Cic2006 Engro Final Report

8/9/2019 Cic2006 Engro Final Report

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Central Insurance Company Limited

Head Office:

Lahore Office:

Dawood Centre, M.T. Khan Road, Karachi-75530

Tel: (92-21) 5686001-16, 5684019, 5681491 Fax: (92-21) 5680218

35-A, Shahrah-e-Abdul Hameed Bin Badees (Empress Road), Lahore.

Tel: (92-42) 6301601-07 Fax: (92-42) 6364316, 6360343E-mail: [email protected] Website: www.ceninsure.com

ANNUAL REPORT 2006

Central InsuranceCompany Limited

Des

ign

edb

y:

Crea

tive

Un

it


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A N N U A L R E P O R T 2 0 0 6

PROMISING YOU SUCCESS,PEACE OFMIND &

FULFILLMENT


3/34

30 Auditors Report to the Members32 Balance Sheet34 Profit and Loss Accounts35 Statement of Changes in Equity36 Cash Flow Statement38 Statement of Premiums39 Statement of Claims40 Statement of Expenses41 Statement of Investment Income42 Notes to the Financial Statements

60 Pattern of Shareholding... Form of Proxy

25 Statement of Compliance with the Codeof Corporate Governance

28 Review Report to the Members onStatement of Compliance

5 Company Information6 Committees8 Key Financial Data11 Notice of Annual General Meeting

14 Directors Report23 Vision & Mission

BusinessOverview

Business and

Financial Review2

3

4

Corporate

Governance

StatutoryAccounts

1C

ONTENTS


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BOARD OF DIRECTORS

COMPANY SECRETARY & CFO

EXECUTIVES AT HEAD OFFICE

BRANCH MANAGER LAHORE

Hussain Dawood (Chairman)

Abdur Rahim (Chief Executive)

Aleem A. Dani

Shahzada Dawood

A. Samad Dawood

Haroon Mahenti

Aziz Moon

Ghulam Haider

Tariq Mehmood Awan (Manager)

Munawar Ali Siddiqui (Dy. Manager)

Mian Muhammad Akbar

AUDITORS

Ford Rhodes Sidat Hyder & Co.

(Chartered Accountants)

Progressive Plaza, Beaumount Road,

Karachi.

Website: www.ey.com/pk

BANKERS

TAX CONSULTANTS

LEGAL ADVISORS

REGISTERED OFFICE & SHARES

DEPARTMENT

Bank Al Habib Limited

Atlas Bank Limited

Habib Bank Limited

Standard Chartered Bank

Tanuli Qazi Law Associates

346-Hotel Metropol, Club Road,

Karachi.

Zahid & Tariq Advocates

Standard Chartered Building

1st floor, Room # 30

I.I. Chundrigar Road, Karachi.

Dawood Centre,

M.T. Khan Road, Karachi-75530

COMPANY INFORMATION

5


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Aleem A. Dani (Chairman)

Haroon Mahenti (Member)

A. Samad Dawood (Member)

Aziz Moon (Member)

Abdur Rahim (Chairman)

Ghulam Haider

Tariq Mehmood Awan

Munawar Ali Siddiqui


Ghulam Haider

Tariq Mehmood Awan



Ghulam Haider

Tariq Mehmood Awan


76


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STEERING THROUGHTHE ODDS NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Forty Seventh Annual General Meeting of Central Insurance

Company Limited will, Insha Allah, be held on Wednesday April 18, 2007 at 1000 hours at the

Registered Office of the Company at Dawood Centre, Moulvi Tamizuddin Khan Road, Karachi

to transact the following ordinary business after recitation from the Holy Quran:

1) To confirm the Minutes of the Annual General Meeting held on Tuesday

April 25, 2006.

2) To receive, consider and adopt the Audited Accounts of the Company for the

year ended December 31, 2006 together with the Auditors' and Directors'

Reports thereon.

3) To consider and, if thought fit, approve payment of final cash dividend at the

rate of 35% (Rs.3.50 per share) for the year ended December 31, 2006 as

recommended by the Board of Directors. This is in addition to the interim cash

dividend 15% (Rs.1.50 per share) already paid during the year.

4) To appoint auditors for the year ending December 31, 2007 and to fix theirremuneration.

We have received a notice from a member proposing the name of KPMG Taseer

Hadi & Company, Chartered Accountants as auditors in place of retiring auditors

Ford Rhodes Sidat Hyder & Company, Chartered Accountants who have completed

the period of five years in accordance with the circular No. 24 of 2005 dated

December 19, 2005 of Securities & Exchange Commission of Pakistan and

therefore, are not eligible for reappointment.

By order of the Board

Ghulam Haider

Karachi: March 19, 2007.

Company Secretary &

Chief Financial Officer

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Notes:

1. Closure of Share Transfer Books

2. Participation in the Annual

General Meeting

3. Proxy

The share transfer books of the

Company will remain closed from

April 12, 2007 to April 18, 2007

(both days inclusive). Transfers

received in order at the

Company's Registered Office by

the close of business onWednesday, April 11, 2007 will

be treated in time for the purpose

of payment of final cash dividend,

if approved by the Shareholders.

All members of the Company are

entitled to attend the Meeting and

vote there in person or through

Proxy. A Proxy, duly appointed,

shall have such rights as respects

speaking and voting at the

Meeting as are available to a

member. The proxies shall

produce their original CNICs or

original Passports at the time ofthe Meeting.

A member of the Company may

appoint another member as

his/her Proxy to attend and vote

instead of him/her. A Corporation

being a member may appoint any

person, whether or not a member

of the Company, as its Proxy. In

the case of corporate entities, the

Board of Directors resolution /

power of attorney with specimen

signature of the person nominated

to represent and vote on behalf of

the corporate entity, unless

provided earlier, shall be

submitted to the Company

alongwith the Proxy Form.

In order to be effective, Proxy

Forms, duly filled and signed,

must be received at the Registered

Office of the Company, not less

than forty eight (48) hours before

the Meeting. A blank Proxy Form

is attached herewith.

Shareholders are requested to

immediately notify the change of

address, if any.

4. Change of Address

DELIVERING THE

SERVICES YOU

DESERVE

12


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DIRECTORS REPORT

Assalam-o-Alikum,

The Directors of Central Insurance

Company Limited are pleased to

present the Forty-Seventh Annual

Report and audited accounts for the

year ended December 31, 2006.

The year 2006 has been a

profitable year for Central Insurance

Company as the company has

managed to develop a sound and

quality portfolio.

Your company is steadily growing. It

has recorded 274% increase in profit

after tax. Although underwriting profit

is down by 32% the investment

income increased by 216%. This has

enabled the company to secure higher

profit this year.

It is actively reviewing its marketing

strategies to improve business

performance for the benefit of its

stakeholders, policy holders and

employees. The company continues

to maintain profitable business

relations with Corporate clients.

COMPANY PERFORMANCE

Gross Premium

Net Premium

Underwriting Profit

Investment income includingcapital gain

Profit before tax

Profit after tax

Earnings per share of Rs. 10/- each

-39%

-26%

-32%

216%

228%

274%

274%

Rupees in Million

166.02

56.97

18.41

243.13

222.45

200.64

14.35

101.33

42.07

12.45

768.17

730.31

750.09

53.64

20052006 %

PERFORMANCE REVIEW:-

Gross Premium has declined by 39%

from the previous year's Rs.166.02

million to Rs.101.33 million. This is

as a result of our decision to

underwrite selective and good quality

business in order to increase

profitability. However Net Premium

declined by a lesser percentage point

of 26%.

Underwriting

Result

3,141

4,125

786

4,401

9,055

6,329

1,7771,244

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Fire Marine Motor Others

Segments

Rs.'000.

2005 2006

SEGMENTS AT A GLANCE

FIRE

Net premium declined by 51% to

Rs.8.62 million. Net Claims increased

from Rs. 5.52 million to Rs.6.17

million. As such the profitability

declined to Rs. 4.40 million from

Rs. 9.05 million of the last year.

(5,000)

-

5,000

10,000

15,000

20,000

Rs.

'000

.

2003 2004 2005 2006Year

Fire

Net Premium Net Claims Commission & Expenses

MARINE, AVIATION AND

TRANSPORT

Net premium declined by 37% to

Rs. 8.39 million. Net claims declined

to Rs. 5.71 million from Rs. 6.25

million. Profitability declined to

Rs. 3.14 million from last year's

Rs. 6.33 million.

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Rs.'000.

2003 2004 2005 2006Year

Marine

Net Premium Net Claims Commission & Expenses

Financial Highlights

1514


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11/34

The company has sold 2.8 million

shares of Pakistan Refinery Limited for

Rs.586.60 million realizing capital

gain of Rs.566.26 million. In addition

the company also sold investments in

Fertilizers, Oil and Gas Exploration

and Marketing, Insurance and

Sector wise Investments

29%

65%

6%

Oil & Gas Marketing F er ti li ze r O th er s

Financial Institutions for Rs.101.53

million realizing capital gain of

Rs.81.94 million.

For the year 2006 the Board of

Directors has recommended a final

cash dividend of Rs.3.50 (35%) for

approval by the shareholders in the

forth coming Annual General

Meeting. After taking into account the

already distributed dividend the total

cash appropriation is now Rs.5 (50%)

per share for the year under review.

During the year the company has re-

paid the entire short term running

finance.

APPROPRIATIONS

STATEMENT OF MATERIAL FACTS

Short Term Running Finance

SOCIAL AND CORPORATE

RESPONSIBILITY

Responsibility to Clients

Responsibility to Shareholders

RATING

The company focuses on strict

compliance to ethics and corporate

values including policies and

procedures that develop a corporate

culture through enhanced

communication, training and other

supporting initiative.

We aim to win the confidence of our

valued clients by developing and

providing quality insurance services.

We are determined to continually

develop and maximize the use of

technology for the benefit of our

customers.

We realize that for maximizing the

shareholder's value we must ensure

the highest possible standard of

financial management and risk

assessment.

Our operational strategy includes

preparing detailed financial plans,

setting objectives and monitoring

progress against projected

performance.

Among the 28 registered insurance

companies Central Insurance is one of

the 10 companies which have been

rated 'A' by approved Rating Agency

(JCR-VIS). This signifies the financial

strength of your company which is

stable and high capacity to satisfy

policyholders and contract

obligations.

All foreign as well as national banks

have accepted our financial strength

and net worth as sufficiently

dependable to enroll the company on

their panels of acceptable insurance

companies. This enables the company

to secure business from different bank

branches countrywide.

The company has implemented an

integrated computer Information

System which provides efficiency and

accuracy in all forms of

documentation. This system is

regularly upgraded to meet with new

requirements and development of

technology.

The company is reviewing its market

strategy and with prudent

underwriting the Management is

hopeful of profitable growth in

insurance businesses. The company is

looking forward to expand its

business by acquiring new clients in

the corporate sector.

LISTING WITH FINANCIAL

INSTITUTIONS

INFORMATION SYSTEM

FUTURE OUTLOOK

1918


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Vision

To be recognized as a highly ethical, innovative and technically

competent insurance company, dedicated to provide top quality

services to its clients in the field of risk assessment and insurance

coverage, while generating above average returns in the industry forthe investors.

Mission

To achieve the status of a quality service provider in the insurance

industry and seize opportunities for profitable growth through

introduction of new products, market share expansion and effective

utilization of resources, and ensure timely and equitable settlement of

claims, while providing adequate return to all stakeholders.

VISION AND MISSION STATEMENT

WE ARE CREATINGVALUE THROUGH

OUR PRODUCTIVITY

WE ARE CREATINGVALUE THROUGH

OUR PRODUCTIVITY23


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Financial Statements

This statement is being presented to comply with the Code of Corporate Governance contained in the

Regulation No. 37 (chapter XI) of listing regulations of Karachi Stock Exchange, clause 40 (chapter XIII) of

listing regulations of Lahore Stock Exchange and SRO 68 dated January 21, 2003 issued by Securities and

Exchange Commission of Pakistan for the purpose of establishing a framework of good governance,

whereby a listed insurance company is managed in compliance with the best practices of corporate

governance.

The company has applied the principles contained in the Code in the following manner:

1. The company encourages representation of independent non-executive directors and directors

representing minority interest on its Board of Directors. At present the Board comprises of all non-

executive directors except the Chief Executive Officer.

2. The directors have confirmed that none of them is serving as a director in ten listed companies.

3. All the resident directors of the company are registered as taxpayers and none of them has

defaulted in payment of any loan to a banking company, a DFI or an NBFI or, being a member of

stock exchange, has been declared as a defaulter by a stock exchange.

4. No casual vacancy occurred in the Board during the year.

5. The company has prepared a 'Statement of Ethics and Business Practices' and circularized the

same for acknowledgments from employees. The circularization and signing of said document

amongst directors will be made in due course.

6. The Board has developed a vision / mission statement, overall corporate strategy whereas formal

documentation for significant policies of the company will be developed and approved in due

course.

7. All the powers of the Board have been duly exercised and decisions on material transactions,

including appointment and determination of remuneration and terms and conditions of

employment of the Chief Executive Officer, have been taken by the Board.

8. The meetings of the Board were presided over by the Chairman and the Board met at least once

in every quarter. Written notices of the Board meetings, along with agenda and working papers,

were circulated at least seven days before the meetings. The minutes of the meetings were

appropriately recorded and circulated.

STATEMENT OF COMPLIANCE WITH THECODE OF CORPORATE GOVERNANCE

25


15/34


16/34

We have reviewed the Statement of Compliance with the best practices contained in the Code of

Corporate Governance for the year ended December 31, 2006 prepared by the Board of Directors of

Central Insurance Company Limited to comply with the Listing Regulation No. 37 of the Karachi Stock

Exchange and Chapter XIII of the Lahore Stock Exchange where the Company is listed.

The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors

of the Company. Our responsibility is to review, to the extent where such compliance can be objectively

verified, whether the Statement of Compliance reflects the status of the Company's compliance with the

provisions of the Code of Corporate Governance and report if it does not. A review is limited primarily to

inquiries of the Company personnel and review of various documents prepared by the Company to

comply with the Code.

As part of our audit of financial statements we are required to obtain an understanding of the accounting

and internal control systems sufficient to plan the audit and develop an effective audit approach. We have

not carried out any special review of the internal control system to enable us to express an opinion as to

whether the Board's statement on internal control covers all controls and the effectiveness of such internal

controls.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of

Compliance does not appropriately reflect the Company's compliance, in all material respects, with the

best practices contained in the Code as applicable to the Company, for the year ended December 31,

2006.


Karachi: March 19, 2007 Chartered Accountants

REVIEW REPORT TO THE MEMBERS ONSTATEMENT OF COMPLIANCE WITH THEBEST PRACTICES OF CODE OF CORPORATE

GOVERNANCE

28


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(b) the financial statements together with the notes thereon have been drawn up in conformity withthe Insurance Ordinance, 2000 and the Companies Ordinance, 1984, and accurately reflect the

books and records of the Company and are further in accordance with accounting policies

consistently applied except for the change as stated in note 5.1 to the financial statements, with

which we concur;

(c) the financial statements together with the notes thereon present fairly, in all material respects, the

state of the Company's affairs as at December 31, 2006 and of the profit, its cash flows and

changes in equity for the year then ended in accordance with Approved Accounting Standards as

applicable in Pakistan, and give the information required to be disclosed by the Insurance

Ordinance, 2000 and the Companies Ordinance, 1984; and

(d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was

deducted by the Company and deposited in the Central Zakat Fund established under Section 7

of that Ordinance.


Karachi: March 19, 2007 Chartered Accountants

We have audited the annexed financial statements comprising of:

i ) ba la nc e s he et ;

ii) profit and loss account;

iii) statement of changes in equity;

iv) cash flow statement;

v) statement of premiums;

vi) statement of claims;

vii) statement of expenses; and

viii) statement of investment income;

of CENTRAL INSURANCE COMPANY LIMITED as at December 31, 2006 together with notes forming

part thereof, for the year then ended.

It is the responsibility of the Company's Board of Directors / Management to establish and maintain a

system of internal control, and prepare and present the financial statements in conformity with the

Approved Accounting Standards as applicable in Pakistan and the requirements of the Insurance

Ordinance, 2000 (XXXIX of 2000) and the Companies Ordinance, 1984 (XLVII of 1984). Our

responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with the Auditing Standards as applicable in Pakistan. Those

standards require that we plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free of material misstatement. An audit includes examining, on a test basis,

evidence supporting the amounts and disclosures in the financial statements. An audit also includes

assessing the accounting policies used and significant estimates made by management, as well as,

evaluating the overall financial statements presentation. We believe that our audit provides a reasonable

basis for our opinion.

In our opinion:-

(a) proper books of account have been kept by the Company as required by the Insurance

Ordinance, 2000 and the Companies Ordinance, 1984;

AUDITORS REPORT TO THE MEMBERS

3130


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BALANCE SHEET AS AT 31 DECEMBER 2006

Aleem A. DaniDirector

Note 2006 2005

6

8

10

CONTINGENCIES

The annexed notes from 1 to 29 form an integral part of these financial statements.

(Rupees in 000)

Cash and Bank Deposits

Cash and other equivalents

Current and other accounts

Deposits maturing within 12 months

12

Investments 13

Deferred Taxation 14

Current Assets-Others

Premiums due but unpaid 15

Taxation-payments less provision

16Amounts due from other insurers/reinsurers

Accrued investment income

Reinsurance recoveries against outstanding claims

Deferred commission expense

Prepayments - Prepaid reinsurance premium ceded

Sundry receivables

Fixed Assets

Tangible

Furniture, fixtures and office equipment

Motor vehicles

Intangible

Computer software

17

Note 2006 2005

(Rupees in 000)

TOTAL ASSETS

17

BALANCE SHEET AS AT 31 DECEMBER 2006

Annual Report 2006 Annual Report 2006

Hussain DawoodChairman Abdur RahimChief Executive & Principal Officer Aziz MoonDirector

9

Share Capital and Reserves

Authorised share capital

Paid- up share capital

Retained earnings

Reserves

Underwriting Provisions

Provision for outstanding claims (including IBNR)

Provision for unearned premium

Commission income unearned

Total underwriting provisions

Deferred Liability

Staff retirement benefit

Creditors and Accruals

Premium received in advance

Amounts due to other insurers/reinsurers

Accrued expenses

Other creditors and accruals

Short- Term Running Finance

Other Liabilities

Unclaimed dividend

TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

6 150,000 150,000

1 39, 834 1 27, 122

1 ,1 85 ,3 84 4 94 ,4 05

7 133,088 133,088

1 ,4 58 ,3 06 7 54 ,6 15

43,849 33,595

31,442 53,558

3,950 5,198

79,241 92,351

1,260 1,920

1,073 3,683

13,320 28,847

12,124 17,156

12,241 21,111

38,758 70,797

- 430,581

7,485 9,283

1 26 ,7 44 6 04 ,9 32

1,585,050 1,359,547

69

304,871

2,608

307,548

1,146,086

16,254

9,381

10,741

58

21,558

35,695

7,951

22,796

1,358

109,538

1,314

3,235

1,075

5,624

1,585,050

667

84,591

2,599

87,857

1,099,115

2,944

21,129

78,548

398

19,496

3,453

10,871

26,711

2,867

163,473

1,401

3,006

1,751

6,158

1,359,547

11

3332


19/34


20/34

CASH FLOW STATEMENTFor the year ended 31 December 2006

2006 2005

Operating Cash Flows

(a) Underwriting activities

Premiums received

Re-insurance premiums paid

Claims paid

Re-insurance and other recoveries received

Commission paid

Commission received

Other underwriting receipts

Net cash flow from underwriting activities

(b) Other operating activities

Income tax paid

General management expenses paid

Other operating payments

Other operating receipts

Other receipts in respect of operating assets

Net cash flow from other operating activities

Total cash outflow from all operating activities

Investment activities

Profit / return received

Dividend received

Payments for purchase of investments

Proceeds from disposal of investments

Fixed capital expenditure

Proceeds from disposal of fixed assets

Total cash inflow / (outflow) from investing activities

Financing activities

Dividends paid

Total cash (outflow) / inflow from financing activities

Cash at the beginning of the year

Cash at the end of the year

(Rupees in 000)

Note

12

Short-term running finance obtained

Net cash inflow / (outflow) from all activities

Reconciliation to profit and loss account

Operating cash flows

Depreciation expense

(Loss) / profit on disposal of fixed assets

Capital work-in-progress

(Decrease) / increase in assets other than cash

Decrease / (increase) in liabilities other than running finance

Others

Investment and other income

Deferred taxation

Profit after taxation

Definition of cash

Cash and other equivalents

Cash in hand

Stamps in hand

Current and other accounts

Current accounts

PLS accounts

Deposits maturing within 12 months

Statutory deposit with State Bank of Pakistan

Term deposit receipts with bank


Cash for the purposes of the statement of cash flows consists of :

Cash in hand and at banks, stamps in hand and short term

placements with banks

2006 2005

(Rupees in 000)

Note

17

14

12

CASH FLOW STATEMENTFor the year ended 31 December 2006


Hussain DawoodChairman

Abdur RahimChief Executive & Principal Officer

Aziz MoonDirector

149,696

(108,610)

(91,165)

69,994

(24,783)

23,899

3,060

22,091

109,285

(25,175)

(38,509)

20,357

(21,205)

18,416

1,180

64,349

( 25 ,7 72 ) ( 20 ,5 96 )

(7,798) (7,164)

( 54 ,0 76 ) ( 25 ,4 66 )

467 3,734

(1,509) (1,799)

( 88 ,6 88 ) ( 51 ,2 91 )

(24,339) (29,200)

1,138 2,918

120 ,38 0 1 41,1 64

(84,491) (793,590)

6 87 ,262 26 4,2 90

(1,552) (4,273)

71 -

722,808 (389,491)

Short-term running finance paid

145 ,38 3 430 ,58 1

(575,964) -

( 48 ,1 97 ) ( 33 ,7 91 )

(478,778) 396,790

219,691 (21,901)

87,857 109,758

307,548 87,857

(25,214)

(1,755)

(260)-

(53,935)

48,672

(32,492)

769,272

13,310

750,090

(29,200)

(1,165)

(28)

481

(26,620)

11,266

(45,266)

246,095

(189)

200,640

34 257

35 410

69 667

444 72

304,427 84,519

304,871 84,591

368 368

2,240 2,231

2,608 2,599

307,548 87,857


3736


21/34

11

,516

1,7

24

621

5,6

35

19

,496

19

,496

10

,315

9,0

28

667

347

20

,357

20

,357

16,4

67

15

,000

17

,214

82

48

,763

48

,763

Marine,AviationandTranspo

rt

3.

Motor

11,415

18,544

3,833

26,126

3,724

359

192

3,891

4.

Miscellaneous

3,875

2,551

1,274

5,152

1,726

1,098

494

2,330

Total

101,327

53,558

31,442

123,443

77,455

26,711

22,796

81,370

Treaty

5.

Proportional

-

-

-

-

-

-

Total

-

-

-

-

-

-

GrandTotal

22,796

81,370

22,235

2,822

42,073

- -

42,073

Theannexednotesfrom

1to29

form

anintegralpartofthesefinancialstatements.

Ale

em

A.D

an

i

Director

Hussa

inD

awoo

d

Chairman

Abd

ur

Ra

him

Chief

Executive

&

Principal

Officer

Az

izM

oon

Director

22,919

3,146

56,969

- -

56,969

26,711

77,455

31,442

- -

53,558

- -

101,327

STATEMENTOFCLAIMS

Fortheyearen

de

d31Decem

ber

200

6

Re-insurance

andother

recoveries

received

Re-insurance

andother

recoveries

revenue

2006

Netclaims

expense

Claims

paid

Claims

exp

ense

Class

Opening

Closing

Opening

Clo

sing

D

irectand

Facultative

1.

FireandPropertyDamage

2.

Marine,AviationandTransport

3.

Motor

4.

Miscellaneous

Total

Treaty

5.

Proportional

-

-

-

Total

-

-

-

-

GrandTotal

Reinsuranceandother

recoveriesinrespectof

outstandingclaims

Outstandingclaims -

2005

Netclaims

expense

--

- -

- -

------------------------------------------------------------------------------

-----------------(Rupeesin000)-------------------------------------------------------------------------------------------------------------------------------

----------------------

123,443

34,071

7,506

3,722

37,855

26,050

6,413

3,002

29,461

8,394

13,248

- -

12

,622

14

,722

9,7

81

1,3

84

38

,509

38

,509

- -

18

,350

3,6

69

4,6

55

6,9

21

33

,595

33

,595

3,9

47

22

,195

12

,088

5,6

19

43

,849

43

,849

5,5

16

6,2

47

10

,976

707

23

,446

23

,446

6,1

69

13

,210

1,2

57

26

,344

5,7

08

26

,344

10

,298

9,2

92

4,0

04

(1,1

75)

22

,419

22

,419

11,4

99

1,9

88

3,9

58

4,1

13

21,5

58

21,5

58

- -

Premiums

written

Premiums

earned

Re-insurance

ceded

Re-insurance

expense

2006

revenue

Netpremium

200

revenue

5

Netpremium

Class

Directand

Facultative

1.

FireandPropertyDamage

51,966

24,957

22,613

54,310

45,955

18,841

19,108

45,688

2.

8,622

--------------------------------------------------------------------------------------------------(Rupeesin000)-----------------------------------------------------------------------------------------------------------------------------------------------------

Opening

Closing

Opening

Closing

17,656

Theannexednotesfrom

1to29

form

anintegralpartofthesefinancials

tatements.

PrepaidRe-insurance

premiu

m

ceded

Unearnedpremium

reserve

STATEMENTOFPREMIUM

S

Fortheyear

en

de

d31Decem

ber2

006

Ale

em

A.D

an

i

Director

Hussa

inD

awoo

d

Chairman

Abd

ur

Ra

him

Chief

Executive

&

Principal

Officer

Az

izM

oon

Director

Bus

iness

un

derwritten

ins

ide

Pa

kistan


3938


22/34

2006 2005

Income from Non-Trading Investments

Held to Maturity

Return on Government Securities

Available for sale

Dividend Income:

- Related parties 112,800

- Others 7,224

120,024

Gain on Sale of available for sale investments 648,198

Zakat deducted (60)

Net Investment Income 768,169


(Rupees in 000)

Less: Investment related expenses

STATEMENT OF INVESTMENT INCOMEFor the year ended 31 December 2006

Hussain DawoodChairman Abdur RahimChief Executive & Principal Officer Aziz MoonDirectorDire

ctand

Facu

ltative

Trea

ty

Commissions

paidor

payable

Opening

deferred

commission

Closing

deferred

commission

Net

co

mmission

expense

Other

management

expenses

Commissions

from

reinsurers

2006

Net

underwriting

expense

Underwriting

expense

Class

1.FireandPropertyDamage

2.Marine,AviationandTransport

3.Motor

4

Miscellaneous

Total

5

Proportional

-

-

Total

-

-

GrandTotal

Theannexednotesfrom

1to29

form

anintegralpartofthesefinancia

lstatements.

2005

Net

underwriting

expense

Ale

em

A.D

ani

Director

Hussa

inD

awoo

d

Chairman

Abd

ur

Ra

him

Chief

Executive

&PrincipalO

fficer

Az

izM

oon

Director

--

--

--

--

--

- -

--------------------------------------------------------------------------------------------------------

(Rupees

in

000)

-----------------------------------------------------------------------------------

-----------------------

10

,418

6,2

56

4,9

06

1,3

60

22

,940

7,7

19

3,6

89

778

606

12

,792

12

,792

5,0

22

1,6

39

3,6

48

562

10

,871

10

,871

6,6

23

535

596

197

7,9

51

7,9

51

4,3

00

1,4

63

1,0

76

389

7,2

28

7,2

28

12

,366

6,7

11 6

581

19

,664

19

,664

(1,9

48)

(455)

4,9

00

779

3,2

76

3,2

76

4,0

98

1,8

36

8,3

59

825

15

,118

15

,118

6,1

18

4,7

93

3,8

30

15

,712

15

,712

971

22

,940

7 5

121,906

129,080

114,102

(60)


7,174

243,127

ST

ATEMENTOFEXPENSES

Fortheyearen

de

d31Decem

ber2

006

Business

un

derwritten

insi

de

Pa

kistan

- -


4140


23/34


24/34


25/34


26/34


27/34


28/34


29/34


30/34


31/34


32/34

PATTERN OF SHAREHOLDINGAs At 31 December 2006

From To

Shareholding RangeNumber fo

Shareholders

Total

Shares Held

S. No.Number of

Shareholder

Total Shares

HeldPercentage

Categories of

Shareholders

PATTERN OF SHAREHOLDING AS AT 31 DECEMBER 2006

Disclosure Requirement Under the Code of Corporate Governance

1. Associated Companies, Undertakings & Related Parties.

a. Dawood Corporation (Pvt) Ltd.

b. Dawood Industries (Pvt) Ltd.

c. Dawood (Pvt) Ltd.

d. Sach International (Pvt) Ltd.

e. Patek (Pvt) Ltd.

2 . NI T & I CP

Investment Corporation of Pakistan

3. Directors & CEO (Including holding of their spouses & minor children)

a. Hussain Dawood Chairman

b. Abdur Rahim CEO, Director

c. Shahzada Dawood Director

d. A. Samad Dawood Director

e. Aziz Moon Director

f. Haroon Mehanti Director

g. Aleem A. Dani Director

4. Executives

5. Public Sector Companies and Corporations

6. Banks, Development Finance Institutions, Non Banking Finance

Institutions, Insurance Companies, Modarbas & Mutual Funds

7 . Ot he rs

a. Cooperative Societies

b. Administrator of Abandoned Properties

8. Shareholders holding 10% or more shares

a. Dawood Corporation (Pvt) Ltd.

b. Hussain Dawood

S.No. Categories of Shareholders Shares held

85

77

65

121

35

52

1

1

1

1

2

4

1

1

1

1

1

1

2

3

4

5

6

7

6,978,020

27

279,665

6,294,366

12,244

296,695

122,437

13,983,454 100405

376

1

9

9

3

6

1

ABANDONED PROPERTIES

CO - OPERATIVE SOCIETIES

INVESTMENT COMPANIES

INSURANCE COMPANIES

JOINT STOCK COMPANIES

FINANCIAL INSTITUTIONS

INDIVIDUALS

2.12

0.88

0.00

2.00

45.01

0.09

49.90

1

101

501

1001

5001

1000115001

40001

120001

55001

135001

275001

485001

770001

1255001

1395001

3625001

3690001

3,627,153

3,690,132

1,948,340

772,568

1,256,723

1,397,814

55,924

122,437

139,899

559,330

1,035

7,830

15,288

147,266

113,432

52,88234,359

41,042

100

500

1000

5000

10000

1500020000

45000

3630000

1260000

3695000

60000

125000

140000

280000

1400000

490000

775000

13,983,454405

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

TOTAL

3,627,153

820

1,397,814

1,256,723

3,4846,285,994

308

308

4,177,832

4,763

487,700

487,933

2,839

4,408

3,306

5,168,781

11,455,083

503,333

-

122,437

296,699

12,377,552

3,627,153

-

4,177,832


6160


33/34

I/We

of being a member of Central Insurance Company Limited and holder of

Ordinary Shares, as per:

Share Register Folio No. and/or

CDC Participant ID No. Sub A/c No.

hereby appoint Mr./Ms. of

, another member of the Company* (or failing him Mr./Ms.

of , of the Company*) as my/our proxy to attend, speak and vote for me/usanother member

and on my/our behalf, at the Forty Seventh Annual General Meeting of the Company to be held on Wednesday, April 18,

2007 at the Companys Registered Office at Dawood Center, Molvi Tamizuddin Khan Road, Karachi, and at any

adjournment thereof.

Signed this day of 2007

WITNESSES:

1. Si gnat ure:

Name:

Address:

CNIC No. or

Passport No.

2. Si gnat ure:

Name:

Address:

CNIC No. or

Passport No.

* Proxy representing a corporation may or may not himself be a member of the Company.

IMPORTANT:

1. This Proxy Form, duly completed, must be deposited at the Companys Registered Office, not less than fortyeight hours before the meeting.

2. CDC shareholders and their proxies are each requested to attach an attested photocopy of theirnew/computerized National Identity Card (CNIC) or Passport with this proxy form before submission tothe Company.

3. All proxies attending the AGM are requested to bring their original CNIC/Passport for identification.

SignRevenue Stampsof Rupees Five

ature on

Signature should agree with thespecimen signature with the Company.

,

Central Insurance Company Limited

Proxy Form

For Comments and [email protected]


34/34

The Company SecretaryCentral Insurance Company LimitedDawood Centre, M.T. Khan Road

Karachi-75530

AFFIX

CORRECT

POSTAGE

Cic2006 Engro Final Report

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