| United Insurance Co of Pakistan Ltd - 2001 |
=================================================================================== BALANCE SHEET AS AT DECEMBER 31, 2001 =================================================================================== 2001 2000 Note RUPEES RUPEES =================================================================================== SHARE CAPITAL: Authorized: 10,000,000 Ordinary Shares of Rs. 10/- each 100,000,000 100,000,000 Issued, Subscribed and Paid-up Capital 5,250,000 (2000: 5,000,000) Ordinary shares of Rs. 10/- each 3 52,500,000 50,000,000 GENERAL RESERVES: 13,803,517 10,000,569 PROFIT & LOSS APPROPRIATION ACCOUNT 134,788 351,550 SHARE HOLDER'S EQUITY 66,438,305 60,352,119 BALANCE OF ACCOUNTS: Fire Insurance Business 694,674 787,005 Marine Insurance Business 376,716 263,728 Motor Insurance Business 1,374,614 1,337,184 Miscellaneous Insurance Business 9,222,856 10,816,328 11,668,860 13,204,245 CURRENT LIABILITIES & PROVISIONS Estimated Liabilities in Respect of Claims whether Due or Intimated 29,322,033 27,712,363 Amount Due to Other Persons or Bodies Carrying on Insurance Business 1,590,021 2,464,209 Sundry Creditors & Accrued Expenses 6,372,747 9,582,122 Reserve Held on Account of Reinsurance Ceded 967,574 228,065 Short Term Loans 4 1,000,000 1,000,000 Provision for Taxation 5 850,000 82,001 Bad and Doubtful Debts 30,000 30,000 40,132,375 41,098,760 CONTINGENCIES & COMMITMENTS 6 - - 118,239,540 114,655,124 Note: These accounts should be read in conjunction with the annexed notes. LOANS On Mortgage of Property in Pakistan 86,305 86,305 On Hypothecation of Shares 7 3,607,756 3,607,756 3,694,061 3,694,061 INVESTMENTS Deposits with State Bank of Pakistan 11 3/4% Govt. of Pakistan Loan 2001 - 301,500 11 3/4% Govt. of Pakistan Loan 2002 50,000 50,000 Cash with State Bank of Pakistan 301,512 12 351,512 351,512 OTHERS Government of Pakistan Bonds 336,554 336,554 Share of Companies Incorporated in Pakistan 8 652,767 652,328 989,321 988,882 1,340,833 1,340,394 CURRENT ASSETS Agents Balances and Outstanding Premium 9 37,058,133 29,214,489 Outstanding Premium Due From Govt. & Semi-Govt. Bodies 10 1,298,253 1,298,253 Amount Due from Other persons or Bodies Carrying on Insurance Business 3,899,293 3,241,368 Interest Income: Out-Standing 4,396,266 4,466,265 Accrued But Not Due 764,436 764,436 5,160,702 5,230,701 Income Tax Refundable 1,350,324 1,350,324 Sundry Debtors 216,263 216,263 Advances, Deposits, Prepayments & Other Receivables 2,256,636 2,247,860 Cash: At Banks in Deposits 11 18,171,413 6,091,713 At Banks in Current Accounts and in Hand 13,426,782 41,168,780 31,598,195 47,260,493 82,837,799 90,059,751 FIXED ASSETS Landed Property 9,200,000 9,200,000 Furniture & Fixture, Office Equipments and Vehicles (At Cost less accumulated depreciation) 21,166,847 10,360,918 118,239,540 114,655,124 =================================================================================== =================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001 =================================================================================== 2001 2000 Note RUPEES RUPEES =================================================================================== Expenses of management (Not applicable to any particular fund or account) 1,650,268 1,305,619 Depreciation 4,981,337 2,374,273 Audit Fee 110,000 115,540 Interest on Provident Fund Loan 120,000 120,000 Taxation 850,000 82,001 Loss on Sale of Car 83,110 - Profit for the year Carried Down to the appropriation Account 6,086,186 159,177 13,880,901 4,156,610 Earning Per Share 12 1.1593 0.0318 =================================================================================== ===================================================================================
PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001
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2001 2000
RUPEES RUPEES
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Transfer to General Reserve 3,802,948 -
5% Bonus Share Issued During the Year 2,500,000 -
Balance Carried Over to Balance Sheet 134,788 351,550
6,437,736 351,550
Note: These accounts should be read in conjunction with the annexed notes.
Interest and Dividends 989,630 498,148
Less: Income Tax and Zakat there on 103,628 190,968
886,002 307,180
Miscellaneous Receipts 3,647 -
Profit/(Loss) Transferred From:
Fire Revenue Account 1,622,739 1,815,218
Marine Revenue Account 485,412 531,723
Motor Revenue Account (1,005,626) (1,335,876)
Miscellaneous Revenue Account 11,888,727 2,838,365
12,991,252 3,849,430
13,880,901 4,156,610
Balance brought forward from previous year 351,550 192,373
Net Profit for the year 6,086,186 159,177
6,437,736 351,550
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CONSOLIDATED REVENUE ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001
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2001 2000
RUPEES RUPEES
===================================================================================
Claims Under Policies Less Reinsurance
Paid During the year 7,376,053 3,738,755
Total Estimated Liability in Respect
of Outstanding Claims at the end of
the Year Whether Due or Intimated 29,322,033 27,712,363
36,698,086 31,451,118
Less: Outstanding Claims at the end of
the Previous Year 27,712,363 10,661,062
8,985,723 20,790,056
Commission and Discount 7,013,571 3,000,173
Expenses of Management 6,090,768 4,654,901
Profit Transferred to Profit and Loss Account 12,991,252 3,849,430
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 for the Year 11,668,860 13,204,245
46,750,174 45,498,805
NOTE: These accounts should be read in conjunction with the annexed notes.
Balance of Account at the Beginning of the Year
Reserve for Unexpired Risk 13,204,245 8,579,309
Premium less Reinsurance 29,172,151 33,010,611
Commission on Reinsurance 4,373,778 3,908,885
46,750,174 45,498,805
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FINE INSURANCE REVENUE ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001
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2001 2000
RUPEES RUPEES
===================================================================================
Claims Under Policies Less Reinsurance
Paid During the year 474,077 107,261
Total Estimated Liability in Respect
of Outstanding Claims at the end of
the Year Whether Due or Intimated 1,560,478 1,569,680
2,034,555 1,676,941
Less: Outstanding Claims at the end of
the Previous Year 1,569,680 1,516,834
464,875 160,107
Commission and Discount 1,908,900 1,511,597
Expenses of Management 1,421,805 825,102
Profit Transferred to Profit and Loss Account 1,622,739 1,815,218
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 for the Year 694,674 787,005
6,112,993 5,099,029
NOTE: These accounts should be read in conjunction with the annexed notes.
Balance of Account at the Beginning of the Year
Reverse for Unexpired Risk 787,005 540,223
Premium less Reinsurance 1,736,686 1,967,512
Commission on Reinsurance 3,589,302 2,591,294
6,112,993 5,099,029
===================================================================================MARINE INSURANCE REVENUE ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
Claims Under Policies Less Reinsurance
Paid During the year 72,604 69,935
Total Estimated Liability in Respect
of Outstanding Claims at the end of
the Year Whether Due or Intimated 1,975,824 1,865,248
2,048,428 1,935,183
Less: Outstanding Claims at the end of
the Previous Year 1,865,248 1,738,451
183,180 196,732
Commission and Discount 473,592 377,208
Expenses of Management 471,094 271,773
Profit Transferred to Profit and Loss Account 485,412 531,723
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 for the Year 376,716 263,728
1,989,994 1,641,164
Balance of Account at the Beginning of the Year
Reverse for Unexpired Risk 263,728 316,720
Premium less Reinsurance 941,790 659,321
Commission on Reinsurance 784,476 665,123
1,989,994 1,641,164
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MOTOR INSURANCE REVENUE ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001
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2001 2000
RUPEES RUPEES
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Claims Under Policies Less Reinsurance
Paid During the year 3,080,872 3,544,299
Total Estimated Liability in Respect
of Outstanding Claims at the end of
the Year Whether Due or Intimated 1,781,300 1,600,904
4,862,172 5,145,203
Less: Outstanding Claims at the end of the
Previous Year 1,600,904 1,718,042
3,261,268 3,427,161
Commission and Discount 466,372 764,396
Expenses of Management 677,090 550,125
Profit Transferred to Profit and (Loss) Account (1,005,626) (1,335,876)
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 for the Year 1,374,614 1,337,184
4,773,718 4,742,990
Balance of Account at the Beginning of the Year
Reverse for Unexpired Risk 1,337,184 992,354
Premium less Reinsurance 3,436,534 3,342,959
Commission on Reinsurance - 407,677
4,773,718 4,742,990
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MISCELLANEOUS INSURANCE REVENUE ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001
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2001 2000
RUPEES RUPEES
===================================================================================
Claims Under Policies Less Reinsurance
Paid During the year 3,748,500 17,260
Total Estimated Liability in Respect
of Outstanding Claims at the end of
the Year Whether Due or Intimated 24,004,431 22,676,531
27,752,931 22,693,791
Less: Outstanding Claims at the end of the
Previous Year 22,676,531 5,687,735
5,076,400 17,006,056
Commission and Discount 4,164,707 346,972
Expenses of Management 3,520,779 3,007,901
Profit Transferred to Profit and Loss Account 11,888,727 2,838,365
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 for the Year 9,222,856 10,816,328
33,873,469 34,015,622
Balance of Account at the Beginning of the Year
Reverse for Unexpired Risk 10,816,328 6,730,012
Premium less Reinsurance 23,057,141 27,040,819
Commission on Reinsurance - 244,791
33,873,469 34,015,622
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STATEMENT OF CHANGES IN FINANCIAL POSITION
(CASH FLOW STATEMENT) FOR THE YEAR ENDED DECEMBER 31, 2001
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2001 2000
RUPEES RUPEES
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CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) for the Year Before Taxation
Adjustment for items not Involving 6,086,186 159,177
Movement of Funds
Depreciation 4,981,337 2,374,273
Provision for Taxation 850,000 82,001
Increase/(Decrease) in Reserve for Unexpired Risks (1,535,385) 4,624,936
(Profit)/Loss on Sale of Fixed Assets 83,110 -
10,465,248 7,240,387
(INCREASE)/DECREASE IN CURRENT ASSETS
Agent Balance & Outstanding Premium (7,843,644) (16,154,882)
Amount Due from Other Persons or Bodies
Carrying on Insurance Business (657,925) (395,079)
Accrued Interest 69,999 284,772
Advances, Deposits, Prepayments & Other Receivables (8,776) (1,995,929)
(8,440,346) (18,261,118)
INCREASE/(DECREASE) IN CURRENT LIABILITIES
Estimated Liabilities in Respect of Claims
Whether Due or Intimated 1,609,670 17,051,301
Amount due to Other Persons or Bodies
Carrying on Insurance Business (874,188) (179,133)
Sundry Creditors & Accrued Expenses (3,209,375) (2,872,126)
Reserve Held on Account of Reinsure Ceded 739,509 -
(1,734,384) 14,000,042
Net Cash from Operating Activities 290,518 2,979,311
Tax Paid (82,001) (115,014)
208,517 2,864,297
CASH FLOW FROM INVESTING ACTIVITIES
Addition to Fixed Assets (16,518,376) (1,093,075)
Purchase of Investment (439) -
Proceed from Sale of Fixed Assets 648,000 -
Net Cash from Investing Activities (15,870,815) (1,093,075)
Cash Flows from Financing Activities
Increase in Share Capital - 30,121,450
Net Cash from Financing Activities - 30,121,450
Net Increase in Cash & Cash Equivalents (15,662,298) 31,892,672
Cash & Cash Equivalents at the Beginning of the Year 47,260,493 15,367,821
Cash & Cash Equivalents at the End of the Year 31,598,195 47,260,493
===================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 20013 ISSUED, SUBSCRIBED & PAID-UP CAPITAL ===================================================================================
2001 2000
RUPEES RUPEES
===================================================================================
5,000,000 (2000: 5,000,000) Ordinary Shares
of Rs. 10/- each 50,000,000 50,000,000
250,000 (2000: Nil) Ordinary shares of Rs. 10/- each issued
as fully paid bonus shares 2,500,000 -
52,500,000 50,000,000
===================================================================================3.1. The company has not followed all the requirements of rule No 6 of Companies (Issue of Capital) Rule 5 1996 because it was beyond the control of management.4. SHORT TERM LOANS (UNSECURED) ===================================================================================
2001 2000
Note RUPEES RUPEES
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Staff Provident Fund Trust 4.1 1,000,000 1,000,000
===================================================================================4.1. The loan carries interest at the rate of 12% per annum and repayment period remain unsettled.5. PROVISION FOR TAXATION ===================================================================================
2001 2000
RUPEES RUPEES
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Provision for Taxation 850,000 82,001
===================================================================================The income tax assessment of the company has been finalized upto and including assessment year 1995-96. The Tax Department has filed the appeals for the assessment years 1992-93 to 1994-95. The Management is of the opinion that they will successfully contest all the appeals. In the event of adverse decision the company shall be faced with tax charge and additional liabilities.6. CONTINGENCIES & COMMITMENTS 6.1. CONTINGENT LIABILITIES a) There is a contingent liability of Rs. 0.361 million (2000: Rs. 0.361 million) under Civil Commotion Compensation Funds Ordinance 1971. b) There is a contingent liability of approximately Rs. 1.038 million (2000: Rs. 1.038 million) in respect of taxes in the event of adverse decisions in appeals. Such decisions would realize on additional tax charge against profits amounting to Rs. 0.974 million (2000: Rs. 0.974 million). c) There is a contingent liability of Rs. 19.553 million in respect of outstanding miscellaneous and Burglary claims as the beneficiaries have filed suit against the company which are under proceeding. 6.2. COMMITMENTS There was no capital commitment as at balance sheet date. 7. LOANS ON HYPOTHECATION OF SHARES The amount under this head includes a loan given to M/s Fazal Sons Limited amounting to Rs. 2.00 million in respect of which the Company has filed a suit for recovery of principal and accrued interest amounting to Rs. 4.230 million (2000: Rs. 4.230 million). Although interest is not received during the year on this and other loans, the management is of the opinion that all interest income is recoverable. 8. SHARES OF COMPANIES INCORPORATED IN PAKISTAN ===================================================================================
Number of 2001 2000
Shares Rupees Rupees
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QUOTED COMPANIES
Abbot Laboratories Ltd. 7 96 96
Adamjee Industries Ltd. 172 1,818 1,818
Bawani Sugar Mills Ltd. 463 1,290 1,290
Climax Engineering Ltd. 2,400 88,896 88,896
Colony Thal Textile Ltd. 64 466 466
Fazal Cloth Mills Ltd. 485 2,192 2,192
Habib Sugar Mills Ltd. 997 1,606 1,606
Island Textile Mills Ltd. 100 844 844
I.C.I. (Pakistan) Ltd. 50 1,377 1,377
Janana De Malucho Textile Mills Ltd. 475 5,070 5,070
Kakakhail Industries Ltd. 206 3,380 3,380
Kohat Textile Mills Ltd. 1,150 11,595 11,595
Kohinoor Sugar Mills Ltd. 396 3,400 3,400
Kohinoor Textile Mills Ltd. 34 223 223
Mirpurkhas Sugar Mills Ltd. 415 5,667 5,667
Packages Ltd. 924 4,225 3,786
Pakistan Cables Ltd. 104 830 830
Pakistan Paper Sack Ltd. 640 206 206
P.I.C.I.C. 59 99 99
Quality Steel Mills Ltd. 1,008 5,820 5,820
Shakarganj Sugar Mills Ltd. 104 964 964
Shahzad Textiles Mills Ltd. 931 8,160 8,160
Sunshine Cotton Mills Ltd. 232 1,834 1,834
Valika Usman Textile Mills Ltd. 33 729 729
Valika Woolen Mills Ltd. 530 1,980 1,980
152,767 152,328
UN-QUOTED COMPANY
Habib Jute Mills Ltd. 50,000 500,000 500,000
652,767 652,328
===================================================================================Market value of the investments as at December 31, 2001 is Rs. 0.670 million (2000: Rs. 0.656 million).9. AGENTS' BALANCE, OUTSTANDING PREMIUM AND AMOUNTS DUE TO/FROM OTHER INSURANCE COMPANIES These agents balances and amounts due to/from other insurance companies are not confirmed. In the opinion of the management these are considered to be accurately stated. 10. OUTSTANDING PREMIUM DUE FROM GOVERNMENT & SEMI GOVERNMENT BODIES This includes on amount of Rs. 0.956 million (2000: Rs. 0.956 million) due from Synthetic Chemicals Limited. The Company filed a suit in the High Court of Sindh for the recovery of the debt which has been decreed far an amount of Rs. 0.420 million with proportionate cost. No provision has been made in these accounts for the balance amount as the permission of the Controller of Insurance is being sought for the necessary adjustment. 11. CASH AT BANKS The amount under this head includes balances in deposit accounts of Rs.18.171 million (2000: Rs. 6.091 million) which are under the lien of the Controller of Insurance. 12. EARNING PER SHARE ==============================================================================================
2001 2001 2000 2000
Numerator Denominator Numerator Denominator
Rupees No. of Shares Rupees No.of Shares
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Profit Attributable to Ordinary Shareholders 6,086,186 - 159,177 -
Weighted average numbers of
ordinary shares outstanding during - 5,250,000 - 5,000,000
6,086,186 5,250,000 159,177 5,000,000
1.1593 0.03184
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