SPI Insurance Company Limited
3RD QUARTER REPORT
2019
Content
SPI Insurance Company Limited
3rd Quarter Report 2019
More information online:www.spiinsurance.com.pk
Corporate Information 02
Key Management Personnel 03
Banks 04
Directors’ Review Report to the Members (English) 05
Directors’ Review Report to the Members (Urdu) 06
Condensed Interim Statement of Financial Position
Condensed Interim Statement of Profit or Loss
Condensed Interim Statement of Comprehensive Income
Condensed Interim Statement of Changes in Equity
08
09
10
11
13
FINANCIAL STATEMENTS (Conventional)
FINANCIAL STATEMENTS (Window Takaful Operations)
Condensed Interim Statement of Financial Position
Condensed Interim Statement of Profit or Loss
Condensed Interim Statement of Comprehensive Income
Condensed Interim Statement of Cash Flows
Condensed Interim Statement of Changes in Funds
Notes To The Condensed Interim Financial Statements
Notes To The Condensed Interim Financial Statements
Condensed Interim Statement of Cash Flows
20
21
22
23
24
25
12
Corporate Information
ChairmanMr. Aziz Ullah Memon
Managing Director & Chief ExecutiveMian M. A. Shahid
DirectorsMr. M. AsgharMr. Abdul MajeedMr. Uzman Naveed ChaudharyMr. M. Saleem SheikhMr. Khurram Khan
Underwriting CommitteeMian M. A. Shahid (Chairman)Mr. Abdul Majeed (Member)Mr. Imtiaz Ali (Secretary)
Claim Settlement Committee:Mr. Uzman Naveed Chaudhry (Chairman)Mian M. A. Shahid (Member)Mr. Naeem Tariq (Member/Secretary)
Reinsurance & Co-insurance Committee:Mian M. A. Shahid (Chairman)Mr. Abdul Majeed (Member)Mr. Faisal Akbar (Member/Secretary)
Ethics, Human Resource & Remuneration Committee:Mr. M. Saleem Sheikh (Chairman)Mian M. A. Shahid (Member)Mr. M. Asghar (Member)Mr. Shahid Malik (Secretary)
Chief Financial OfficerMr. Naeem Tariq
Company Secretary Mr. Noshad Ahmed
Chief Internal AuditorMian Mohsin Aslam
Nominations CommitteeMr. Aziz Ullah Memon (Chairman)Mian M. A. Shahid (Member)Mr. Abdul Majeed (Member)Mr. Noshad Ahmed (Secretary)
Investment CommitteeMian M. A. Shahid (Chairman)
Mr. Aziz Ullah Memon (Member)Mr. Naeem Tariq (Member/ Secretary)
Mr. M. Saleem Sheikh (Member)
Audit CommitteeMr. M. Asghar (Chairman)Mr. M. Saleem Sheikh (Member)
Mian Mohsin Aslam (Secretary)Mr. Khurram Khan (Member)
AuditorsM/s RSM Avais Hyder Liaquat NaumanChartered Accountants
Tax ConsultantM/s M. Bilal & CompanyChartered Accountants
Legal AdvisorsM/s Kilam LawM/s Mandviwala & Zafar
Registered OfficeSuite # 204-A, Second Floor,Madina City Mall, Abdullah Haroon Road,Karachi.Phone # (021) 35221805Fax # (021) 35221806
Head OfficeUIG House,6 - D, Upper Mall, Lahore.Phone # (042) 35776561-62-67-68, 35756563Fax # (042) 35776560E-mail: [email protected]: www.spiinsurance.com.pk
Board of Directors
Committees
Risk Management & Compliance Committee:Mr. Uzman Naveed Chaudhry (Chairman)Mr. Aziz Ullah Memon (Member)
Mr. Naeem Tariq (Member)Mr. Faisal Akbar (Secretary)
Mr. M. Asghar (Member)
2
3
Key Management Personnel
Deputy Managing DirectorMr. Shaheryar Akbar Raja
AdvisorMaj. Gen. (R) Asif Duraiz Akhter
General Manager Re-InsuranceMr. Faisal Akbar (FCA)
General Manager Health BusinessMr. Nasir Abbas Khan
Chief Manager UnderwritingMr. Imtiaz Ali
Chief Manager Claims / MotorMr. Khalid Nazeer Bajwa
Chief Manager Accounts
Mr. Saleem Akhter (FCMA)
Manager Claims / Non MotorMr. Naveed ul Haq Nomani
Assistant General Manager I.TMr. Saquib Obaid ur Rehman
Assistant General Manager AdministrationMr. Shahid Malik
Manager TravelMr. Iqbal Hashmi
Shariah AdvisorMufti Muhammad Umar Ashraf
Head of WTOMr. Faisal Rashid
Head of UnderwritingMr. Muzammil Bashir (ACII)
Manager AccountsMr. Ali Saeed
Managing Director & Chief Executive OfficerMian M. A. Shahid
Conventional Business
Window Takaful Operations
Syed Waqar AzeemChief Operating Officer
SPI Insurance Company Limited
3rd Quarter Report 2019
Al-Baraka Bank (Pakistan) Limited
Allied Bank Limited
Apna Microfinance Bank Limited
Bank Al-Falah Limited
Bank Al-Habib Limited
Bank Islami Pakistan Limited
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
Finca Microfinance Bank Limted
Habib Bank Limited
JS Bank Limited
Karakoram Co-operative Bank Limited
Meezan Bank Limited
National Bank of Pakistan
MCB Bank Limited
SILKBANK Limited
Sindh Bank Limited
Soneri Bank Limited
State Bank of Pakistan
Tameer Microfinance Bank Limited
The Bank Of Punjab
United Bank Limited
Zarai Taraqiati Bank Limited
Banks
4
DIRECTORS’ REVIEW REPORT TO THE MEMBERS
(Rupees in thousand)
September 30, 2019 September 30, 2018
Dear Fellow Members!
On behalf of the Board of Directors, I am pleased to present the third quarter review report of the SPI Insurance Company Limited together with the un-audited Financial Statements along with Window Takaful Operations for the nine months ending September 30, 2019.
Financial HighlightsOverall-performance of the company during the third quarter ended September 30, 2019 has shown stability against the current market situation. On the conventional insurance business side, the premium written stood at Rs.527.54 million as on September 30, 2019 as compared to Rs.413.62 million on September 30, 2018 showing an increase of 27.54% while the net premium registered at Rs.432.76 million as against Rs.353.71 million in the preceding year showing an increase of 22.35%. The net claims stood at Rs.125.24 million as against Rs.100.03 million for the same period ending September 30, 2018 showing an increase of 25.20%. Net commission expenses posted at Rs.60.81 million as against Rs.50.46 million in last year showing an increase of 20.49%. The management and other expenses increase by 24.84% as compared to last year. The underwriting profit registered at Rs.33.05 million as against Rs.33.70 million for the corresponding period last year. The investment and other income for the nine months ended September 30, 2019 was Rs.14.42 million as against Rs.13.58 million in the year 2018. Accordingly, profit before tax posted at Rs.32.02 million as compared to profit of Rs.27.99 million earned by Company for the same period last year as a result the earning per share remained Rs.0.47 as compared to Rs.0.39 in the year 2018.
The written contribution under Window Takaful Operations for the period ended September 30, 2019 was Rs.165.37 million as against Rs.169.90 million in the preceding year while net contribution revenue was Rs.46.21 million as compared to Rs.31.02 million in last year showing an increase of 48.95%. Wakala fee registered a decrease of 2.67% to Rs.66.14 million as on September 30, 2019 as against Rs.67.96 million in the preceding year. The net claims expenses posted at Rs.23.59 million as on September 30, 2019 as against Rs.22.78 million on September 30, 2018. Net commission expenses posted at Rs.33.97 million as against Rs.39.86 million in last year in operator's fund. Management and other expenses in operator's fund posted at Rs.44.15 million as against Rs.43.29 million in last year registered as rose of 1.98%. The underwriting results registered profit at Rs.8.91 million as against Rs.20.91 million as compared to last year in the Participants Takaful fund. Deficit arising from operators fund is Rs.9.23 million as against Rs.12.67 million in the year 2018. Gain arising from the Participants Takaful fund was Rs.9.12 million as against Rs.21.06 million profits in the year 2018.
Significant increase is shown in operating results during the nine months ended September 30, 2019.
Conventional Insurance:
Premium Written 527,549 413,623Net Premium revenue 432,766 353,718Net Claims 125,249 100,036Net Commission 60,808 50,466Management & other expenses 219,876 176,129Underwriting results 33,053 33,703Investment and other income 14,427 13,581Profit / (Loss) before tax 32,024 27,996
Window Takaful Operations:Contribution Written 165,370 169,902Net Contribution revenue 46,214 31,026Wakala Fee 66,148 67,961Net Claims 23,596 22,780Net Commission in OPF 33,977 39,864Management & other expenses 44,156 43,299Underwriting Results in PTF 8,918 20,912Surplus / (Deficit) in PTF 9,125 21,069(Deficit)/Surplus in OPF (9,235) (12,672)
Consolidated ResultsProfit before tax 32,024 27,996Profit after tax 23,428 19,707E.P.S 0.47 0.39
Credit RatingThe Company is rated single “A” with (stable outlook) by Pakistan Credit Rating Agency Limited (PACRA).
ISO 9001:2015 CertificationDue to overall performance during the year 2018 ISOQAR Limited has approved ISO 9001:2015 in compliance with their requirement and has issued the said certificate of registration.
Future OutlookThe nine months performance during 2019 has significantly increased by good margin particularly under premiums and net revenue segments. However, administrative expenses have slightly increased due to fresh induction. The management is conscious to maintain the pace of development during last quarter of the year.
Appreciation and AcknowledgmentI would like to express my sincere gratitude to The Securities and Exchange Commission of Pakistan, State Bank of Pakistan, our Reinsurers and Bankers for their continued guidance and assistance. I would also like to take this opportunity to extend our thanks to valued customers and the shareholders for reposing their confidence. We also appreciate the efforts of the management and employees for their hard work and dedication towards the growth of the Company.
For and on behalf of the Board of Directors
Mian M. A. ShahidDirector & Chief ExecutiveLahore: October 25, 2019
SPI Insurance Company Limited
53rd Quarter Report 2019
6
FINANCIAL FINANCIAL FINANCIAL STATEMENTSSTATEMENTSFor the quarter and nine month period For the quarter and nine month period
STATEMENTSFor the quarter and nine month period ended September 30, 2019ended September 30, 2019ended September 30, 2019
as at September 30, 2019CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
8
Note (Un-audited) (Audited)
Rupees Rupees
Assets
Property and equipment 3 98,104,083 108,654,770
Intangible assets 204,126
240,149
Investments
In equity securities 4 179,479,094
50,168,070
In government securities 5 117,183,756
164,214,431
In term deposits 49,430,000
21,230,000
Total assets in Window Takaful - Operator's Fund 130,385,106
139,466,793
Loans and other receivables 130,266,357
171,307,298
Insurance / Reinsurance receivables 6 396,647,759
343,798,505
Reinsurance recoveries against outstanding claims 7 77,774,247
80,064,202
Deferred commission expense 8 31,776,219
28,800,679
Deferred taxation 17,171,683
19,030,894
Prepayments 65,538,618
69,367,806
Cash and bank balances 57,155,818
27,489,053
Total Assets 1,351,116,866
1,223,832,650
Equity and Liabilities
Capital and Reserves
Ordinary share capital 500,000,000 500,000,000 Fair value reserve 128,928,369
(382,655)
Un-appropriated profit 67,365,405
42,841,213
Total Equity 696,293,774
542,458,558
LiabilitiesUnderwriting Provisions
Outstanding claims (including IBNR) 7 185,570,626
190,054,492
Unearned premium reserves 9 209,503,125
220,918,911
Unearned reinsurance commission 8 10,409,391
10,545,652
Retirement benefit obligations 9,254,906
10,364,906
Borrowings 15,674,481
21,558,133
Insurance / Reinsurance payables 61,334,189
80,171,587
Other creditors and accruals 54,275,301
42,428,793
Total liabilities in Window Takaful - Operator's Fund 74,208,217
75,150,207
Provision for taxation - Income tax 34,592,856
30,181,411
Total Liabilities 654,823,092
681,374,092
Total Equity and Liabilit ies 1,351,116,866 1,223,832,650
Contingencies and Commitments 10 - -
The annexed notes 1 to 15 form an integral part of these condensed interim nancial statements.
September 30,2019
December 31, 2018
Chief Executive Officer DirectorDirectorChairman
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Net insurance premium 9 179,033,678
103,065,507
432,766,455
353,718,085
Net insurance claims 7 (62,823,890)
(24,937,681)
(125,248,835)
(100,036,191)
Net commission expenses 8 (22,137,138)
(15,275,327)
(60,808,291)
(50,465,961)
Insurance claim expenses (84,961,028)
(40,213,008)
(186,057,126)
(150,502,152)
Management expenses (77,890,940) (55,680,228) (213,656,450) (169,512,976)Underwriting results 16,181,710 7,172,271 33,052,879 33,702,957Investment income 11 3,897,191
4,285,078
12,185,879
12,372,899
Other income 965,826
335,743
2,241,758
1,208,236
Other expenses (1,467,786)
(1,641,319)
(4,533,059)
(5,863,065)
Result of operating activities 19,576,941
10,151,773
42,947,457
41,421,027
Finance costs (566,423)
(290,929)
(1,687,299)
(753,097)
Prot / (loss) from Window Takaful Operator's Fund (5,298,258)
146,421
(9,235,659)
(12,672,280)
Prot before tax 13,712,260
10,007,265
32,024,499
27,995,650
Provision for taxation (1,130,344)
(3,106,765)
(8,596,269)
(8,289,126)
Prot for the period 12,581,916 6,900,500 23,428,230 19,706,524
Earnings per share - basic and diluted 0.25 0.14 0.47 0.39
The annexed notes 1 to 15 form an integral part of these condensed interim nancial statements.
Three-months period endedSeptember 30,
Nine-months period endedSeptember 30,Note
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)for the nine-month period ended September 30, 2019
SPI Insurance Company Limited
93rd Quarter Report 2019
Chief Executive Officer DirectorDirectorChairman
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)for the nine-month period ended September 30, 2019
10
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Prot for the period 12,581,916 6,900,500 23,428,230 19,706,524
Other comprehensive income / (loss)
Other comprehensive income / (loss) 96,214,379
(1,415,523)
130,406,986
(863,912)
Total comprehensive income for the period 108,796,295
5,484,977
153,835,216
18,842,612
The annexed notes 1 to 15 form an integral part of these condensed interim nancial statements.
Three-months period endedSeptember 30,
Nine-months period endedSeptember 30,
94,685,612
76,840
129,311,024
(1,492,363)
1,095,962
Unrealized gain / (loss) on available -for-sale investments
Items that may be reclassied subsequently to prot or loss:
69,570
(933,482)Other comprehensive (loss) / income from Window Takaful Operations
1,528,767
Chief Executive Officer DirectorDirectorChairman
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)for the nine-month period ended September 30, 2019
SPI Insurance Company Limited
11
Capital reserveRevenue reserve
Fair value reserve
Un-appropriated
profit
Balance as at January 01, 2018 500,000,000
(417,985)
23,731,192
523,313,207
Total comprehensive income / (loss) for the period
Prot for the period -
-
19,706,524
19,706,524
Other comprehensive income / (loss) - 69,570 (933,482) (863,912)
- 69,570 18,773,042 18,842,612 Balance as at September 30, 2018 500,000,000
(348,415)
42,504,234
542,155,819
Balance as at January 01, 2019 500,000,000
(382,655)
42,841,213
542,458,558
Total comprehensive income for the periodProt for the period -
-
23,428,230
23,428,230
Other comprehensive income/(loss) -
129,311,024
1,095,962
130,406,986
-
129,311,024
24,524,192
153,835,216
Balance as at September 30, 2019 500,000,000
128,928,369
67,365,405
696,293,774
The annexed notes 1 to 15 form an integral part of these condensed interim nancial statements.
Total
----------------------------------------- Rupees -------------------------------------------
Issued, subscribed and paid up capital
Description
3rd Quarter Report 2019
Chief Executive Officer DirectorDirectorChairman
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)for the nine-month period ended September 30, 2019
12
Chief Executive Officer DirectorDirectorChairman
2019 2018
Rupees Rupees
Operating cash ows:a) Underwriting activities:
Insurance premium received 512,394,558
428,720,250
Reinsurance premium paid (121,564,516)
(88,482,455)
Claims paid (162,318,161)
(107,834,600)
Reinsurance and other recoveries received (455,068)
(28,344,313)
Commission paid (76,245,493)
(50,632,705)
Commission received 15,417,406
21,599,801
Management expenses paid (203,284,349)
(162,476,015)
Net cash ow from underwriting activities (36,055,623)
12,549,963
b) Other operating activities:
Income tax paid (2,325,613)
(2,409,826)General expenses paid (4,533,059)
(5,863,065)Other operating receipts/(payments) 47,921,625
(16,137,618)Loan to employees and agents (453,757)
931,490
Net cash ow from other operating activities 40,609,196
(23,479,019)
Net cash ow from all operating activities 4,553,573
(10,929,056)
Investment activities:
Prot/ return received 13,356,948 13,796,690 Payments for investments 18,830,675 (3,216,311)Fixed capital expenditure (6,492,262) (5,050,400)Proceeds from disposal of xed assets 7,046,483
1,247,223
Net cash ow from investing activities 32,741,844
6,777,202
Financing activities:Payments on nance leases (7,628,652)
(10,215,775)
Net cash ow from nancing activities (7,628,652)
(10,215,775)
Net cash inow / (outow) from all activities 29,666,765
(14,367,629)
Cash and cash equivalents at the beginning of the period 27,489,053
43,843,153
Cash and cash equivalents at the end of the period 57,155,818
29,475,524
Reconciliation of Prot and Loss Account
Operating cash ows 4,553,573
(10,929,056)
Depreciation / amortization (13,746,001)
(13,882,028)Provision for doubtful debts 2,364,457
5,080,045 Gain on disposal of xed assets 1,968,512
969,427 (Decrease) / Increase in assets other than cash (6,805,499)
18,880,794 Decrease in liabilities 42,153,290
28,690,137
Investment and other income 12,459,125 12,611,708Lease charges (1,687,299) (753,097)(Loss) on takaful operations (9,235,659) (12,672,280)Provision for taxation (8,596,269) (8,289,126)
Prot for the period 23,428,230 19,706,524
The annexed notes 1 to 15 form an integral part of these condensed interim nancial statements.
Nine-months period endedSeptember 30,
SPI Insurance Company Limited
13
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
1
2
2.1
2.1.1
-
-
2.1.2
2.1.3
2.1.4
2.2
2.2.1
\
2.2.2
2.3
2.4
2.5
2.5.1
2.5.2
International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) asnotied under the Companies Act, 2017; and
Provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules 2017, Takaful Rules, 2012and Insurance Accounting Regulations, 2017.
Where the provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules 2017, TakafulRules, 2012 and the Insurance Accounting Regulations, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under theCompanies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules 2017, Takaful Rules, 2012 and the Insurance Accounting Regulations,2017 have been followed.
Total assets, total liabilities, prot / (loss), comprehensive income of the Window Takaful Operations of the Company referred to as the Operator'sFund has been presented in these condensed interim nancial statements in accordance with the requirements of Circular 25 of 2015 dated 9 July,2015.
Signicant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most signicant effect on amountsrecognized in these condensed interim nancial statements are the same as those disclosed in the audited nancial statements of the Company forthe year ended December 31, 2018.
These condensed interim nancial statements do not include all the information required in the annual nancial statements. Accordingly, thesecondensed interim nancial statements should be read in conjunction with the audited nancial statements of the Company for the year endedDecember 31, 2018.
These condensed interim nancial statements have been presented in Pakistani Rupees, which is also the functional currency of the Company.
Estimates, judgements and risk management policies
The preparation of these condensed interim nancial statements in conformity with approved accounting standards, as applicable in Pakistan,requires the management to make judgments, estimates and assumptions that affect application of accounting policies and reported amounts ofassets, liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under thecircumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readilyapparent from other sources. Actual results may differ from these estimates.
LEGAL STATUS AND NATURE OF BUSINESS
BASIS OF PREPARATION
SPI Insurance Company Limited (the Company) is an unquoted public limited company incorporated in Islamabad, Pakistan on February 15, 2005under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The Company is engaged in non-life insurance business mainlycomprising of re, marine, motor, health and miscellaneous. The Company commenced its commercial operations on April 13, 2005. The registeredoffice of the Company is situated at suite # 204-A, Second Floor, Madina City Mall, Abdullah Haroon Road, Karachi, in the province of Sindh andprincipal office of the Company is situated at UIG House 6-D, 1st Floor, Upper Mall, Lahore, in the province of Punjab, Pakistan.
The Company has been allowed to work as Window Takaful Operator through License No. 3 on November 20, 2014 by Securities and ExchangeCommission of Pakistan under Window Takaful Rules, 2012 to carry on Islamic General Insurance in Pakistan. It has not transacted any businessoutside Pakistan.
These condensed interim nancial statements have been prepared in accordance with the accounting and reporting standards as applicable in
Pakistan for interim nancial reporting. The accounting and reporting standards as applicable in Pakistan for interim nancial reporting comprise of:
Statement of compliance
There are certain new standards, amendments and International Financial Reporting Interpretations Committee (IFRIC) interpretations that becameeffective during the period and are mandatory for accounting periods of the Company beginning on or after January 01, 2019 but are considered notto be relevant or not to have any signicant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that arerelevant to the operations of the Company are disclosed in the audited nancial statements of the Company for the year ended December 31, 2018.
There are other new standards, amendments and IFRIC interpretations that are mandatory for accounting periods of the Company beginning on orafter January 01, 2019 but are considered not to be relevant or not to have any signicant effect on the Company's operations. The new standards,amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the audited nancial statements of theCompany for the year ended December 31, 2018.
Risk management policies and procedures are consistent with those disclosed in the audited nancial statements of the Company for the year endedDecember 31, 2018.
Basis of measurement
These condensed interim nancial statements have been prepared under the historical cost convention except certain nancial instruments that arecarried at fair value.
Application of new and revised international financial reporting standards
Significant Accounting Policies
The accounting policies and methods of computation followed in the preparation of these condensed interim nancial statements are the same asthose applied in the preparation of the audited nancial statements of the Company for the year ended December 31, 2018.
Standards, amendments to published approved accounting standards and interpretations becoming effective in current period:
Standards, amendments to published approved accounting standards and interpretations becoming effective in future periods:
3rd Quarter Report 2019
14
3
September 30, December 31,2019 2018
(Un-audited) (Audited)
Operating fixed assets:
Owned assets 65,184,332 69,662,393
Leased assets 32,919,751 38,992,377
98,104,083
108,654,770
3.1 Additions and deletions in property and equipment
Following are the major additions and deletions in xed assets:
2019 2018 2019 2018
Tangible owned assets
Furniture and xtures 642,835
1,018,337
-
-
Office equipment 509,376
1,496,054
3,950
-
Computer equipment 532,468
226,615
-
277,796
Motor vehicles 541,100
14,132,550
5,074,021
-
2,225,779
16,873,556
5,077,971
277,796
Leased assets
Leased vehicles 1,745,000
16,816,000
3,784,762
-
4
(Un-audited) (Audited)September 30, December 31,
2019 2018
Equity investments 4.1 179,479,094 168,070Advance against issuance of shares - 50,000,000
179,479,094
50,168,070
4.1 Equity investments
Shares Cost Fair Value Shares Cost Fair Value
Number Number
Related party
Listed shares
Apna Micronance Bank Limited 8,462,237
50,011,000
179,399,424
2,000
11,000
12,760
Others
Listed shares - (Note 4.1.1)
Saudi Pak Leasing Company Limited 16,065
226,625
-
16,065
226,625
-
Kohinoor Industries Limited 31,000
313,100
79,670
31,000
313,100
155,310
Unlisted shares - (Note 4.1.2)
Callmate Telips Telecom Limited 32,000
-
-
32,000
-
-
8,541,302
50,550,725
179,479,094
81,065
550,725
168,070
4.1.1
4.1.2 Trading in shares has been suspended.
5
September 30, December 31, September 30, December 31, September 30, December 31,2019 2018 2019 2018 2019 2018
(Un-audited) (Audited) (Un-audited) (Audited) (Un-audited) (Audited)
Pakistan investment bonds (note 5.1) 24 24 115,500,000 115,500,000 117,183,756 117,236,432
Treasury bills - 1 - 47,000,000 - 46,977,999
24 25 115,500,000 162,500,000 117,183,756 164,214,431
INVESTMENT IN EQUITY SECURITIES - AVAILABLE FOR SALE
INVESTMENT IN GOVERNMENT SECURITIES - HELD TO MATURITY
Additions (at cost) Deletions (at net book value)
Rupees
Rupees
Number of certificates
September 30, 2019 December 31, 2018
Rupees
PROPERTY AND EQUIPMENT
Nine-months period endedSeptember 30,
Rupees
Rupees
(Un-audited) (Audited)
Rupees
Note
Nine-months period endedSeptember 30,
These shares are deposited into CDC account and blocked on the instructions of Securities and Exchange Commission of Pakistan (SECP) in accordance with CircularNo. 9 of 2006 issued by the SECP, which requires promoters / majority shareholders of the company to deposit their shares into CDC blocked account.
Value of CertificatesFace Value
--------------------------Rupees--------------------------
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
SPI Insurance Company Limited
15
5.1
6
September 30, December 31,2019 2018
(Un-audited) (Audited)
160,401,525
145,247,211
(10,033,349)
(10,793,212)
150,368,176
134,453,999
264,524,474
229,193,991
(18,244,891)
(19,849,485)
246,279,583
209,344,506
396,647,759
343,798,505
7
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Claims Paid 99,619,834
32,588,751
162,318,161
107,834,600
Add: Outstanding claims including IBNR - Closing 185,570,626
184,287,308
185,570,626
184,287,308
Less: Outstanding claims including IBNR - Opening (218,895,131)
(183,217,496)
(190,054,492)
(178,748,845)
Claims expense 66,295,329
33,658,563
157,834,295
113,373,063
Less: Reinsurance and other recoveries received 26,907,626
4,310,550
34,875,415
12,001,534
77,774,247
70,857,483
77,774,247
70,857,483
(101,210,434)
(66,447,151)
(80,064,202)
(69,522,145)
Reinsurance and other recoveries revenue 3,471,439 8,720,882 32,585,460 13,336,87262,823,890 24,937,681 125,248,835 100,036,191
8
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Commission paid or payable 24,891,664
17,162,502
79,337,498
61,742,240
Add: Deferred commission expense - Opening 34,111,698
33,960,497
28,800,679
35,293,968
Less: Deferred commission expense - Closing (31,776,219)
(28,679,649)
(31,776,219)
(28,679,649) Net Commission 27,227,143
22,443,350
76,361,958
68,356,559
Less: Commission received or recoverable 5,162,040 5,479,757 15,417,406 21,599,801
Add: Unearned re-insurance commission - Opening 10,337,356 14,470,435 10,545,652 9,072,966
Less: Unearned re-insurance commission - Closing (10,409,391) (12,782,169) (10,409,391) (12,782,169) Commission from reinsurers 5,090,005 7,168,023 15,553,667 17,890,598
22,137,138
15,275,327
60,808,291
50,465,961
9
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Written Gross Premium 173,942,804
114,705,844
527,548,872
413,622,987
Add: Unearned premium reserve - Opening 249,499,712 246,017,499 220,918,911 268,881,204
Less: Unearned premium reserve - Closing (209,503,125) (209,523,937) (209,503,125) (209,523,937)
Premium earned 213,939,391 151,199,406 538,964,658 472,980,254
Less: Reinsurance premium ceded 34,004,260 40,030,677 102,727,118 137,726,789
Add: Prepaid reinsurance premium - Opening 65,211,182 88,500,145 67,780,814 61,932,303
Less: Prepaid reinsurance premium - Closing (64,309,729) (80,396,923) (64,309,729) (80,396,923)
Reinsurance expense 34,905,713 48,133,899 106,198,203 119,262,169 179,033,678 103,065,507 432,766,455 353,718,085
10 CONTINGENCIES AND COMMITMENTS
Rupees
Less provision for impairment of due from other insurers / reinsurers
Nine-months period endedSeptember 30,
Less: Reinsurance and other recoveries in respect of outstanding claims - Opening
Nine-months period endedSeptember 30,
Due from insurance contract holders
NET INSURANCE CLAIMS
There is no signicant change in contingencies and commitments since the date of annual audited nancial statements for the year ended December 31, 2018.
Add: Reinsurance and other recoveries in respect of outstanding claims - Closing
Due from other Insurers / reinsurers
Less provision for impairment of receivables from insurance contract holders
Three-months period endedSeptember 30,
Nine-months period endedSeptember 30,
These represent PIBs held with different banks having maturity of periods ranging from 5 to 10 years (December 31, 2018: 5 to 10 years). These carry return at the rateranging between 6.60% to 13.50% (December 31, 2018: 6.60% to 13.50%) per annum. These include bonds having face value of Rs. 52.2 million (December 31, 2018: Rs.52.2 million) held with State Bank of Pakistan as per requirements of Section 29 of the Insurance Ordinance, 2000.
NET INSURANCE PREMIUM
INSURANCE / REINSURANCE RECEIVABLES
Three-months period endedSeptember 30,
Three-months period endedSeptember 30,
NET COMMISSION EXPENSES
3rd Quarter Report 2019
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
16
11
2019 2018 2019 2018
Rupees Rupees Rupees RupeesIncome from debt securities - Held to maturity
- Return on government securities 3,125,794 4,012,484 10,980,220 11,449,369
Income from term deposits - Held to maturity
- Return on term deposits 777,952
300,075
1,379,030
988,851
Total investment income 3,903,746
4,312,559
12,359,250
12,438,220
Less: Investment related expenses (6,555) (27,481) (173,371) (65,321)
3,897,191
4,285,078
12,185,879
12,372,899
12 SEGMENT INFORMATION
Gross written premium 145,956,723
65,206,275
162,208,481
53,159,240
101,018,153
527,548,872
Gross direct premium 108,840,959
44,832,431
121,511,539
17,057,253
91,509,118
383,751,300
Facultative inward premium 34,699,049
18,315,726
37,322,531
35,946,313
7,959,862
134,243,481
Administrative surcharge 2,416,715
2,058,118
3,374,411
155,674
1,549,173
9,554,091
Insurance premium earned 146,109,679
66,209,538
168,481,130
52,266,481
105,897,830
538,964,658
(34,227,840)
(10,465,965)
(34,619,186)
(3,510,036)
(23,375,176)
(106,198,203)
Net insurance premium 111,881,839
55,743,573
133,861,944
48,756,445
82,522,654
432,766,455
Commission income 2,583,969
550,558
7,108,243
255,953
5,054,944
15,553,667
Net underwriting income 114,465,808 56,294,131 140,970,187 49,012,398 87,577,598 448,320,122Insurance claims (72,809,970) (2,628,570) (56,385,806) (25,658,784) (351,165) (157,834,295)
20,546,077 (462,539) 10,843,957 3,820,421 (2,162,456) 32,585,460
Net claims (52,263,893)
(3,091,109)
(45,541,849)
(21,838,363)
(2,513,621)
(125,248,835)
Commission expense (27,623,035)
(12,860,169)
(20,416,433)
(9,758,269)
(5,704,052)
(76,361,958)
Management expenses (59,112,240)
(26,408,437)
(65,694,176)
(21,529,407)
(40,912,190)
(213,656,450)
(138,999,168)
(42,359,715)
(131,652,458)
(53,126,039)
(49,129,863)
(415,267,243)
Underwriting results (24,533,360)
13,934,416
9,317,729
(4,113,641)
38,447,735
33,052,879
Net investment income 12,185,879
Other income 2,241,758
Other expenses (4,533,059)
Finance cost (1,687,299)
(9,235,659)
Prot before tax 32,024,499
Segment assets 166,123,122
51,927,742
159,698,310
45,215,165
147,543,615
570,507,954
Unallocated assets -
-
-
-
-
650,223,806
166,123,122
51,927,742
159,698,310
45,215,165
147,543,615
1,220,731,760
Segment assets - Takaful (OPF) -
-
-
-
-
-
-
-
-
-
-
130,385,106
-
-
-
-
-
130,385,106
1,351,116,866
Segment liabilities 126,446,775 30,082,701 137,322,212 40,678,752 132,286,890 466,817,330
Unallocated liabilities - - - - - 113,797,545
126,446,775 30,082,701 137,322,212 40,678,752 132,286,890 580,614,875
- - - - - -
- - - - - 74,208,217
- - - - - 74,208,217
654,823,092
Three-months period endedSeptember 30,
Nine-months period endedSeptember 30,
Net insurance claims and expenses
(Loss) from Window Takaful Operator's Fund
Nine-months period endedSeptember 30, 2019
Marine, aviation and
transportMotor
Crop and livestock
Miscellaneous TotalFire and property damage
Insurance premium ceded to reinsurers
------------------------------------------------------------ Rupees ------------------------------------------------------------
Unallocated assets - Takaful (OPF)
Unallocated liabilities - Takaful (OPF)
Segment liabilities - Takaful (OPF)
INVESTMENT INCOME
Insurance claims recovered from reinsurers
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
SPI Insurance Company Limited
17
Gross written premium 99,566,855 55,263,805 160,279,294 17,574,655 80,938,378 413,622,987
Gross direct premium 62,891,768 38,714,415 108,790,425 17,444,064 75,363,682 303,204,354
Facultative inward premium 35,519,787
14,902,360
48,568,837
-
4,119,108
103,110,092
Administrative surcharge 1,155,300
1,647,030
2,920,032
130,591
1,455,588
7,308,541
Insurance premium earned 121,671,879
51,578,298
176,355,349
48,684,606
74,690,122
472,980,254
Net insurance premium 72,192,915
39,257,794
140,840,844
40,807,406
60,619,126
353,718,085
Commission income 5,828,455
797,738
7,314,576
885,642
3,064,187
17,890,598
Net underwriting income 78,021,370
40,055,532
148,155,420
41,693,048
63,683,313
371,608,683
Insurance claims 3,160,674
(11,080,075)
(50,599,945)
(5,852,366)
(49,001,351)
(113,373,063)
Net claims 2,172,931
(8,884,239)
(42,560,227)
(5,852,366)
(44,912,290)
(100,036,191)
Commission expense (27,079,980)
(10,043,462)
(20,586,426)
(5,224,277)
(5,422,414)
(68,356,559)
Management expenses (40,804,971)
(22,648,480)
(65,686,437)
(7,202,530)
(33,170,559)
(169,512,976)
(65,712,020) (41,576,181) (128,833,090) (18,279,173) (83,505,263) (337,905,726)
Underwriting results 12,309,350
(1,520,649)
19,322,330
23,413,875
(19,821,950)
33,702,957
Net investment income 12,372,899
Other income 1,208,236
Other expenses (5,863,065)
Finance cost (753,097)
(12,672,280)
Prot before tax 27,995,650
Segment assets 147,934,726
46,199,758
168,871,141
15,748,910
141,689,667
520,444,202
Unallocated assets -
-
-
-
-
563,921,655
147,934,726
46,199,758
168,871,141
15,748,910
141,689,667
1,084,365,857
Segment assets - Takaful (OPF) -
-
-
-
-
-
-
-
-
-
-
139,466,793
-
-
-
-
-
139,466,793
1,223,832,650
Segment liabilities 123,617,263
33,555,599
153,142,923
15,362,695
176,012,162
501,690,642
Unallocated liabilities - - - - - 104,533,243
123,617,263 33,555,599 153,142,923 15,362,695 176,012,162 606,223,885
- - - - - -
- - - - - 75,150,207
- - - - - 75,150,207
681,374,092
(7,877,200)
Segment liabilities - Takaful (OPF)
Net insurance claims and expenses
(Loss) from Window Takaful Operator's Fund
Unallocated liabilities - Takaful (OPF)
8,039,718
Insurance premium ceded to reinsurers (14,070,996)
(119,262,169)(49,478,964)
(35,514,505)
(12,320,504)
4,089,061
------------------------------------------------------------ Rupees ------------------------------------------------------------
Unallocated assets - Takaful (OPF)
- Insurance claims recovered from reinsurers (987,743) 2,195,836
Crop and livestock
13,336,872
Nine-months period endedSeptember 30, 2018
Miscellaneous TotalFire and property damage
Marine, aviation and
transportMotor
3rd Quarter Report 2019
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
18
13
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
United Track Systems (Private) Limited - associated companyMotor tracking device charges 828,108 - 1,202,549 1,175,745
Apna Microfinance Bank Limited - associated company
Bank Charges 1,813
- 4,734 5,527
Prot on term deposit receipts 36,533
- 766,750 39,039
Prot on bank deposits 9,525
6,489 26,279 41,035
Silk Bank Limited - associated company
Insurance premium
Balance at beginning of the period 18,608,262
18,530,908
19,764,912
22,082,669
Gross insurance premium written 12,582,996
1,415,440
19,808,475
17,970,433
Received / adjusted during the period (2,090,562)
(991,473)
(10,472,691)
(21,098,227)
Balance at end of the period 29,100,696
18,954,875
29,100,696
18,954,875
Outstanding claims at beginning of the period 15,597,840
18,437,594
18,598,600
7,936,354
Gross claim expense for the period 664,475
9,244,196
2,771,388
28,108,146
Claim paid during the period (3,211,152) (2,753,733) (8,318,825) (11,116,443)Outstanding claims at end of the period 13,051,163 24,928,057 13,051,163 24,928,057Other transactions during the yearBank charges 35,410
16,693
51,954
50,912
Prot on term deposit receipts -
34,024
51,783
750,617
Prot on bank deposits 3,752
14,715
12,665
19,057
Tawasul Health Care TPA (Pvt.) Limited - associated company
Advisory services -
-
1,664,941
354,143Advance paid against services - net 300,000
600,000
1,150,000
1,500,000
Provident fund plan
Contributions made during the period 1,737,624
1,687,064
5,203,019
4,891,530
Compensation of chief executive, directors and executives
Managerial remuneration 17,434,741
12,659,592
47,294,259
37,163,449
Contribution to dened contribution plan 1,041,591
967,188.00
3,152,385
2,711,008
Rent and house maintenance 3,378,622
2,571,012
9,958,766
7,382,173
Utilities 998,234
759,612
2,942,377
2,181,106
Medical 1,519,145
1,265,958
4,505,110
3,678,374
Others 2,256,426
433,200
11,194,171
1,239,100
26,628,759
18,656,562
79,047,068
54,355,210
Number of persons 38
31
38
32
14
15
15.1
15.2 Provision for taxation in these condensed interim nancial statements is subject to adjustment in annual nancial statements.
15.3
15.4 Figures have been rounded up to the nearest Rupee.
There is no unusual item included in these condensed interim nancial statements which is affecting the assets, liabilities, equity, prot, comprehensive income and cash ows of the Company.
Three-months period endedSeptember 30,
Nine-months period endedSeptember 30,
Related parties comprise of chief executive officer, directors, major shareholders, key management personnel, associated companies, entities with common directors and post employment benet plans. The transactions with related parties are carried out at commercial terms and conditions and compensation to key management personnel is on employment terms.
Transactions with related parties other than those which have been specically disclosed elsewhere in these condensed interim nancial statements are follows:
Insurance claim expense
RELATED PARTY TRANSACTIONS
GENERAL
Separate set of condensed interim nancial statements representing assets, liabilities, revenues, expenses and prot / (loss) of Window Takaful Operations has been annexed to these condensed interim nancial statements as per the requirement of Takaful Rules, 2012.
DATE OF AUTHORIZATION FOR ISSUE
These condensed interim nancial statements were authorized for issue by the Board of Directors of the Company on ____________________.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
Chief Executive Officer DirectorDirectorChairman
October 25, 2019
SPI INSURANCE COMPANY LIMITED WINDOW TAKAFUL OPERATIONS
FINANCIAL FINANCIAL FINANCIAL STATEMENTSSTATEMENTSFor the quarter and nine month period For the quarter and nine month period
STATEMENTSFor the quarter and nine month period ended September 30, 2019ended September 30, 2019ended September 30, 2019
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)As at September 30, 2019
20
(Audited)
Note Participants' Takaful Fund
Operator's Fund Total Total
December 31, 2018
Assets
Property and equipment 3 9,042,062
3,082,453
12,124,515
15,150,625
Intangible assets -
147,247
147,247
173,232
Investments
In equity securities 4 -
53,451,223
53,451,223
50,473,488
In term deposits 1,100,000
8,743,504
9,843,504
9,629,905
Loans and other receivables -
45,156,315
45,156,315
51,838,391
Takaful / Retakaful receivables 5 186,873,690
-
186,873,690
233,638,372
Retakaful recoveries against outstanding claims 6 16,213,973
-
16,213,973
16,089,913
Deferred commission expense 7 -
16,837,095
16,837,095
20,541,262
Prepayments 8 41,178,218
281,902
41,460,120
51,934,363
Cash and bank balances 9,455,984
2,685,367
12,141,351
15,767,006
Total Assets 263,863,927
130,385,106
394,249,033
465,236,557
Equity and Liabilities
Participants’ T akaful Fund
September 30, 2019
(Un-audited)
------------------------------ Rupees ------------------------------
Waqf money 500,000 -
500,000 500,000
Un-appropriated surplus 62,322,820
-
62,322,820
53,197,615 62,822,820
-
62,822,820
53,697,615
Operator's FundStatutory fund -
50,000,000
50,000,000
50,000,000
Fair value reserve -
1,567,383
1,567,383
471,421
Un-appropriated profit -
4,609,506
4,609,506
13,845,165
-
56,176,889
56,176,889
64,316,586
Total Equity 62,822,820
56,176,889
118,999,709
118,014,201
Liabilities
Underwriting Provisions
Outstanding claims (including IBNR) 6 55,871,847
-
55,871,847
76,599,077
Unearned contribution 9 47,091,297
-
47,091,297
68,320,211
Contribution deficiency reserves 16,839,285
-
16,839,285
-
Unearned re-takaful rebate 7 8,945,013
-
8,945,013
11,313,380
Takaful / Retakaful payables - unsecured 19,378,653
-
19,378,653
56,180,068
Other creditors and accruals 10 52,915,012 74,208,217 127,123,229 134,809,620
Total Liabilities 201,041,107 74,208,217 275,249,324 347,222,356
Total Equity and Liabilities 263,863,927 130,385,106 394,249,033 465,236,557
Contingencies and Commitments 11 - - - -
The annexed notes 1 to 17 form an integral part of these condensed interim nancial statements.
Chief Executive Officer DirectorDirectorChairman
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
21
Window Takaful OperationsSPI Insurance Company Limited
for the nine-month period ended September 30, 2019
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Participants' Takaful Fund Revenue Account
Net takaful contribution 9 18,630,919
5,465,678
46,214,356
31,025,784
Net takaful claims 6 (7,086,038)
(4,182,031)
(23,596,451)
(22,780,149)
Contribution deficiency (2,433,527)
2,121,782
(16,839,285)
(2,890,622)
Rebate on re-takaful 7 5,345,037
6,577,041
16,203,588
21,530,652
Direct expenses (4,587,125) (1,585,321) (13,063,406) (5,973,241)Takaful claims (8,761,653) 2,931,471 (37,295,554) (10,113,360)Underwriting results 9,869,266 8,397,149 8,918,802 20,912,424Investment income 12 30,733
13,356
83,031
34,740
Other income 29,747
37,223
123,372
121,697
Surplus for the period 9,929,746
8,447,728
9,125,205
21,068,861
Wakala fee 19,568,852
22,235,378
66,148,042
67,961,116
Commission expense 7 (10,501,766)
(10,368,747)
(33,977,114)
(39,864,434)
Management expenses (14,030,077)
(12,800,875)
(42,831,003)
(42,045,742)
(4,962,991)
(934,244)
(10,660,075)
(13,949,060)
Investment income 12 -
1,719,431
2,691,620
2,508,039
Other income 21,003 5,971 58,309 22,423
Other expenses (356,270) (644,737) (1,325,513) (1,253,682)
Profit / (loss) for the period (5,298,258) 146,421 (9,235,659) (12,672,280)
The annexed notes 1 to 17 form an integral part of these condensed interim nancial statements.
Operator's Fund Revenue Account
Note
Three-months period ended September 30,
Nine-months period endedSeptember 30,
3rd Quarter Report 2019
Chief Executive Officer DirectorDirectorChairman
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
22
for the nine-month period ended September 30, 2019
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
PARTICIPANTS' TAK AFUL FUND
Surplus for the period 9,929,746
8,447,728
9,125,205
21,068,861
Other comprehensive income for the period - - - -Total comprehensive income for the period 9,929,746 8,447,728 9,125,205 21,068,861OPERATOR'S FUND
Profit / (loss) for the period (5,298,258)
146,421
(9,235,659)
(12,672,280)
Other comprehensive (loss)/income for the period:
Items that may be reclassified subsequently to profit or loss:
Unrealized gain / (loss) on available -for-sale investments 1,528,767
(43,022)
749,206
762,544
1,528,767
(1,492,363)
1,095,962
(933,482)
Total comprehensive (loss) for the period (3,769,491) (1,345,942) (8,139,697) (13,605,762)
The annexed notes 1 to 17 form an integral part of these condensed interim nancial statements.
Fair value reserve realized on sale of available -for-sale investments
(1,696,026)346,756
(1,449,341)
-
Three-months period ended September 30,
Nine-months period endedSeptember 30,
Chief Executive Officer DirectorDirectorChairman
Balance as at January 01, 2018 500,000
37,612,778
38,112,778
Total comprehensive income for the periodSurplus for the period -
21,068,861
21,068,861
Other comprehensive income -
-
-
-
21,068,861
21,068,861
Balance as at September 30, 2018 500,000
58,681,639
59,181,639
Balance as at January 01, 2019 500,000
53,197,615
53,697,615
Total comprehensive income for the periodSurplus for the period -
9,125,205
9,125,205
Other comprehensive income -
-
-
- 9,125,205 9,125,205
Balance as at September 30, 2019 500,000 62,322,820 62,822,820
Description -----------------------------Rupees--------------------------
Balance as at January 01, 2018 50,000,000
293,643
19,161,231
69,454,874
Total comprehensive income / (loss) for the period
Profit/(loss) for the period -
-
(12,672,280)
(12,672,280)
Other comprehensive income -
(933,482)
-
(933,482)
-
(933,482)
(12,672,280)
(13,605,762)
Balance as at September 30, 2018 50,000,000
(639,839)
6,488,951
55,849,112
Balance as at January 01, 2019 50,000,000
471,421
13,845,165
64,316,586
Total comprehensive income / (loss) for the periodProfit/(loss) for the period -
-
(9,235,659)
(9,235,659)
Other comprehensive income - 1,095,962 - 1,095,962
- 1,095,962 (9,235,659) (8,139,697)
Balance as at September 30, 2019 50,000,000 1,567,383 4,609,506 56,176,889
The annexed notes 1 to 17 form an integral part of these condensed interim nancial statements.
Participants' Takaful Fund
Waqf money Un-appropriated
surplus Total
Operator's fund
Statutory reserve Un-appropriated
profit Total Fair value reserve
----------------------------- Rupees -----------------------------Description
CONDENSED INTERIM STATEMENT OF CHANGES IN FUNDS (UN-AUDITED)
23
Window Takaful OperationsSPI Insurance Company Limited
for the nine-month period ended September 30, 2019
3rd Quarter Report 2019
Chief Executive Officer DirectorDirectorChairman
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
24
for the nine-month period ended September 30, 2019
Participants' Takaful Fund
Operator's Fund
Total Total
Rupees
Operating cash flows:
a) Operating activities:
Contribution received 100,151,471
-
100,151,471
99,853,755
Wakala fees received -
74,737,023
74,737,023
67,961,116
Retakaful contribution paid (100,607,564)
-
(100,607,564)
(115,147,171)
Claims paid (70,277,968)
-
(70,277,968)
(52,459,352)
Retakaful and other recoveries (paid) / received 71,665,501
-
71,665,501
45,700,921
Commission paid -
(36,396,860)
(36,396,860)
(35,963,565)
Retakaful rebate received 13,835,221
-
13,835,221
16,217,615
Direct Expenses (10,438,292)
-
(10,438,292)
(2,101,379)
Net cash flow generated from underwriting activities 4,328,369
38,340,163
42,668,532
24,061,940
b) Other operating activities:
General and management expenses paid -
(38,511,572)
(38,511,572)
(42,492,522)
Other operating receipts/(payments) (6,621,029)
(1,804,825)
(8,425,854)
12,505,150
Net cash flow (used in) other operating activities (6,621,029)
(40,316,397)
(46,937,426)
(29,987,372)
Net cash (used in) all operating activities (2,292,660) (1,976,234) (4,268,894) (5,925,432)
Investment activities:
Investment income received 83,031
2,691,620
2,774,651
192,521
Investment made during the period -
(2,095,372)
(2,095,372)
(142,000)
Proceeds from disposal of fixed assets -
-
-
142,500
Fixed capital expenditure -
(36,040)
(36,040)
(212,121)
Net cash generated from/ (used in) investing activities 83,031
560,208
643,239
(19,100)
Net cash (outflow) from all activities (2,209,629)
(1,416,026)
(3,625,655)
(5,944,532)
Cash and cash equivalents at the beginning of the period 11,665,613
4,101,393
15,767,006
16,966,434
Cash and cash equivalents at the end of the period 9,455,984
2,685,367
12,141,351
11,021,902
Reconciliation of profit and loss account
Net cash (used in) all operating activities (2,292,660)
(1,976,234)
(4,268,894)
(5,925,432)
Depreciation/ Amortization (2,625,114)
(463,021)
(3,088,135)
(4,336,030)
Contribution deficiency (16,839,285)
-
(16,839,285)
(2,890,622)
Gain on disposal of fixed assets -
-
-
(198,614)
Increase/(Decrease) in assets other than cash 57,071,094
10,430,014
67,501,108
(42,493,130)
(Increase)/Decrease in liabilities (26,395,233)
(19,976,347)
(46,371,580)
61,697,630
Investment and other income 206,403
2,749,929
2,956,332
2,542,779
Profit / (Loss) for the period 9,125,205 (9,235,659) (110,454) 8,396,581
Attributed to:
Participants' takaful fund 9,125,205 - 9,125,205 21,068,861
Operator's fund - (9,235,659) (9,235,659) (12,672,280)
9,125,205 (9,235,659) (110,454) 8,396,581
The annexed notes 1 to 17 form an integral part of these condensed interim nancial statements.
September 30, 2018
September 30, 2019
Rupees
Chief Executive Officer DirectorDirectorChairman
25
Window Takaful OperationsSPI Insurance Company Limited
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
1
2
2.1
2.1.1
-
-
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.3
2.4
2.5
2.5.1
2.5.2
LEGAL STATUS AND NATURE OF BUSINESS
SPI Insurance Company Limited (the Company) is an unquoted public limited company incorporated in Pakistanon February 15, 2005 under the repealedCompanies Ordinance,1984 (now Companies Act, 2017). The Company is engaged in non-life insurance business mainly comprisingof fire, marine, motor,health and miscellaneous.The Company commenced its commercialoperationson April 13, 2005. The registeredoffice of the Company is situated at suite#204-A, Second Floor,Madina City Mall, Abdullah Haroon Road, Karachiand principal office of the Company is situatedat UIG House 6-D, 1st Floor,UpperMall, Lahore, Pakistan.
The Company has been allowed to work as Window Takaful Operator through License No. 3 dated November 20, 2014 by the Securities and ExchangeCommission of Pakistan under Window Takaful Rules, 2012 to carry on Islamic General Insurance in Pakistan. It has not transacted any business outsidePakistan.
BASIS OF PREPARATION
Statement of compliance
For the purpose of carryingon the takaful business,the Company has formed a waqf for participants'equity fund. The Waqf namely SPI InsuranceCompanyLimited - Window Takaful OperationsWaqf Fund (hereafter referred to as participants’ takaful fund(PTF)) on October 29, 2014 was executed under a trustdeed by the Company with a ceded money of Rs. 500,000. Waqf deed also governs the relationshipof Operator and policy holders for management oftakaful operations, investment of policy holder's funds and investment of Operator's funds approved by Shariah advisor of the company.
There are other new standards,amendments and IFRIC interpretationsthat are mandatory for accountingperiods of the Company beginning on or afterJanuary 01, 2019 but are considered not to be relevant or not to have any significanteffect on the Company's operations.The new standards,amendmentsand IFRIC interpretations that are relevant to the operations of the Company are disclosed in the audited financial statements of the Company for theyear ended December 31, 2018.
Standards, amendments to published approved accounting standards and interpretations becoming effective in current period:
Standards, amendments to published approved accounting standards and interpretations becoming effective in future periods:
These condensed interim financial statements have been presented in Pakistani Rupees, which is also the functional currency of the Company.
Estimates, judgements and risk management policies
Significant areasof estimation uncertainty and critical judgments inapplying accounting policiesthat have the most significant effect on amounts recognizedthe year ended
December 31, 2018.
Risk management policies and procedures are consistent with those disclosed in the audited financial statements of the Company for the year endedDecember 31, 2018.
Basis of measurement
These condensed interimfinancial statements have been prepared under the historicalcostconventionexcept certainfinancial instrumentsthat are carried atfair value.
Application of new and revised international financial reporting standards
The preparation of these condensed interim financial statements in conformity with approved accounting standards, as applicable in Pakistan,requires themanagement to make judgments, estimates and assumptions that affect applicationof accountingpolicies and reported amounts of assets, liabilities,incomeand expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under thecircumstances,the resultsof which form the basis of making the judgmentsabout the carryingvalues of assetsand liabilitiesthat are not readily apparent fromother sources. Actual results may differ from these estimates.
Significant Accounting Policies
The accounting policies and methods of computation followed in the preparation of these condensed interim financial statements are the same as thoseapplied in the preparation of the audited financial statements of the Company for the year ended December 31, 2018.
These condensed interim financial statementsreflect the financial position and results of operations of both the Operator's Fund and Participants'TakafulFund in a manner that the assets, liabilities, income and expenses of the Operator's Fund and Participants' Takaful Fund remain separately identifiable.These condensed interim financial statementsdo not include all the information required in the annual financial statements.Accordingly, these condensedinterim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2018.
There are certainnew standards, amendments and International Financial Reporting Interpretations Committee (IFRIC) interpretations that becameeffective during the period and are mandatory for accounting periods of the Company beginning on or after January01, 2019 but are considerednot to berelevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that arerelevant to the operations of the Company are disclosed in the audited financial statements of the Company for the year ended December 31, 2018.
These condensed interim financial statementshave been prepared in accordance with the accounting and reporting standards as applicable in Pakistan forinterim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
InternationalAccountingStandard (IAS) 34, Interim FinancialReporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
Where the provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, Takaful Rules,2012 and the Insurance AccountingRegulations,2017 differ with the requirements of IAS 34, the provisionsof and directives issued under the CompaniesAct, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, Takaful Rules, 2012 and the Insurance Accounting Regulations, 2017 have beenfollowed.
Provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, Insurance Rules, 2017, Takaful Rules, 2012 andInsurance Accounting Regulations, 2017.
in these condensed interim financial statements are the same as those disclosed in the audited financial statements of the Company for
3rd Quarter Report 2019
26
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
3
September 30, December 31,2019 2018
Note (Un-audited) (Audited)Rupees Rupees
Operating fixed assets - owned
Participants' Takaful Fund 9,042,062
11,667,176
Operator's Fund 3.1 3,082,453
3,483,449
12,124,515
15,150,625
3.1 Additions and deletions in property and equipment
Following are the major additions at cost and deletions at net book value in fixed assets:
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Office improvement - - -
105,463
Furniture and fixture - - -
8,554
Office equipment 17,700 - 27,600
7,535
Computer equipment 8,440 - 8,440
10,426
26,140 - 36,040
131,978
4
Number Rupees Rupees Number Rupees Rupees
Available for sale
Open Ended - Mutual Funds 2,896,730
51,883,840
53,451,223
2,689,203
50,002,067
50,473,488
5September 30, December 31,
2019 2018(Un-audited) (Audited)
Rupees Rupees
37,087,700
38,017,108
154,737,407
195,621,264
Less provision for impairment of due from other takaful / re-takaful operators (4,951,417)
-
149,785,990
195,621,264
186,873,690
233,638,372
6
2019 2018 2019 2018Rupees Rupees Rupees Rupees
Claims Paid 31,233,435
24,850,178
70,277,968
52,459,352
55,871,847
65,303,258
55,871,847
65,303,258
(69,480,693)
(79,819,614)
(76,599,077)
(62,619,074)
Claims expense 17,624,589
10,333,822
49,550,738
55,143,536
Less: Re-takaful and other recoveries received 8,074,725 16,283,102 25,830,227 25,667,772
Add: Re-takaful and other recoveries in respect of outstanding claims - Closing 16,213,973 11,139,415 16,213,973 11,139,415
Less: Re-takaful and other recoveries in respect of outstanding claims - Opening (13,750,147) (21,270,726) (16,089,913) (4,443,800)
Re-takaful and other recoveries revenue 10,538,551 6,151,791 25,954,287 32,363,387
7,086,038 4,182,031 23,596,451 22,780,149
Nine-months period ended September 30,
Nine-months period endedSeptember 30,
INVESTMENT IN EQUITY SECURITIES
Operator's Fund
Operator's Fund
--------------- (Un-audited) --------------- --------------- (Audited) ---------------
Participants' takaful fund
Units Cost Fair value
PROPERTY AND EQUIPMENT
Additions (at cost) Deletions (at net book value)
TAK AFUL / RETAK AFUL RECEIVABLES - Unsecured and Considered Good
- Due from takaful contract holders
NET TAK AFUL CLAIMS
- Due from other takaful/ re-takaful operators
Units Cost
Add: Outstanding claims including IBNR - Closing
Less: Outstanding claims including IBNR - Opening
Fair value
September 30, 2019 December 31, 2018
Three-months period ended September 30,
Nine-months period endedSeptember 30,
27
Window Takaful OperationsSPI Insurance Company Limited
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
7
2019 2018 2019 2018Rupees Rupees Rupees Rupees
Commission paid or payable 9,078,357
9,921,925
30,272,947
30,828,850
Add: Deferred commission expense - Opening 18,260,504
17,784,225
20,541,262
26,372,987
Less: Deferred commission expense - Closing (16,837,095)
(17,337,403)
(16,837,095)
(17,337,403)
Commission expense 10,501,766
10,368,747
33,977,114
39,864,434
Less: Rebate received/ recoverable on re-takaful 4,893,421 5,588,275 13,835,221 16,217,615
Add: Unearned re-takaful rebate - Opening 9,396,629 11,704,666 11,313,380 16,028,937
Less: Unearned re-takaful rebate - Closing (8,945,013) (10,715,900) (8,945,013) (10,715,900)
Rebate on re-takaful 5,345,037 6,577,041 16,203,588 21,530,652
5,156,729
3,791,706
17,773,526
18,333,782
8
September 30, December 31,2019 2018
(Un-audited) (Audited)Rupees Rupees
Participants' takaful fund
Prepaid re-takaful contribution ceded 41,178,218
51,608,690
Operator's fund
Prepaid rent 281,902 325,673 41,460,120
51,934,363
9
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Written gross contribution 29,353,278
33,353,066
99,222,063
101,941,675
60,883,326
58,718,115 68,320,211 81,375,925
(47,091,297)
(53,423,809) (47,091,297) (53,423,809)
Contribution earned 43,145,307 38,647,372 120,450,977 129,893,791
Less: Re-takaful ceded 22,423,710
25,576,955 63,806,149 74,179,091
43,268,896
54,908,730 51,608,690 71,992,907
(41,178,218)
(47,303,991)
(41,178,218)
(47,303,991)
Re-takaful expense 24,514,388 33,181,694 74,236,621 98,868,007
18,630,919 5,465,678 46,214,356 31,025,784
10
September 30, December 31,2019 2018
(Un-audited) (Audited)Rupees Rupees
Participants' takaful fund
Federal Excise Duty / Sales Tax 35,909,486
33,876,580
Federal Takaful Fee 380,754 351,262
Payable to related parties 1,425,000 1,425,000
Wakala fee payable 13,881,106 22,470,087
Others 1,318,666 1,536,484
52,915,012 59,659,413
NET TAK AFUL CONTRIBUTION
Add: Unearned contribution reserve - Opening
Add: Prepaid re-takaful contribution - Opening
Less: Prepaid re-takaful contribution - Closing
Less: Unearned contribution reserve - Closing
NET REBATE ON RE-TAK AFUL
PREPAYMENTS
OTHER CREDITORS AND ACCRUALS
Three-months period ended September 30,
Nine-months period endedSeptember 30,
Three-months period ended September 30,
Nine-months period endedSeptember 30,
3rd Quarter Report 2019
28
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Participants' takaful fund
Held to maturityReturn on term deposits 30,733
13,356
83,031
34,740
Operator's fund
Available for sale
Investment income -
268,161
-
268,161
Dividend income -
1,929
2,002,135
1,929
Held to maturity
Return on term deposits -
-
237,332
157,781
-
270,090
2,239,467
427,871
Realised gain on equity securities - 1,449,341 452,153 2,080,168 1,719,431 2,691,620 2,508,039
INVESTMENT INCOME
Three-months period ended September 30,
Nine-months period endedSeptember 30,
Net fair value reserve realized on sale of available for sale investments
Gross written contribution 53,803,584
8,253,538
71,391,359
28,171,023
3,750,601
165,370,105
Gross direct contribution 44,120,246
8,094,784
41,078,416
8,181,890
2,675,144
104,150,480
Facultative inward contribution 8,673,846
81,361
30,128,101
19,947,637
1,037,511
59,868,456
Administrative surcharge 1,009,492
77,393
184,842
41,496
37,946
1,351,169
Takaful contribution earned 46,892,576
5,697,450
48,988,111
16,763,568
2,109,272
120,450,977
(48,186,953)
(5,914,970)
(18,177,267)
-
(1,957,431)
(74,236,621)
Net takaful contribution (1,294,377)
(217,520)
30,810,844
16,763,568
151,841
46,214,356
Rebate income 10,968,172
1,301,292
3,445,171
-
488,953
16,203,588
Net underwriting income 9,673,795
1,083,772
34,256,015
16,763,568
640,794
62,417,944
Takaful claims (22,585,506)
(6,241,374)
(13,530,374)
(6,699,831)
(493,653)
(49,550,738)
Net claims (5,679,046)
1,182,140
(11,907,457)
(6,699,831)
(492,257)
(23,596,451)
Direct expenses (4,250,212)
(651,988)
(5,639,558)
(2,225,369)
(296,279)
(13,063,406)
Contribution deficiency expense (14,012,985)
(523,006)
(1,760,879)
-
(542,415)
(16,839,285)
Net takaful claims and expenses (23,942,243)
7,146
(19,307,894)
(8,925,200)
(1,330,951)
(53,499,142)
Underwriting results (14,268,448)
1,090,918
14,948,121
7,838,368
(690,157)
8,918,802
Net investment income 83,031
Other income 123,372
Surplus for the period - PTF 9,125,205
Wakala fee 21,521,434 3,301,415 28,556,544 11,268,409 1,500,240 66,148,042
Commission expense (14,590,955) (1,655,156) (12,461,574) (4,801,748) (467,681) (33,977,114)
Management expenses (42,831,003)
Investment income 2,691,620
Other income 58,309
Other expenses (1,325,513)
Profit / (loss) for the period - OPF (9,235,659)
16,906,460 7,423,514 1,396 25,954,287
Takaful contribution ceded to retakaful
Takaful claims recovered from retakaful 1,622,917 -
HealthFire and property damage
MiscellaneousMarine, aviation and transport
MotorNine-months period ended
September 30, 2019Total
-
SEGMENT INFORMATION
------------------------------------------------------------ Rupees ------------------------------------------------------------
2018.
12
13
Operator's fund
Agents commission payable 37,049,932 43,173,845
Accrued expenses 4,305,497 4,658,775
Other tax payables 1,476,743 1,587,006
SPI Insurance Company Limited 31,376,045 25,730,581
74,208,217
75,150,207
127,123,229
134,809,620
11
There is no significant change in the contingencies and commitments since the date of annual audited financial statements for the year ended December 31,
CONTINGENCIES AND COMMITMENTS
Unallocated liabilities - PTF - - - - -
Segment liabilities - PTF 87,508,312 17,622,621 76,815,799 23,963,491 6,502,511 212,412,734
Unallocated liabilities - OPF - - - - - 75,150,207Segment liabilities - OPF - - - - - -
Unallocated assets - PTF - - - - - Segment assets - PTF 145,600,314 22,285,899 107,922,499 18,667,706 6,860,558 301,336,976
Unallocated assets - OPF - - - - - 118,925,531Segment assets - OPF 11,682,679 154,534 7,304,807 1,132,191 267,051 20,541,262
Profit / (loss) for the period - OPF (12,672,280)
Other expenses (1,253,682)
Other income 22,423 Investment income 2,508,039
Management expenses (42,045,742)Commission expense (16,790,287) (2,713,413) (9,866,189) (9,911,139) (583,406) (39,864,434) Wakala fee 24,611,592 5,845,852 30,075,484 6,150,126 1,278,062 67,961,116
Surplus for the period - PTF 21,068,861
Other income 121,697 Net investment income 34,740
Underwriting results 6,299,228 (1,679,176) 3,444,650 9,394,732 3,452,990 20,912,424 Net takaful claims and expenses (4,504,110) (2,209,930) (18,751,711) (5,735,403) (442,858) (31,644,012)
Contribution deficiency expense - (1,262,730) - (1,473,231) (154,661) (2,890,622)
26,138,685 3,374,226 2,298,708 - 551,768 32,363,387Takaful claims recovered from retakafulTakaful claims (28,479,632) (3,807,622) (18,407,023) (3,721,625) (727,634) (55,143,536)
Direct expenses (2,163,163) (513,804) (2,643,396) (540,547) (112,331) (5,973,241) Net claims (2,340,947) (433,396) (16,108,315) (3,721,625) (175,866) (22,780,149)
Net underwriting income 10,803,338
530,754
22,196,361
15,130,135
3,895,848
52,556,436
Rebate income 10,337,411
2,185,107
5,489,438
(470,895)
3,989,591
21,530,652
Net takaful contribution 465,927 (1,654,353) 16,706,923 15,601,030 (93,743) 31,025,784
(46,253,873) (10,229,068) (27,030,503) (12,557,174) (2,797,389) (98,868,007) Takaful contribution ceded to retakafulTakaful contribution earned 46,719,800 8,574,715 43,737,426 28,158,204 2,703,646 129,893,791
Administrative surcharge 769,358 117,598 237,412 - 30,691 1,155,059
Facultative inward contribution 6,309,045 1,436,044 26,606,792 15,289,574 459,394 50,100,849
Gross direct contribution 54,450,576 13,060,991 48,344,505 85,742 2,705,069 118,646,883
Gross written contribution 61,528,979 14,514,633 75,188,709 15,375,316 3,195,154 169,902,791
Segment assets - PTF 101,258,085 12,175,101 92,324,976 31,834,188 6,673,531 244,265,881
Unallocated assets - PTF - - - - - 19,598,046263,863,927
Segment assets - OPF 9,452,839
172,618
5,739,393
1,191,253
280,992
16,837,095
Unallocated assets - OPF -
-
-
-
-
113,548,011
130,385,106
Segment liabilities - PTF 68,706,924
6,592,089
53,542,067
12,922,675
6,362,341
148,126,096
Unallocated liabilities - PTF -
-
-
-
-
52,915,011
201,041,107
Segment liabilities - OPF -
-
-
-
-
-
Unallocated liabilities - OPF -
-
-
-
-
74,208,217
74,208,217
139,466,793
24,432,789325,769,765
75,150,207
59,659,415272,072,149
------------------------------------------------------------ Rupees ------------------------------------------------------------
Nine-months period endedSeptember 30, 2018
Fire and property damage
Marine, aviation and transport
Motor Health Miscellaneous Total
------------------------------------------------------------ Rupees ------------------------------------------------------------
Nine-months period endedSeptember 30, 2019
Fire and property damage
Marine, aviation and transport
Motor Health Miscellaneous Total
29
Window Takaful OperationsSPI Insurance Company Limited
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
3rd Quarter Report 2019
30
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)for the nine-month period ended September 30, 2019
14
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Managerial remuneration 4,546,952
2,574,991
12,530,090
7,260,778
Utilities 293,346
236,500
803,556
663,079
4,840,298
2,811,491
13,333,646
7,923,857
Number of persons 7
7
7
12
15
2019 2018 2019 2018
Rupees Rupees Rupees Rupees
Silk Bank Limited - (Associated Company)
40 40 1,056 800 30,733 13,356 83,031 21,384
Contribution receivable
Balance at beginning of the period 28,241
1,316,731
25,432
19,281
Gross contribution written 2,918,101
459,193
4,724,518
1,854,604
Received / adjusted during the period (22,191)
(114,018)
(1,825,799)
(211,979)
Balance at end of the period 2,924,151
1,661,906
2,924,151
1,661,906
Insurance claim expense
Outstanding claims at beginning of the period 296,264
233,508
383,923
217,508
Gross claim expense for the period 153,677
36,410
287,894
265,255
Claim paid during the period (64,266)
-
(286,142)
(212,845)
Outstanding claims at end of the period 385,675
269,918
385,675
269,918
Other balances with associated companyTerm deposits 1,100,000
1,100,000
1,100,000
1,100,000
Profit and loss sharing accounts -
75,105
-
75,105
Current accounts 2,812,151
2,094,878
2,812,151
2,094,878
Provident fund plan
Contributions made during the period 95,547 90,093 279,369 264,921
16
17
17.1
17.2 Figures have been rounded up to the nearest Rupee.
The related parties comprise United Track Systems (Pvt.) Limited and Silk Bank Limited (Islamic - Emaan) on the basis of related group companies, entities undercommon control, entities