ayub Khan |
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Mrs. Shahnaz Sajjad Ahmad |
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|
Mrs. Shaheen Tariq |
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|
Ch. Sher Muhammad |
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|
Mr. Mushtaq Ahmed Khan |
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| DIRECTOR/CHIEF
EXECUTIVE |
Mr. Omar Ayub Khan |
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| MANAGING
DIRECTOR |
Mr. Sardar Khan |
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| REGISTERED
OFFICE |
The Universal Insurance
Company Ltd. |
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|
63-Shahrah-e-Quaid-e-Azam,
Lahore |
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|
Tel:
7353458-7355426-7324194 |
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|
7353453-7324244 |
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Telex: 47249 UIC PK |
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Fax: 042-7230326 |
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Cable: LIFEBELT |
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E-mail:
tuic@nexlinx.net.pk |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| NOTICE
IS HEREBY GIVEN that the 40th ANNUAL GENERAL MEETING of the Shareholders of
the |
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| Company
will be held on Thursday 29th June, 2000 at 11.00 a.m. at its Registered
Office of the Company at |
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| 63-Shahrah-e-Quaid-e-Azam,
Lahore to transact the following business: |
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| 1.
To confirm the minutes of the Thirty Ninth Annual General Meeting held on
28th June 1999. |
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|
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| 2.
To receive, consider and adopt the audited accounts of the company for the
year ended 31st December, |
|
| 1999
together with Auditors' report thereon and the report of the Directors. |
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|
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| 3.
To appoint Auditors for the year 2000 and to fix their remuneration. The
present retiring auditors being |
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| eligible,
offer themselves for re-appointment. |
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|
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| 4.
Any other business which may be placed before the house with the permission
of the Chair. |
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By order of Board |
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|
Ijaz Ahmad |
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| Lahore:
3rd June, 2000 |
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Secretary |
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| Notes: |
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| 1.
The share transfer books of the Company will remain closed from 27-6-2000 to
03-07-2000 |
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| (both
days inclusive). |
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| 2.
A member entitled to attend and vote in the General Meeting may appoint
another member as his/her |
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| stead.
Proxies must be received at the Registered Office of the Company not less
than 48 hours before |
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| the meeting. |
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| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
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| The
Directors' of your Company are pleased to present to you the 40th Annual
Report together with Accounts |
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| of
the Company for the year ended 31st December, 1999 and the Auditors' Report
thereon. |
|
|
| Premium
income during the year under review was Rs. 186.670 Million as against
Rs.148.829 Million in 1998. |
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|
| The
overall business figures are as under:- |
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1999 |
1998 |
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|
|
Rupees |
Rupees |
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| Gross Premium |
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|
186,670,514 |
148,829,400 |
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| Net Premium |
|
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|
100,542,117 |
78,633,133 |
|
| Net
Claims (Paid & Outstanding) |
|
|
|
36,472,302 |
22,737,196 |
|
| Expenses
of Management |
|
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|
62,768,617 |
49,660,862 |
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| Reserve
for unexpired risks |
|
|
|
40,216,847 |
31,453,253 |
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| Capital
and Reserves |
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|
|
35,850,150 |
33,850,150 |
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| PROFIT |
|
|
|
| Profit
before taxation |
|
|
|
2,145,400 |
8,003,570 |
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| Less
Taxation (Net) |
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|
90,443 |
2,041,012 |
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|
------------------ |
------------------ |
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|
2,054,957 |
5,962,558 |
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| Add
Last Year's Balance |
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|
112,228 |
76,332 |
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|
------------------ |
------------------ |
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|
2,167,185 |
6,038,890 |
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|
========== |
========== |
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1999 |
1998 |
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|
Rupees |
Rupees |
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| APPROPRIATION |
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|
| General Reserve |
|
|
|
2,000,000 |
1,599,972 |
|
| Reserve
for Issue of Bonus Shares |
|
|
-- |
4,326,690 |
|
| Balance
carried to Balance Sheet |
|
|
|
167,185 |
112,228 |
|
|
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|
------------------ |
------------------ |
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|
2,167,185 |
6,038,890 |
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|
========== |
========== |
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| AUDITORS |
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| The
retiring Auditors Messrs. Hameed Chaudhri & Company, Chartered
Accountants and |
|
| Messrs.
Shamira A. Syed & Company, Chartered Accountants being eligible, offer
themselves for |
|
| re-appointment. |
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|
| APPRECIATION |
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| Your
Directors are pleased to record their appreciation of the dedicated efforts
by all Members of the Staff |
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| and
they hope the same spirit will continue in future as well. |
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| They
also thank the Controller of Insurance, Pakistan Insurance Corporation, State
Bank of Pakistan and |
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| the
Reinsurers for their continued cooperation and guidance through the year and
the worthy clients for the |
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| continued
confidence reposed by them in your Company. |
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|
On Behalf of the Board of Directors, |
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| Lahore |
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|
(RAZA KULI KHAN KHATTAK) |
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| 3rd June, 2000 |
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|
Chairman |
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| GROWTH
AT GLANCE |
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|
|
|
Rupees in millions |
|
|
|
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|
1999 |
1998 |
1997 |
1996 |
1995 |
1994 |
1993 |
1992 |
1991 |
1990 |
1980 |
1970 |
|
|
|
| Gross
Premium |
|
186.67 |
148.83 |
131.97 |
116.32 |
101.83 |
92.59 |
95.83 |
73.48 |
62.77 |
58.59 |
15.60 |
3.13 |
| Net Premium |
|
100.54 |
78.63 |
71.63 |
63.84 |
54.38 |
50.96 |
57.42 |
38.32 |
32.76 |
29.50 |
7.08 |
1.28 |
| Net
Claims Paid & Outstanding |
36.47 |
22.74 |
22.90 |
18.41 |
16.58 |
20.08 |
21.06 |
12.52 |
10.78 |
10.68 |
1.72 |
0.31 |
| Profit
Before Tax |
2.14 |
8.00 |
6.40 |
3.20 |
3.05 |
5.53 |
2.84 |
4.14 |
3.62 |
3.17 |
0.83 |
0.36 |
| Profit After Tax |
|
2.05 |
5.96 |
4.10 |
2.06 |
1.95 |
3.53 |
1.64 |
2.34 |
1.97 |
1.77 |
0.41 |
0.16 |
| Bonus
Shares/Dividend |
Nil |
4.33 |
3.61 |
3.00 |
Nil |
2.50 |
1.63 |
1.56 |
1.56 |
1.27 |
0.30 |
0.14 |
| Paid-up Capital |
|
25.96 |
21.63 |
18.03 |
15.02 |
15.02 |
12.52 |
10.89 |
9.33 |
7.78 |
6.48 |
2.00 |
2.00 |
| Reserves
& Funds |
50.11 |
43.67 |
34.48 |
34.28 |
28.29 |
27.21 |
28.23 |
20.21 |
23.28 |
15.42 |
4.69 |
1.18 |
| Cash
on Deposit/Current |
81.35 |
66.84 |
54.25 |
45.57 |
31.55 |
29.86 |
30.60 |
25.28 |
19.18 |
14.40 |
5.51 |
1.43 |
| Total
Property & Assets |
153.43 |
133.22 |
116.60 |
98.39 |
87.75 |
80.20 |
70.75 |
56.45 |
46.38 |
39.00 |
14.98 |
4.78 |
| Equity |
|
36.02 |
33.96 |
27.93 |
23.83 |
21.76 |
19.76 |
16.23 |
14.53 |
12.22 |
10.31 |
3.86 |
2.26 |
|
|
| AUDITORS'
REPORT TO THE MEMBERS OF |
|
| The
Universal Insurance Company Limited. |
|
|
| We
have audited the annexed Balance Sheet of THE UNIVERSAL INSURANCE COMPANY
LIMITED as |
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| at
31 December, 1999 and the related Fire, marine, Motor 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; |
|
|
| b)
in our opinion: |
|
|
| (i)
the Balance Sheet, the Fire, Marine, Motor and Miscellaneous Insurance
Revenue Accounts, the |
|
| Profit
and Loss Account and the Profit and Loss Appropriation Account together with
the notes |
|
| thereon
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 the Company's
business, |
|
|
| (iii)
the business conducted, investments made and expenditure incurred during the
year were in |
|
| accordance
with the objects of the Company; |
|
|
|
|
| (c)
Except for the effects, if any, of the matters referred to in note 9 to the
accounts, 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, Fire, Marine, Motor and Miscellaneous
Insurance Revenue |
|
| Accounts,
Profit and Loss Account and Profit and Loss Appropriation Account together
with the notes |
|
| forming
part thereof, give the information required by the law, in the manner so
required and respectively |
|
| give
a true and fair view of the state of the Company's affairs as at 31 December,
1999 and of the profit |
|
| and
cash flows for the year then ended; |
|
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
| e)
We further report that: |
|
|
| i)
we have verified the cash and bank balances and securities relating to the
Company's investments |
|
| by
actual inspection or by production of bankers' certificates or other
documents except imprest |
|
| with
branches amounting Rs. 8,866,672; |
|
|
|
|
|
| ii)
in accordance with the provisions of Section 40C(2) of the Insurance Act,
1938, we certify that to |
|
| the
best of our knowledge and explanations given to us and as it appears from our
examination of |
|
| the
Company's books of account, all expenses of management, wherever incurred,
whether directly |
|
| or
indirectly, and all charges incurred in respect of the Fire, Marine, Motor
and Miscellaneous |
|
| Insurance
Business transacted by the Company in Pakistan have been fully debited to the |
|
| respective
Revenue Accounts as expenses; |
|
|
|
|
|
| iii)
as per Regulation 11 of part 1 in The Third Schedule of the Insurance Act,
1938, we certify that |
|
| the
Company, to the best of our knowledge and belief, 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 that the Company has not received outside Pakistan from any person any
commission |
|
| in
any form in respect of any business reinsured abroad. |
|
|
|
HAMEED CHAUDHRI & CO. |
|
|
SHAMIM A. SYED & CO. |
|
|
CHARTERED ACCOUNTANTS |
|
|
CHARTERED ACCOUNTANTS |
|
|
| Lahore |
|
| 3rd June, 2000 |
|
|
|
| BALANCE
SHEET AS AT 31 DECEMBER, 1999 |
|
|
| CAPITAL
AND LIABILITIES |
|
|
|
1999 |
1998 |
|
|
|
|
Note |
Rupees |
Rupees |
|
| SHARE
CAPITAL |
|
|
|
| Authorised: |
|
|
|
|
| 10,000,000
(1998: 5,000,000) ordinary shares |
|
|
| of Rs. 10 each |
|
|
|
|
100,000,000 |
50,000,000 |
|
|
|
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|
========== |
========== |
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| Issued,
subscribed and paid up: |
|
|
|
| 200,000
ordinary shares of Rs. 10 each |
|
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| issued for cash |
|
|
|
|
2,000,000 |
2,000,000 |
|
| 2,396,015
(1998: 1,963,346) ordinary |
|
|
| shares
of Rs. 10 each issued as bonus shares |
|
|
23,960,150 |
19,633,460 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
25,960,150 |
21,633,460 |
|
|
|
|
|
|
| RESERVES
OR CONTINGENCY ACCOUNTS |
|
|
| General reserve |
|
|
|
|
9,165,000 |
7,165,000 |
|
| Reserve
for issue of bonus shares |
|
|
0 |
4,326,690 |
|
| Reserve
for doubtful debts |
|
|
|
25,000 |
25,000 |
|
| Reserve
for exceptional losses |
|
|
3 |
700,000 |
700,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,890,000 |
12,216,690 |
|
| PROFIT
AND LOSS APPROPRIATION ACCOUNT BALANCE |
|
167,185 |
112,228 |
|
|
|
|
|
|
|
| BALANCES
OF ACCOUNTS |
|
|
2.2 |
|
| Fire
Insurance Business Account |
|
|
11,844,173 |
9,707,637 |
|
| Marine
Insurance Business Account |
|
|
11,111,274 |
9,656,868 |
|
| Motor
and Miscellaneous Insurance Business Account |
|
17,261,400 |
12,088,748 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
40,216,847 |
31,453,253 |
|
| LIABILITIES
AGAINST ASSETS |
|
|
| SUBJECT
TO FINANCE LEASE |
|
|
4 |
1,371,968 |
1,561,465 |
|
|
|
|
|
|
|
|
| CURRENT
LIABILITIES AND PROVISIONS |
|
|
| Estimated
liability in respect of outstanding |
|
|
| claims
whether due or intimated |
|
2.4 |
23,550,970 |
20,424,007 |
|
| Amounts
due to other persons or bodies |
|
|
| carrying
on insurance business |
|
|
39,321,399 |
36,340,806 |
|
| Sundry
creditors (including outstanding |
|
|
| and
accrued expenses) |
|
|
10,931,004 |
5,755,045 |
|
| Current
portion of liabilities against |
|
|
| assets
subject to finance lease |
|
4 |
1,315,522 |
881,050 |
|
| Provident
Fund Trust |
|
2.5 |
0 |
140,472 |
|
| Provision
for taxation |
|
5 |
700,000 |
2,700,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
75,818,895 |
66,241,380 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
153,425,045 |
133,218,476 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| PROPERTY
AND ASSETS |
|
|
|
|
|
|
|
|
|
|
| INVESTMENTS |
|
|
|
| Deposited
with the State Bank of Pakistan - at cost |
|
| 11.75%
Government of Pakistan Loan - 2002 |
|
|
25,000 |
25,000 |
|
| Defence
Savings Certificates |
|
|
830,000 |
830,000 |
|
| Cash |
|
|
3 |
3 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
855,003 |
855,003 |
|
|
|
|
| Shares/Certificates
of Companies |
|
|
|
| incorporated
in Pakistan: |
|
|
|
|
| Preference
shares |
|
|
6.1 |
26,250 |
26,250 |
|
| Ordinary shares |
|
|
6.2 |
503,413 |
452,534 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
529,663 |
478,784 |
|
| National
Investment Trust Units |
|
|
6.3 |
100,500 |
66,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,485,166 |
1,399,787 |
|
|
|
|
|
| FIXED
ASSETS |
|
|
|
|
| Land
and properties |
|
|
2.7 |
12,035,443 |
7,620,984 |
|
| Furniture,
fixtures, office equipment and vehicles |
|
2.7 |
21,020,462 |
17,919,111 |
|
| Leased vehicles |
|
|
|
2.7 |
3,580,098 |
3,352,341 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
36,636,003 |
28,892,436 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Outstanding
premium |
|
|
7 |
4,079,239 |
8,131,530 |
|
| Interest/profit
accrued but not due |
|
|
2,296,327 |
1,546,734 |
|
| Amounts
due from other persons or |
|
|
| bodies
carrying on insurance business |
|
|
13,166,247 |
13,838,799 |
|
| Advances,
deposits, prepayments |
|
|
| and
other receivables |
|
|
5,413,721 |
4,823,242 |
|
| Provident
fund trust |
|
|
2.5 |
122,633 |
0 |
|
|
|
|
|
|
| Cash
and bank balances: |
|
|
8 |
|
| Imprest
with branches |
|
|
8,866,672 |
7,749,862 |
|
| Cash
with banks on: |
|
|
|
| Deposit/Savings
accounts |
|
|
60,134,898 |
45,727,855 |
|
| Current
accounts |
|
|
21,213,403 |
21,072,613 |
|
| Stamps-in-hand |
|
|
|
|
10,736 |
35,618 |
|
|
|
|
------------------ |
------------------ |
|
| CERTIFICATE
UNDER REGULATION 7(a) AND (b) OF THE FIRST |
90,225,709 |
74,585,948 |
|
| SCHEDULE
OF THE INSURANCE ACT, 1938. |
|
|
------------------ |
------------------ |
|
|
|
|
115,303,876 |
102,926,253 |
|
| We certify that |
|
|
|
| 1)
The investments shown in the Balance Sheet have been valued as indicated
therein at cost |
|
| and
market value. and the market values of the investment have been ascertained,
wherever |
|
| applicable,
from published quotations as on 30th December, 1999. |
|
|
|
|
|
|
| 2)
The values of all the assets have been reviewed as at 31 December, 1999 and
in our belief the |
|
| assets
set forth in the Balance Sheet are shown in aggregate at amounts not exceeding their |
------------------ |
------------------ |
|
| realisable
or market value under the several headings enumerated therein. |
153,425,045 |
133,218,476 |
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these Accounts. |
|
| Auditors
Report to the Members is annexed. |
|
|
| Lahore |
|
HAMEED CHAUDHRI & CO |
|
SHAMIM A. SYED & CO. |
|
| 3rd June, 2000 |
|
CHARTERED ACCOUNTANTS |
|
CHARTERED ACCOUNTANTS |
|
|
|
|
Raza Kuli Khan Khattak |
|
Syed Habibul Hassan |
|
Omar Ayub Khan |
|
|
Chairman |
|
Director |
|
Chief Executive |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| For
the year ended 31 December, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| Expenses
of Management |
|
|
|
| (not
applicable to any particular |
|
|
|
| fund
or Account) |
|
|
1,412,190 |
1,112,074 |
|
| Depreciation |
|
|
5,304,105 |
4,004,977 |
|
|
|
|
|
|
| Provision
for taxation |
|
|
|
|
| -
Current year |
|
|
700,000 |
2,700,000 |
|
| - Prior
Year |
|
|
363,334 |
(143,384) |
|
|
|
|
|
|
| Zakat |
|
|
349,991 |
293,344 |
|
| Provision
for diminution in value of investments |
|
|
0 |
204,927 |
|
| Lease
finance charges |
|
|
748,081 |
333,644 |
|
|
|
|
|
| Profit
for the year carried down to |
|
|
| Appropriation
Account |
|
|
2,054,957 |
5,962,558 |
|
|
|
|
------------------ |
------------------ |
|
|
|
10,932,658 |
14,468,140 |
|
|
|
========== |
========== |
|
| Interest/profit,
dividends and rents |
|
|
| (not
applicable to any particular |
|
|
|
| Fund
or Account) |
|
|
4,911,396 |
3,835,615 |
|
|
|
|
| Less:
Income tax thereon |
|
|
347,461 |
307,301 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,563,935 |
3,528,314 |
|
|
|
|
|
|
| Profit/(loss)
transfer from: |
|
|
|
| Fire
Revenue Account |
|
|
9,129,974 |
11,472,184 |
|
| Marine
Revenue Account |
|
|
10,761,081 |
7,560,994 |
|
| Motor
Revenue Account |
|
|
(11,809,094) |
(7,083,634) |
|
| Miscellaneous
Revenue Account |
|
|
(3,467,047) |
(2,654,766) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,614,914 |
9,294,778 |
|
| Provision
for diminution in value of investments |
|
|
85,379 |
0 |
|
| Gain
on disposal of fixed assets - net |
|
|
359,782 |
1,013,140 |
|
| Exchange
fluctuation gain |
|
|
109,402 |
12,543 |
|
| Income
tax refunds - prior years |
|
|
972,891 |
515,604 |
|
| Miscellaneous
income |
|
|
226,355 |
103,761 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
10,932,658 |
14,468,140 |
|
|
|
|
========== |
========== |
|
|
|
|
| PROFIT
& LOSS APPROPRIATION ACCOUNT |
|
| For
the year ended 31 December, 1999 |
|
|
|
|
|
| Transfer
to general reserve |
|
2,000,000 |
1,599,972 |
|
|
|
|
| Transfer
to reserve for issue of bonus |
|
|
| shares
Nil (1998: @ 20%) |
|
0 |
4,326,690 |
|
| Unappropriated
profit carried to Balance Sheet |
|
167,185 |
112,228 |
|
|
|
------------------ |
------------------ |
|
|
|
2,167,185 |
6,038,890 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| Balance
brought forward from previous year |
|
|
112,228 |
76,332 |
|
|
|
|
| Profit
for the year brought down |
|
|
