Adamjee Consolidated Financial S 2009

Consolidated
Financial Statements
For the year ended 31 December 2009
Adamjee Insurance Company Limited

DIRECTORS' REPORT TO THE MEMBERS
ON CONSOLIDATED FINANCIAL STATEMENTS
On behalf of the B oard of Directors, I am pleased t o present report on the first c onsolidated financial statements of Adamjee
Insurance Company Limited and its subsidiary, Adamjee Life Assurance Company Limited for the year ended 31 December 2009.
The following appropriation of profit has been recommended by the Board of Directors:
Rupees '000
Profit before tax 2,608,348

Taxation (161,328)
Profit after tax 2,447,020
Profit attributable to minority interest (5,642)

Profit attributable to ordinary share holders 2,441,378
Un-appropriated profit brought forward 6,453,878
Profit available for appropriation 8,895,256
Appropriations
Final dividend for the year ended 31 December 2008 (102,235)
Issue of bonus shares for the year ended 31 December 2008 (102,235)
Interim dividend (168,688)
Total appropriations (373,158)
8,522,098
EARNINGS PER SHARE

The consolidated financial statements reflect Rs. 21.71 earning per share for the year under review.
On behalf of Directors
Muhammad Ali Zeb

Lahore: 30 March 2010 Managing Director & Chief Executive
111 Annual Report 2009

AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed consolidated financial statements comprising consolidated Balance Sheet of ADAMJEE INSURANCE
COMPANY LIMITED (“The Holding Company”) and its subsidiary company (together referred to as “Group”) as at 31 December 2009
and the related consolidated Profit and Loss Account, consolidated Statement of Comprehensive Income consolidated Statement
of Changes in Equity, consolidated Cash Flow Statement, consolidated Statement of Premium, consolidated Statement of Claims,
consolidated Statement of Expenses and c onsolidated Statement of Investment Income together with the notes forming part
thereof, for the year then ended. We have also expressed separate opinion on the financial statement of Adamjee Insurance Company
Limited. The financial statements of subsidiary company Adamjee Life Assurance Company Limited were audited by another firm
of auditors whose report has been furnished to us and our opinion, in so far as it relates to the amounts included for such company,
is based solely on the report of such other auditors. These consolidated financial statements are the responsibility of the Holding
Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Our audit was conducted in accordance with the I nternational Standards on Auditing and accordingly included such t ests of
accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements present fairly the financial position of ADAMJEE INSURANCE COMPANY LIMITED
and its subsidiary company as at 31 December 2009 and the result of their operations for the year then ended.
RIAZ AHMAD & COMPANY

Chartered Accountants
Name of engagement partner:

Muhammad Kamran Nasir
Karachi: 30 March 2010
Annual Report 2009 112

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2009
Note 31 December 31 December 01 January

2009 2008 2008
(Rupees in thousand)
Restated Restated
Share capital and reserves

Authorised share capital 3.1 1,500,000 1,500,000 1,500,000
Paid-up share capital 3.2 1,124,586 1,022,351 1,022,351

Retained earnings 8,522,098 6,453,878 5,666,273
Reserves 4 1,104,707 1,078,231 954,815
9,626,805 7,532,109 6,621,088
Equity attributable to equity holders of the parent 10,751,391 8,554,460 7,643,439
Minority intreset 5 216,230 236,639 -
Total equity 10,967,621 8,791,099 7,643,439
Balance of statutory funds 6 11,499 - -
Underwriting provisions
Provision for outstanding claims (including IBNR) 7 3,584,772 4,562,553 5,022,620
Provision for unearned premium 4,405,817 4,014,822 4,252,005
Commission income unearned 228,439 176,500 236,039
Total underwriting provisions 8,219,028 8,753,875 9,510,664
Deferred liabilities
Deferred taxation 74,270 - -
Staff retirement benefits 8 14,298 9,166 3,688
Creditors and Accruals

Premiums received in advance 91,169 101,247 125,682
Amounts due to other insurers / reinsurers 960,748 596,123 579,621
Accrued expenses 156,626 84,153 79,174
Taxation - provision less payments 5,455 - -
Other creditors and accruals 9 1,188,025 881,762 794,193
2,402,023 1,663,285 1,578,670
Borrowings
Liabilities against assets subject to finance lease 10 148,911 - -
Other liabilities
Unclaimed dividends 25,965 25,055 29,502
TOTAL LIABILITIES 10,884,495 10,451,381 11,122,524
CONTINGENCIES AND COMMITMENTS 11
TOTAL EQUITY AND LIABILITIES 21,863,615 19,242,480 18,765,963
The annexed notes 1 to 37 form an integral part of these consolidated financial statements.

Note 31 December 31 December 01 January
2009 2008 2008
Restated Restated
Cash and bank deposits 12

Cash and other equivalents 61,796 41,637 133,735
Current and other accounts 702,913 966,866 600,661
Deposits maturing within 12 months 1,408,449 1,198,950 219,801
2,173,158 2,207,453 954,197
Loans
To employees 13 28,383 26,852 27,312
Investments 14 9,815,444 7,333,959 8,132,102
Deferred taxation - 3,832 -
Current assets - others

Premiums due but unpaid 15 3,841,755 3,449,898 3,203,751
Amounts due from other insurers/ reinsurers 16 716,962 993,802 255,570
Salvage recoveries accrued 115,753 228,147 205,404
Premium and claim reserves retained by cedants 24,235 28,682 32,926
Accrued investment income 17 47,304 44,474 31,009
Reinsurance recoveries against outstanding claims 18 1,845,562 2,188,101 2,792,464
Taxation - payments less provision - 133,415 157,153
Deferred commission expense 399,884 414,701 413,543
Prepayments 19 1,555,207 1,064,696 1,519,241
Sundry receivables 20 200,478 172,419 272,878
8,747,140 8,718,335 8,883,939
Fixed Assets - Tangible & Intangible 21

Owned
Land and buildings 174,660 177,793 181,055
Furniture and fixtures 38,843 28,171 22,373
Motor vehicles 200,253 236,243 233,625
Capital work-in-progress 22,575 2,200 64,846
Machinery and equipment 375,731 396,646 220,266
Computers and related accessories 54,583 65,275 42,940
Intangible asset - computer software 38,269 45,721 3,308
904,914 952,049 768,413
Leased
Motor vehicles 194,576 - -
TOTAL ASSETS 21,863,615 19,242,480 18,765,963
Umer Mansha S.M. Jawed Ibrahim Shamsi Muhammad Ali Zeb

Chairman Director Director Managing Director & Chief Executive

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2009
General Insurance Life Insurance Total

Marine,
Fire and Accident 31 31
Aviation Conventional
Note Property Motor Miscellaneous Treaty and Health December December
and Business
Damage Business 2009 2008
Transport
Revenue account
Net premium revenue 1,150,510 974,268 3,479,904 1,202,130 85 24,099 2 6,830,998 7,488,144
Net claims (650,449) (418,877) (2,435,542) (937,313) (10,658) (3,667) - (4,456,506) (5,173,152)
Expenses 22 (206,849) (171,482) (578,376) (217,854) (16) (64,297) (906) (1,239,780) (1,206,563)
Net commission (49,843) (160,720) (274,460) (15,163) (38) (1,739) (1) (501,964) (741,367)
Net Investment income - statutory fund - - - - - 116 - 116 -
Add: Policyholder's liabilities at
beginning of the year - - - - - - - - -
Less: Policyholder's liabilities at
end of the year - - - - - (11,497) (1) (11,498) -
Capital contribution from
shareholder's fund - - - - - 56,985 906 57,891 -
Underwriting result 243,369 223,189 191,526 31,800 (10,627) - - 679,257 367,062
Investment income - other 2,533,500 1,103,442

Rental income 476 494
Other income 23 154,262 183,594
3,367,495 1,654,592
General and administration
expenses 24 (751,700) (529,750)
Exchange gain 4,188 38,404
Finance charge on lease liabilities (11,635) -
Profit before tax 2,608,348 1,163,246
Provision for taxation 25 (161,328) (72,895)
Profit after tax 2,447,020 1,090,351
Profit attributable to:
Equity holders of the parent 2,441,378 1,094,311

Minority interest 5,642 (3,960)
Profit and loss appropriation account
Balance at the commencement of the year 6,453,878 5,666,273

Profit after tax for the year 2,441,378 1,094,311
Final dividend for the year ended 31 December 2008
Rupee 1.0 per share (2007: Rupees 1.5 per share) (102,235) (153,353)
Issue of bonus shares for the year ended 31 December 2008
@ 10 % (2007:Nil) (102,235) -
Interim dividend @ 15% (Rupees 1.5/- per share)
[2008: Rupees 1.5/- per share] (168,688) (153,353)
Balance unappropriated profit at the end of the year 8,522,098 6,453,878
Restated
Rupees Rupees
Earnings per share - basic and diluted (Note 26) 21.71 9.73


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
31 December 31 December
2009 2008
Profit for the year 2,447,020 1,090,351
Other comprehensive income:
Effect of translation of net investment in foreign branches 58,316 123,416
Capital contribution to statutory funds (57,891) -
Total comprehensive income for the year 2,447,445 1,213,767
Comprehensive income attributable to:

Equity holders of the parent 2,467,854 1,217,727
Minority interest (20,409) (3,960)


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Capital reserves Revenue reserves

Equity
Reserve for Capital
Issued, Reserve for Investment Exchange attributable
issue of contribution General Retained Minority
subscribed exceptional fluctuation translation to equity Total
bonus to statutory reserve earnings interest
and paid-up losses reserve reserve holders of
shares funds
the parent
Balance as at 31 December 2007 1,022,351 - 22,859 3,764 - - 936,500 5,666,273 7,651,747 - 7,651,747
Effect of restatement as referred in Note 4.3 - - - - - (8,308) - - (8,308) - (8,308)
Balance as at 01 January 2008 - restated 1,022,351 - 22,859 3,764 - (8,308) 936,500 5,666,273 7,643,439 - 7,643,439
Minority interest arising on investment

in subsidiary company - 240,599 240,599
Total comprehensive income for the year

31 December 2008 - - - - - 123,416 - 1,094,311 1,217,727 (3,960) 1,213,767
Final dividend for the year ended

31 December 2007
@ 15% (Rupees 1.5/- per share) - - - - - - - (153,353) (153,353) - (153,353)
Interim dividend @ 15% (Rupees 1.5/- per share) - - - - - - - (153,353) (153,353) - (153,353)
Balance as at 31 December 2008 1,022,351 - 22,859 3,764 - 115,108 936,500 6,453,878 8,554,460 236,639 8,791,099
Total comprehensive income for the year

31 December 2009 - - - - (31,840) 58,316 - 2,441,378 2,467,854 (20,409) 2,447,445
Final dividend for the year ended

31 December 2008 @ 10%
(Rupee 1.0 per share) - - - - - - - (102,235) (102,235) - (102,235)
Transferred to reserve for issue of bonus shares - 102,235 - - - - - (102,235) - - -
Issue of bonus shares for the year ended

31 December 2008 @ 10 % 102,235 (102,235) - - - - - - - - -
Interim dividend @ 15%

(Rupees 1.5/- per share) - - - - - - - (168,688) (168,688) - (168,688)
Balance as at 31 December 2009 1,124,586 - 22,859 3,764 (31,840) 173,424 936,500 8,522,098 10,751,391 216,230 10,967,621


CONSOLIDATED STATEMENT OF CASH FLOWS
2009 2008
Operating Cash Flows
a) Underwriting activities
Premiums received 10,050,556 10,000,258
Reinsurance premiums paid (3,254,612) (2,955,950)
Claims paid (6,629,827) (7,057,015)
Surrenders paid (79,776) (65,364)
Reinsurance and other recoveries received 1,922,877 1,730,171
Commissions paid (928,529) (1,086,443)
Commissions received 522,486 392,195
Other underwriting payments (784,074) (1,085,931)
Net cash flow from / (used in) underwriting activities 819,101 (128,079)
b) Other operating activities

Income tax refund / (paid) 55,645 (52,989)
General and other expenses paid (615,222) (279,778)
Loans disbursed (42,840) (55,948)
Loan repayments received 51,974 55,335
Deposits received - 6,051
Other receipts 22,897 101,269
Net cash used in other operating activities (527,546) (226,060)
Total cash flow from / (used in) all operating activities 291,555 (354,139)
Investment activities
Profit/ return received 181,532 105,103
Preoperating expense (52,322) -
Dividends received 348,327 401,601
Investments purchased (7,603,778) (11,735,689)
Proceeds from disposal of investments 7,222,289 13,212,392
Fixed capital expenditure - Tangible assets (176,653) (330,610)
Fixed capital expenditure - Intangible assets (3,781) (5,185)
Proceeds from disposal of fixed assets 61,897 12,649
Income received on rent 184 -
Income received on PIBs 11,320 -
Income received on TFCs 28,767 23,740
Total cash flow from investing activities 17,782 1,684,001
Financing activities
Lease rentals paid (73,619) (311,153)
Minority interest - 240,598
Dividends paid (270,013) -
Total cash used in financing activities (343,632) (70,555)
Net cash (used in) / flow from all activities (34,295) 1,259,307
Cash at the beginning of the year 2,203,002 943,695
Cash at the end of the year 2,168,707 2,203,002

CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 Year ended 31

December 2009 December 2008
Reconciliation to Profit and Loss Account
Operating cash flows 305,231 (367,815)
Depreciation expense (165,876) (134,464)
Provision for gratuity (4,415) (5,478)
Other income - bank deposits 128,103 125,887
(Loss) / profit on disposal of fixed assets (1,470) 2,404
Finance charge on lease liabilities (11,635) -
Rental income 476 494
Decrease / (Increase) in assets other than cash 194,050 (608,851)
Increase in liabilities other than running finance 36,893 777,348
481,357 (210,475)
Others
Profit on sale of investments 166,415 3,060,670
Amortization expense (11,233) (7,451)
Capital contribution from shareholders fund 57,891 -
(Increase) / decrease in unearned premium (390,995) 237,183
Amortization of income on Government Securities - net 40,958 70,531
Decrease in loans (9,134) (460)
Income tax (refund) / paid (58,542) 52,450
Profit on PIBs 12,997 -
Reversal / (Provision) for diminution in value of investments 1,873,200 (2,452,619)
Dividend, investment and other income 417,161 395,032
Deposits received - (6,051)
Income on TFCs 28,273 24,436
2,126,991 1,373,721
Profit before taxation 2,608,348 1,163,246
Definition of cash:
Cash comprises of cash in hand, bank balances excluding Rs.4.451 million (2008: Rs 4.451 million) held under lien and other deposits
which are readily convertible to cash and which are used in the cash management function on a day- to-day basis.
2009 2008
Cash for the purposes of the Statement of Cash Flows consists of:
Cash and other equivalent 61,798 41,637
Current and other accounts 702,911 966,866
Deposits maturing within 12 months 1,403,998 1,194,499
Total cash and cash equivalents 2,168,707 2,203,002


CONSOLIDATED STATEMENT OF PREMIUMS
Unearned premium Prepaid reinsurance Net premium

reserve premium ceded revenue
Class Premiums Premiums Reinsurance Reinsurance
written earned ceded expense 31 December 31 December
Opening Closing Opening Closing 2009 2008
General insurance:
Direct and
facultative
Fire and property damage 3,553,329 1,551,532 1,685,968 3,418,893 2,526,567 878,865 1,137,049 2,268,383 1,150,510 1,484,731
Marine, aviation and transport 1,113,902 91,984 42,099 1,163,787 173,310 21,364 5,155 189,519 974,268 1,199,675
Motor 3,754,785 1,789,404 1,900,021 3,644,168 359,762 1,910 197,408 164,264 3,479,904 3,740,021
Miscellaneous 1,898,643 581,902 777,729 1,702,816 540,611 102,092 142,017 500,686 1,202,130 1,047,746
10,320,659 4,014,822 4,405,817 9,929,664 3,600,250 1,004,231 1,481,629 3,122,852 6,806,812 7,472,173
Treaty
Proportional 85 - - 85 - - - - 85 15,971
85 - - 85 - - - - 85 15,971
Total 10,320,744 4,014,822 4,405,817 9,929,749 3,600,250 1,004,231 1,481,629 3,122,852 6,806,897 7,488,144
Life insurance:
Conventional Business 51,970 - - 51,970 27,871 - - 27,871 24,099 -

Accident and Health Business 2 - - 2 - - - - 2 -
Total 51,972 - - 51,972 27,871 - - 27,871 24,101 -
Grand Total 10,372,716 4,014,822 4,405,817 9,981,721 3,628,121 1,004,231 1,481,629 3,150,723 6,830,998 7,488,144


CONSOLIDATED STATEMENT OF CLAIMS
Outstanding claims Reinsurance and other

Reinsurance Reinsurance Net claims expense
recoveries in respect of
Class Total claims Claims and other and other
outstanding claims
paid expenses recoveries recoveries
received revenue 31 December 31 December
Opening Closing Opening Closing 2009 2008
General insurance:
Direct and
facultative
Fire and property damage 1,774,827 1,629,455 1,168,771 1,314,143 982,746 1,028,755 709,703 663,694 650,449 950,534
Marine, aviation and transport 608,904 499,471 359,826 469,259 143,429 276,920 183,873 50,382 418,877 616,515
Motor 3,054,264 1,833,234 1,471,832 2,692,862 292,437 740,724 705,607 257,320 2,435,542 2,740,149
Miscellaneous 1,185,171 580,662 552,512 1,157,021 227,425 369,849 362,132 219,708 937,313 860,956
6,623,166 4,542,822 3,552,941 5,633,285 1,646,037 2,416,248 1,961,315 1,191,104 4,442,181 5,168,154
Treaty
Proportional 7,427 19,731 22,962 10,658 - - - - 10,658 4,998
7,427 19,731 22,962 10,658 - - - - 10,658 4,998
Total 6,630,593 4,562,553 3,575,903 5,643,943 1,646,037 2,416,248 1,961,315 1,191,104 4,452,839 5,173,152
Life insurance:
Conventional business 3,681 - 8,869 12,550 8,883 - - 8,883 3,667 -

Accident and Health - - - - - - - - - -
Total 3,681 - 8,869 12,550 8,883 - - 8,883 3,667 -
Grand Total 6,634,274 4,562,553 3,584,772 5,656,493 1,654,920 2,416,248 1,961,315 1,199,987 4,456,506 5,173,152


CONSOLIDATED STATEMENT OF EXPENSES
Deferred commission Net underwriting expense

Class Commissions Net Other Underwriting Commission
paid or commission management expense from
payable expense expenses reinsurers 31 December 31 December
Opening Closing 2009 2008
General insurance:
Direct and
facultative
Fire and property damage 407,363 188,585 203,339 392,609 206,849 599,458 342,766 256,692 345,084
Marine, aviation and transport 160,797 14,340 7,197 167,940 171,482 339,422 7,220 332,202 420,727
Motor 272,499 162,862 144,778 290,583 578,376 868,959 16,123 852,836 922,726
Miscellaneous 115,257 48,914 44,570 119,601 217,854 337,455 104,438 233,017 248,595
955,916 414,701 399,884 970,733 1,174,561 2,145,294 470,547 1,674,747 1,937,132

Treaty
Proportional 38 - - 38 16 54 - 54 10,798
38 - - 38 16 54 - 54 10,798
Total 955,954 414,701 399,884 970,771 1,174,577 2,145,348 470,547 1,674,801 1,947,930
Life insurance:
Conventional business 1,739 - - 1,739 64,297 66,036 - 66,036 -

Accident and health business 1 - - 1 906 907 - 907 -
Total 1,740 - - 1,740 65,203 66,943 - 66,943 -
Grand Total 957,694 414,701 399,884 972,511 1,239,780 2,212,291 470,547 1,741,744 1,947,930


CONSOLIDATED STATEMENT OF INVESTMENT INCOME
Note 31 December 31 December

2009 2008
General insurance:
Income from non-trading investments

Available-for-sale
Return on fixed income securities 40,958 70,531

Return on Term Finance Certificates 28,273 24,436
Return on Pakistan Investments Bonds 12,997 -
Dividend income
- associated undertakings 208,802 232,447
- others 148,771 162,585
357,573 395,032
439,801 489,999
Gain on sale of ‘available-for-sale’ investments
- associated undertakings 195,946 2,815,267
- others (29,529) 245,403
166,417 3,060,670
606,218 3,550,669
Reversal / (Provision) for impairment in value of 'available-for-sale'

investment 14.3 1,873,201 (2,386,179)
Investment related expenses - (66,440)
2,479,419 1,098,050
Life insurance:
Share holders' fund

Appreciation in value of quoted securities 65 -
Return on Government Securities 23,206 -
Return on bank deposit 21,218 5,392
Dividend income 60 -
Gain on sale of non trading investments 9,532 -
54,081 5,392
Statutory Funds
Conventional Business
Investment income on bank deposits 96 -
Gain on sale of units of open end mutual funds 20 -
116 -
Accident and Health Business
Investment income on bank deposits - -
Gain on sale of units of open end mutual funds - -
- -
Net investment income 2,533,616 1,103,442
Net investment income - shareholders' funds 116 -

Net investment income - other 2,553,500 1,103,442
2,553,616 1,103,442


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 THE GROUP AND ITS OPERATIONS
The group consists of:
Holding company
Subsidiary company Percentage holding of Adamjee Insurance Company Limited

Adamjee Life Assurance Company Limited 55%
Adamjee Insurance Company Limited (holding company)
Adamjee Insurance Company Limited (holding c ompany) is a public limit ed company incorporated in Pakistan on 28
September 1960 under the Companies Act, 1913 (now Companies Ordinance, 1984). The company is listed on all the stock
exchanges in Pakistan and is engaged in the non-life insurance business.
The registered office of the company is situated at Adamjee House, I.I. Chundrigar Road, Karachi.
The company also operates branches in the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA) and the Export
Processing Zone (EPZ). The branch in the KSA has closed down its operations and is in “run-off” status with effect from 01
October 2003.
Adamjee Life Assurance Company Limited (subsidiary company)
Adamjee Life Assurance Company Limited (Subsidiary Company) was incorporated in Pakistan on 4 August 2008 as a public
unlisted company under the Companies Ordinance, 1984 and started its operations from 24 April 2009. The registered office
of the Company is located at MCB Building, Jinnah Avenue, Blue Area, Islamabad while its pr incipal place of business is
located at Third Floor, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company is an associate of IVM Intersurer B.V. 45%
in the share capital of the Company. IVM Intersurer B.V. has nominated Hollard Life Assurance Company Limited (HLA), a
subsidiary of IVM Intersurer B.V., to act on its behalf. HLA is South Africa's largest private sector insurance company.
The Company is engaged in life assurance business carrying on non-participating business only. In accordance with the
requirements of the I nsurance Ordinance, 2000, the C ompany has established a shar eholders' fund and the f ollowing
statutory funds in respect of its each class of life assurance business:
- Conventional Business
- Accident and Health
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of these consolidated financial statements are set out below:
2.1 Basis of preparation
a) Statement of compliance
These consolidated financial sta tements are prepared in ac cordance with appr oved accounting standards as
applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984,
provisions of and directives issued under the Companies Ordinance,1984, the Insurance Ordinance, 2000 and SEC
(Insurance) Rules, 2002. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984,
Insurance Ordinance, 2000 and SEC (Insurance) Rules, 2002 shall prevail.
The SECP has allowed insurance companies to defer the application of International Accounting Standard - 39 (IAS
39) 'Financial Instruments: Recognition and Measurement' in respect of "investments available-for-sale" until suitable
amendments have been made in the laws. Accordingly, the requirements of IAS-39, to the extent allowed by SECP,
have not been considered in the preparation of these consolidated financial statements.

b) Consolidation
Subsidiary company is the entity in which Holding Company directly or indirectly controls beneficially owns or holds
more than 50% of the voting securities or otherwise has power to elect and apoint more than 50% of its directors.
The financial statements of the subsidiary Company are included in the consolidated financial statements from the
date the control commences untill the date that control ceases.
The assets and liabilities of subsidiar y company have been consolidated on a line by line basis and car ying value
of investments held by the Holding Company is eliminated against Holding Company's share in paid up capital of
the subsidiary company.
Intergroup balances and transactions have been eliminated.
Minority interests are that part of net results of the operations and of net assets of subsidiary company attributable
to interest which are not owned by the Holding Company. Minority interest are presented as separate item in the
consolidated financial statements.
c) Accounting convention
These consolidated financial statements have been prepared under the historical cost convention except that certain
investments which are stated at lower of cost and market value and valuation of policy holders liability and employees'
retirement benefits which are carried on the basis of actuarial valuation. Accrual basis of accounting has been used
except for cash flow information.
d) Critical accounting estimates and judgments
The preparation of consolidated financial statements in conformity with approved accounting standards as applicable
in Pakistan requires management to make judgments, estimates and assumptions that affect the reported amounts
of assets and liabilities and income and expenses. It also requires management to exercise judgment in application
of its accounting policies. The estimates and associated assumptions are based on historical experience and various
other factors that are believed to be reasonable under the circumstances. These estimates and assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate
is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects
both current and future periods.
The areas involving a higher deg ree of judgment or complexity, or areas where assumptions and estima tes are
significant to the consolidated financial statements or judgment was exercised in application of accounting policies
are as follows:
i) Provision for outstanding claims including incurred but not reported (IBNR)
Provision for liability in respect of unpaid reported claims is made on the basis of individual case estimates. Provision
for IBNR is based on the managemen t's best estimate which takes into account the past trends, expected future
patterns of reporting of claims and the claims actually reported subsequent to the balance sheet date.
ii) Provision for taxation including the amount relating to tax contingency
In making the estimates for income tax currently payable by the Group, the management takes into account the
current income tax law and the decisions of appellate authorities on certain issues in the past.
iii) Provision for doubtful receivables
The receivable balances are reviewed against any provision required for any doubtful balances on an ongoing basis.
The provision is made while taking into consideration expected recoveries, if any.
iv) Useful lives, patterns of economic benefits and impairments
Estimates with respect to residual values and useful lives and patterns of flow of economic benefits are based on
the analysis of the management of the Group. Further, the Group reviews the value of assets for possible impairment
on an annual basis. Any change in the estimates in the future might affect the carrying amount of respective item
of property, plant and equipment, with a corresponding effect on the depreciation charge and impairment.

v) Actuarial valuation of liabilities
The actuarial calculations are involved in determination of policy holders' liability arising from life insurance business
and the working of provision for defined benefit plans that are based on certain actuarial assumptions.
vi) Classification of investments
The Group classifies its investments into "available-for-sale", "held to maturity" and "at fair value through profit or
loss". The classification is determined by management at initial recognition and depends on the purpose for which
the investments are acquired.
e) Functional and presentation currency
Items included in these consolidated financial statements are measured using the currency of the primary economic
environment in which the Group operates. These consolidated financial statements are presented in Pak Rupees,
which is the Group's functional and presentation currency.
f) Standards, interpretations and amendments that are effective in current year
i) IFRS 7 'Financial Instruments: Disclosure'. The Securities and Exchange Commission of Pakistan (SECP) vide S.R.O
411(I) /2008 dated 28 April 2008 notified the adaption of IFRS 7. IFRS 7 is mandatory for Group's accounting periods
beginning on or af ter the da te of notifica tion i.e. 28 A pril 2008. IFRS 7 has superseded IAS 30 and disclosur e
requirements of IAS 32. A daption of IFRS 7 has only impac ted the format and extent of disclosures presented in
these financial statements.
ii) IAS 1 (Revised) ‘Presentation of Financial Statements’ (effective for annual accounting periods beginning on or after
01 January 2009) . The revised standard prohibits the presentation of items of income and expenses (that is, ‘non-
owner changes in equit y’) in the sta tement of changes in equit y, requiring ‘non-owner changes in equit y’ to be
presented separately from owner changes in equity. All ‘non-owner changes in equity’are required to be shown in
performance statement. Companies can choose either to present one performance statement (the statement of
comprehensive income) or two statements (profit and loss account and statement of comprehensive income).The
Group has preferred to present two statements; a profit and loss account and a statement of comprehensive income.
In these consolidated financial statements comparative information has been re-presented in conformity with the
revised standard.
Further, the Standard requires that if the entities have to restate or reclassify comparative information given in the
financial statements, in addition to presenting the balance sheet at the end of the current period and comparative
period, will also be required to present a restated balance sheet as at the beginning of comparative period. Since
this change in accounting policy only impacts presentation aspects, there is no impact on earnings per share.
iii) IFRS 4, ‘Insurance Contracts’. SECP vide S.R.O 149(1) 2009 da ted 11 February 2009 (read with circular No. 22/2009
dated 30 June 2009) notified the adaption of IFRS-4. It is mandatory for Group's annual accounting periods beginning
on or after 01 January 2009. IFRS-4 makes limited improvements to accounting for insurance contracts until the
Board completes the second phase of its project on insurance contracts. The standard also requires an entity issuing
insurance contracts (an insurer) to disclose information about those contracts. The required information has been
disclosed in notes to these consolidated financial statements.
iv) IFRS 8 'Operating Segments' (effective for annual periods beginning on or after 01 January 2009). It introduces the
"management approach" to segment reporting. IFRS 8 will require presentation and disclosure of segment information
based on the internal reports regularly reviewed by the Group's chief operating decision makers in order to assess
each segment's performance and to allocate resources to them. The adaption of IFRS 8 does not have any material
effect but has changed the criteria to determine the reportable segment and certain disclosures.
v) IAS 23 (amendment), ‘Borrowing costs’ (effective for the annual accounting periods beginning on or after 01 January
2009) is relevant to the current year’s financial statements. The amendment requires to capitalize borrowing costs
directly attributable to the acquisition, construction or production of a qualifying asset (one that takes a substantial
period of time to get ready for use or sale) as par t of the cost of that asset. The option of immediately expensing
those borrowing costs has been removed. The Group has adapted the accounting policy of borrowing cost compliant
with the requirements of IAS-23.

g) Standards, interpretations and amendments to published approved accounting standards that are effective
in current year but not relevant
There are other new standards, interpretations and amendments to the published approved accounting standards
that are mandatory for accounting periods beginning on or af ter 01 Januar y 2009 but are considered not to be
relevant or do not ha ve any significant impact on these consolidated financial statements and are therefore not
detailed in these consolidated financial statements.
h) Standards, interpretations and amendments to published approved accounting standards that are not yet
effective but relevant:
IFRS 9 ‘Financial Instruments’ (effective for annual accounting periods beginning on or after 01 January 2013). IFRS
9 has superseded the IAS 39 ‘Financial Instruments: Recognition and M easurement’. It requires that all equit y
investments are to be measured at fair value while eliminating the cost model for unquoted equity investments.
Certain categories of financial instruments available under IAS 39 will be eliminated.
Moreover, it also amends certain disclosure requirements relating to financial instruments under IFRS 7. Adaption
of the aforesaid standard is not expected to have a significant impact on the consolidated financial statements other
than certain additional or revised disclosures.
i) Standards, interpretations and amendmen ts to published appr oved accounting standards that are not
effective in current year and not considered relevant:
There are other accounting standards, amendments to published accounting standards and new interpretations
that are mandatory for accounting periods beginning on or af ter 01 January 2010 but ar e considered not to be
relevant or do not have any significant impact on the consolidated financial statements and are therefore not detailed
in these financial statements.
2.2 Insurance contracts
Insurance contracts are those contracts where the Group (the insurer) has accepted significant insurance risk from another
party (the policyholders) by agreeing to compensate the policyholders if a specified uncertain future event (the insured
event) adversely affects the policyholders.
Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its life
time, even if the insurance risk reduces significantly during this period, unless all rights and liabilities are extinguished or
expired.
The Group neither issues investment contracts nor does it issue insurance contracts with discretionary participation features
(DPF).
2.2.1 Premium
Holding company
Premium received / receivable under a policy is recognized as written from the date of attachment of the policy to which
it relates. Premium income under a policy is recognized over the period of insurance from inception to expiry as follows:
(a) For direct business, evenly over the period of the policy;
(b) For proportional reinsurance business, evenly over the period of underlying insurance policies; and
(c) For non-proportional reinsurance business, in accordance with the pattern of the reinsurance service.
Where the pattern of incidence of risk varies over the period of the policy, premium is recognized as revenue in accordance
with the pattern of the incidence of risk.
Administrative surcharge is recognized as premium at the time the policies are written.
Provision for unearned premium represents the portion of premium written relating to the unexpired period of coverage
and is recognized as a liability by the company. This liability is calculated as follows:

- for marine cargo business and for motor business in the UAE, as a ratio of the unexpired period to the total period
of the policy applied on the gross premium of the individual policies; and
- for other classes / lines of business, by applying the twenty-fourths method as specified in the SEC (Insurance) Rules,
2002, as majority of the remaining policies are issued for a period of one year.
Receivables under insur ance contracts are recognized when due, at the fair v alue of the c onsideration receivable less
provision for doubtful debts, If any. Provision for impairment on premium receivables is established when there is objective
evidence that the company will not be able to collect all amounts due according to original terms of receivable. Receivables
are also analyzed as per their ageing and accordingly provision is maintained on a systematic basis.
Subsidiary company
First year individual life premiums are recognised once the related policies have been issued and the premiums received.
Single premiums are recognised once the related policies are issued against the receipt of premium. Group life premiums
are recognised when due.
A provision for unearned premiums is included in the policyholders’ liabilities.
Premium due but unpaid is r ecognised at cost, which is the fair v alue of the consideration receivable, less provision for
impairment, if any.
2.2.2 Reinsurance Ceded
Holding company
The Group enters into reinsurance contracts in the normal course of business in order to limit the potential for losses arising
from certain exposures. Outward reinsurance premiums are accounted for in the same period as the related premiums for
the direct or accepted reinsurance business being reinsured.
Reinsurance liabilities represent balances due to reinsurance companies. Amounts payable are estimated in a manner
consistent with the related reinsurance contract. Reinsurance assets represent balances due from reinsurance companies.
Amounts recoverable from reinsurers are estimated in a manner consistent with the provision for outstanding claims or
settled claims associated with the reinsurance policies and are in accordance with the related reinsurance contract.
Reinsurance assets are not offset against related insurance liabilities. Income or expenses from reinsurance contract are not
offset against expenses or income from related insurance assets.
Reinsurance assets or liabilities are derecognized when the contractual rights are extinguished or expired.
The Group assesses its reinsurance assets for impairment on balance sheet date. If there is an objective evidence that the
reinsurance asset is impaired, the company reduces the carrying amount of the reinsurance asset to its recoverable amount
and recognizes that impairment loss in the profit and loss account.
The portion of reinsurance premium not recognized as an expense is shown as a prepayment.
Commission income from reinsurers is recognized at the time of issuance of the underlying insurance policy by the Group.
This income is deferred and brought to account as revenue in accordance with the pattern of recognition of the reinsurance
premium to which it relates. Profit commission, if any, which the company may be entitled to under the terms of reinsurance,
is recognized on accrual basis.
Subsidiary company
Reinsurance expense is recognised as a liability in accordance with the pattern of recognition of related premium and is
measured in line with the terms and conditions of the reinsurance treaty.

2.2.3 Claims expense
Holding company
General insurance claims include all claims occurring during the year, whether reported or not, related internal and external
claims handling costs that are directly related to the processing and settlement of claims, a reduction for the value of salvage
and other recoveries, (if any) and any adjustments to claims outstanding from previous years.
The Group recognizes the liability in respect of all claims incurred upto the balance sheet date which is measured at the
undiscounted value of the expected future payments. The claims are considered to be incurred at the time of the incident
giving rise to the claim except as otherwise expressly indicated in the insurance contract. The liability for claims include
amounts relating to unpaid reported claims, claims incurred but not reported (IBNR) and expected claims settlement costs.
Subsidiary company
Claims are recognised on the earlier of the policy expiry or the date when the intimation of the event giving rise to the claim
is received except for accident and health claims which are recognised as soon as a reliable estimate of the claim amount
can be made.
Claims liability includes amounts in relation to unpaid reported claims and estimated claims settlement cost. Full provision
is made for the estimated cost of claims incurred to the date of the balance sheet.
2.2.4 Reinsurance recoveries against outstanding claims
Claims recoveries receivable from the reinsurer are recognized as an asset at the same time as the claims which g ive rise
to the right of recovery are recognized as a liability and are measured at the amount expected to be received.
2.2.5 Commission expense and other acquisition costs
Holding company
Commission expense and other acquisition costs are charged to profit and loss account at the time the policies are accepted.
Commission income from reinsurers is recognized at the time of issuance of the underlying insurance policy. This income
is deferred and brought to account as revenue in accordance with the pattern of recognition of the reinsurance premium
to which it relates. Profit commission, if any, which the Group may be entitled under the terms of reinsurance, is recognized
on accrual basis.
Subsidiary company
These are costs incurred in acquiring insurance policies, maintaining such policies, and include without limitation all forms
of remuneration paid to insurance agents.
Commission and other expenses are recognised as expense in the earlier of the financial year in which they are paid and
financial year in which they bec ome due and pa yable, except that commission and other e xpenses which are directly
referable to the acquisition or renewal of specific contracts are recognised not later than the period in which the premium
to which they refer is recognised as revenue.
2.2.6 Premium Deficiency Reserve
The Group maintains a provision in respect of premium deficiency for the class of business where the unearned premium
liability is not adequa te to meet the e xpected future liability, after reinsurance, from claims and other supplemen tary
expenses expected to be incurred after the balance sheet date in respect of the unexpired policies in that class of business
at the balance sheet date.
The movement in the premium deficiency reserve is recorded as an expense / income in profit or loss account for the year.

For this purpose, loss ratios for each class are estimated based on historical claim development. Judgment is used in assessing
the extent to which past trends may not apply in future or the effects of one-off claims. If these ratios are adverse, premium
deficiency is determined. The loss ratios estimated by holding company on these basis f or the unexpired portion are as
follows:
Fire and property damage 65.57%

Marine, aviation and transport 41.00%
Motor 71.29%
Miscellaneous 78.44%
Based on an analysis of combined operating ratio for the expired period of each reportable segment, the management
considers that the unearned premium reserve for all classes of business as at the year end is adequate to meet the expected
future liability after reinsurance, from claims and other expenses expected to be incurred after the balance sheet date in
respect of policies in those classes of business in force at the balance sheet date. Hence, no reserve for the same has been
made in these financial statements.
Due to first year operation, subsidiary company has not calculated such loss ratios as any such amounts are at present not
likely to be material.
2.3 Staff retirement benefits
Holding company
2.3.1 Defined contribution plan
The company operates an approved contributory provident fund scheme f or all its elig ible employees. Equal monthly
contributions to the fund are made by the company and the employees at the rate of 8.33% of basic salary.
2.3.2 Defined benefit plans
The Holding Company operates following defined benefit plans:
(a) an approved funded gratuity scheme for all its permanent employees in Pakistan. Annual contributions are made
to the schemes on the basis of actuarial recommendations. The actuarial valuation is carried out using the projected
unit credit method. Actuarial gains and losses are amortized over the expected future service of the current members.
Gratuity is payable to staff on completion of the prescribed qualifying period of service under the scheme;
(b) unfunded gratuity schemes covering the employees in the UAE as per the requirements of the applicable regulations.
Provision is made in the financial statements based on the management's best estimate of the liability in respect
of these schemes.
Subsidiary company
Defined benefit scheme
The Company operates an unfunded gratuity scheme covering eligible employees whose period of employment with the
Company is six months or more. The liability recognised in the balance sheet in respect of the defined benefit scheme is
the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognised
actuarial gains or losses. The defined benefit obligation is determined annually by the appointed actuary using projected
unit credit method.
Actuarial gains / losses in e xcess of ten percent of the higher of ac tuarial liabilities at the end of last r eporting year are
recognised over the average lives of employees.
2.4 Employees' compensated absences
The Group accounts for these benefits in the period in which the absences are earned.

2.5 Creditors, accruals and provisions
Liabilities for creditors and other amounts payable are carried at cost which is the fair value of the consideration to be paid
in the future for the goods and / or services received, whether or not billed to the group.
Provisions are recognized when there is a present, legal or constructive obligation as a result of past events and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimate.
2.6 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cash and cash
equivalents comprise of cash and bank deposits and short-term bank borrowings and excludes bank balances held under
lien.
2.7 Investments
All investments are initially recognized at cost being the fair value of the consideration given and include transaction costs.
All purchases and sales of in vestments that require delivery within the time fr ame established by regulations or market
convention are accounted for at the trade date. Trade date is the date when the Group commits to purchase or sell the
investment:
The above investments are classified into the following categories:
- Held-to-maturity
- Available-for-sale
- At fair value through profit or loss
2.7.1 Held-to-maturity
Investments with fixed or determinable payments and fixed maturity, where the management has both the intent and the
ability to hold the investments to maturity, are classified as held-to-maturity.
Subsequent to initial recognition at cost, these investments are measured at amortized cost less any accumulated impairment
losses. Amortized cost is calculated taking into account any discount or premium on acquisition by using the eff ective
interest rate method.
2.7.2 Available-for-sale
Investments which are intended to be held for an undefined period of time but may be sold in response to the need for
liquidity, changes in interest rates, equity prices or exchange rates are classified as available-for-sale.
Subsequent to initial recognition at cost, these are stated at the lower of cost or market value (market value being taken
as lower if the reduction is other than temporary) in accordance with the requirements of the SEC (Insurance) Rules, 2002.
The company uses st ock exchange quotations at the balanc e sheet da te to determine the mar ket value of its quot ed
investments whereas fair value of investments in delisted / unlisted companies is determined by reference to the net assets
and financial position of the investee on the basis of the latest available audited financial statements.
In case of fixed income securities redeemable at a given date where the cost is different from the redemption value, such
difference is amortized uniformly over the period between the acquisition date and the date of maturity in determining
'cost' at which these investments are stated as per the requirements of the SEC (Insurance) Rules, 2002.
2.7.3 At fair value through profit or loss
A financial asset is classified into the 'financial assets at fair value through profit or loss' category at inception if acquired
principally for the purpose of selling in the shor t term, if it forms part of a por tfolio of financial assets in which ther e is
evidence of short term profit taking, or if so designated by the management. Subsequently, these are measured at fair value
and gains and losses arising from change in fair value are included in the profit and loss account / revenue account.

2.8 Taxation
2.8.1 Current
Provision for current taxation is based on taxable income at the current rates of taxation after taking into account tax credits
and rebates available, if any. The charge for the current taxation also includes adjustments where considered necessary,
relating to prior years which arise from assessments framed / finalized during the year or required by any other reason.
2.8.2 Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from
differences between the carrying amount of assets and liabilities in the financial sta tements and the corresponding tax
bases used in the computation of the taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary
differences and deferred tax assets to the extent that it is probable that taxable profits will be available against which the
deductible temporary differences, unused tax losses and tax credits can be utilized.
Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on tax
rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited in the
profit and loss account, except in the case of items credited or charged to equity in which case it is included in equity.
2.9 Fixed assets
2.9.1 Tangible
Owned fixed assets, other than fr eehold land which is not depr eciated and capital w ork-in-progress, are stated at cost,
signifying historical cost, less accumulated depreciation and any provision for impairment. Freehold land and capital work-
in-progress are carried at cost less impairment losses, if any. Depreciation is charged to income applying varying methods
depending upon the na ture of the asset , at the rates specified for calculation of depreciation after taking into account
residual value, if any. The useful lives, residual values and depreciation method are reviewed, and adjusted if appropriate,
at each balance sheet date.
Assets subject to finance lease are accounted for by recording the assets at the lower of present value of minimum lease
payments under lease agreements and the fair value of asset at the inception of the lease contract. The related obligation
under the lease is accounted for as liability. Financial charges are allocated to accounting period in a manner so as to provide
a constant periodic rate of charge on the outstanding liability.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when
it is probable that future benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. All other repairs and maintenance costs are charged to profit and loss account as and when incurred.
Depreciation on additions is charged from the month the assets are available for use while on disposals, depreciation is
charged up to the month in which the assets are disposed off.
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate
that this carrying value may not be recoverable. If any such indications exist and where the carrying values exceed the
estimated recoverable amounts, the assets are written down to their recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount of the assets disposed off.
These are included in the profit and loss account currently.
2.9.2 Intangible
These are stated at cost less accumulated amortization and any provision for impairment.
Amortization is calculated from the month the assets are available for use using the straight-line method, whereby the cost
of the intangible asset is amortized over its estimated useful life over which economic benefits are expected to flow to the
company. The useful life and amortization methods are reviewed, and adjusted if appropriate, at each balance sheet date.

Software development costs are only capitalized to the extent that future economic benefits are expected to be derived
by the Group.
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate
that this carrying value may not be recoverable. If any such indications exist and where the carrying values exceed the
estimated recoverable amounts, the assets are written down to their recoverable amount.
2.10 Expenses of management
Holding company
Expenses of management allocated to the under writing business represent directly attributable expenses and indirect
expenses allocated to the various classes of business on the basis of net premium revenue. Expenses not allocable to the
underwriting business are charged as administrative expenses.
Subsidiary company
Expenses of management have been allocated to various classes of business as deemed equitable b y the management.
Allocation to each segment is based on the nature of the expense and its correlation to each segment.
2.11 Investment income
2.11.1 Income from available-for-sale investments
- Return on fixed income investments

Return on fixed income securities classified as available-for-sale is recognized on a time proportion basis.
- Dividend
Dividend income is recognized when the right to receive the dividend is established.
- Gain / loss on sale of available-for-sale investments

Gain / loss on sale of available-for-sale investments is recognized in profit and loss account currently.
- Return on Term Finance Certificates

The difference between the redemption value and the purchase price of the Term Finance Certificates is amortized
and taken to the profit and loss account over the term of the investment.
2.11.2 Income from held-to-maturity investments
Income from held-to-maturity investments is recognized on a time proportion basis taking into account the effective yield
on the investments.
2.11.3 At fair value through profit or loss
Gain or loss on sale of investment is included in profit and loss account or respective revenue account of the fund in the
period in which disposal has been made.
2.12 Foreign currencies
Transactions in foreign currencies (other then the result of foreign branches) are accounted for in Pak Rupees at the rates
prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated
into Pak Rupees at the rates of exchange prevailing at the balance sheet date. Exchange differences are taken to the profit
and loss account currently.
The assets and liabilities of foreign branches are translated to Pak Rupees at exchange rates prevailing at the balance sheet
date. The results of foreign branches are translated to Pak Rupees at the average rate of exchange for the year. Translation
gains and losses are included in the profit and loss account, except those arising on the translation of the net investment
in foreign branches, which are taken to the capital reserves (exchange translation reserve)

2.13 Financial instruments
Financial assets and liabilities are recognized at the time when the Group becomes a party to the contractual provisions
of the instrument and de-recognized when the Group loses control of contractual rights that comprise the financial assets
and in the case of financial liabilities when the obligation specified in the contract is discharged, cancelled or expired. Any
gain or loss on the de-recognition of the financial assets and liabilities is included in the profit and loss account currently.
Financial instruments carried on the balance sheet include cash and bank, loans, investments, premiums due but unpaid,
amounts due from other insurers / reinsurers, premium and claim reserves retained by cedants, accrued investment income,
reinsurance recoveries against outstanding claims, sundry receivables, provision for outstanding claims, amounts due to
other insurers / reinsurers, accrued expenses, other creditors and accruals, liabilities against assets subject to finance lease
and unclaimed dividends. The particular recognition methods adopted are disclosed in the individual polic y statements
associated with each item.
2.14 Dividend and appropriation to reserves
Dividend and appropriation to reserves are recognized as liability in the Group's consolidated financial statements in the
year in which these are approved.
2.15 Off setting
A financial asset and a financial liability is offset and the net amount is reported in the balance sheet when there is a legally
enforceable right to set-off the recognized amounts and it is intended either to settle on a net basis or to realize the asset
and settle the liability simultaneously.
2.16 Earnings per share
The Group presents basic earnings per share (EPS) for its shareholders. Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Holding C ompany by the w eighted average number of or dinary shares
outstanding during the period / year.
2.17 Share Capital
Shares are classified as equit y when ther e is no obliga tion to transfer cash or other assets . Incremental costs directly
attributable to the issue of equity instruments are shown in equity as a deduction from the proceeds.
2.18 Impairment
The carrying amount of the assets is reviewed at each balance sheet date to determine whether there is any indication of
impairment of any asset or a group of assets. If such indication exists, the recoverable amount of such assets is estimated
and the impairment losses are recognized in the profit and loss account currently.
Provisions for impairment are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Changes
in the provisions are recognized as income / expense currently.
2.19 Segment reporting
Holding company
Revised policy
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
makers (the board of directors) who is responsible for allocating resources and assessing per formance of the operating
segments.
The segment reporting is accounted for using the classes of business as specified under the Insurance Ordinance, 2000 and
the SEC (Insurance) Rules, 2002 as the primary reporting format based on the practice of reporting to the management on
the same basis.

Assets, liabilities and capital expenditures that are directly attributable to segments have been assigned to them while the
carrying amount of certain assets used jointly by two or more segments have been allocated to segments on a reasonable
basis. Those assets and liabilities which cannot be allocated to a particular segment on a reasonable basis are reported as
unallocated corporate assets and liabilities.
Previous policy
A business segment is a group of assets and operations engaged in providing products or services (business segment) or
in providing product or services within a particular economic environment (geographical segment) which are subject to
risks and returns that are different from those of other business segments.
This change in policy has been made on initial application of International Financial Reporting Standard (IFRS - 8) 'Operating
Segments'. There is no financial impac t of this change in ac counting policy on these c onsolidated financial statements
except for certain change in the disclosures.
Subsidiary company
The Company operates in Pakistan only. The Company has two primary business segments for reporting purposes namely;
Conventional Business and Accident and Health Business. The Company accounts for segment reporting using the classes
or sub-classes of business (Statutory Funds) as specified under the Insurance Ordinance, 2000 and SEC (Insurance) Rules,
2002 as the primary reporting format.
The Conventional Business seg ment includes I ndividual Life and Gr oup Life. The Individual Life business pr ovides life
assurance coverage to individuals under conventional policies issued by the Company. The Group Life business provides
life assurance coverage to members of business en terprises and corporate entities under group life insurance schemes
issued by the Company and insurance coverage to a group of members or subscribers registered under a common platform.
Accident and Health business seg ment provides fixed pecuniary benefits or benefits in the na ture of indemnit y or a
combination of both in case of accident or sickness to individuals.
2.20 Borrowing cost
Interest, mark-up and other charges on long-term finances are capitalized up to the date of commissioning of respective
qualifying assets acquired out of the proceeds of such long-term finances. All other interest, mark-up and other charges
are recognized in profit and loss account.
2.21 Statutory funds
Subsidiary company
The Company maintains statutory funds in r espect of each class of lif e assurance business in which it oper ates. Assets,
liabilities, revenues and expenses of the Company are referable to the respective statutory funds. However, where these
are not referable to statutory funds, these are allocated to shareholders' fund on the basis of actuarial advice. Apportionment
of assets, liabilities, revenues and expenses, whenever required between funds are made on the basis c ertified by the
appointed actuary of the C ompany. Policyholders’ liabilities have been included in sta tutory funds on the basis of the
actuarial valuation carried out by the appointed actuary of the Company on the balance sheet date as required by section
50 of the Insurance Ordinance, 2000.

3 SHARE CAPITAL
3.1 Authorized share capital

31 December 31 December 31 December 31 December
2009 2008 2009 2008
(Number of shares) (Rupees in thousand)
150,000,000 150,000,000 Ordinary shares of Rupees 10 each 1,500,000 1,500,000
3.2 Paid-up share capital

Issued, subscribed and fully paid:
Opening balance
250,000 250,000 Ordinary shares of Rupees 10 each 2,500 2,500
fully paid in cash
101,985,159 101,985,159 Ordinary shares of Rupees 10 each 1,019,851 1,019,851
issued as fully paid bonus shares
Issued during the year

10,223,517 - Ordinary shares of Rupees 10 each 102,235 -
issued as fully paid bonus shares
112,458,676 102,235,159 Closing Balance 1,124,586 1,022,351
3.3 As at 31 December 2009, MCB Bank Limited, Nishat Mills Limited, Security General Insurance Company Limited, D.G Khan
Cement Company Limited and Pakistan Molasses Company (Pvt.) Limited, associated undertakings, held 33,034,630 (2008:
30,031,483) 33,034 (2008: 30,031) 3,762,339 (2008: 3,420,309) 3, 219,447 (2008: 2,926,770) and 30,000 (2008: N il) ordinary
shares of Rupees 10 each, respectively.
2009 2008
4 RESERVES (Rupees in thousand)
Capital reserves
Reserve for exceptional losses 4.1 22,859 22,859
Investment fluctuation reserve 4.2 3,764 3,764
Capital contribution to statutory funds (31,840) -
Exchange translation reserve 4.3 173,424 115,108
168,207 141,731
Revenue reserve
General reserve 936,500 936,500
1,104,707 1,078,231
4.1 The reserve for exceptional losses represents the amount set aside in prior years up to 31 December 1978, in order to avail
the deduction while computing the taxable income under the old Income Tax Act of 1922. Subsequent to the introduction
of repealed Income Tax Ordinance, 1979, which did not permit the said deduction, the company discontinued the setting
aside of amounts as reserve for exceptional losses.
4.2 This amount has been set aside in pr ior years for utilization against possible diminution in the v alue of in vestments.
4.3 The exchange translation reserve represents the gain resulted from the translation of foreign branches (having business
in foreign currencies) of holding company into Pak Rupees. For the purpose of exchange translation reserve, the UAE and
Export Processing Zone branches are treated as f oreign branches since these car ry on their business in AED and US$
respectively.
In the previous years, the holding company did not properly account for the effect of translation of foreign operations in
to Pak Rupees. However, during the year the required correction has been made and the eff ect of translation of foreign
operations into Pak Rupees has been ac counted for retrospectively by the holding c ompany in ac cordance with the
International Accounting Standard (IAS) 8 'Accounting Policies, Changes in Accounting Estimates and Errors'. The effect of
retrospective restatement is tabulated below:
31 December 2009 31 December 2008 01 January 2008
Increase / (decrease) in retained earnings 58,316 123,416 (8,308)
(Decrease) / increase in creditors and accruals (58,316) (123,416) 8,308
There was no impact of this correction on the reported results and earnings per share

2009 2008
5 MINORITY INTEREST (Rupees in thousand)
Share capital 240,599 240,599

Profit for the year 5,642 (3,960)
Contribution to statutary funds (26,051) -
Opening retained earnings (3,960) -
216,230 236,639
6 POLICYHOLDERS' LIABILITIES Statutory Funds

Conventional Accident and 31 December 31 December
Life insurance: Business Health Business 2009 2008
6.1 Gross of reinsurance
Actuarial liability relating to future events 27,329 2 27,331 -
6.2 Net of reinsurance
Actuarial liability relating to future events 11,498 1 11,499 -
6.3 The appointed actuary of the subsidiary company (life insurance business) has carried out a valuation of the policyholders'
liabilities with respect to the Conventional Business and Accident and Health Business Statutory Funds as per section 50
of the Insurance Ordinance, 2000. The significant assumptions used in the valuations are as follows:
6.3.1 Valuation discount rate
In case of individual life policies, the valuation of policyholders' liabilities has been based on the disc ount rate of 3.75%,
which is in line with the r equirements under the repealed Insurance Act, 1938 and is considerably lower than the actual
investment return being managed on the conventional portfolio. The difference between the above and actual investment
return is intended to be available for meeting administration expense and provide margins for adverse deviation.
In case of group life policies, the policyholders' liability only includes reserve for unearned premium in accordance with the
advice of the appointed actuary.
6.3.2 Mortality assumption
For the purpose of valuing the life assurance contracts, the mortality assumption used is EFU 61-66. This table reflects the
mortality expectation in Pakistan. In the opinion of appointed actuary, the table gives the closest match to the underlying
mortality of the covered population.
6.3.3 Surrenders
For the purpose of valuation of conventional business, no provision has been made for lapses and surrenders. This gives
prudence to the value placed on the liability by not taking any credits for the profits made on surrenders.
Liability for claims "Incurred But Not Reported" (IBNR) is normally included in policyholders' liabilities. However, no liability
in respect of IBNR claims has been recognised at 31 December 2009 by the subsidiary company based on the advice received
from the appointed actuary as the subsidiary company in its initial year of operation and any such amounts are at present
not likely to be material.


2009 2008
7 PROVISION FOR OUTSTANDING CLAIMS (including IBNR) (Rupees in thousand)
General insurance
Related parties 272,098 260,184

Others 3,303,805 4,302,369
3,575,903 4,562,553
Life insurance 8,869 -

3,584,772 4,562,553
8 STAFF RETIREMENT BENEFITS - Unfunded staff gratuity
Opening balance 9,166 3,688
Charge for the year - holding company 8.1 4,111 3,989

- subsidiary company 8.2.3 717 -
13,994 7,677
Exchange loss - holding company 304 1,489

14,298 9,166
8.1 The above provision relates to the holding company's operations in UAE. Actuarial valuation has not been obtained as the
liability is not material.
8.2 The subsidiary company operates an unfunded g ratuity scheme for all permanent employees. An actuarial valuation is
carried out at 31 December 2009 to determine the liabilit y of the C ompany in respect of the scheme . The information
provided in notes 8.2.1 to 8.2.4 is based upon the ac tuarial valuation carried out as at 31 December 2009. The following
significant assumptions have been used for valuation of this scheme:
2009 2008
Percent per anum Percent per anum
Discount rate 13 -
Expected rate of increase in salaries 11 -
2009 2008
8.2.1 Amounts recognised in the balance sheet (Rupees in thousand)
Present value of the obligation 1,465 -

Fair value of plan assets - -
Unrecognised actuarial loss (748) -
Gratuity liability as at 31 December 717 -
8.2.2 Movement in the present value of the defined benefit obligation
Obligation at the beginning of the year - -

Current service cost 595 -
Interest cost 122 -
Actuarial loss 748 -
Benefits paid - -
Obligation at the end of the year 1,465 -

2009 2008
8.2.3 Amounts recognised in the profit and loss account
Current service cost 595 -

Interest cost 122 -
Expected return on plan assets - -
717 -
8.2.4 Actual return on plan assets
The subsidiary company does not have any plan assets as at 31December 2009 in respect of its unfunded gratuity scheme.
2009 2008
9 OTHER CREDITORS AND ACCRUALS Restated
Cash margin against performance bonds 459,463 372,228
Sundry creditors 114,495 23,022
Commission payable 416,733 388,817
Workers' welfare fund 80,401 23,518
Federal insurance fee 6,990 12,652
Payable to Employee's Provident Fund 9.1 (716) 709
Federal excise duty 108,948 58,313
Others 1,711 2,503
1,188,025 881,762
9.1 During the year an amount of Rupees 20.044 million (2008: Rupees 21.144 million) has been charged to the profit and loss
account in respect of the holding company's contributions to the Employees' Provident Fund.
10 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
Present value of minimum lease payments 148,911 -
10.1 Minimum lease payments
Not later than 1 year 45,514 -
Later than 1 year and not later than 5 years 159,314 -

204,828 -
Future finance charges on finance lease (55,917) -

Present value of finance lease liability 148,911 -
10.2 Present value of finance lease liabilities
Not later than 1 year 25,167 -

Later than 1 year and not later than 5 years 123,744 -
148,911 -
10.3 The above represents finance lease entered into with leasing c ompanies for motor vehicles. The liability is payable by
October 2014 in quarterly installments and is secured against respective vehicles and security deposits.
10.4 Lease payments are bearing variable markup rates include finance charges at KIBOR + 2% t o 2.5% per annum. KIBOR is
determined on quarterly basis.

11 CONTINGENCIES AND COMMITMENTS
11.1 Contingencies:
Holding company
The income tax assessments of the c ompany have been finalized up to and including the tax y ear 2009. However, the
company has filed appeals in respect of certain assessment years mainly on account of following:
(i) The Deputy Commissioner of Income Tax (DCIT) has finalized assessments for the assessment year 1999-2000 by
taxing capital gains at the full rate of 33%. The aggregate tax liability assessed by the DCIT amounted to Rupees
48.205 million against which the company has made a total provision of Rupees 44.141 million resulting in a shortfall
of Rupees 4.064 million. The company filed appeals with the Commissioner of Income Tax (Appeals) and Income Tax
Appellate Tribunal (ITAT) which were decided against the company. Consequently the company has filed an appeal
before the Honorable High Court of Sindh and the petition is fixed for regular hearing;
ii) The Additional Commissioner / Taxation Officer has reopened assessments for the assessment years 2000-2001 and
2001-2002 by taxing bonus shares received by the company during the above mentioned periods resulting in an
additional tax liability of Rupees 14.907 million. An appeal was filed before the Commissioner of Income Tax (Appeals)
who cancelled the amended order passed by the Additional Commissioner and allowed relief to the company but
the Tax Department had filed an appeal before the ITAT against the order of the Additional Commissioner, which
has been decided in favour of the company. There are chances that the Tax Department will file an appeal against
the decision of ITAT;
iii) While finalizing the assessment for the assessment year 2002-2003, DCIT has reduced the business loss for the year
by Rupees 88.180 million by adjusting the dividend income against this loss. The company maintains that it is entitled
to carry the gross loss forward for adjustment against the future taxable income and dividend income for the year
should be taxed separately at reduced rate. The appeals of the company in this respect have been rejected by the
Commissioner of Income Tax (Appeals), the ITAT and the Sindh High Court. The company has now filed a reference
application with the Supreme Court of Pakistan. The management is confident that the matter will eventually be
decided in favor of the company and has consequently not made any provision against the additional tax liability
of Rupees 26.455 million which may arise in this respect.
iv) The Tax Authorities have also amended the assessments for tax years 2003 to 2007 on the ground that the company
has not apportioned management and general administration expenses against capital gain and dividend income.
The company has filed constitution petition in the High Court of Sindh against the amendment in the assessment
order. The company may be liable to pay Rupees 5.881 million in the ev ent of decision against the c ompany, out
of which Rupees 2.727 million has been provided by the company resulting in a shortfall of Rupees 3.154 million.
v) The Taxation Officer has passed an order in the tax year 2005 and 2006 under section 221 of the Income Tax Ordinance,
2001 (the Ordinance) levying minimum tax liability aggregating to Rupees 38.358 million. An appeal had been filed
before the Commissioner of Income Tax (Appeals) who upheld the order of the Taxation Officer. The Company has
filed an appeal before ITAT which is pending to be heard.
vi) The Taxation Officer has passed an order under section 161/205 of the Ordinance in Tax year 2007 creating a demand
of Rupees 1.263 million. The company filed an appeal before the Commissioner of Income Tax (Appeals) which has
been decided against the company. The company is filing an appeal before the Income Tax Appellate Tribunal.
Pending resolution of the above-mentioned appeals filed by the company, no provision has been made in these consolidated
financial statements for the aggregate amount of Rupees 88.201 million (31 December 2008: Rupees 48.580 million) as the
management is confident that the eventual outcome of the above matters will be in favor of the company.
Subsidiary company
There were no contingencies as at 31 December 2009 (31December 2008: Nil).
11.2 Commitments:
Holding company
There were no capital or other commitments as at 31 December 2009 (31 December 2008:Nil).
Subsidiary company
Commitments in respect of leased assets - not later than one year is Rupees 4.069 million (31December 2008:Nil).


2009 2008
12 CASH AND BANK DEPOSITS
Cash and other equivalents

Cash in hand 4,895 7,878
Cheques in transit 56,901 33,759
61,796 41,637
Current and other accounts
Current accounts 204,941 6,269
Savings accounts 497,972 960,597
702,913 966,866
Deposits maturing within 12 months
Fixed and term deposits 12.1 1,408,449 1,198,950
2,173,158 2,207,453
12.1 These include fixed deposits amounting to Rupees 157.904 million (AED 6.895 million) [2008: (Rupees 146.724 million), (AED
6.847 million)] kept in accordance with the requirements of Insurance Regulations applicable in the UAE for the purpose
of carrying on business in the country. These also include liens against cash deposits of Rupees 4.451 million (2008: Rupees
4.451 million) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the company for
claims under litigation filed against the company.
12.2 Cash and bank deposits include an amount of Rupees 851.739 million (2008: Rupees 1,501.355million) held with r elated
parties.
13 LOANS - considered good
Secured
Executives 13.2 1,990 4,604
Employees 13.2 43,779 50,299
45,769 54,903
Less: Recoverable within one year shown under sundry receivables
Executives 20 2,368 4,372

Employees 20 15,018 23,679
17,386 28,051
28,383 26,852
13.1 Loans to employees are granted in accordance with the terms of their employment for the purchase of vehicles, purchase
/ construction of houses and for other purposes as specified in the SEC (Insurance) Rules, 2002. These loans are recoverable
in monthly installments over various periods and are secured by registration of vehicles, deposit of title documen ts of
property with the company and against provident fund balances of the employees. The loans are interest free except for
those granted for the purchase/ construction of houses which carry interest at the rate of 5% (2008: 5%) per annum.
13.2 Reconciliation of carrying amount of loans
2009 2008
Executives Others Total Executives Others Total
Opening balance 4,604 50,299 54,903 6,008 48,282 54,290

Disbursements 5,410 37,430 42,840 10,184 45,764 55,948
Repayments (8,024) (43,950) (51,974) (11,588) (43,747) (55,335)
Closing balance 1,990 43,779 45,769 4,604 50,299 54,903


2009 2008
14 INVESTMENTS (Rupees in thousand)
Held to maturity
1 year treasury bills 14.1 96,523 9,730
Available-for-sale
In related parties
Marketable securities 14.4 6,223,534 5,770,797

Less: Provision for impairment in value of investments 14.3 - (1,108,681)
6,223,534 4,662,116
Others
Marketable securities 14.4 3,530,982 3,137,302

Less: Provision for impairment in value of investments 14.3 (541,300) (1,305,820)
2,989,682 1,831,482
Fixed income investments 14.5 504,090 830,631

3,493,772 2,662,113
At fair value through profit or loss
Listed equity securities 14.6 1,615 -

9,815,444 7,333,959
31 December 2009 31 December 2008

Maturity year Carrying Value Carrying Value
14.1 Held maturity investments (Rupees in thousand)
1 year treasury bills 2010 96,523 9,730
14.2 At 31 December 2009, the fair value of available-for-sale securities was Rupees 10,606.372 million (2008: Rupees 6,788.261
million). As per the company's accounting policy, available-for-sale investments are stated at lower cost or market value
(market value being taken as lower if the reduction is other than temporary). However, International Accounting Standard
(IAS) 39, "Financial Instruments: Recognition and Measurements" dealing with the recognition and measurement of financial
instruments requires that these instruments should be measured at fair value. Accordingly, had these investments been
measured at fair value, their carrying value as at 31 December 2009 would have been higher by Rupees 496.835 million
(2008: lower by Rupees 841.385 million).
2009 2008
14.3 Reconciliation of provision for impairment in value of investments
Opening provision 2,414,501 28,322

(Reversal) / Charge for the year (1,873,201) 2,386,179
Closing provision 541,300 2,414,501


2009 2008
Cost Provision Carrying Carrying
there against Value Value
14.4 Marketable securities - Available for sale (Rupees in thousand)
In related parties:
- Listed shares 14.4.1 4,669,982 - 4,669,982 3,561,746
- Mutual Fund Certificates 14.4.1 1,553,552 - 1,553,552 1,100,370
6,223,534 - 6,223,534 4,662,116
Others:
- Listed shares 14.4.2 2,929,335 474,967 2,454,368 1,529,020
- Term Finance Certificates 14.4.3 181,791 4,019 177,772 173,329
- Unlisted/ delisted shares and debentures 14.4.4 120 - 120 120
- Mutual Fund Certificates 14.4.5 158,699 62,314 96,385 87,286
- NIT Units 161 - 161 161
- Pakistan Investments Bonds 260,876 - 260,876 41,566
3,530,982 541,300 2,989,682 1,831,482
9,754,516 541,300 9,213,216 6,493,598
Face 31 December 31 December

No. of Shares/ Certificates Company's name
value 2009 2008
31 December 31 December Rupees (Rupees in thousand)
2009 2008 Cost Cost
14.4.1 Related parties
Listed Shares
- 14,327 10 Mehran Sugar Mills Limited - 445
[Equity held Nil (2008: 0.15%)]
868,035 868,035 10 Nishat Mills Limited 18,586 18,586

[Equity held 0.138% (2008: 0.54%)]
115,500 115,500 10 Hub Power Company Limited 3,224 3,224

[Equity held 0.01% (2008: 0.01%)]
1,173,287 1,173,287 10 D.G. Khan Cement Company Limited 34,185 34,185

[Equity held 0.39% (2008:0.46% )]
21,148,526 19,225,933 10 MCB Bank Limited 4,613,987 4,613,987

[Equity held 3.06% (2008: 3.06%)]
4,669,982 4,670,427
Mutual Fund Certificates
- 11,213,525 100 MCB Dynamic Cash Fund - 1,100,370

[Units held Nil (2008: 12.05%)]
15,137,773 - 100 MCB Cash Management Optimizer Fund 1,553,552 -

[Units held 29.36% (2008: Nil)]
1,553,552 1,100,370
14.4.2 Other - listed shares
Investment Bank/ Investment Companies /

Security Companies
800,000 800,000 10 Arif Habib Securities Limited 98,981 98,981
34,377 34,377 10 Jahangir Siddiqui Co. Limited 7,373 7,373
Commercial Banks
1,008,700 917,000 10 Allied Bank Limited 56,773 56,773
- 166,666 Arif Habib Bank Limited - 3,796
1,275,945 1,020,756 10 Askari Bank Limited 71,871 71,871
- 1,246,000 10 Atlas Bank Limited - 20,232
5,485,268 4,302,171 10 Bank Al-Habib Limited 166,807 166,807
837,178 496,106 10 Bank Alfalah Limited 25,346 22,865


value 2009 2008
2009 2008 Cost Cost
- 50,000 10 Bank Islami Pakistan Limited - 1,043
116,880 97,400 10 Habib Bank Limited 22,373 22,373
3,210,728 2,568,583 10 Habib Metropolitan Bank Limited 100,026 100,026
- 200,000 10 JS bank Limited - 4,788
1,181,794 951,495 10 National Bank of Pakistan 167,673 164,683
- 497,000 10 Samba Bank Limited - 10,422
237,204 194,430 10 Soneri Bank Limited 7,627 7,627
1,818,070 1,818,070 10 United Bank Limited 204,194 204,194
Insurance
14,145 14,145 10 EFU General Insurance Co. Limited 1,081 1,081
10,255 9,116 10 Habib Insurance Co. Limited 22 22
163,817 163,817 10 International Gen. Ins Co. of Pakistan 22,888 22,888
286,843 286,843 10 Pakistan Reinsurance Co. Limited 6,326 6,326
Textile Spinning
57,778 57,778 10 Dewan Khalid Textile Mills Limited 1,142 1,142
400,000 400,000 10 Hira Textile Mills Limited 5,000 5,000
78,000 78,000 10 Service Industries (Textile) Limited 1,388 1,388
51,200 51,200 10 Shahzad Textile Mills Limited 634 634
Textile Composite
- 16,014 10 Hussain Industries Limited - 282
- 17 10 Janana-De-Melucho - -
- 5 10 Kohinoor Industries Limited - -
14,437 14,437 10 Zahur Textile Mills Limited 210 210
Jute
112,866 112,866 10 Crescent Jute Products Limited 2,183 2,183
109,807 109,807 10 Mehran Jute Mills Limited 1,150 1,150
12,117 10,098 10 Thal Limited. 2,003 2,003
Sugar And Allied

10,535 41,535 10 Crescent Sugar Mills & Distillery Limited 138 542
Cement
75,300 75,300 10 Lucky Cement Limited 9,126 9,126
- 208,500 10 Maple Leaf Cement Factory Limited. - 3,118
Refinery
5,480 5,480 10 National Refinery Limited 743 743
24,887 24,887 10 Pakistan Refinery Limited 2,438 2,438
Power Generation & Distribution

85,000 85,000 10 Kot Addu Power Company Limited. 3,913 3,913
20,000,000 - 10 Nishat (Chunian) Power Limited 200,000 -
Oil And Gas Marketing Companies

110,000 110,000 10 Pakistan State Oil Co. Limited 48,178 48,178
207,900 207,900 10 Shell Gas LPG Pakistan Limited 2,315 2,315
328,470 328,470 10 Shell Pakistan Limited 68,743 68,743
1,916,100 1,916,100 10 Sui Northern Gas Pipelines Limited. 127,666 127,666
Oil And Gas Exploration Companies

1,581,669 1,446,669 10 Oil and Gas Development Company Limited 168,784 161,274
427,171 427,171 10 Pakistan Oilfields Limited 101,082 101,082
1,399,329 1,150,941 10 Pakistan Petroleum Limited 259,896 256,732
Engineering
1,165,686 1,165,686 10 International Industries Limited 77,490 77,490


value 2009 2008
2009 2008 Cost Cost
Automobile Assembler
301,378 301,378 5 Al-Ghazi Tractors Limited 43,030 43,030
- 521 10 Indus Motor Company Limited - 167
315,635 252,508 10 Millat Tractors Limited 35,335 35,335
Cables And Electrical Goods

326,128 326,128 10 Pakistan Cables Limited 27,717 27,717
171,930 171,930 10 Siemens (Pakistan) Engineering Company Limited 135,531 135,531
Transport
47,400 47,400 10 Pan Islamic Steamship Company Limited 457 457
Technology And Communication

175,000 175,000 10 Pakistan Telecommunication Company Limited 7,151 7,151
25,000 25,000 10 World Call Telecommunication Limited 440 440
Fertilizer
355,335 253,811 10 Engro Chemical Pakistan Limited 69,686 64,610
404,078 404,078 10 Fauji Fertilizer Bin Qasim Limited 15,375 15,375
1,850,516 1,331,285 10 Fauji Fertilizer Company Limited 124,373 122,324
Pharmaceutical
1,242,596 1,242,596 10 Abbot Laboratories Pakistan Limited 151,883 151,883
- 52 10 Ferozsons Laboratories Limited - -
707,976 707,976 10 GlaxoSmithKline Pakistan Limited 84,811 84,811
Chemical
77,905 77,905 10 BOC Pakistan Limited 13,881 13,881
88,321 88,321 10 Clariant Pakistan Limited 11,762 11,762
1,840,330 1,840,330 Descon Oxychem Limited 18,403 18,403
41,400 41,400 10 ICI Pakistan Limited 8,561 8,561
Paper And Board

- 90 10 Packages Limited - 9
- 1,582 10 Security Papers Limited - 15
Food And Personal Care Products

- 15,630 10 Ismail Industries Limited - 233
535,493 486,812 10 Murree Brewery Company Limited 34,565 34,565
32,783 32,783 10 Nestle Milk Pak Limited 18,980 18,980
54,870 54,870 10 Rafhan Maize Products Limited 44,644 44,644
26,336 26,336 50 Unilever Pakistan Limited 35,847 35,847
Glass And Ceramics

26,831 26,831 10 Medi Glass Limited 417 417
Miscellaneous
75,000 75,000 10 Pace Pakistan Limited 2,903 2,903
2,929,335 2,750,574
14.4.3 Others-Term Finance Certificates
3,995 3,997 5,000 Allied Bank Limited (05/11/2006) 19,976 19,984

9,985 9,988 5,000 Bank Alfalah Limited (25/11/ 2005) 49,923 49,942
3,000 - 5,000 Bank Alfalah Limited (02/12/ 2009) 15,000 -
1,499 2,249 5,000 IGI Investment Bank Limited (10/07/2006) 7,497 11,246
1,998 1,998 5,000 Jahangir Siddiqui and Company Limited
(21/11/ 2006) 9,988 9,992
833 999 5,000 Orix Leasing Pakistan Limited (25/05/ 2007) 4,163 4,997
5,992 5,994 5,000 Pakistan Mobile Communication Limited
(31/05/ 2006) 29,958 29,970
3,940 3,941 5,000 Royal Bank of Scotland Limited (10/02/ 2005) 19,699 19,708
1,125 1,874 5,000 Searle Pakistan Limited (9/03/2006) 5,623 9,371
3,993 3,994 5,000 Soneri Bank Limited (5/05/2005) 19,964 19,972
181,791 175,182


value 2009 2008
2009 2008 Cost Cost
14.4.4 Others-Unlisted / delisted shares
12 12 10,000 Tariq Cotton Mills Limited (Karikot Textile) 120 120

120 120
14.4.5 Others-Mutual Fund Certificates
(Open Ended) Mutual Funds
1,124,911 1,000,000 100 ABL Income Fund 10,000 10,000

5,930 5,564 500 Atlas Income Fund 2,725 2,725
113,743 113,743 100 AMZ Plus Income Fund 10,000 10,000
- 13,609 100 Dawood Money Market Fund - 1,000
- 230,484 100 HBL Income Fund - 20,000
208,375 196,463 100 Meezan Islamic Income Fund 10,000 10,000
1,000,000 - 100 NIT Government Bond Fund 10,000 -
(Close Ended) Mutual Funds
9,277,937 9,277,937 10 JS Growth Fund 78,317 78,317

400,000 400,000 10 Pakistan Strategic Allocation Fund 4,000 4,000
2,757,705 2,757,705 10 PICIC Investment Fund 33,657 33,657
158,699 169,699
14.5 Fixed Income Investments
Defence Saving Certificates 504,090 830,631
14.6 Investments at fair value through profit or loss
Commercial Banks
5,000 - 10 Askari Bank Limited 137 -
Investment Bank/ Investment Companies /

Security Companies
30,000 - 10 Arif Habib Securities Ltd. 1,478 -
1,615 -

2009 2008
15 PREMIUMS DUE BUT UNPAID - Unsecured (Rupees in thousand)
Considered good 3,841,755 3,449,898

Considered doubtful 119,530 46,793
3,961,285 3,496,691
Less: Provision for doubtful balances 15.1 (119,530) (46,793)
3,841,755 3,449,898
15.1 Reconciliation of provision for doubtful balances
Opening provision 46,793 86,202

Exchange loss 90 19,659
Charge for the year 90,864 30,000
Written off during the year (18,217) (89,068)
Closing provision 119,530 46,793
15.2 Premiums due but unpaid include an amount of Rupees 173 million (2008: Rupees 88.6 million) held with related parties.


2009 2008
16 AMOUNTS DUE FROM OTHER INSURERS/ REINSURERS - Unsecured (Rupees in thousand)
Considered good 716,962 993,802

Considered doubtful 30,000 61,396
746,962 1,055,198
Less: Provision for doubtful balances 16.1 (30,000) (61,396)

716,962 993,802
16.1 Reconciliation of provision for doubtful balance
Opening provision 61,396 45,396

Charge for the year 50,390 16,000
Written off during the year (81,786) -
Closing provision 30,000 61,396
17 ACCRUED INVESTMENT INCOME
Return accrued on Term Finance Certificates 4,268 4,762

Return accrued on Pakistan Investment Bonds 7,614 -
Dividend income
- associated undertakings - -
- others 17,894 8,648
17,894 8,648
Return on deposit accounts
- associated undertakings 12,383 22,127
- others 2,718 1,855
15,101 23,982
Others 2,427 7,082
47,304 44,474
18 REINSURANCE RECOVERIES AGAINST OUTSTANDING CLAIMS
These are unsecured and considered to be good.
19 PREPAYMENTS
Prepaid reinsurance premium ceded 1,481,629 1,004,231

Others 73,578 60,465
1,555,207 1,064,696
20 SUNDRY RECEIVABLES
Considered good
Current portion of long-term loans
Executives 13 2,368 4,372
Employees 13 15,018 23,679
Other advances 86,935 51,913
Staff Gratuity Fund - Holding company 20.1.1 65,282 63,950
Security deposits 13,906 13,795
Stationery in hand 5,469 2,885
Sundry debtors 11,285 11,738
200,263 172,332
Miscellaneous
Considered good 215 87
Considered doubtful - -
215 87
200,478 172,419

20.1 Staff Gratuity Fund
The holding company operates an approved funded gratuity scheme for all employees. Actuarial valuation is carried out
every year and the latest valuation was carried out as at 31 December 2009.
The following significant assumptions have been used for valuation of this scheme:
Rate per annum

- Valuation discount rate 12.75%
- Expected rate of increase in salary level 10.60%
- Rate of return on plan assets 12.75%
The fair value of the scheme’s assets and liabilities for past services of the employees at the latest valuation date are as
follows:
2009 2008
Present value of defined benefit obligation at the end of the year 201,262 161,130
Fair value of plan assets at the end of the year (223,237) (250,143)
(21,975) (89,013)
Net unrecognized actuarial (losses) / gains (43,307) 25,063

Net assets (65,282) (63,950)
20.1.1 Amounts recognized in the balance sheet
Liabilities - -
Assets 65,282 63,950
Net assets 65,282 63,950
20.1.2 The amounts charged in profit and loss are as follows:
Current service cost 12,797 9,651

Interest on obligation 22,340 17,841
Expected return on plan assets (34,862) (29,814)
Actuarial gains recognized during the year (1,607) (3,935)
Total gratuity income for the year for funded obligation (1,332) (6,257)
20.1.3 Actual return on plan assets 17,762 (8,790)
20.1.4 Changes in present value of the defined benefit obligation
Present value of defined benefit obligation at the beginning of the year 161,130 173,663
Current service cost 12,797 9,651
Interest cost 22,340 17,841
Actuarial loss / (gain) 49,663 (16,441)
Benefits paid (44,668) (23,584)
Present value of defined benefit obligation at the end of the year 201,262 161,130
20.1.5 Changes in the fair value of plan assets
Fair value of plan assets at the beginning of the year 250,143 282,517
Expected return 34,862 29,814
Actuarial loss (17,100) (38,604)
Benefits paid (44,668) (23,584)
Fair value of plan assets at the end of the year 223,237 250,143
The holding company is not expected to contribute to the gratuity fund in 2009.

2009 2008
(Rupees in % (Rupees in %
20.1.6 Fund Investment thousand) thousand)
Government Bonds 4,074 1.8 57,853 23.1
Shares and deposits 117,153 52.5 100,041 40.0
Unit Trusts 90,148 40.4 83,545 33.4
Cash 13,075 5.9 13,785 5.5
Creditors (1,213) (0.5) (5,081) (2.0)
223,237 100.0 250,143 100.0
20.1.7 Amounts / percentages for the current and previous four periods
The company amortizes gains and losses over the expected remaining service of current plan members. The following table
shows obligation at the end of each year and the proportion thereof resulting from experience loss during the year. Similarly,
it shows plan assets at the end of the year and proportion resulting from experience gain during the year.
2009 2008 2007 2006 2005

Defined benefit obligation (201,262) (161,130) (173,663) (176,626) (200,739)

Plan assets 223,237 250,143 282,517 256,086 270,037
Surplus 21,975 89,013 108,854 79,460 69,298
Experience adjustments on plan liabilities 25% -10% -2% 3% -5%

Experience adjustments on plan assets -8% -15% 10% 10% -5%

2009 2008
21 FIXED ASSETS (Rupees in thousand)
Owned assets - tangible 21.1 844,070 904,128

- intangible 21.1 38,269 45,721
Capital work-in-progress 22,575 2,200
904,914 952,049
Leased assets 21.1 194,576 -
1,099,490 952,049

21.1 The following is a statement of operating fixed assets :

2009
Owned assets Leased assets
Tangible Intangible Tangible Total fixed
Furniture Machinery Computers assets
Land & Motor Total Computer Total Motor Total
and and and related
Buildings vehicles assets software owned vehicles leased
fixtures equipment accessories
At January 1, 2009
Cost 204,076 62,556 378,917 545,068 172,998 1,363,615 58,960 1,422,575 - - 1,422,575
Accumulated depreciation / amortisation 26,283 34,385 142,674 148,422 107,723 459,487 13,239 472,726 - - 472,726
Net book value 177,793 28,171 236,243 396,646 65,275 904,128 45,721 949,849 - - 949,849
Year ended December 31, 2009
Opening net book value 177,793 28,171 236,243 396,646 65,275 904,128 45,721 949,849 - - 949,849
Additions 104 16,874 52,945 75,451 10,903 156,277 3,781 160,058 207,486 207,486 367,544
Disposals
Cost - 1,905 100,819 15,583 415 118,722 - 118,722 3,205 3,205 121,927
Depreciation / amortisation - 1,178 44,982 12,053 183 58,396 - 58,396 160 160 58,556
- 727 55,837 3,530 232 60,326 - 60,326 3,045 3,045 63,371
Depreciation/ amortisation charge for the year 3,237 5,475 33,098 92,836 21,363 156,009 11,233 167,242 9,865 9,865 177,107
Closing net book value 174,660 38,843 200,253 375,731 54,583 844,070 38,269 882,339 194,576 194,576 1,076,915
At December 31, 2009
Cost 204,180 77,525 331,043 604,936 183,486 1,401,170 62,741 1,463,911 204,281 204,281 1,668,192
Accumulated depreciation / amortisation 29,520 38,682 130,790 229,205 128,903 557,100 24,472 581,572 9,705 9,705 591,277
Net book value 174,660 38,843 200,253 375,731 54,583 844,070 38,269 882,339 194,576 194,576 1,076,915
Depreciation rate per annum 10% 15% 15% 15%&16.67% 30% 20% 15%
2008
Owned assets Leased assets
Tangible Intangible Tangible Total fixed
Furniture Machinery Computers assets
Land & Motor Total Computer Total Motor Total
and and and related
Buildings vehicles assets software owned vehicles leased
fixtures equipment accessories
At 01 January 2008
Cost 204,076 52,821 344,954 303,586 131,184 1,036,621 9,096 1,045,717 - - 1,045,717
Net book value 181,055 22,373 233,625 220,266 42,940 700,259 3,308 703,567 - - 703,567
Year ended 31 December 2008
Opening net book value 181,055 22,373 233,625 220,266 42,940 700,259 3,308 703,567 - - 703,567
Additions - 11,031 49,575 246,001 21,804 328,411 5,185 333,596 - - 333,596
Disposals
Cost - 1,296 15,612 4,519 157 21,584 - 21,584 - - 21,584
Depreciation/ amortisation - 575 7,417 3,258 89 11,339 - 11,339 - - 11,339
- 721 8,195 1,261 68 10,245 - 10,245 - - 10,245
Transferred fromCapital Work in Progress
Cost - - - - 20,167 20,167 44,679 64,846 - - 64,846
Depreciation/ amortisation - - - - - - - - - - -
- - - - 20,167 20,167 44,679 64,846 - - 64,846
Depreciation/ amortisation charge for the year 3,262 4,512 38,762 68,360 19,568 134,464 7,451 141,915 - - 141,915
Closing net book value 177,793 28,171 236,243 396,646 65,275 904,128 45,721 949,849 - - 949,849
At 31 December 2008
Cost 204,076 62,556 378,917 545,068 172,998 1,363,615 58,960 1,422,575 - - 1,422,575
Net book value 177,793 28,171 236,243 396,646 65,275 904,128 45,721 949,849 - - 949,849
Depreciation rate per annum 10% 15% 15% 15%&16.67% 30% 20% 15%

21.1.1 Detail of tangible assets disposed of during the year are as follows:
Description Cost Accumulated Book Sale Mode of Particulars of purchaser

depreciation value proceeds disposal
Furniture & Fixtures
Various items 528 394 134 23 Negotiation Himmat Khan- Karachi
Various items 68 13 55 57 Full & Final Shamsul Haque- Karachi
Settlement (Ex-employee)
Various items 419 236 183 99 Negotiation Muhammad Asim - Lahore
Various items 200 91 109 123 Full & Final Amir Ahmed - Karachi
Various items 112 33 79 - Full & Final Capt. Akram (Ex- employee)
Settlement
Items having book value 578 411 167 142
below Rupees 50,000
1,905 1,178 727 444
Motor Vehicles
Owned
Suzuki Mehran 2004 322 200 122 160 Auction Kashif Waseem- Karachi
Honda Civic Vti 1,317 914 403 490 Auction Ali Hasan- Karachi
Toyota Saloon 1,169 406 763 725 Auction Muhammad Osama- Karachi
Daihatsu Cuore 2002 175 94 81 105 Auction Shahid Attari- Karachi
Honda Civic Exi Model 2005 963 536 426 450 Auction Taha Ansari- Karachi
Toyota Corolla 2004 1,100 522 578 410 Auction Muhammed Osama- Karachi
Suzuki Baleno 2004 616 291 325 290 Auction Mohammad Khuzaima- Karachi
Toyota Corolla 2003 1,050 486 564 430 Auction Amjad Iqbal- Karachi
Toyota Corolla 2004 1,100 502 598 598 Auction Ali Hasan- Karachi
Honda City 2002 700 329 371 230 Auction Ali Hasan- Karachi
Chevrolet Optral 2005 1,309 550 759 350 Full & Final Rafique Kapadai- Karachi
Suzuki Cultus 2005 590 288 302 325 Auction Taimoor- Karachi
Suzuki Mehran 2005 345 155 190 190 Auction M. Rehan- Karachi
Suzuki Mehran 2005 345 155 190 215 Auction Adnan Ahmad- Karachi
Suzuki Cultus 2001 350 158 192 160 Auction Nihal- Karachi
Hundai Santro 2005 560 251 309 325 Auction Afsar Khan- Karachi
Honda Civic Vti 2005 1,050 384 666 600 Auction Afsar Khan- Karachi
Honda Civic Vti 2005 850 353 497 415 Full & Final Emmanuel Mehr- Karachi
Daihatsu Coure Cng 2004 325 132 193 210 Auction S. M. Ali Jan- Karachi
Suzuki Sentro Club 2005 500 203 297 380 Auction Kashif Waseem- Karachi
Honda Civic Vti 2003 825 301 524 400 Auction Afsar Khan- Karachi
Honda Civic Vti 2004 900 351 549 440 Auction Muhammad Khuzaima- Karachi
Daihatsu Cuore Model 2006 464 204 260 215 Auction Zubair- Karachi
Daihatsu Cuore Model 2006 464 185 279 290 Auction M. Rehan- Karachi
Daihatsu Cuore Model 2006 464 204 260 215 Auction S. M. Ali Jan- Karachi
Toyota Corolla 2 Od Model 2005 950 355 595 325 Auction Amjad Iqbal- Karachi
Honda Accord 2.4 Model 2006 2,810 905 1,905 2,100 Auction Muhammad Dawad- Karachi
Honda City Vetc Model 2006 1,016 415 601 530 Auction Aamir- Karachi
Honda Civic Vti Model 2003 1,178 801 377 380 Auction Taha Ansari- Karachi
Honda Civic Vti 2004 1,100 455 645 550 Auction Ali Hasan- Karachi
Suzuki Cultus 590 254 336 325 Auction Fayyaz Anis- Karachi
Mitsubishi Lancer Glx 1500 1,130 416 714 425 Auction Taha Ansari- Karachi
Hyundai Santro Club 2007 600 198 402 385 Auction Shahid Attari- Karachi
Mitsubishi Lancer Glx 1300 830 274 556 420 Auction Shahid Attari- Karachi
Suzuki Mehran Model 2004 322 194 128 155 Auction Haroon Rasheed- Karachi
Suzuki Mehran 324 227 97 210 Auction Nihal- Karachi
Toyota Corolla 2.0D 556 376 180 185 Full & Final Rafiq Kapadia- Karachi (Ex-Employee)
Settlement
Suzuki Apv (Automatic) 1,106 246 860 970 Auction Shahid Attari- Karachi
Daihatsu Coure 2006 464 192 272 315 Auction Shahid Attari- Karachi
Toyota Corolla Xli 2004 450 86 365 350 Auction Muhammad Khadim Karachi
Honda Civic 1999 189 80 109 150 Auction Aamir- Karachi
Toyota Corolla 2003 825 352 473 410 Auction Zahid Yaseen- Karachi
Suzuki Cultus 2005 585 297 288 320 Auction Muhammad Rafiq


Honda Civic 651 226 426 250 Auction Shahid Attari- Karachi
Suzuki Cultus 2006 600 219 381 450 Auction S. M. Ali Jan- Karachi
Honda Civic 1,042 541 501 210 Auction Taimoor- Karachi
Honda City 795 474 321 250 Auction Fayyaz Anis- Karachi
Suzuki Mehran 2003 140 41 100 120 Auction Afsar Khan- Karachi
Suzuki Cultus 2005 585 335 250 310 Auction Adnan Ahmad- Karachi
Suzuki Cultus 2006 600 237 363 395 Auction Zahid Yaseen- Karachi
Honda City 2000 380 230 150 170 Auction Mohammad Rafi- Karachi
Suzuki Cultus 375 137 238 210 Auction Adnan Ahmad- Karachi
Suzuki Mehran 355 146 209 300 Full & Final Ameer Akber- Karachi (Ex-employee)
Settlement
Suzuki Maragala 1998 400 349 51 102 Auction Afsar Khan- Karachi
Suzuki Mehran 270 73 197 151 Auction Afsar Khan- Karachi
Toyota Corolla Xli-2003 775 315 460 415 Auction Muhammed Shahzad- Karachi
Honda Civic 2006 1,042 459 583 550 Auction Shahid Kathri- Karachi
Suzuki Cultus 374 66 308 350 Auction Zahid Yaseen- Karachi
Toyota Corolla Xli 879 362 517 550 Auction Muhammed Shahzad- Karachi
Suzuki Baleno 774 484 290 310 Auction Muhammad Rafi- Karachi
Honda Civic Vti Model 2008 600 224 376 590 Auction Shahid Kathri- Karachi
Suzuki Mehran 370 144 225 190 Auction Rehan- Karachi
Suzuki Mehran 2004 322 202 120 165 Auction Nihal- Karachi
Suzuki Mehran 2005 330 172 158 200 Auction Adnan Ahmad- Karachi
Suzuki Mehran 2005 330 172 158 160 Auction Shahid Kathri- Karachi
Hondai Santro Club 600 199 401 380 Auction Shahid Attari- Karachi
Honda City 400 241 159 260 Auction Muhammed Zubair- Lahore
Suzuki Cultus 350 159 191 200 Full & Final Naeemullah- (Ex-employee)
Settlement
Honda City 460 128 332 350 Full & Final Shams-ul-Haque (Ex-Employee)
Settlement
Suzuki Cultus 2005 585 278 307 290 Auction Kashif Waseem- Karachi
Suzuki Cultus 2005 585 278 307 335 Auction Zahid Yaseen- Karachi
Suzuki Cultus 2005 585 278 307 345 Auction Shahid Attari- Karachi
Suzuki Mehran 330 154 176 190 Auction Adnan Ahmad- Karachi
Suzuki Mehran 330 157 173 190 Auction Khamadam- Karahci
Suzuki Mehran 330 157 173 200 Auction Tariq Zameer - Karachi
Suzuki Mehran 330 157 173 185 Auction Zahid Yaseen- Karachi
Suzuki Mehran 345 183 162 162 Auction Rehan - Karachi
Suzuki Cultus 480 207 273 273 Auction Waqar Aziz - Karachi
Suzuki Mehran 234 47 187 192 Auction Haroon Rasheed - Karachi
Suzuki Mehran 332 204 128 128 Auction Nehal - Karachi
Suzuki Mehran 332 204 128 128 Auction Adnan - Karachi
Suzuki Mehran 250 117 133 100 Auction Nehal - Karachi
Daihatsu Cuore 464 192 272 272 Auction S.M. ALI Jan - Karachi
Honda City 522 111 411 310 Auction Muhammad Umair - Karachi
Mitsubishi Lancer 850 303 547 445 Auction Taha Ansari - Karachi
Suzuki Baleno 739 459 280 280 Auction Tariq Zameer - Karachi
Suzuki Mehran 345 158 187 187 Auction Mohammad Rafi - Karachi
Daihatsu Cuore 464 196 268 268 Auction Sabahat Ali - Karachi
Suzuki Mehran Vxr 2005 330 164 166 166 Auction Kashif Waseem - Karachi
Suzuki Cultus -2004 600 269 331 250 Auction Kashif Waseem - Karachi
Suzuki Cultus -06 600 229 371 371 Auction Zahid Yaseen - Karachi
Toyota Corolla Xli 1300Cc 2007 915 268 647 625 Auction Zubair - Karachi
Suzuki Cultus Vxr 2005 585 315 270 150 Auction ShahidAttari - Karachi
Toyota Corolla Xli 2007 879 257 622 590 Auction Zubair - Karachi
Toyota Corolla 855 801 54 280 Auction Ali Hasan
Toyota Corolla 500 337 163 350 Auction Imran Mughal - Lahore
Suzuki Mehran 324 211 113 125 Auction Kamran Arif - Karachi


Suzuki Cultus Vxr 590 260 330 340 Auction Rehan - Karachi
Suzuki Mehran Vxr 322 188 134 175 Auction Nehal - Karachi
Suzuki Cultus Vxr 2005 585 291 294 330 Auction Sabahat Ali - Karachi
Suzuki Mehran Vxr 2006 286 66 220 105 Auction Khamdam - Karachi
Suzuki Cultus - 2006 600 239 361 260 Auction Kashif Waseem - Karachi
Suzuki Mehran Vxr 2005 330 164 166 185 Auction Khamdam - Karachi
Suzuki Mehran 2005 345 144 201 180 Auction Kahif Waseem - Karach
Daihatsu Coure 2005 280 53 227 140 Auction Kahif Waseem - Karach
Daihatsu Coure 2005 345 74 271 295 Auction S. M. Ali Jan - Karachi
Suzuki Mehran 2005 369 158 210 210 Auction Tariq Zameer - Karachi
Toyota.Corolla 315 98 217 190 Auction Mohd. Asif - Karachi
Toyota.Coralla 2006 901 410 491 550 Auction S. M. Ali Jan - Karachi
Honda City 2006 885 388 497 495 Auction Waqar Aziz - Karachi
Honda City 2007 901 410 491 540 Auction A. Aamir - Karachi
Honda Civic 2005 1,042 453 589 500 Auction Taha Ansari - Karachi
Suzuki Cultus Vxr 600 239 361 320 Auction Rehan - Karach
Hyundai Santro 300 170 130 125 Auction M. Umari - Karachi
Suzuki Cultus 2005 585 303 282 320 Auction Fayyaz Anees - Karachi
Suzuki Mehran 2005 330 171 159 190 Auction Aamir - Karachi
Suzuki Cultus Vxr- 590 259 331 250 Auction Shahid Khatri - Karachi
Suzuki Cultus Vxr -2005 585 277 308 335 Auction Taimoor - Karachi
Honda City 912 353 559 440 Auction Sabahat Ali - Karachi
Suzuki Mehran Vxr 2004 215 34 181 115 Auction Rehan - Karachi
Suzuki Mehran Vx-2005 225 68 157 125 Auction Waqar Aziz - Karachi
Suzuki Mehran Vx-2005 330 164 166 215 Auction Shahid Attari - Karachi
Toyota Corolla Xli 901 363 538 400 Auction Ali Hassan - Karachi
Honda Civic Oriel 2005 1,262 495 767 500 Auction Zubair - Karachi
Suzuki Cultus Vxr Cng-2007 632 182 450 425 Auction Waqar Aziz - Karachi
Suzuki Cultus Vxr Cng-2005 585 264 321 380 Auction Mohammd Jawaid
Suzuki Mehran Vxr-Cng-2005 330 152 178 190 Auction Adnan - Karachi
Toyota Corolla 2005 899 286 613 520 Auction Muhammad Osama - Karachi
Suzuki Cultus Vxr-Cng 590 266 324 305 Auction Rehan - Karachi
Suzuki Cultus Vxl-Cng 550 250 300 320 Auction Nihal - Karachi
Suzuki Mehran Vxr 330 164 166 185 Auction Khamadam - Karachi
Suzuki Cultus Vxl-Cng 590 272 318 335 Auction Khamadam - Karachi
Honda Vti 2003 1,195 767 428 450 Auction Kashif Waseem - Karachi
Suzuki Cultus 585 278 307 482 Auction Kamal Akhter- Lahore
Suzuki Cultus 590 270 320 472 Auction Ifthikar Ali- Lahore
Suzuki Cultus 590 253 337 436 Auction M.Waqar- Lahore
Suzuki Cultus 590 270 320 447 Auction Aslam - Lahore
Suzuki Cultus 350 171 179 370 Auction Ifthikar Ali- Lahore
Suzukibaleno 750 361 389 512 Auction Adbud Hameed Choohan- Lahore
Suzuki Cultus 600 254 346 541 Auction Mohammad Ajmal- Lahore
Honda Vti 1,198 505 693 990 Auction Sohail Naseer- Lahore
Honda City 711 570 141 560 Auction Afzal Shahzad- Lahore
Toyota Corolla 879 358 521 937 Auction Hassan Qureshi- Lahore
Suzuki Cultus 585 320 265 423 Auction Zafarullah- Lahore
Toyota Corolla 870 356 514 826 Auction Zafarullah- Lahore
Honda City 2005 687 103 584 884 Auction Jawaid- Lahore
Suzuki Cultus Vxr Cng 374 56 318 476 Auction Jawaid- Lahore
Suzuki Mehran 2005 345 150 195 195 Auction Ahmed Rasheed- Lahore
Honda City - 2007 1300Cc 896 249 647 647 Auction Ghulam Sarwar- Lahore
Honda City - 2007 1300Cc 840 180 660 660 Auction G. Hussain Lahore
Honda Civic - 2005 1,042 446 596 850 Auction Waseem Raza- Lahore
Daihatsu Coure 464 174 290 502 Auction Javed Waheed - Lahore
Suzuki Cultus 585 299 286 511 Auction Muhammad Rasheed- Lahore
Suzuki Cultus 585 299 286 506 Auction Muhammad Rasheed- Lahore
Suzuki Cultus 585 299 286 444 Auction Masood-ul- Haq- Lahore
Suzuki Cultus 585 255 330 476 Auction M. Shakeel - Lahore
Daihtsue Cuore 741 291 451 476 Auction M. Shakeel - Lahore


Suzuki Cultus 2003 485 286 199 412 Auction Muhammad Zubair- Lahore
Suzuki Cultus 2005 590 305 285 471 Auction Muhammad Zubair- Lahore
Items having book value
below Rupees 50,000 1,029 906 122 432
100,819 44,982 55,837 58,712
Leased
06 Suzuki Mehran 2009 3,205 160 3,045 1,542 Claim Settelment IGI Insurance Company Limited
104,024 45,142 58,882 60,254
Machinery & Equipment

Various Machinery Items 2,342 2,156 186 162 Negotiation Abdul Basit S/o Abdul Baqui- Karachi
Various Machinery Items 2,770 2,061 709 251 Negotiation Ejaz Ahmed S/o Elyas Ahmed- Karachi
Office Chiller 3,220 2,179 1,041 41 Trade in Standard Cool Engineering
Services- Karachi
Various Machinery Items 147 92 55 55 Full & Final Mohammad Saleem- Karachi
Sattlement (Ex-employee
Generator Set 100 KVA 107 - 107 215 Negotiation Ali Hasan- Karachi
5 Sabro AC Splits 1.5 Tons 223 157 66 26 Negotiation Ramco Cool - Lahore
1 Split AC Clarial type 195 137 58 44 Negotiation Ramco Cool - Lahore
below Rupees 50,000 6,579 5,274 1,305 217

15,583 12,056 3,527 1,011
Computer 64 10 55 55 Negotiation Adamjee Life Assurance Co. Limited

below Rupees 50,000 351 173 178 133
415 183 233 188
121,927 58,559 63,369 61,897

2009 2008
22 EXPENSES (Rupees in thousand)
Salaries and wages 736,975 722,995

Rent, rates and taxes 78,518 63,769
Utilities 34,551 31,693
Communication 36,143 44,610
Printing and stationery 23,373 22,297
Traveling and entertainment 48,484 74,610
Repairs and maintenance 162,923 154,786
Advertisement and sales promotion 38,109 80,907
Amortization of intangible asset 21.1 11,233 7,451
Others 69,471 3,445
1,239,780 1,206,563
23 OTHER INCOME
(Loss) / Gain on sale of fixed assets (1,442) 2,404

Income from car repairs - 8,566
Interest on loans to employees 790 884
Return on bank deposits 133,493 119,664
Liabilities no longer required written back - 42,043
Miscellaneous 21,421 10,033
154,262 183,594


2009 2008
24 GENERAL AND ADMINISTRATION EXPENSES (Rupees in thousand)
Salaries and wages 24.1 177,891 183,128

Depreciation 21.1 165,874 134,464
Directors' fee 330 300
Legal and professional expenses 68,186 52,145
Auditors' remuneration 24.2 3,477 3,699
Donations 24.4 1,511 473
Provision for doubtful receivables 141,255 46,000
Workers' welfare fund 52,967 23,518
Others 140,209 86,023
751,700 529,750
24.1 These include Rupees 24.155 million (2008: Rupees 25.133 million) in respect of staff retirement benefits.
24.2 Auditors' remuneration
Holding company
Audit fee 3,172 2,572
Other certifications and tax advisory services 90 890
Out of pocket expenses 171 237
3,433 3,699
Subsidiary company
Audit fee 44 -
3,477 3,699
24.3 In addition, subsidiary company charged audit fee amounting to Rupees 0.398 million to its statutory funds.
24.4 None of the directors or their spouses had any interest in the donee.

25 PROVISION FOR TAXATION 2009 2008
Current
- for the current year 127,182 76,727
- for prior years (43,957) -
83,225 76,727
Deferred 25.2 78,103 (3,832)
161,328 72,895
25.1 Relationship between tax expense and accounting profit
Profit before taxation 2,608,348 1,163,246
Tax at the applicable rate of 35% 912,922 407,136

Effect of inadmissible expenses - 835,163
Effect of income exempt from tax (717,202) (1,071,235)
Effect of income taxed at lower rate (89,414) (98,758)
Others 98,979 589
205,285 72,895
Prior year's tax - current (43,957) -
161,328 72,895

2009 2008
25.2 Deferred tax effect due to temporary differences of:
Tax depreciation allowance 76,758 -

Provision for gratuity (4,778) -
Assets subject to finance lease 15,983 -
Pre commencement expenses of subsidiary company (13,692) (3,832)
74,271 (3,832)
Less: opening balance 3,832 -
78,103 (3,832)
26 EARNINGS PER SHARE
There is no dilutive effect on basic earnings per share which is based on:
Net profit after tax for the year attributable to owners of the parent 2,441,378 1,094,311
(Number of shares)
Weighted average number of shares 112,458,676 112,458,676
Rupees
Basic earnings per share 21.71 9.73
27 REMUNERATION OF CHIEF EXECUTIVE OFFICER, DIRECTORS AND EXECUTIVES
The aggregate amount charged for the year for remuneration including all benefits to chief executive officer, directors and
executive of the holding company is as follows:
2009 2008
Chief Directors Executives Total Chief Directors Executives Total
Executive Executive
Officer Officer
Fee - 330 - 330 - 300 - 300
Managerial remuneration 7,209 - 140,303 147,512 8,317 - 127,940 136,257
Allowances and perquisites 2,894 - 88,932 91,826 2,566 - 82,038 84,604
10,103 330 229,235 239,668 10,883 300 209,978 221,161
Number 1 10 107 118 2 10 92 104
In addition, the chief executive officer and executives of holding company are also provided with free use of the company's
cars, certain household items, furniture and fixtures and equipment in accordance with the policy of the company.
28 TRANSACTIONS WITH RELATED PARTIES
The Group has related party relationships with associates, employee benefit plans, key management personnel and other
parties. Transactions are entered into with such related parties for the issuance of policies to and disbursements of claims
incurred by them and payments of rentals for the use of premises rented from them.

There are no transactions with key management personnel other than their terms of employment. These transactions are
disclosed in notes 20 and 27 t o the financial statements. Particulars of transactions with the company's staff retirement
benefit schemes ar e disclosed in not e 20. I nvestments in and balanc es outstanding with r elated par ties (associated
undertakings) have been disclosed in the relevant consolidated balance sheet notes. Other transactions with related parties
(associated undertakings) are summarized as follows:
2009 2008
Subsidiary company
Associated undertakings
Premium written 39,245 -
Profit on bank deposits 20,969 5,392
Claims expense 9,456 -
Travelling expenses 5 -
Commission expense in respect of Bancassurance 1,384 -
Technical support fee 9,720 2,169
Travelling expenses of directors 4,769 -
Holding Compaany
Premium underwritten 802,481 723,781
Premium received 770,588 802,085
Premium ceded 14,034 9,204
Claims paid 550,746 486,216
Rent paid 11,023 2,727
Dividend received 208,820 232,447
Dividend paid 95,816 108,815
Income on bank deposits 100,303 22,127
Number of shares
Bonus shares received 1,922,593 447,680
Bonus shares issued 3,640,857 -
29 SEGMENT REPORTING
For general insurance, each class of business has been iden tified as reportable segment whereas, for life insurance the
statutory funds are treated as reportable segments. Segment wise revenue and results have been disclosed in the profit
and loss account. Following is a schedule of segment wise assets and liabilities:
2009
Segment Segment
General Insurance Net assets
assets liabilities
Fire and Property Damage 3,618,471 3,351,127 267,344
Marine, Aviation and Transport 688,623 514,526 174,097
Motor 2,707,357 3,789,672 (1,082,315)
Miscellaneous 1,387,620 1,571,735 (184,115)
Treaty - 22,962 (22,962)
Life Insurance
Conventional Business 41,398 41,398 -
Accident and Health Business 9 9 -
Unallocated Unallocated
assets liabilities
Unallocated corporate assets / liabilities 13,420,137 1,593,066 11,827,071
Total 10,979,120
Capital expenditure 180,434

2008
Segment Segment
Net assets
assets liabilities
General Insurance
Fire and Property Damage 3,426,270 3,406,225 20,045
Marine, Aviation and Transport 895,093 628,190 266,903
Motor 2,433,751 3,713,719 (1,279,968)
Miscellaneous 1,087,424 1,224,264 (136,840)
Treaty 6,281 20,104 (13,823)
Life Insurance
Conventional Business - - -
Accident and Health Business - - -
Unallocated Unallocated
assets liabilities
Unallocated corporate assets / liabilities 11,393,661 1,458,879 9,934,782
Total 8,791,099
Capital expenditure 335,795
30 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest /
mark-up rate risk, price risk and currency risk). The Group's overall risk management programme focuses on the unpredictability
of financial markets and seeks to minimize potential adverse effects on the financial performance. Overall risks arising from
the Group's financial assets and liabilities are limited. The Group consistently manages its exposure to financial risk without
any material change from previous period in the manner described in notes below. The Board of Directors of the holding
company has overall responsibility for the establishment and oversight of Group's risk management framework. The Board
is also responsible for developing the Group's risk management policies.
The individual risk wise analysis is given below:
30.1 Credit risk and concentration of credit risk
Credit risk is the risk that arises with the possibility that one party to a financial instrument will fail to discharge its obligation
and cause the other party to incur a financial loss. The Group attempts to control credit risk by monitoring credit exposures
by undertaking transactions with a large number of counterparties in various industries and by continually assessing the
credit worthiness of counterparties.
Concentration of credit risk occurs when a number of counterparties have a similar type of business activities. As a result
any change in economic, political or other conditions would affect their ability to meet contractual obligations in similar
manner. The Group's credit risk exposure is not sig nificantly different from that reflected in the c onsolidated financial
statements. The management monitors and limits the Gr oup's exposure and conservative estimates of pr ovisions for
doubtful assets, if any. The management is of the view tha t it is not exposed to significant concentration of credit risk as
its financial assets are adequately diversified in entities of sound financial standing, covering various industrial sectors.
The carrying amount of financial assets represents the maximum credit exposure, as specified below:
2009 2008
Bank deposits 2,111,362 2,165,816
Investments 9,815,444 7,333,959
Premium due but unpaid 3,841,755 3,449,898
Amount due from other insurers / reinsurers 716,962 993,802
Premium and claim reserves retained by cedants 24,235 28,682
Loans 45,769 54,903
Accrued investment income 47,304 44,474
Reinsurance recoveries against outstanding claims 1,845,562 2,188,101
Sundry receivable 112,341 77,533
18,560,734 16,337,168

General provision is made for receivables according to the Group's policy. The impairment provision is written of when the
Group expects that it cannot recover the balance due. During the year receivables of Rupees 141.344 million were further
impaired and provided for. The movement in the provision for doubtful debt account is shown in note 15.1 and 16.1.
2009 2008
The age analysis of receivables as follows:
Upto 1 year 3,457,437 3,055,334

1-2 year 384,318 394,564
3,841,755 3,449,898
The credit quality of Group's bank balances can be assessed with reference to external credit ratings as follows:
Rating Rating 2009 2008
Short term Long term Agency (Rupees in thousand)
Askari Bank Limited A1+ AA PACRA 45 45

Bank Alfalah Limited A1+ AA PACRA 106,380 10,325
Bank Alhabib Limited A1+ AA+ PACRA 7,398 3,077
Barclays Bank PLC, Pakistan P1 AA3 Moody's 100 100
Citibank N.A. P1 A1 Moody's 5,486 56,574
Faysal Bank Limited A1+ AA+ PACRA 15,737 15,521
Habib Bank Limited A1+ AA+ JCR-VIS 81,586 65,676
HSBC Bank Middle East Limited P-1 AA3 Moody's 2,157 334
Industrial Development Bank of Pakistan - - - 92 92
MCB Bank Limited A1+ AA+ PACRA 851,739 1,501,355
National Bank of Pakistan A1+ AAA JCR-VIS 8,827 -
Noor Islamic Bank, Dubai - - - - 214,300
Oman International Bank S.A.O.G. A2 BBB JCR-VIS 2,010 -
Soneri Bank Limited A1+ AA- PACRA 6,830 62,324
Standard Chartered Bank Limited A1+ AAA PACRA 9,613 2,577
United Bank Limited A1+ AA+ JCR-VIS 812,337 229,200
Zarai Taraqiati Bank Limited A1+ AAA JCR-VIS 200,025 3,316
Rozgar Microfinanceing Bank Limited B BB- JCR-VIS 1,000 1,000
2,111,362 2,165,816
The credit quality of amount due from other insurers can be assessed with reference to external credit rating as follows:
Amount due from Reinsurance

other insurers / recoveries against 2009 2008
reinsurers outstanding claims
A or above (including PRCL) 727,952 1,365,260 2,093,211 2,706,677

BBB 12,065 462,723 474,788 493,626
Others 6,945 17,579 24,524 42,996
Total 746,962 1,845,562 2,592,523 3,243,299
Subsidiary company's receivable from reinsurers was Nil as at 31 December 2009. Therefore, the above stated amounts are
of Holding company.
30.2 Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Prudent liquidity
risk management implies maintaining sufficient cash and mar ketable securities and the a vailability of adequate funds
through committed credit facilities. The Group finances its operations through equity, borrowings and working capital with
a view to maintaining an appropriate mix between various sources of finance to minimize risk. The management follows
an effective cash management program to mitigate the liquidity risk.

The following are the contractual maturities of financial liabilities, including estimated interest payments on an undiscounted
cash flow basis:
31 December 2009
Carrying Contractual Upto one More than
amount cash flow year one year
Financial liabilities
Provision for outstanding claims 3,584,772 3,584,772 3,584,772 -

Amount due to insurers / reinsurers 960,748 960,748 960,748 -
Accrued expenses 156,626 156,626 156,626 -
Unclaimed dividend 25,965 25,965 25,965 -
Other creditors and accruals 998,702 998,702 998,702 -
Liabilities against assets
subject to finance lease 148,911 204,828 45,514 159,314
5,875,724 5,931,641 5,772,327 159,314
31 December 2008
Carrying Contractual Upto one More than
amount cash flow year one year
Provision for outstanding claims 4,562,553 4,562,553 4,562,553 -

Amount due to insurers / reinsurers 596,123 596,123 596,123 -
Accrued expenses 84,153 84,153 84,153 -
Unclaimed dividend 25,055 25,055 25,055 -
Other creditors and accruals 785,557 785,557 785,557 -
subject to finance lease - - - -
6,053,441 6,053,441 6,053,441 -
30.3 Market risk
Market risk means that the fair v alue or future cash flows of a financial instrumen t will fluctuate because of changes in
market prices. The objective is to manage and control market risk exposures within acceptable parameters, while optimizing
the return. The market risks associated with the Group's business activities are interest / mark up rate risk, price risk and
currency risk.
a) Interest / mark up rate risk
Interest / mark-up rate risk is the risk that value of a financial instrument or future cash flows of a financial instrument will
fluctuate due to changes in the market interest/mark-up rates. Sensitivity to interest / markup rate risk arises from mismatching
of financial assets and liabilities that mature or repaid in a given period. The Group manages this mismatchment through
risk management strategies where significant changes in gap position can be adjusted. At the reporting date the interest
markup rate profile of the Group's significant interest / markup bearing financial instruments was as follows:

At the balance sheet date, the interest rate profile of the Group's significant interest bearing financial instruments.
2009 2008 2009 2008

Effective interest rate (in%) Carrying amounts
Fixed rate financial instruments
Financial assets
Investments-PIBs and DSCs 14% to 16% 14% to 16% 861,489 881,927
Loans 5% 5% 19,504 22,023
Floating rate financial instruments

Financial assets
Bank deposits 2.5%-15% 3-15% 1,906,421 2,159,547
Investments -TFCs 9.3%-15.5% 11.48%-18.52% 177,772 173,329
subject to finance lease 3 month KIBOR plus 2 to 2.5 148,911 -
percent
Sensitivity analysis
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore,
a change in interest rate at the balance sheet date would not affect profit or loss of the Gr oup. For cash flow sensitivity
analysis of variable rate instruments a hypothetical change of 100 basis points in interest rates at the reporting date would
have decreased / (incr eased) profit for the y ear by the amoun ts shown below. I t is assumed tha t the changes oc cur
immediately and uniformly to each category of instrument containing interest rate risk. Variations in market interest rates
could produce significant changes at the time of early repayments. For these reasons, actual results might differ from those
reflected in the details specified below. The analysis assumes that all variables remain constant.
Profit and loss 100 bps

Increase Decrease
As at 31 December 2009
Cash flow sensitivity-variable rate financial liabilities (1,489) 1,489
Cash flow sensitivity-variable rate financial assets 20,842 (20,842)
As at 31 December 2008
Cash flow sensitivity-variable rate financial liabilities - -
Cash flow sensitivity-variable rate financial assets 23,329 (23,329)
b) Price risk
Price risk represents the risk that the fair value of a financial instrumen t will fluctuate because of changes in the mar ket
prices (other than those ar ising from interest / mark up rate risk or currency risk), whether those changes are caused by
factor specific to the individual financial instrument or its issuer, or factors affecting all or similar financial instrument traded
in the market. The Group is exposed to equity price risk that arises as a result of changes in the levels of KSE-Index and the
value of individual shares. The equity price risk exposure arises from the Group's investments in equity securities for which
prices in the future are uncertain. The Group policy is to manage price risk through selection of blue chip securities.
The Group's strategy is t o hold its str ategic equity investments on long t erm basis. Thus, Group's management is not
concerned with short term price fluctuations with respect to its strategic investments provided that the underlying business,
economic and management characteristics of the investee remain favorable. Group strives to maintain above average levels
of shareholders' capital to provide a margin of safety against short term equity price volatility. The Group manages price
risk by monitoring exposure in quoted equity securities and implementing the strict discipline in internal risk management
and investment policies.

The Group has investments in quoted equity securities amounting to Rupees 7,794.483 million at the balance sheet date.
The carrying value of investments subject to equity price risk are, in almost all instances, based on quoted market prices
as of the balanc e sheet date. Market prices are subject to fluctuation which may result from perceived changes in the
underlying economic characteristics of the in vestee, the r elative price of alt ernative investments and gener al market
conditions.
Sensitivity Analysis
As the en tire investment portfolio has been classified in the a vailable-for-sale category, a 10% incr ease / decr ease In
redemption value and share prices at year end would have increased / decreased impairment loss of investment recognized
in profit and loss account or in revenue account of both statutory funds of life insurance business as follows:
Impact on profit Impact on

before tax equity
Effect of increase in share price 96,282 96,282

Effect of decrease in share price (763,040) (763,040)
c) Currency risk
Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. The Group’s principal transactions are carried out in P ak Rupees and its e xposure to foreign
exchange risk arises primarily with respect to AED and US dollar. Financial assets and liabilities exposed to foreign exchange
risk amounted to Rupees 2,355.100 million (2008:Rupees 1,774.983 million) and Rupees 1,523.086 million (2008:Rupees
1,024.001million) respectively, at the end of the year.
The following significant exchange rates were applied during the year:
2009 2008
(Rupees)
Rupees per US Dollar
Average rate 81.72 70.81
Reporting date rate 84.10 78.70
Rupees per AED

Average rate 22.24 19.28
Reporting date rate 22.90 21.43
30.4 Insurance risk
The principal risk the Group faces under insurance contracts is that the actual claims and benefit payments or the timing
thereof, differ from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and
subsequent development of long-term claims. Therefore the objective of the Group is to ensure that sufficient reserves are
available to cover these liabilities. The above risk exposure is mitigated by diversification across a large portfolio of insurance
contracts and geog raphical areas. The variability of r isks is also impr oved by careful selection and implemen tation of
underwriting strategy guidelines, as well as the use of r einsurance arrangements. Further, strict claim review policies to
assess all new and ongoing claims , regular detailed review of claims handling procedures and frequent investigation of
possible fraudulent claims and similar pr ocedures are put in place to reduce the risk exposure of the Group. The Group
further enforces a policy of actively managing and prompt pursuing of claims, in order to reduce its exposure to unpredictable
future developments that can negatively impact the Group.
Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision and are
in accordance with the reinsurance contracts.
Although the Group has reinsurance arrangements, it is not relieved of its direct obligations to its policyholders and thus
a credit exposure exists with respect to ceded insurance, to the extent that any reinsurer is unable to meet its obligations
assumed under such reinsurance agreements. The Group’s placement of reinsurance is diversified such that it is neither
dependent on a single reinsurer nor are the operations of the Group substantially dependent upon any single reinsurance

contract. Reinsurance policies are written with approved reinsurers on either a proportionate basis or non proportionate
basis. The reinsurers are carefully selected and approved, or dispersed over several geographical regions .
Experience shows that larger is the portfolio of similar insurance contracts, smaller the relative variability about the expected
outcome will be. In addition, a more diversified portfolio is less likely to be affected across the board by a change in any
subset of the portfolio. The Group has developed its insurance underwriting strategy to diversify the type of insurance risks
accepted and within each of the categories to achieve a sufficiently large population of risks to reduce the variability of the
expected outcome.
The Group principally issues the gener al insurance contracts (by Holding Company) e.g. marine and aviation, property,
motor and general accidents and life insurance policies (by Subsidiary Company) with respect to statutory funds established
in accordance with the requirements of the law i.e. for conventional business and accident and health business. Risks under
non-life insurance policies usually cover twelve months duration which in life insurance policies covers longer terms. For
general insurance contracts the most significant risks arise from accidental fire, atmospheric disaster and terrorist activities
and for life insurance these arise from accidental death and other health insurance of the insured persons. Insurance contracts
at times also cover risk for single incidents that expose the Group to multiple insurance risks.
a) Geographical concentration of insurance risk
To optimize benefits from the principle of average and low of large numbers, geographical spread of risk is of e xtreme
importance. There are a number of parameters which are significant in assessing the accumulation of risks with reference
to the geographical location, the most important of which is risk survey.
In general insurance risk surveys are carried out on a regular basis for the evaluation of physical hazards associated primarly
with the commercial / industrial / residential occupation of the insured. Details regarding the fire separation / segregation
with respect to the manufacturing processes, storage, utilities, etc are extracted from the layout plan of the insured facility.
Such details are formed part of the reports which are made available to the underwriters / reinsurers for their evaluation.
Reference is made to the standard construction specifications laid down by IAP (Insurance Association of Pakistan). For
instance, the presence of Perfect Party Walls, Double Fire Proof Iron Doors, physical separation between the building within
a insured's premises. It is basically the property contained within an area which is separated by another property by sufficient
distance to confine insured damage from uncontrolled fire and explosion under the most adverse conditions to that one
area. In respect of life insurance, comprehensive medical clearance and other factors are reviewed in detail to assess the
risks beforehead.
Address look-up and geocoding is the essential field of the policy data interface of IT systems. It provides instant location
which is dependant on data collection provided under the policy schedule. All critical underwriting information is punched
into the IT system / application through which a number of MIS r eports can be generated to assess the concentration of
risk.
The ability to manage catastrophic risk is tied to managing the density of risk within a particular area. For the catastrophic
aggregates, the IT system also assigns precise geographic CRESTA ( Catastrophic Risk Evaluating and Standardizing Target
Accumulations) codes with reference to the accumulation of sums insured in force at any particular location against natural
perils. A risk management solution is implemented to help assess and plan for risk in catastrophic scenarios. It provides a
way to better visualize the risk exposure to the Group determines the appropriate amount of reinsurance coverage to protect
the business portfolio.
b) Reinsurance arrangements
Keeping in view the maximum exposure in respect of key zone aggregates, a number of proportional and non-proportional
reinsurance arrangements are in place to protect the net account in case of a major ca tastrophe or loss. Apart from the
adequate event limit which is a multiple of the tr eaty capacity or the primary recovery from the proportional treaty, any
loss over and above the said limit would be recovered from the non-proportional treaty which is very much in line with the
risk management philosophy of the Group.

In compliance of the r egulatory requirement, the reinsurance agreements are duly submitt ed with the S ecurities and
Exchange Commission of Pakistan on an annual basis.
The concentration of risk by type of contracts is summarized below by reference to liabilities:
Gross sum insured Reinsurance Net

2009 2008 2009 2008 2009 2008
General Insurance:
Fire 2,719,659,322 1,725,705,436 1,787,340,739 879,067,044 932,318,583 846,638,392
Marine 1,079,711,929 1,243,512,262 139,707,048 241,676,674 940,004,881 1,001,835,588
Motor 91,732,566 96,789,632 1,264,496 929,279 90,468,070 95,860,353
Miscellaneous 237,486,155 260,337,892 147,311,927 95,506,976 90,174,228 164,830,916
4,128,589,972 3,326,345,222 2,075,624,210 1,217,179,973 2,052,965,762 2,109,165,249
Life Insurance:
Conventional business 5,108,490 - 3,383,657 - 1,724,833 -
Accident and health business 556,590 - 323,418 - 233,172 -
5,665,080 - 3,707,075 - 1,958,005 -
Total 4,134,255,052 3,326,345,222 2,079,331,285 1,217,179,973 2,054,923,767 2,109,165,249
c) Sensitivity Analysis
The risks associated with the insur ance contracts are complex and subjec t to a number of v ariables which complicate
quantitative sensitivity analysis. The Group makes various assumptions and techniques based on past claims development
experience. This includes indications such as average claims cost, ultimate claims numbers and expected loss ratios. The
Group considers that the liability for insurance claims recognized in the balance sheet is adequate. However, actual experience
may differ from the expected outcome.
Some results of sensitivity testing are set out below, showing the impact on profit before tax net of reinsurance.
Revenue account Pre tax profit Share holders' equity

2009 2008 2009 2008 2009 2008
10% increase in loss
Net:
Fire - General Insurance - - (65,045) (95,053) (42,279) (61,785)
Marine - General Insurance - - (41,888) (61,652) (27,227) (40,073)
Motor - General Insurance - - (243,554) (274,015) (158,310) (178,110)
Miscellaneous
- General Insurance - - (93,731) (86,096) (60,925) (55,962)
Conventional business
- Life Insurance (367) - (9) - (6) -
Accident and health business
- Life Insurance - - - - - -
(367) - (444,227) (516,816) (288,747) (335,930)
10% decrease in loss

Net:
Fire - General Insurance - - 65,045 95,053 42,279 61,785
Marine - General Insurance - - 41,888 61,652 27,227 40,073
Motor - General Insurance - - 243,554 274,015 158,310 178,110
Miscellaneous
- General Insurance - - 93,731 86,096 60,925 55,962
Conventional business
- Life Insurance 367 - 9 - 6 -
Accident and health business
- Life Insurance - - - - - -
367 - 444,227 516,816 288,747 335,930

d) Claims development tables
The following table shows the development of claims over a period of time. The disclosure goes back to the period when
the earliest material claim arose for which there is still uncertainty about the amount and timing of the claims payments.
Accident year 2007 2008 2009 Total

Estimate of ultimate claims cost:
At end of accident year 6,656,528 7,536,533 6,327,871 20,520,932

One year 5,807,134 7,122,262 - 12,929,396
Two years later 5,799,461 - - 5,799,461
Estimate of cumulative claims 5,799,461 7,122,262 6,327,871 19,249,594
Less: Cumulative payments to date 5,651,184 6,248,533 4,157,131 16,056,848
Liability recognized in the balances 148,277 873,729 2,170,740 3,192,746
Since this is the first year of operations by subsidiary company, the analysis in (d) above, is given only in respect of holding
company.
31 FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
The carrying values of all financial assets and liabilities r eflected in these consolidated financial statements approximate
to their fair values except for available-for-sale investments which are stated at lower of cost and market value in accordance
with the requirements of the SEC (I nsurance) Rules, 2002. The carrying and fair v alue of these in vestments have been
disclosed in note 14 to the financial statements.
32 NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE
The Board of Directors of the holding company in their meeting held on 30 March 2010 proposed a final cash dividend for
the year ended 31 December 2009 @ 15% Rupees 1.50/- shar e (2008: @ 10% Rupee 1.0/- shar e). This is in addition to the
interim dividend @ 15% Rupees 1.50/- share (2008: @ 15% Rupees 1.5/- share) resulting in a total cash dividend for the year
ended 31 December 2009 of Rupees 3/- per share (2008: Rupees 2.5/- share). The Board also proposed issue of bonus shares
@ 10% i.e 10 ordinary shares for every 100 ordinary shares held (2008: @ 10% i.e 10 ordinary shares for every 100 ordinary
shares held).The approval of the members f or the cash dividend and bonus shar es will be obtained a t the forthcoming
Annual General Meeting. The consolidated financial statements for the year ended 31 December 2009 do not include the
effect of these appropriations which will be accounted for in the consolidated financial statements for the year ending 31
December 2010.
33 CAPITAL RISK MANAGEMENT
The Group's goals and objectives when managing capital are:
- to be an appr opriately capitalized institution in c ompliance with the paid-up capital r equirement set by the SECP.
Minimum paid-up capital requirement for non-life insurers is raised to Rupees 300 million. While for life insurance it is
raised to Rupees 500 million. The Group is well in excess of the limit prescribed by the SECP and is also complying other
solvency requirements prescribed by SECP;
- to safeguard the Group's ability to continue as a going concern so that it can continue to provide returns for shareholders
and benefits for the other stakeholders;
- to provide an adequate return to shareholders by pricing insurance contracts and policies commensurately with the
level of risk;
- maintain strong ratings and to protect the company against unexpected events/ losses; and
- to ensure a str ong capital base so as t o maintain investor, creditor and mar ket confidence and t o sustain futur e
development of the business.

2009 2008
Number
34 NUMBER OF EMPLOYEES AT 31 DECEMBER
Holding company 1,088 1,214

Subsidiary company 33 10
1,121 1,224
35 DATE OF AUTHORIZATION FOR ISSUE
These consolidated financial statements have been approved and authorized for issue by the Board of Directors of the
holding company in their meeting dated 30 March 2010.
36 CORRESPONDING FIGURES
No significant rearrangement of corresponding figures has been made during the year except for 'amounts due to other
insurers/reinsurers' and 'amounts due from other insurers/reinsurers'. Certain balances of Rupees 458.743 million that were
off set in these account heads are now grossed up in the balance sheet.
Since the subsidiar y company was incorporated on 04 A ugust 2008, therefore, its financial sta tements consolidated in
corresponding figures were relating to the per iod from 04 August 2008 t o 31 D ecember 2008. Ho wever, the financial
statements of the Holding Company used for consolidation in corresponding figures were for the complete comparative
year. To such extent the corresponding figures disclosed in these consolidated financial statements are not comparable to
the current year's figures.
37 GENERAL
Figures in these consolidated financial statements have been rounded off to the nearest thousand of rupees.


PATTERN OF HOLDING OF THE SHARES
HELD BY THE SHAREHOLDERS
AS AT DECEMBER 31, 2009
No. of shareholders Shareholdings Total shares held
1,768 Holding from 1 to 100 shares 67,055

1,551 -do- 101 " 500 " 423,434
730 -do- 501 " 1000 " 565,070
1,066 -do- 1001 " 5000 " 2,527,805
265 -do- 5001 " 10000 " 1,922,569
130 -do- 10001 " 15000 " 1,573,569
67 -do- 15001 " 20000 " 1,205,575
43 -do- 20001 " 25000 " 958,050
42 -do- 25001 " 30000 " 1,181,835
23 -do- 30001 " 35000 " 753,215
12 -do- 35001 " 40000 " 445,469
14 -do- 40001 " 45000 " 610,155
14 -do- 45001 " 50000 " 678,598
10 -do- 50001 " 55000 " 530,785
9 -do- 55001 " 60000 " 524,946
5 -do- 60001 " 65000 " 312,418
14 -do- 65001 " 70000 " 949,833
4 -do- 70001 " 75000 " 294,121
6 -do- 75001 " 80000 " 467,464
3 -do- 80001 " 85000 " 249,060
11 -do- 85001 " 90000 " 959,982
4 -do- 90001 " 95000 " 376,915
6 -do- 95001 " 100000 " 597,500
3 -do- 105001 " 110000 " 326,000
3 -do- 110001 " 115000 " 339,864
1 -do- 115001 " 120000 " 120,000
3 -do- 120001 " 125000 " 368,600
3 -do- 125001 " 130000 " 386,596
1 -do- 130001 " 135000 " 134,652
1 -do- 135001 " 140000 " 136,000
1 -do- 135001 " 140000 " 136,301
1 -do- 140001 " 145000 " 144,500
3 -do- 145001 " 150000 " 445,917
2 -do- 150001 " 155000 " 309,275
1 -do- 165001 " 170000 " 166,000
3 -do- 175001 " 180000 " 535,163
3 -do- 180001 " 185000 " 551,208
2 -do- 185001 " 190000 " 375,993
6 -do- 195001 " 200000 " 1,200,000
1 -do- 200001 " 205000 " 200,500
1 -do- 205001 " 210000 " 209,301
2 -do- 210001 " 215000 " 428,254
1 -do- 240001 " 245000 " 241,042
2 -do- 255001 " 260000 " 515,370
1 -do- 265001 " 270000 " 270,000
1 -do- 270001 " 275000 " 275,000
1 -do- 295001 " 300000 " 300,000
1 -do- 305001 " 310000 " 309,702
1 -do- 315001 " 320000 " 317,500
2 -do- 335001 " 340000 " 675,883
1 -do- 345001 " 350000 " 350,000
2 -do- 360001 " 365000 " 725,535
1 -do- 370001 " 375000 " 371,200

No. of shareholders Shareholdings Total shares held
1 -do- 380001 " 385000 " 384,583

2 -do- 390001 " 395000 " 785,495
2 -do- 395001 " 400000 " 800,000
1 -do- 430001 " 435000 " 435,000
1 -do- 445001 " 450000 " 449,365
1 -do- 455001 " 460000 " 458,385
1 -do- 490001 " 495000 " 493,250
1 -do- 500001 " 505000 " 504,184
1 -do- 510001 " 515000 " 514,182
1 -do- 540001 " 545000 " 543,590
2 -do- 555001 " 560000 " 1,117,456
1 -do- 600001 " 605000 " 601,320
1 -do- 625001 " 630000 " 627,303
1 -do- 705001 " 710000 " 709,292
1 -do- 735001 " 740000 " 740,000
1 -do- 1190001 " 1195000 " 1,192,500
1 -do- 1200001 " 1205000 " 1,201,800
1 -do- 1495001 " 1500000 " 1,500,000
1 -do- 1640001 " 1645000 " 1,643,903
1 -do- 3215001 " 3220000 " 3,219,447
1 -do- 3755001 " 3760000 " 3,758,892
1 -do- 3760001 " 3765000 " 3,762,339
1 -do- 4600001 " 4605000 " 4,600,001
1 -do- 4660001 " 4665000 " 4,662,421
1 -do- 6655001 " 6660000 " 6,658,640
1 -do- 9015001 " 9020000 " 9,019,919
1 -do- 33030001 " 33035000 " 33,034,630
5,882 112,458,676

Categories of Shareholders Shares held Percentage
Directors
Umer Mansha 19,387 0.017
Alman Aslam 3,402 0.003
Ahmed Ebrahim Hasham 2,750 0.002
Ali Munir 5,174 0.005
Atif Bajwa (Nominee of MCB Bank) - -
Ibrahim Shamsi 5,398 0.005
Hassan Mansha 19,387 0.017
Khalid Qadeer Qureshi 2,750 0.002
S.M. Jawed 5,500 0.005
Nabiha Shahnawaz Cheema (Nominee of SGI) - -
Chief Executive Officer

Muhammad Ali Zeb 2,750 0.002
Directors / CEO's spouse - -
Executives / Executives' spouse - -
Associated Companies, undertakings & related parties

MCB Bank Ltd., 33,034,630 * 29.375
Nishat Mills Ltd. 33,034 0.029
Security General Insurance Co., Ltd. 3,762,339 3.346
D.G. Khan Cement Co., Ltd. 3,219,447 2.863
Pakistan Molasses Company (Pvt.) Limited 30,000 0.027
Banks, DFls and NBFls 5,037,769 4.480
Public sector companies and corporations 111,621 0.099
Insurance Companies 1,756,428 1.562
Modaraba and Mutual Funds 3,099,329 2.756
General Public
a) Local ( Individuals ) 32,543,561 28.938
b) Foreign Companies/ organizations/ Individuals 1,741,180 1.549
( on repatriable basis )
Others - See below 28,022,840 * * 24.918

112,458,676 100.000
Shareholders holding 10% or more voting interest 33,034,630 *

Categories of Shareholders Shares held
Others:
1 The Administrator, Abandoned Properties Organisation 110
2 Trustees Adamjee Foundation 9,019,919
3 Mobarak Begum Charitable Trust 10,676
4 Pakistan Human Development fund (7392) 10,000
5 Trustee - Karachi Sheraton Hotel Employees Provident Fund 10
6 Trustee - Nishat (Chunian) Ltd Employees Provident Fund 5,500
7 Trustee-MCB Employees Pension Fund 4,662,421
8 Trustee - MCB Provident Fund Pak Staff 3,758,892
9 Pakistan Memon Educational & Welfare Society 56,875
10 Trustee Cherat Cement Co. Ltd. Employees Provident Fund 5,000
11 Trustees Saeeda Amin Wakf 22,000
12 Trustees Mohamad Amin Wakf Estate 27,500
13 Ismailia Youth Services 3,599
14 Trustees ICI Pakistan Management Staff Provident Fund 56
15 Trustees Nishat Mills Ltd. Employees Provident Fund 184,112
16 Trustees D.G. Khan Cement Co. Ltd. Employees Provident Fund 90
17 Trustees Nestle Pakistan Ltd Employees Provident Fund 78,950
18 Trustees Nestle Pakistan Ltd Employees Gratuity Fund 50,000
19 Evacuee Trust Property Board 350,000
20 Pakistan Model Educational Institutions Foundation 150,000
21 Trustee - Ebrahim Bawany Foundation 35
22 Trustee - NWFP Pension Fund 86,900
23 Trustees of Overseas Pakistani Pension Trust 3,500
24 Trustee - Kohinoor Mills Ltd. Staff Provident Fund 11,000
25 Joint Stock Companies 9,525,695
28,022,840 **
Muhammad Ali Zeb

Lahore: 30 March 2010 Managing Director & Chief Executive

PROXY FORM
I/We .......................................................................................... of .......................................................................................... being a member of

Adamjee Insurance Company Limited hereby appoint Mr. ...................................................... of .......................................................
or failing him Mr. .................................................................. of .................................................................... as my/our Proxy to vote for
me/us and on my/our behalf at the 49th Annual General Meeting of the Company to be held on Monday, 26 April 2010
at 10:30 a.m. at the auditorium of the Institute of Chartered Accountants of Pakistan, Chartered Accountants Avenue,
G-31/8, Kehkashan, Clifton, Karachi and at any adjournment thereof.
Signed this ....................................................... day of ..............................................................2010
WITNESSES:
1- Signature
Name
Address
NIC No.
Rupees Five
2- Signature Revenue
Stamp
Name
Address
NIC No.
Signature
Holder of Ordinary Shares
Share Register Folio No.
“CDC” Participant's ID No. A/c. No.
(Please See Notes on reverse)

NOTES
1. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint another member
as a proxy to attend and vote instead of him/her. A corporation or a company being a member of the Company,
may appoint any of its officers, though not a member of the Company.
2. Proxies must be r eceived at the office of Company’s Registrar M/s Technology Trade (Pvt) Ltd., Dagia House,
241-C, Block 2, PECHS, Off: Shahrah-e-Quaideen, Karachi, not less than 48 hours before the time appointed for
the Meeting.
3. The signature on the instrument of proxy must conform to the specimen signature recorded with the Company.
4. CDC Account Holders will further have to follow the under-mentioned guidelines as laid down in Circular 1 dated
26 January 2000 issued by the Securities and Exchange Commission of Pakistan.
A. For attending the Meeting
i) In case of individuals, the account holder or sub-account holder shall authenticate his/her identity by
showing his/her original National Identity Card or original Passport at the time of attending the Meeting.
ii) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature
of the nominee shall be pr oduced (unless it has been pr ovided earlier) at the time of the M eeting.
B. For appointing Proxies
i) In case of individuals, the account holder or sub-account holder shall submit the proxy form as per the
above requirement.
ii) The proxy form shall be witnessed by two persons whose names, addresses and NIC numbers shall be
mentioned on the form.
iii) Attested copies of NIC or the passport of the beneficial owners and of the proxy shall be furnished with
the proxy form.
iv) The pr oxy shall pr oduce his/her or iginal NIC or or iginal passpor t a t the time of the M eeting.
v) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signatures
shall be submitt ed (unless it has been pr ovided ear lier) alongwith pr oxy f orm t o the C ompany.

Adamjee Consolidated Financial S 2009

Uploaded by

Copyright:

Available Formats

Adamjee Consolidated Financial S 2009

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Adamjee Consolidated Financial S 2009

Uploaded by

Copyright:

Available Formats

Consolidated

Adamjee Insurance Company Limited

Profit before tax 2,608,348

Profit attributable to minority interest (5,642)

EARNINGS PER SHARE

Muhammad Ali Zeb

111 Annual Report 2009

Adamjee Insurance Company Limited

RIAZ AHMAD & COMPANY

Name of engagement partner:

Karachi: 30 March 2010

Annual Report 2009 112

Adamjee Insurance Company Limited

Note 31 December 31 December 01 January

Share capital and reserves

Paid-up share capital 3.2 1,124,586 1,022,351 1,022,351

Balance of statutory funds 6 11,499 - -

Creditors and Accruals

CONTINGENCIES AND COMMITMENTS 11

TOTAL EQUITY AND LIABILITIES 21,863,615 19,242,480 18,765,963

113 Annual Report 2009

Adamjee Insurance Company Limited

Cash and bank deposits 12

Investments 14 9,815,444 7,333,959 8,132,102

Deferred taxation - 3,832 -

Current assets - others

Fixed Assets - Tangible & Intangible 21

TOTAL ASSETS 21,863,615 19,242,480 18,765,963

Umer Mansha S.M. Jawed Ibrahim Shamsi Muhammad Ali Zeb

Annual Report 2009 114

Adamjee Insurance Company Limited

General Insurance Life Insurance Total

Investment income - other 2,533,500 1,103,442

Provision for taxation 25 (161,328) (72,895)

Profit after tax 2,447,020 1,090,351

Profit attributable to:

Equity holders of the parent 2,441,378 1,094,311

Profit and loss appropriation account

Balance at the commencement of the year 6,453,878 5,666,273

Umer Mansha S.M. Jawed Ibrahim Shamsi Muhammad Ali Zeb

115 Annual Report 2009

Adamjee Insurance Company Limited

Profit for the year 2,447,020 1,090,351

Other comprehensive income:

Effect of translation of net investment in foreign branches 58,316 123,416

Capital contribution to statutory funds (57,891) -

Total comprehensive income for the year 2,447,445 1,213,767

Comprehensive income attributable to:

Umer Mansha S.M. Jawed Ibrahim Shamsi Muhammad Ali Zeb

Annual Report 2009 116

Adamjee Insurance Company Limited

Share capital Capital reserves Revenue reserves

Effect of restatement as referred in Note 4.3 - - - - - (8,308) - - (8,308) - (8,308)

Minority interest arising on investment

Total comprehensive income for the year

Final dividend for the year ended

Total comprehensive income for the year

Final dividend for the year ended

Transferred to reserve for issue of bonus shares - 102,235 - - - - - (102,235) - - -