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Atlas Insurance Limited: Quarterly Report - 31 March 2019

IM Insights
By IM Insights
4 years ago
Atlas Insurance Limited: Quarterly Report - 31 March 2019

Takaful, Waqf, Provision, Receivables, Reserves, Sales

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  1. 2019 Quarterly Report March 31 ,
  2. Table of Contents COMPANY OVERVIEW Company Information 02 CORPORATE GOVERNANCE Chairman ’s Review (English) Chairman’s Review (Urdu) Directors’ Review (English) Directors’ Review (Urdu) Pattern of Shareholding 04 07 08 09 10 CONDENSED INTERIM FINANCIAL STATEMENTS Statement of Interim Financial Position Profit and Loss Account Statement of Comprehensive Income Cash Flow Statement Statement of Changes in Equity Notes to and Forming Part of the Condensed Interim Financial Statements 12 13 14 15 17 18 CONDENSED INTERIM FINANCIAL STATEMENTS WINDOW TAKAFUL OPERATIONS Statement of Interim Financial Position Profit and Loss Account Statement of Comprehensive Income Cash Flow Statement Statement of Changes in Fund Notes to and Forming Part of the Condensed Interim Financial Statements 27 28 29 30 32 33 OTHER INFORMATION Company Offices 40
  3. Company Information Board of Directors Investment Committee Yusuf H . Shirazi Chairman Ali H. Shirazi Chairman Ali H. Shirazi Director Frahim Ali Khan Director M. Habib-ur-Rahman Director Hasan Reza ur Rahim Director Frahim Ali Khan Member M. Habib-ur-Rahman Member Babar Mahmood Mirza Member Rashid Amin Member Muhammad Afzal Secretary Roohi R. Khan Director Underwriting, Reinsurance  & Co-insurance Committee Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Chairman Muhammad Afzal Company Secretary Audit Committee Hasan Reza ur Rahim Chairman Ali H. Shirazi Member Babar Mahmood Mirza Member Rashid Amin Member Muhammad Saeed Member Syed Irtiza Kazmi Secretary Claims Settlement Committee Frahim Ali Khan Member Frahim Ali Khan Chairman Muhammad Afzal Secretary Babar Mahmood Mirza Member Saleem Mahmood Akhtar Chief Internal Auditor Ethics, Human Resource & Remuneration Committee Roohi R. Khan Chairperson Ali H. Shirazi Member Babar Mahmood Mirza Member Qudsia Naheed Secretary 02 | Atlas Insurance | Quarterly Report 2019 Syed Irtiza Kazmi Member Muhammad Saeed Secretary Risk Management & Compliance Committee Babar Mahmood Mirza Chairman Rashid Amin Member Muhammad Saeed Member Muhammad Aasim Gul Secretary
  4. Information Technology (IT) Committee Babar Mahmood Mirza Chairman Rashid Amin Member Muhammad Saeed Member Wasim Ahmed Secretary Management Committee Babar Mahmood Mirza Chief Executive Officer Rashid Amin Chief Financial Officer Abbas Sajjad General Manager Sales & Marketing Muhammad Saeed Head of Claims Qudsia Naheed Head of HR & Admin Abdul Razzaq Ghauri Head of IT Syed Irtiza Kazmi Head of Underwriting Syed Nasir Hussain Vice President Reinsurance Shariah Advisor Mufti Zeeshan Abdul Aziz Compliance Officer Muhammad Aasim Gul Auditors A. F. Ferguson & Co. Chartered Accountants Legal Advisors Mohsin Tayebaly & Co. Agha Faisal Barrister at Law RIAA Barker Gillette Tax Advisor Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Share Registrar Hameed Majeed Associates (Pvt.) Limited H. M. House, 7- Bank Square, Shahrah-e-Quaid-e-Azam, Lahore Tel: (92-42) 37235081-82 Fax: (92-42) 37358817 Bankers Allied Bank Limited Askari Bank Limited Bank Alfalah Limited Bank Islami Limited Faysal Bank Limited Habib Bank Limited MCB Bank Limited Meezan Bank Limited National Bank of Pakistan NRSP Microfinance Bank Sindh Bank Limited Soneri Bank Limited Summit Bank Limited The Bank of Punjab FINCA Microfinance Bank Limited Mobilink Microfinance Bank Limited Registered & Head Office 63/A, Block - XX, Phase III (Commercial), Khyaban-e-Iqbal, DHA, Lahore. Tel: (92-42) 37132611-18, Fax: (92-42) 37132622 E mail: info@ail.atlas.pk Website: www.ail.atlas.pk
  5. Chairman ’s Review It gives me great pleasure to present the un-audited accounts of your Company for the first quarter ended March 31, 2019. The Economy Pakistan’s economy is passing through a challenging phase. Tighter monetary and fiscal policies are expected to curb domestic demand and GDP growth is projected to be around 3.5% in FY19 as against previous expectation of 4.0-4.5% and target of 6.2%. Amidst the efforts to curtail inflationary pressures and reduce the otherwise widening macroeconomic imbalances, domestic economic activity is experiencing the brunt of stabilization measures implemented by the government so far. Leading indicators for real sector activity suggest a contraction in demand. Large-scale Manufacturing, which accounts for 65% of overall industrial output, declined by 2.3% during July-Jan FY19 against 7.2% growth recorded in the same period last year. Latest estimates of major crops also depict a lackluster performance by the agriculture sector mainly due to water shortages and a decline in production area. Slowdown in commodity producing sector has snowballing effects on growth of services sector. Similarly, a deceleration in capital investments, reflected through about one third cut in development spending, is culminating into a weakening consumer demand further putting pressure on GDP growth. The exchange rate has continued to depreciate, with a cumulative depreciation of 12% during the first eight months of FY19. As a result of exchange rate depreciation, demand side pressure and higher fuel prices, inflationary pressures have increased and average headline inflation reached 6.5% in the period between July 2018 and February 2019 as compared to 3.9% of the corresponding period last year. The central bank continued its monetary tightening, increasing policy rate by another 50 bps to 10.75% in its latest bi-monthly monetary policy review in March as it put more emphasis on vulnerabilities in the rising core inflation, fiscal concerns, external account, and subpar foreign exchange reserves level. On the external front the current account deficit has shown a considerable improvement owing to stabilization measures, narrowing to USD 8.8 billion in July-Feb FY19 compared to a deficit of USD 11.4 billion during the same period last year - a fall of 22.8%. This includes a notable pace of retrenchment of current account deficit by 59.9% during first two months of 2019. Country’s exports during July 2018 to March 2019 improved marginally by 1% from USD 17.03 billion to USD 17.21 billion, while imports declined by 8.25% to USD 40.66 billion from USD 44.32 billion compared to the same period last year. The decline in imports was mainly due to imposition of regulatory duties on luxury items and automobiles. Overseas Pakistani workers remitted USD 16.35 billion in the first nine months of FY19, up 8.7% compared to USD 14.80 billion received during the same period last year. The foreign exchange reserves, which had fallen to USD 14.9 billion in January 2019, increased to USD 17.4 billion by March due to financing from Saudi Arabia and UAE. The Company The Company performed well during the period under review. The gross premium increased to Rs. 740.46 million against Rs. 667.42 million of the same period last year, up 11%. The net premium increased by 4% to Rs. 371.21 million against Rs. 356.30 million of the same period last Gross Premium (Rs. in million) 740 667 11% year. Continued sound underwriting policies followed by the Company resulted in underwriting profit of Rs. 164.61 million compared to Rs. 146.24 million of the same period last year, up 13%. During the 04 | Atlas Insurance | Quarterly Report 2019 1st Qtr. 2018 1st Qtr. 2019
  6. period under review the Company earned investment income of Rs . 32.68 million against Rs. 56.35 million of the corresponding period last year. The drop in investment income was mainly due to lesser capital gains realized during the period under review. The Company earned profit before tax of Rs. 214.49 million against Rs. 204.68 million of the same period last year. After providing for tax, the profit after tax stood at Rs. 143.71 million compared to Rs. 137.14 million of the same period last year, up 5%. Future Outlook As macroeconomic conditions improve, and a package of structural reforms in fiscal management and competiveness is implemented by the government, growth is expected to recover beyond FY19. Reforms to put the country on stable growth path include increased exchange rate flexibility, improved competitiveness and lower cost of doing business. On the revenue front, reforms to improve tax administration, widen the tax base and facilitate tax compliance are critical. Entry into the IMF program would improve the credibility of Pakistan in the eyes of global financial community, paving the way for fetching flows from multilateral agencies and also facilitate access to international capital markets. With insurance penetration less than one percent in Pakistan, the opportunity to explore untapped horizons remains a challenge for the insurance industry for future growth. Your Company continues to focus on improving operational efficiency and productivity, technology and talent transformations and product & service innovations to meet the evolving paradigm of customer expectations. The demand for insurance products has widely increased in most lines of the business, particularly in Motor and Health and is expected to increase further in the upcoming years. With enhanced capacity at its disposal, your Company is focused on positive growth of its product portfolio: Acknowledgement I would like to thank the Board of Directors, Mr. Babar Mahmood Mirza, Chief Executive Officer and his team for their efforts, dedication and sincerity of purpose. I would also express my gratitude to all the reinsurers, our valued clients, banks and SECP for their support and guidance to the Company. Yusuf H. Shirazi Chairman
  9. Directors ’ Review The directors have pleasure in submitting the quarterly report of the company together with the un-audited financial statements for the period ended March 31, 2019. The overall business figures are: March 31, March 31, 2019 2018 (Rupees in thousand) Net premium Net claims Investment and other income Net commission Expenses of management 371,208 108,461 44,753 31,608 129,742 356,300 117,262 60,852 34,573 116,753 Financial results are as follows: Profit before tax Less: Provision for taxation Profit after tax 214,490 70,782 143,708 204,685 67,548 137,137 665,689 664,170 (491,129) (70,161) (93,000) (456,049) (208,000) 155,107 137,258 Un-appropriated profit brought forward * Appropriation: Final dividend @ 70% (2017: Rs. 6.5 per share) Bonus shares @ 10% (2017: Nil) Transfer to general reserve Un-appropriated profit carried forward * The Board of Directors has recommended cash dividend of Rs. 7.0 per share i.e. 70% and bonus shares 10% i.e. one ordinary share for every then shares held for the year ended December 31, 2018. The financial statements do not reflect these appropriations in compliance with the Companies Act, 2017. Contribution of Rs. 81.25 million (2018: Rs. 42.15 million) was written in Participants’ Fund account during the period ended March 31, 2019. Chairman’s Review The accompanying Chairman’s Review deals with the performance of the Company during the period and future outlook. The directors of the Company endorse the contents of the review. We express our deep appreciation and thanks to our valued clients, bankers, reinsurers and SECP for the cooperation extended to us. We also commend the dedicated services rendered by the Company’s officers, staff and field force. For the Board of Directors Lahore: April 25, 2019 08 | Atlas Insurance | Quarterly Report 2019 Babar Mahmood Mirza Chief Executive
  10. 356 ,300 371,208 117,262 108,461 60,852 44,753 34,573 31,608 116,753 129,742 204,685 214,490 67,548 70,782 137,137 143,708 664,170 665,689 (456,049) (491,129) - (70,161) (208,000) (93,000) 137,258 155,107
  11. Pattern of Shareholding As at March 31 , 2019 Number of shareholders 256 174 123 250 99 58 28 6 18 14 7 7 5 5 6 2 2 3 6 4 1 4 1 1 1 1 1 1 1 2 1 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 Shareholding From 1 101 501 1001 5001 10001 15001 20001 25001 30001 35001 40001 45001 50001 55001 60001 65001 70001 75001 80001 90001 95001 100001 105001 115001 120001 125001 130001 135001 140001 145001 155001 165001 175001 185001 200001 255001 260001 345001 360001 390001 900001 1355001 1925001 1975001 52850001 1,105 10 | Atlas Insurance | Quarterly Report 2019 To 100 500 1000 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 95000 100000 105000 110000 120000 125000 130000 135000 140000 145000 150000 160000 170000 180000 190000 205000 260000 265000 350000 365000 395000 905000 1360000 1930000 1980000 52855000 Shares held 5,838 50,863 102,748 660,542 716,207 731,873 495,175 131,213 498,473 454,436 261,972 297,842 238,437 260,650 340,380 124,679 134,550 211,121 472,326 330,022 92,666 396,564 102,500 110,000 116,879 125,000 130,000 130,541 136,500 280,512 149,672 317,378 338,400 176,803 186,000 203,926 257,000 261,990 350,000 362,000 394,000 905,000 1,358,353 1,929,336 1,978,915 52,852,099 70,161,381
  12. Shareholders ’ Information As at March 31, 2019 Categories of Shareholders Shares held Percentage Director, Chief Executive and their spouse and minor children 1,114 0.00% 54,781,436 78.08% 530 0.00% Non-Banking Financial Institutions 1,556,000 2.22% Insurance Companies 2,138,915 3.05% - 0.00% 52,852,099 75.33% 10,191,876 14.53% - 0.00% 67,724 0.10% 1,423,786 2.03% Associated Companies, undertakings and related parties NIT and ICP Banks, Development Finance Institutions Modaraba and Mutual Funds Shareholders holding 5% and above General Public : Local Foriegn Others : Joint Stock Companies Others
  13. Condensed Interim Statement of Financial Position (Unaudited) As at March 31, 2019 Note March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) Assets Property and equipment Investments Equity securities Debt securities Loan and other receivable Insurance / reinsurance receivables Reinsurance recoveries against outstanding claims Salvage recoveries accrued Deferred commission expense / acquisition cost Prepayments Cash and bank 7 89,635 82,080 8 9 3,669,616 73,704 37,916 426,383 404,786 1,985 79,070 616,391 1,095,279 6,494,765 3,638,943 73,704 14,052 332,681 454,431 2,435 80,233 550,697 1,327,987 6,557,243 120,225 108,484 6,614,990 6,665,727 701,614 2,113,805 798,407 3,613,826 701,614 2,104,563 654,699 3,460,876 680,416 1,101,728 135,980 10,169 362,374 22,645 279,167 345,081 17,860 2,955,420 727,887 1,060,806 116,648 9,249 358,875 178,520 330,450 357,361 22,218 3,162,014 45,744 42,837 6,614,990 6,665,727 10 Total assets from window takaful operations Operator’s fund Total assets Equity and liabilities Capital and reserves attributable to Company’s equity holders Ordinary share capital Reserves Unappropriated profit Total equity Liabilities Underwriting provisions Outstanding claims including IBNR Unearned premium reserves Unearned reinsurance commission Retirement benefit obligation Deferred taxation Premium received in advance Insurance / reinsurance payable Other creditors and accruals Taxation - provision less payments Total liabilities Total liabilities from window takaful operations Operator’s Fund Total equity and liabilities Contingencies and commitments 6 The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer 12 | Atlas Insurance | Quarterly Report 2019 Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  14. Condensed Interim Profit & Loss Account (Unaudited) For the Three Months ended March 31, 2019 Note March 31, March 31, 2019 2018 (Rupees in thousand) Net insurance premium 11 371,208 356,300 Net insurance claim expense 12 (108,461) (117,262) Net commission and other acquisition income 13 31,608 34,573 (76,853) (82,689) (129,742) (127,369) 164,613 146,242 32,684 56,346 Insurance claims and acquisition expenses Management expenses Underwriting results Investment income 14 Rental income - 450 Other income 12,069 4,056 (3,072) (3,588) 206,294 203,506 (393) (84) 8,589 1,263 Profit before tax for the period 214,490 204,685 Income tax expense (70,782) (67,548) Profit after tax for the period 143,708 137,137 2.05 1.95 Other expenses Results of operating activities Finance cost Profit before tax from window takaful operationsOperator’s fund 16 Earnings (after tax) per share - Rupees 15 The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  15. Condensed Interim Statement of Comprehensive Income (Unaudited) For the Three Months ended March 31, 2019 March 31, March 31, 2019 2018 (Rupees in thousand) Profit after tax for the period 143,708 137,137 8,997 (19,472) 245 1,649 9,242 (17,823) 152,950 119,314 Other comprehensive income / (loss) for the period: Items that may be subsequently reclassified to profit and loss account: Un-realized profit / (loss) on available for sale investments net of deferred tax Other comprehensive income from window takaful operationsOperator’s fund Other comprehensive income / (loss) for the period Total comprehensive income for the period The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer 14 | Atlas Insurance | Quarterly Report 2019 Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  16. Condensed Interim Cash Flow Statement (Unaudited) For the Three Months ended March 31, 2019 Note March 31, 2019 2018 (Rupees in thousand) Operating cash flows a) March 31, Underwriting activities Insurance premium received Reinsurance premiums paid Claims paid Reinsurance and other recoveries received Commissions paid Commissions received Management expenses paid Other underwriting payments Other underwriting receipts 572,156 (449,570) (249,031) 152,938 (30,867) 95,561 (173,238) (142) 7,300 581,085 (314,594) (142,841) 48,466 (31,014) 88,960 (159,613) (113) 7,231 Net cash (used in) / generated from underwriting activities (74,893) 77,567 Other operating activities Income tax paid Loan repayment received Other deposits (76,861) 7 24,193 (54,388) 7 7,781 Net cash used in other operating activities (52,661) (46,600) (127,554) 30,968 Profit / return received Dividend received Rental received Payments for investments Proceeds from investments Fixed capital expenditure Proceeds from sale of property and equipment 14,890 15,187 (614,496) 491,718 (12,908) 2,336 6,282 11,665 (397,686) 278,000 (3,178) 1,896 Total cash used in investing activities (103,273) (103,021) (1,779) (279) (102) (102) (1,881) (381) (232,708) (72,434) 1,327,987 702,252 1,095,279 629,818 b) Total cash (used in) / generated from all operating activities Investment activities Financing activities Dividends paid Financial charges Total cash used in financing activities Net cash used in all activities Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 10
  17. Condensed Interim Cash Flow Statement (Unaudited) For the Three Months ended March 31, 2019 March 31, March 31, 2019 2018 (Rupees in thousand) Reconciliation to profit and loss account Operating cash flows Depreciation expense Financial charges Provision for doubtful debts Loss on sale of fixed assets Rental and other income Increase in assets other than cash Decrease / (increase) in liabilities other than borrowings (127,554) (4,652) (102) (7,056) (31) 12,069 123,111 104,932 30,968 (4,242) (102) (6,272) 4,506 150,907 (130,312) Other adjustments Increase in provision for unearned premium Increase in commission income unearned Income on investments and current and other deposits (Decrease) / increase in provision for deferred commission expense Profit from window takaful operations for the period - Operator’s fund 22,213 (19,333) 32,684 (1,162) 8,589 48,629 (19,090) 56,346 4,536 1,263 Profit after tax for the period 143,708 137,137 The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer 16 | Atlas Insurance | Quarterly Report 2019 Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  18. Condensed Interim Statement of Changes in Equity (Unaudited) For the Three Months ended March 31, 2019 Attributable to equity holders of the Company Capital reserves Share capital Balance as at December 31, 2017 (audited - restated) Capital reserve Revenue reserves Investment Reserve for Investment Unapprofair value exceptional General fluctuation priated reserve losses reserves reserve profit (Rupees in thousand) Total 701,614 2,251 1,797,580 2,164 880,649 3,000 659,785 4,047,043 Profit after taxation for the year ended December 31, 2018 - - - - - - 665,568 665,568 Re-measurement loss on defined benefit obligation - net of tax - - - - - - (6,605) (6,605) Net unrealised loss on revaluation of available for sale investments - net of deferred tax - - (789,010) - - - - (789,010) Other comprehensive income from window takaful operations (OPF) - - (71) - - - - (71) Total comprehensive income for the year ended December 31, 2018 - - (789,081) - - - 658,963 (130,118) Final dividend for the year ended December 31, 2017 @ 65% (Rs. 6.5 per share) - - - - - - (456,049) (456,049) Transferred to general reserve - (2,251) - (2,164) 212,415 - (208,000) - 701,614 - 1,008,499 - 1,093,064 3,000 654,699 3,460,876 Profit after taxation for the period ended March 31, 2019 (unaudited) - - - - - - 143,708 143,708 Net unrealised gain on revaluation of available for sale investments - net of deferred tax - - 8,997 - - - - 8,997 Other comprehensive income from window takaful operations (OPF) - - 245 - - - - 245 Total comprehensive income for the period ended March 31, 2019 - - 9,242 - - - 143,708 152,950 701,614 - 1,017,741 - 1,093,064 3,000 798,407 3,613,826 Balance as at December 31, 2018 (audited) Balance as at March 31, 2019 (unaudited) The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  19. Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited) For the Three Months ended March 31, 2019 1. Legal status and nature of business Atlas Insurance Limited (the Company) was incorporated as a public limited Company on September 06, 1934 and is listed on the Pakistan Stock Exchange. The Company is engaged in general insurance business. The registered office of the Company is situated at 63/A, Block - XX, Phase III (Commercial), Khyaban-e-Iqbal, Defence Housing Authority, Lahore. The Company is a subsidiary of Shirazi Investments (Private) Limited. The Company was granted license to work as Window Takaful Operator (WTO) dated March 02, 2016 by the Securities and Exchange Commission of Pakistan (SECP) under Takaful Rules, 2012 to carry on Window Takaful Operations in Pakistan. 2. Basis of preparation and statement of compliance 2.1 Statement of compliance These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of: - International Accounting Standard (IAS) 34, “Interim Financial Reporting”, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and - Provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012. Where the provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 have been followed. 2.2 Basis of preparation The Securities and Exchange Commission of Pakistan (SECP) vide S.R.O. 89(I)/2017 dated February 9, 2017 issued the Insurance Rules, 2017 (the Rules) for insurance companies which were enforceable with immediate effect. The Rules prescribe the amended format of financial statements for non-life insurance companies. Further the Rules did not carry forward the exemption in application of International Accounting Standard (IAS) - 39 ‘Financial Instruments: Recognition and Measurement’ in respect of ‘available for sale’ securities. The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of the International Accounting Standard 34 ‘Interim Financial Reporting’. These condensed interim financial statements do not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual audited financial statements of the Company for the year ended December 31, 2018. As per the requirements of Takaful Rules 2012, read with SECP Circular 25 of 2015 dated July 09, 2015, the assets, liabilities and profit / loss of the Operator’s Fund (OPF) of the WTO of the Operator have been presented as a single line item in the condensed interim statement of financial position, condensed interim statement of profit and loss, condensed interim statement of comprehensive income and statement of changes in equity of the Company respectively. Further, a separate set of the condensed interim financial statements of the WTO has been annexed to these condensed interim financial statements as per the requirements of Takaful Rules, 2012. 2.3 Basis of measurement These condensed interim financial statements have been prepared under historical cost convention, except that certain investments that are carried at fair market value and the recognition of certain employee retirement benefits that are measured at present value. 18 | Atlas Insurance | Quarterly Report 2019
  20. 2 .4 Functional and presentation currency These condensed interim financial statements have been presented in Pakistani rupees, which is the Company’s functional and presentation currency. 3. Standards, amendments and interpretations to accounting and reporting standards that are effective in the current period There are certain new and amended standards and interpretations that are mandatory for the Company’s accounting periods beginning on or after January 01, 2019 but are considered not to be relevant or to have any significant effect on the Company’s operations and are therefore not detailed in these condensed interim financial statements. 4. Summary of significant accounting policies The accounting policies applied in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual audited financial statements of the Company for the year ended December 31, 2018. 5. Critical accounting estimates and judgments The preparation of condensed interim financial statements in conformity with accounting and reporting standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The estimates, associated assumptions and judgments are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In preparing these condensed interim financial statements, the significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation uncertainty were the same as those that were applied in the annual audited financial statements of the Company as at and for the year ended December 31, 2018. 6. Contingencies and commitments 6.1 Contingencies 6.1.1 The tax authorities had raised demand amounting to Rs. 117,817 (thousand) against the Company for the tax years 2009 to 2014, that primarily pertained to the rate of tax on dividend, rental income and WWF. Commissioner Inland Revenue (Appeals) [CIR (A)] partially upheld the decision and reduced the demand to Rs. 59,722 (thousand). The Company filed appeals against the CIR(A) decision before the Appellate Tribunal Inland Revenue (ATIR) wherein the decision of CIR(A) was upheld. The Company has filed a reference application against the decision of ATIR before the Honorable Lahore High Court which is currently pending adjudication. No provision has been recognized in the condensed interim financial statements since the Company believes that there are meritorious grounds that the case will be decided in favor of the Company. 6.1.2 For tax year 2005, the Tax authorities disputed the Company’s treatment on certain issues disallowing expenses, creating a demand of Rs. 70,698 (thousand). The Company filed appeal before CIR(A) which was decided in favor of the Company. Department filed appeal against CIR(A) before ATIR which is pending adjudication. No provision has been recognized in the condensed interim financial statements since the Company believes that there are meritorious grounds that the case will be decided in favor of the Company. 6.1.3 Other contingencies Claims against the Company not acknowledged as debt 6.2 Commitments 6.2.1 Commitments in respect of operating leases March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) 112,526 112,526 The amount of future payments under operating leases and the period in which these payments will become due are as follows:
  21. Note Not later than one year Later than one year and not later than five years 7 . 7.1 Freehold building Lease hold improvements Furniture and fixtures Office equipment Computers equipment Motor vehicles Less: Disposal during the period / year (at book value) Depreciation charged for the period / year Closing book value 82,045 35 82,080 March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) 1,925 14,159 6,285 15,812 11,978 39,476 89,635 1,925 14,930 6,112 15,251 11,738 32,089 82,045 7.3 82,045 14,647 96,692 89,078 32,774 121,852 7.4 (2,405) (4,652) (7,057) (20,380) (19,427) (39,807) 89,635 82,045 467 1,300 1,291 11,589 14,647 962 222 1,692 4,581 25,317 32,774 131 5,338 5,469 1,168 12,410 2,209 2,613 2,509 16,632 37,541 Additions during the period / year Lease hold improvements Furniture and fixtures Office equipment Computers equipment Motor vehicles 7.4 89,635 89,635 Movement of operating fixed assets during the period / year Opening book value Add: Additions during the period / year 7.3 53,323 39,253 92,576 The breakup of operating assets as at the period / year end is given below: Note 7.2 7,792 6,661 14,453 Property and equipment Operating assets Capital work in progress 7.1 March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) Disposals during the period / year Freehold land Freehold building Furniture and fixtures Office equipment Computers equipment Motor vehicles 20 | Atlas Insurance | Quarterly Report 2019
  22. 8 . Investments in equity securities Note Available for sale Related parties Listed shares Mutual funds 8.1 Unrealized gain on revaluation as at Others Listed shares Unlisted shares Mutual funds March 31, 2019 December 31, 2018 (Unaudited) (Audited) Impairment Carrying Impairment Carrying Cost Cost / provision value / provision value (Rupees in thousand) 643,711 225,520 869,231 (1,089) (1,089) 643,711 224,431 868,142 643,711 215,520 859,231 - 1,225,294 2,093,436 8.1 8.2 Unrealized gain on revaluation as at 1,390,011 500 80,320 1,470,831 643,711 215,520 859,231 1,282,760 2,141,991 (141,220) 1,248,791 1,329,964 (500) 500 (391) 79,929 121,704 (142,111) 1,328,720 1,452,168 (71,701) 1,258,263 (500) (947) 120,757 (73,148) 1,379,020 247,460 1,576,180 117,932 1,496,952 3,669,616 3,638,943 8.1 Listed securities include an amount of Rs. 2,523,586 thousand (December 31, 2018: Rs. 2,657,964 thousand) being the fair market value under an arrangement permissible under Shariah. Cost of these securities amounts to Rs. 1,390,084 thousand (December 31, 2018: Rs. 1,435,793 thousand). 8.2 Mutual funds include an amount of Rs. 24,258 thousand (December 31, 2018: Rs. 29,887 thousand) being the fair market value under an arrangement permissible under Shariah. Cost of these securities amounts to Rs. 23,588 thousand (December 31, 2018: Rs. 28,999 thousand) 9. Investments in debt securities Note Held to maturity Pakistan investment bonds 9.1 9.1 March 31, 2019 December 31, 2018 (Unaudited) (Audited) Impairment Carrying Impairment Carrying Cost Cost / provision value / provision value (Rupees in thousand) 73,704 - 73,704 Cash and bank Cash at bank Current accounts and other accounts 10.1 - 73,704 This represents carrying amount of government securities placed as statutory deposit with the State Bank of Pakistan in accordance with the requirements of Section 29(2)(a) of the Insurance Ordinance, 2000. Note 10. 73,704 10.1 March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) 1,095,279 1,095,279 1,327,987 1,327,987 The balance in savings accounts bears mark-up which ranges from 8% to 10% (2018: 3.73% to 9%) per annum.
  23. 11 . Net insurance premium March 31, March 31, 2019 2018 (Rupees in thousand) Written gross premium Add: Unearned premium reserve - opening Less: Unearned premium reserve - closing Premium earned 740,460 1,060,805 (1,101,728) 699,537 667,417 875,050 (915,854) 626,613 391,466 546,319 (609,456) 328,329 359,746 408,367 (497,800) 270,313 371,208 356,300 249,217 680,416 (727,887) 201,746 144,937 408,926 (324,385) 229,478 142,930 51,513 404,786 211,371 (454,431) 93,285 (150,668) 112,216 108,461 117,262 38,449 80,234 (79,070) 39,613 37,521 61,735 (66,270) 32,986 90,553 116,648 (135,980) 71,221 (31,608) 88,960 96,213 (117,614) 67,559 (34,573) 36,042 27,189 1,243 37,285 1,073 28,262 5,952 28,229 Total investment income 43,237 56,491 Less: Impairment in value of available for sale securities - Equity securities 10,486 - 67 32,684 145 56,346 Less: Reinsurance premium ceded Add: Prepaid reinsurance premium - opening Less: Prepaid reinsurance premium - closing Reinsurance expense 12. Net insurance claims expense Claims paid Add: Outstanding claims including IBNR - closing Less: Outstanding claims including IBNR - opening Claims expense Less: Reinsurance and other recoveries received Add: Reinsurance and other recoveries in respect of outstanding claims net of impairment - closing Less: Reinsurance and other recoveries in respect of outstanding claims net of impairment - opening Reinsurance and other recoveries revenue 13. Net commission and other acquisition expense / (income) Commission paid or payable Add: Deferred commission expense - opening Less: Deferred commission expense - closing Net Commission expense Less: Commission received or recoverable Add: Unearned Reinsurance commission - opening Less: Unearned Reinsurance commission - closing Commission from reinsurers 14. Investment income Income from equity securities Available for sale Dividend income Income from debt securities Held to maturity Return on debt securities Net realised gain on investments Available for sale financial assets Realised gains on: - Equity securities Less: Investment related expenses 22 | Atlas Insurance | Quarterly Report 2019
  24. 15 . March 31, March 31, 2019 2018 (Rupees in thousand) Earnings per share There is no dilutive effect on basic earnings per share which is based on: Profit after tax for the period Weighted average number of ordinary shares Earnings per share - (basic / diluted) 16. Window takaful operations - OPF Wakala fee Management expenses Commission expenses Other income Other expenses Profit / (loss) for the period 17. 143,708 137,137 Number of shares thousand 70,161 70,161 Rupees 2.05 1.95 March March 31, 2019 31, 2018 (Rupees in thousand) 15,525 (3,445) (4,402) 1,129 (218) 8,589 10,820 (6,007) (3,442) 288 (396) 1,263 Related party transactions Related parties comprises of associated entities, entities under common control, entities with common directors, major shareholders, post employment benefit plans and key management personnel, inclusive of directors, and their close family members. The Company in the normal course of business carries out transactions with various related parties. Amounts due to / from and other significant transactions, other than those disclosed elsewhere in these condensed interim financial statements, are as follows: Associated Companies Period end balances Provision for outstanding claims (including IBNR) Premium received in advance Due from insurance contract holders Transactions during the period Premium underwritten Premium collected Claims paid Assets purchased Rent paid Expenses paid Donations Dividends received Investments purchased Investments sold Post employment benefit Transactions during the period plans Contributions in respect of retirement benefit plans March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) 213,527 124,659 294,336 105,202 127,715 March 31, March 31, 2019 2018 (Rupees in thousand) 302,899 345,068 126,922 10,506 964 298 2,200 5,237 554,452 549,123 293,994 361,941 23,761 13,205 877 102 272,000 278,000 1,625 2,271 75 47 2,218 33,182 - Key management personnel Transactions during the period Premium underwritten Premium collected Assets sold Compensation
  25. 18 . Segment Reporting The Company has identified four (2018: four) primary business segments for reporting purposes in accordance with the requirements of the Insurance Ordinance, 2000 and the Insurance Rules, 2017. These include fire and property damage, marine, aviation and transport, motor, health and miscellaneous class of business. Assets and liabilities, wherever possible, have been assigned to each reportable segment based on specific identification or allocated on the basis of the gross premium written by the segments. Fire and property damage 2019 2018 Marine, aviation and transport 2019 2018 248,752 34,088 2,253 156,087 19,768 1,341 236,689 28,645 2,030 212,411 134,978 207,548 3,677 1,186 212,411 (Unaudited) March 31, Motor Miscellaneous Total 2019 2018 (Rupees in thousand) 2019 2018 2019 2018 259,782 31,938 2,236 200,519 24,331 1,560 180,839 20,301 1,307 170,137 21,246 1,484 166,562 17,487 1,475 856,097 108,310 7,327 763,270 89,494 6,359 206,014 225,608 174,628 159,231 147,407 147,600 740,460 667,417 132,956 1,188 834 134,978 202,213 3,801 206,014 221,304 85 4,219 225,608 149,992 23,102 1,534 174,628 128,058 30,087 1,086 159,231 145,805 823 779 147,407 146,353 156 1,091 147,600 705,558 27,602 7,300 740,460 628,671 31,516 7,230 667,417 204,582 161,068 196,817 215,573 161,798 115,480 136,340 134,492 699,537 626,613 (143,132) 61,450 33,098 94,547 (119,410) 41,658 29,210 70,868 (65,878) 130,939 20,600 151,539 (70,005) 145,568 21,507 167,075 (57,396) 104,402 3,772 108,174 (28,914) 86,566 4,468 91,034 (61,923) 74,417 13,750 88,167 (51,984) 82,508 12,374 94,882 (328,329) 371,208 71,220 442,428 (270,313) 356,300 67,559 423,859 Insurance claims Insurance claims recovered from reinsurers Net claims (41,116) (86,158) (17,575) (10,156) (66,174) (69,696) (76,882) (63,468) (201,747) (229,478) 37,206 (3,910) 81,006 (5,152) 6,170 (11,405) 7,314 (2,842) 27,087 (39,087) 13,261 (56,435) 22,823 (54,059) 10,635 (52,833) 93,286 (108,461) 112,216 (117,262) Commission expense Management expenses Net insurance claims and expenses (15,635) (34,729) (54,274) (10,760) (25,759) (41,671) (5,999) (33,962) (51,366) (4,516) (43,055) (50,413) (11,612) (36,662) (87,361) (9,774) (30,387) (96,596) (6,366) (24,389) (84,814) (7,936) (28,168) (88,937) (39,612) (129,742) (277,815) (32,986) (127,369) (277,617) 40,273 29,197 100,173 116,662 20,813 (5,562) 3,353 5,945 164,613 146,242 32,684 12,069 (3,072) (393) 56,346 450 4,056 (3,588) (84) 8,589 1,263 214,490 204,685 Premium receivable (inclusive of Federal Insurance Fee and Administrative surcharge) Less: Federal Excise Duty Federal Insurance Fee Gross written premium (inclusive of Administrative Surcharge) Gross direct premium Facultative inward premium Administrative surcharge Insurance premium earned Insurance premium ceded to reinsurers Net insurance premium Commission income Net underwriting income Underwriting results Net investment income Rental Income Other income Other expenses Finance cost Profit / (loss) before taxation from window takaful operations - OPF Profit before tax for the period March 31, Dec. 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousands) Segment assets - Conventional Segment assets - Takaful OPF Unallocated assets - Conventional Unallocated assets - Takaful OPF 1,528,615 51,153 4,966,085 69,137 6,614,990 1,416,098 40,896 5,141,145 67,588 6,665,727 Segment liabilities - Conventional Segment liabilities - Takaful OPF Unallocated liabilities - Conventional Unallocated liabilities - Takaful OPF 2,219,936 45,705 735,419 104 3,001,164 2,498,349 42,837 663,665 0 3,204,851 24 | Atlas Insurance | Quarterly Report 2019
  26. 19 . Fair value of financial instruments The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable inputs). The fair value measurement of available for sale investments is based on quoted market prices i.e. level 1 inputs and is equal to the carrying amount. In case of other financial assets and financial liabilities that are expected to be settled within one year, carrying amounts are considered to be a reasonable approximation of their fair values. 20. Held to Available maturity for sale Total Rupees in thousand Movement in investments As at beginning of current year 73,704 3,638,943 3,712,647 - 614,496 (585,833) 12,496 (10,486) 614,496 (585,833) 12,496 (10,486) 73,704 3,669,616 3,743,320 Additions Disposals (sales and redemptions) Fair value net losses (excluding net realised losses) Impairment As at end of current period 21. Financial and insurance risk management The financial and insurance risk management objectives and policies are consistent with those disclosed in the annual audited financial statements of the Company for the year ended December 31, 2018. 22. Corresponding figures There has been no significant re-classifications / restatements in these condensed inetrim financial statements. 23. Subsequent events There are no significant subsequent events that need to be disclosed for the period ended March 31, 2019. 24. Date of authorization for issue The condensed interim financial statements were authorised for issue on April 25, 2019 by the Board of Directors of the Company. 25. General Figures in these interim financial statements have been rounded off to the nearest thousand rupees. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  27. Window Takaful Operations Quarterly Report March 31 , 2019
  28. Window Takaful Operations Condensed Interim Statement of Financial Position (Unaudited) As at March 31, 2019 Note OPF March 31, 2019 Assets Property and equipment Intangible assets Investments Equity Securities Loans and other receivables Takaful / retakaful receivables Retakaful recoveries against outstanding claims Deferred commission expense / acquisition cost Wakala fees receivable Deferred wakala expense Prepayments Cash and bank PTF Total Total March 31, March 31, December 31, 2019 2019 2018 (Unaudited) (Audited) ((Rupees in thousand)) 6 7 431 170 - 431 170 2,157 245 8 20,341 1,020 8,958 35,329 6,181 22,860 95,290 855 24,532 9,569 35,908 20,182 175,004 266,050 20,341 1,875 24,532 9,569 8,958 35,329 35,908 26,363 197,864 361,340 3,110 8,682 3,519 6,997 29,610 33,715 21,418 196,952 306,405 25,000 - 25,000 25,000 120,290 266,050 386,340 331,405 50,000 245 24,236 74,481 500 (23,139) (22,639) 50,500 245 24,236 (23,139) 51,842 50,500 15,647 (23,347) 42,800 - 25,000 25,000 25,000 96 35,908 9,805 45,809 44,455 126,962 3,760 1,277 48,027 35,329 3,879 263,689 44,455 126,962 3,760 96 1,277 48,027 35,908 35,329 13,684 309,498 30,434 106,254 3,695 509 7,972 37,467 33,715 29,610 13,949 263,605 120,290 266,050 386,340 331,405 9 Qard-e-Hasna to Participants’ Takaful Fund Total assets Fund and Liabilities Funds Statutory fund / cede money Capital reserve Accumulated profit Accumulated deficit Total funds Qard-e-Hasna from Operator’s Fund Liabilities Underwriting provisions Outstanding claims (including IBNR) Unearned contribution reserves Unearned retakaful rebate Retirement benefit obligations Deferred taxation Contribution received in advance Takaful / retakaful payables Unearned wakala fee Wakala fee payable Other creditors and accruals Total liabilities 12 11 14 13 Total equity and liabilities Contingencies and commitments 10 The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  29. Window Takaful Operations Condensed Interim Profit & Loss Account (Unaudited) For the Three Months ended March 31, 2019 Note March 31, March 31, 2019 2018 (Rupees in thousand) PTF revenue account Net contribution revenue 11 45,236 25,081 Net claims expense 12 (28,128) (15,619) Wakala expense 13 (15,525) (10,820) - 1,291 Reversal of contribution deficiency reserve 2,602 1,442 (41,051) (23,706) Direct expenses (5,965) (3,650) Underwriting results (1,780) (2,275) Retakaful rebate 14 Takaful claims and acquisition expenses Investment income 16 Result from operating activities 2,001 632 221 (1,643) Finance cost (13) - Surplus / (deficit) for the period 208 (1,643) OPF revenue account Wakala fee 13 15,525 10,820 Net commission and other acquisition costs 15 (4,402) (3,442) (3,445) (6,007) 7,678 1,371 Management expenses Investment income 16 Other expenses Profit for the period 1,129 288 (218) (396) 8,589 1,263 The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer 28 | Atlas Insurance | Quarterly Report 2019 Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  30. Window Takaful Operations Condensed Interim Statement of Comprehensive Income (Unaudited) For the Three Months ended March 31, 2019 March 31, March 31, 2019 2018 (Rupees in thousand) Operator’s Fund Profit for the period 8,589 1,263 245 (71) 8,834 1,192 Other comprehensive income / (loss) for the period: Items that may be subsequently reclassified to profit and loss account: Un-realized gains / (losses) on available for sale investments - net of deferred tax Total comprehensive income for the period The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  31. Window Takaful Operations Condensed Interim Cash Flow Statement (Unaudited) For the Three Months ended March 31, 2019 Note OPF PTF Total Total March 31, March 31, March 31, March 31, 2019 2019 2019 2018 (Rupees in thousand) Operating activities a) Takaful activities Contributions received - 75,977 75,977 42,308 Re-takaful contributions paid - (5,721) (5,721) (4,626) Re-takaful and other recoveries received - 4 4 2 Claims paid - (21,582) (21,582) (12,133) Commissions paid (5,492) - (5,492) (3,856) Management and other expenses paid (16,131) (4,936) (20,443) (25,379) Other underwriting receipts - 425 425 44 Other operating payments - (215) (215) (274) 12,000 (12,000) - - 1,572 16,445 18,017 5,334 Income tax paid (7) (249) (256) (83) Net cash used in other operating activities (7) (249) (256) (83) Total cash generated from all operating activities 1,565 16,196 17,761 5,251 Wakala fees received / (paid) Net cash generated from takaful activities b) Other operating activities Investment activities Profit / return received 2,152 2,041 4,193 426 Payments for investments (38,000) - (38,000) - Proceeds from investments 18,383 - 18,383 - Fixed capital expenditure (1,425) - (1,425) - (18,890) 2,041 (16,849) 426 Qard-e-Hasna - - - - Total cash used in financing activities - - - - Total cash (used in) / generated from investing activities Financing activities Total cash (used in) / generated from all activities Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 30 | Atlas Insurance | Quarterly Report 2019 9 (17,325) 18,237 912 5,677 40,186 156,766 196,952 80,331 22,861 175,003 197,864 86,008
  32. Window Takaful Operations Condensed Interim Cash Flow Statement (Unaudited) For the Three Months ended March 31, 2019 Note OPF PTF Total Total March 31, March 31, March 31, March 31, 2019 2019 2019 2018 (Rupees in thousand) Reconciliation to profit and loss account Operating cash flows 1,565 16,196 17,761 5,251 Depreciation / amortization expense (99) - (99) (199) Investment income 735 2,002 2,737 920 74 - 74 - 320 - 320 - 13 - 13 - Dividend income Profit on sale of investment Finance cost Increase in assets other than cash Increase in liabilities other than borrowings 8,786 24,712 33,498 1,964 (2,805) (42,701) (45,506) (8,316) - - - - 8,589 208 8,797 (380) Other adjustments Provision for impairment of receivable from takaful contract holders Profit / (deficit) for the period The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  33. Window Takaful Operations Condensed Interim Statement of Changes in Fund (Unaudited) For the Three Months ended March 31, 2019 Operator’s Fund (OPF) Capital reserve Statutory Investment fair Accumulated fund (loss) / profit value reserve (Rupees in thousand) Balance as at December 31, 2017 (audited - restated) Total 50,000 71 (1,460) 48,611 Profit for the year ended December 31, 2018 - - 17,107 17,107 Net unrealized loss on revaluation of available for sale investments - net of deferred tax - (71) - (71) Total comprehensive (loss) / income for the period - (71) 17,107 17,036 50,000 - 15,647 65,647 Profit for the three months ended March 31, 2019 - - 8,589 8,589 Net unrealized gain on revaluation of available for sale investments - net of deferred tax - 245 - 245 Total comprehensive income for the period - 245 8,589 8,834 50,000 245 24,236 74,481 Balance as at December 31, 2018 (audited) Balance as at March 31, 2019 (unaudited) Participant’s Takaful Fund (PTF) Capital reserve Investment fair Accumulated value reserve (deficit) / surplus (Rupees in thousand) Cede money Balance as at December 31, 2017 (audited - restated) Total 500 - 1,650 2,150 Deficit for the year ended December 31, 2018 - - (24,997) (24,997) Total comprehensive income for the year - - (24,997) (24,997) 500 - (23,347) (22,847) Deficit for the three months ended March 31, 2019 - - 208 208 Total comprehensive income for the period - - 208 208 500 - (23,139) (22,639) Balance as at December 31, 2018 (audited) Balance as at March 31, 2019 (unaudited) The annexed notes 1 to 25 form an integral part of these condensed interim financial statements. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer 32 | Atlas Insurance | Quarterly Report 2019 Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  34. Notes to and Forming Part of the Condensed Interim Financial Statements (Unaudited) For the Three Months ended March 31, 2019 1. Legal status and nature of business Atlas Insurance Limited (the Operator) was granted a license to undertake Window Takaful Operations (WTO) in Pakistan on March 02, 2016 by the Securities and Exchange Commission of Pakistan (SECP) under SECP Takaful Rules, 2012. For the purpose of carrying on the takaful business, as per requirement of circular 8 of 2014 the Operator transferred Rs. 50,000 thousand in a separate bank account and thereafter, formed a Waqf / Participants’ Takaful Fund (PTF) on March 12, 2016 under a Waqf deed with the ceded money of Rs. 500 thousand. The Waqf deed governs the relationship of Operator and Participants for management of takaful operations. 2. Basis of preparation and statement of compliance 2.1 These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of: - International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and - Provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012. Where the provisions of and directives issued under the Companies Act, 2017, Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and Takaful Rules, 2012 have been followed. 2.2 The Securities and Exchange Commission of Pakistan (SECP) vide S.R.O. 89(I)/2017 dated February 9, 2017 issued the Insurance Rules, 2017 (“the Rules”) for insurance companies which were enforceable with immediate effect. The Rules prescribe the amended format of financial statements for non-life insurance companies. Further the Rules did not carry forward the exemption in application of International Accounting Standard (IAS) - 39 ‘Financial Instruments: Recognition and Measurement’ in respect of ‘available for sale’ securities. 2.3 The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of the International Accounting Standard 34 ‘Interim Financial Reporting’. This condensed interim financial statements does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual audited financial statements of the operator for the year ended December 31, 2018. 2.4 These condensed interim financial statements reflect the financial position and results of operations of both the Operator’s Fund (OPF) and Participants’ Takaful Fund (PTF) in a manner that the assets, liabilities, income and expenses of the OPF and PTF remain separately identifiable. 3. Basis of measurement This interim financial information has been prepared under historical cost convention, except that certain investments that are carried at fair market value. 3.1 Functional and presentation currency These condensed interim financial information are presented in Pakistani Rupees which is the Operator’s functional and presentation currency. 3.2 Standards, amendments and interpretations to accounting and reporting standards that are effective in the current period There are certain new and amended standards and interpretations that are mandatory for the Operator’s accounting periods beginning on or after January 1, 2018 but are considered not to be relevant or to have any significant effect on the Operator’s operations and are therefore not detailed in these condensed interim financial statements.
  35. 4 . Summary of significant accounting policies The accounting policies applied in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual audited financial statements of the Operator for the year ended December 31, 2018. 5. Critical accounting estimates and judgments The preparation of condensed interim financial statements in conformity with accounting and reporting standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The estimates, associated assumptions and judgments are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In preparing these condensed interim financial statements, the significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation uncertainty were the same as those that were applied in the annual audited financial statements of the Operator as at and for the year ended December 31, 2018. Note 6. Property and equipment - OPF 431 2,157 55 376 431 173 1,984 2,157 2,157 2,157 2,893 214 3,107 (1,702) (24) (1,726) (950) (950) 431 2,157 - 214 214 114 1,588 1,702 - 7.1 170 245 7.2 245 245 900 900 Amortization charged for the period / year (75) (655) Closing book value 170 245 Operating assets - tangible 6.1 6.1 The breakup of operating assets as at the period / year end is given below: Computers Vehicles 6.2 Movement of property and equipment during the period / year: Opening book value Additions during the period / year Adjustment during the period / year (at book value) Depreciation charged for the period / year 6.3 6.4 Closing book value 6.3 Additions during the period / year Computers Vehicles 6.4 Adjustment during the period / year Computers Vehicles 7. Intangible assets - OPF Computer software 7.1 March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) Movement of intangible assets during the period / year Opening book value Additions during the period / year 34 | Atlas Insurance | Quarterly Report 2019
  36. 7 .2 March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) Additions during the period / year - Computer Software 8. - Investments in equity securities The investments comprise of the following : Related party Available for sale Mutual funds March 31, 2019 December 31, 2018 (Unaudited) (Audited ) Impairment Carrying Impairment Carrying Cost Cost / provision value / provision value ((Rupees in thousand)) 20,000 20,000 - Unrealized gain on revaluation as on 9. Cash and bank 20,000 20,000 - - 341 20,341 OPF March 31, 2019 Cash at bank Saving accounts 22,860 PTF March 31, 2019 (Unaudited) 175,004 - Total March 31, 2019 197,864 Total December 31, 2018 (Audited) 196,952 9.1 The rate of profit and loss sharing accounts range from 4.5% to 7.3% (2018: 2.66% to 6.66%) per annum, depending on the size of average deposits. 10. Contingencies and commitments 10.1 Contingencies There are no outstanding contingencies of Atlas Insurance Limited - Window Takaful Operations (WTO) as on March 31, 2019. 10.2 Commitments The amount of future payments under operating leases and the period in which these payments will become due are as follows: March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) Not later than one year Later than one year and not later than five years 11. Net takaful contribution - PTF 2,058 1,020 3,078 3,263 4,608 7,871 March 31, March 31, 2019 2018 (Rupees in thousand) Written gross contribution Add: Unearned contribution reserve - opening Less: Unearned contribution reserve - closing Contribution earned 81,253 106,254 (126,961) 60,546 42,150 62,743 (70,023) 34,870 Less: Retakaful contribution ceded Add: Prepaid retakaful contribution - opening Less: Prepaid retakaful contribution - closing Retakaful expense 15,679 18,775 (19,144) 15,310 9,272 14,543 (14,026) 9,789 45,236 25,081
  37. 12 . Net takaful claims expense - PTF Claims paid Add: Outstanding claims including IBNR - closing Less: Outstanding claims including IBNR - opening Claims expense Less: Retakaful and other recoveries received Add: Retakaful and other recoveries in respect of outstanding claims net of impairment - closing Less: Retakaful and other recoveries in respect of outstanding claims net of impairment - opening Retakaful and other recoveries received 13. Wakala fee / expense Net rebate on retakaful Net commission expense Investment income Operator’s Fund - Profit on bank deposits for the period Participant’s Takaful Fund - Profit on bank deposits for the period - Mudarib’s share 17. 1,425 485 9,569 688 (3,519) 7,475 (1,231) (58) 28,128 15,619 17,719 33,715 (35,909) 12,608 19,970 (21,758) 15,525 10,820 2,697 3,695 (3,790) 1,816 (374) - 2,602 1,442 6,363 6,997 (8,958) 3,966 6,129 (6,653) 4,402 3,442 1,129 288 2,668 (667) 2,001 842 (210) 632 Net commission and other acquisition costs- OPF Commission paid / payable Add: Deferred commission expense - opening Less: Deferred commission expense - closing 16. 12,133 12,478 (9,050) 15,561 Net rebate on retakaful - PTF Re-takaful rebate received Add: Re-takaful rebate - opening Less: Re-takaful rebate - closing 15. 21,582 44,455 (30,434) 35,603 Wakala fee / expense Gross wakala fee / expense Add: Deferred wakala expense / unearned wakala fee - opening Less: Deferred wakala expense / unearned wakala fee - closing 14. March 31, March 31, 2019 2018 (Rupees in thousand) Related party transactions Related parties comprises of associated entities, entities under common control, entities with common directors, major shareholders, post employment benefit plans and key management personnel, inclusive of directors, and their close family members. The operator in the normal course of business carries out transactions with various related parties. The period end balances and transactions with related parties are as follows: Amounts due to / from and other significant transactions, other than those disclosed elsewhere in these condensed interim financial statements, are as follows: 36 | Atlas Insurance | Quarterly Report 2019
  38. Associated Companies Period end balances Provision for outstanding claims (including IBNR) Contribution received in advance Premiums due but unpaid March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) 189 615 March 31, March 31, 2019 2018 (Rupees in thousand) Transactions during the period Contribution underwritten Contribution collected Claims paid Dividend received Investment purchased Investment sold 893 242 477 74 38,000 18,383 233 235 83 - - 44 Post employment benefit Transactions during the period plans Contributions to fund Key management personnel March 31, December 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) Period end balances 98 Provision for outstanding claims (including IBNR) 28 March 31, March 31, 2019 2018 (Rupees in thousand) Transactions during the period 9 9 - Contribution underwritten Contribution collected Claims paid 18. 138 224 - 50 58 18 Segment Reporting The Operator has four (2018: four) primary business segments for reporting purposes namely fire and propoerty damage, marine, aviation and transport, motor and miscellaneous. Assets and liabilities, wherever possible, have been assigned to the following segments based on specific identification or allocated on the basis of the gross contribution written by the segments. Fire and property Marine, aviation and damage transport 2019 2018 2019 2018 Wakala fee income Commission expense Management expenses Other income Other expenses Profit before tax 2,132 (938) (367) 827 1,548 (578) (743) 227 1,618 (716) (212) 690 1,415 (578) (485) 352 Operator’s Fund (OPF) (Unaudited) March 31, Motor Miscellaneous 2019 2018 2019 (Rupees in thousand) 11,362 (2,668) (2,786) 5,908 7,645 (2,221) (4,363) 1,061 413 (80) (80) 253 2018 212 (65) (416) (269) Total 2019 2018 15,525 (4,402) (3,445) 7,678 10,820 (3,442) (6,007) 1,371 1,129 (218) 8,589 288 (396) 1,263 March December 31, 2019 31, 2018 (Unaudited) (Audited) (Rupees in thousand) Segment assets Unallocated assets 51,153 69,137 120,290 40,896 67,588 108,484 Segment liabilities Unallocated liabilities 45,705 104 45,809 42,837 42,837
  39. Participant ’s Takaful Fund (PTF) (Unaudited) March 31, Fire and property Marine, aviation damage and transport Motor Miscellaneous Total 2019 2018 2019 2018 Contribution receivable (inclusive of Federal Excise Duty, Federal Takaful Fee and administrative surcharge) 9,919 Less: Federal Excise Duty 1,180 2019 2018 2019 (Rupees in thousand) 6,008 676 5,620 555 3,839 409 76,148 9,790 35,506 4,641 2,191 285 3,208 266 93,878 11,810 48,561 5,992 86 50 50 34 659 306 20 29 815 419 8,653 5,282 5,015 3,396 65,699 30,559 1,886 2,913 81,253 42,150 8,430 4,820 4,759 3,251 64,314 29,970 1,846 2,869 79,349 40,910 66 343 25 - - 56 - - 91 399 157 119 231 145 1,385 533 40 44 1,813 841 8,653 5,282 5,015 3,396 65,699 30,559 1,886 2,913 81,253 42,150 34,869 Federal Takaful Fee Gross written contribution (inclusive of administrative surcharge) Gross direct contribution Facultative inward contribution Administrative surcharge Contribution earned Prepaid retakaful contribution ceded Net contribution revenue 2018 2019 2018 6,294 4,465 5,082 3,889 47,940 25,604 1,230 911 60,546 (5,529) (4,211) (4,383) (4,734) (4,992) (734) (406) (109) (15,310) (9,788) 765 254 699 (845) 42,948 24,870 824 802 45,236 25,081 Rebate from retakaful operators 1,178 816 961 525 385 77 78 24 2,602 1,442 Net underwriting surplus 1,943 1,070 1,660 (320) 43,333 24,947 902 826 47,838 26,523 Takaful Claims (171) 360 (5,304) (114) (30,439) (15,220) 311 (587) (35,603) (15,561) Retakaful and other recoveries 255 (236) 4,830 207 2,369 13 21 (42) 7,475 (58) 84 124 (474) 93 (28,070) (15,207) 332 (629) (28,128) (15,619) Wakala expense (2,132) (1,548) (1,618) (1,415) (11,362) (7,645) (413) (212) (15,525) (10,820) Direct expenses (79) - - - (5,886) (3,650) - - (5,965) (3,650) - - - 1,291 - - - - - 1,291 (2,127) (1,424) (2,092) (31) (45,318) (26,502) (81) (841) (49,618) (28,798) (184) (354) (432) (351) (1,985) (1,555) 821 (15) (1,780) (2,275) Net Claims Reversal of contribution deficiency reserve Net takaful claims and expenses Underwriting result Investment income 2,001 632 Finance cost (13) - Deficit surplus for the period 208 (1,643) March 31, Dec. 31, 2019 2018 (Unaudited) (Audited) (Rupees in thousand) Segment assets Unallocated assets Segment liabilities Unallocated liabilities 38 | Atlas Insurance | Quarterly Report 2019 91,046 66,155 175,004 156,766 266,050 222,921 263,697 220,768 (8) - 263,689 220,768
  40. 19 . Fair value measurement of financial instruments The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:  Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.  Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).  Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable inputs).  The fair value measurement of available for sale investments is based on quoted market prices i.e. level 1 inputs and is equal to the carrying amount. In case of other financial assets and financial liabilities that are expected to be settled within one year, carrying amounts are considered to be a reasonable approximation of their fair values.  20. Available Total for sale (Rupees in thousand) Movement in investment - OPF - - 38,063 (18,063) 341 - 38,063 (18,063) 341 - 20,341 20,341 As at beginning of current year Additions Disposals (sale and redemptions) Fair value net gains (excluding net realize gain) Impairment losses As at end of current year 21. Financial risk management The financial and insurance risk management objectives and policies are consistent with those disclosed in the annual audited financial statements of the operator for the year ended December 31, 2018. 22. Subsequent events - non adjusting event There are no significant events that need to be disclosed for the period ended March 31, 2019. 23. Corresponding figures There has been non significant re-classifications / restatements in this condensed interim financial statements. 24. Date of authorization for issue These condensed interim financial statements were authorized for issue on April 25, 2019 by the Board of Directors of the Operator. 25. General Figures in these condensed interim financial statements have been rounded off to the nearest thousand rupees. Rashid Amin Chief Financial Officer Babar Mahmood Mirza Chief Executive Officer Ali H. Shirazi Director Frahim Ali Khan Yusuf H. Shirazi Director Chairman
  41. Company Offices HEAD OFFICE 63 /A, Block - XX, Phase III (Commercial), UAN: 111-245-000 Khyaban-e-Iqbal, DHA, Lahore. PABX: (042) 37132611-18, Fax: (042) 37132622 BABAR MAHMOOD MIRZA Direct: (042) 37132600 - 01 Chief Executive Officer Fax: (042) 37132623 RASHID AMIN Direct: (042) 37132607 Chief Financial Officer Extension: 758 MUHAMMAD SAEED Direct: (042) 37132608 Head of Claims Extension: 777 QUDSIA NAHEED Direct: (042) 37132606 Head of HR & Admin Extension: 717 ABDUL RAZZAQ GHAURI Direct: (042) 37132605 Head of IT Extension: 738 SYED IRTIZA KAZMI Direct: (042) 37132604 Head of Underwriting Extension: 718 SYED NASIR HUSSAIN Extension: 715 Vice President Reinsurance MUHAMMAD AASIM GUL Extension: 744 Head of Accounts & Compliance SALEEM MAHMOOD AKHTAR Extension: 737 Chief Internal Auditor NORTH ZONE OFFICES & BRANCHES LAHORE CH. TAYYAB HUSSAIN City Branch Circle Chief, Lahore Circle - I 64/A, Block - XX, Phase III (Commercial), (042) 37132624 - 26 Khyaban-e-Iqbal, DHA, 37132628 - 29 Lahore. Fax: (042) 37132627 MUHAMMAD MUNIR QAZI Gulberg Branch Chief Manager Office No. 335, 3rd Floor, Land Mark Plaza, (042) 35775733-4 Jail Road, Lahore. Fax: (042) 35714514 MUHAMMAD IJAZ Al-Noor Branch Chief Manager Al-Noor Building, 43-Bank Square, (042) 37237343 Shahrah-e-Quaid-e-Azam, Lahore. Fax: (042) 37358805 KH. MUHAMMAD NADEEM Napier Road Branch Deputy Chief Manager Nairobi Mansion, (042) 37358190 Napier Road, Lahore. Fax: (042) 37352560 40 | Atlas Insurance | Quarterly Report 2019
  42. MUHAMMAD WASEEM PURI Deputy Chief Manager Mall Road Branch Hafeez Chambers , 85 - Shahrah-e-Quaid- e-Azam, Lahore. (042) 36305595, 36370838 Fax: (042) 36369576 CH. ZEESHAN AHMED Main Boulevard Branch Chief Manager Office No-6, 2nd Floor, Al-Hafeez View, 67-D/1, (042) 35784309, Sir Syed Road, Gulberg-III, 37034673 Lahore. Fax: (042) 35784310 MUSHTAQ AHMED DHA Branch Chief Manager 63/A, Block - XX, Phase III (Commercial), Khyaban-e-Iqbal, DHA, (042) 37132611-18 Lahore. Fax: (042) 37132622 RAWALPINDI SALMAN MUZAFFAR SHAIKH Branch Manager Rawalpindi Branch 101/13, Bank Road, (051) 5563413, MANZAR ALI NAQVI Grand Hotel Building, 5516546 Manager P.O. Box 119, Rawalpindi. Fax: (051) 5798083 FAWAD HABIB Rawalpindi Branch - II Branch Manager Office No. SF-18/B, 2nd Floor, (051) 5700460, Majeed Plaza, Bank Road, 5700463 Rawalpindi. Fax: (051) 5700459 FAISALABAD MUHAMMAD ASIF AKRAM Faisalabad Branch (041) 8721256, Chief Manager 123-B, People’s Colony No. 1, 8734176, 8546338, D - Ground, Faisalabad. 8735080 Fax: (041) 8732499 IRSHAD FARRUKH BHATTI Business Center Branch Chief Manager Room No. 7-B, Ground Floor, (041) 2619978, The Business Center, 2629978 New Civil Lines, Faisalabad. Fax: (041) 2409978 SIALKOT REHAN NAZIR GHUMAN Ugoki Road, Shahabpura, (052) 3550450, Branch Manager Sialkot. 3550460 Fax: (052) 3550470 ISLAMABAD ASIM MAJEED Chief Manager Islamabad Branch Office No. 2, 2nd Floor, Yaseen Plaza, Jinnah Avenue, Blue Area, Islamabad. (051) 2347047-8 Fax: (051) 2804115 ZAHEER RASHEED Islamabad - II Branch Chief Manager Office No. 10, 3rd Floor, Huzaifia Centre, Plot No. 32, (051) 2722223-4 Sector I-8, Markaz, Islamabad. Fax: (051) 4861770
  43. SAHIWAL RANA MUHAMMAD AAMIR NAZ Room No . 1 & 2, 1st Floor, Deputy Chief Manager House No. 407, Stadium Road, (040) 4222266 Sahiwal. Fax: (040) 4222267 MULTAN Ghulam Ali Atlas Honda Building, (061) 4544494 Office Incharge Azmat Wasti Road, Multan. Fax: (061) 4544498 SOUTH ZONE OFFICE Ground Floor, Federation House, UAN: 111-245-000 Shahrah-e-Firdousi, PABX: (021) 35378806-7, Main Clifton, Karachi. 35369395-6 Fax: (021) 35378515 BABAR MAHMOOD MIRZA Direct: (021) 35378757 Chief Executive Officer ABBAS SAJJAD Direct: (021) 35269447 General Manager Sales & Marketing Extension: 215 M. WAQARUDDIN RAUF Extension: 216 Vice President MUHAMMAD AFZAL Company Secretary Extension: 202 SOUTH ZONE BRANCHES KARACHI M. FAROOQ KANDLAWALA Tower Branch Circle Chief, Karachi Circle - I State Life Building No. 7, (021) 32316503, Room No. 101, Ist Floor, 32201471 G. Allana Road, Karachi. Fax: (021) 32315248 ABDUL AZIZ Corporate Branch Chief Manager Room No. 1501, 15th Floor, (021) 32462131, K.S. Trade Tower, 32422911 Shahrah-e-Liaqat, Fax: (021) 32462132 Karachi. IMRAN SATTAR Plaza Branch (021) 32729339, Chief Manager 3/3 Rimpa Plaza 32720852 M.A. Jinnah Road, Karachi. Fax: (021) 32749004 KHALID HAMEEDI Karachi Branch - II Chief Manager Ground Floor, Federation House, (021) 35378806-7 Shahrah-e-Firdousi, 35369395-6 Main Clifton, Karachi. Fax: (021) 35378515 42 | Atlas Insurance | Quarterly Report 2019
  44. INAYATULLAH New Challi Branch Branch Manager Office No . 910, 9th Floor, (021) 32412796-7 UNI Tower, I. I. Chundrighar Road, Fax: (021) 32412795 Karachi. NOUMAN UDDIN Saddar Branch Deputy Chief Manager Office No. 18-C, 2nd Floor, Phase - VII, Khayaban-e-Jami, (021) 35319393-94 DHA, Karachi. Fax: (021) 35319395 AJAZ TUFAIL NCB Branch - II Branch Manager Office No. 910, 9th Floor, UNI Tower, I. I. Chundrighar Road, (021) 32412798-9 Karachi. Fax: (021) 32412795 HYDERABAD ZAFAR AHMAD GHOURI Plot No. 466, Mezzanine Floor, Circle Chief, Hyderabad Circle Al-Abbas Plaza, (022) 2782659, Near Kaka Bakery, 2782660 Saddar, Hyderabad. Fax: (022) 2786410 SUKKUR ABDUL MAJEED QURESHI Near Public School, (071) 5631056 Chief Manager Military Road, Sukkur. Fax: (071) 5631057