THE SHAREHOLDERS,
Pakistan Reinsurance Co. Ltd.,
Gentlemen,
Your directors feel pleasure in presenting the unaudited financial statement of the company for the 1st Half ended June 30, 2003 and auditors review report thereon
The economic activities in the country reduced for quite some time, after 9/11 incident. However, the government has introduced a number of reforms to crate a health environment for financial sector by providing open and market base atmosphere allowing full privet sector participation. These reforms have resulted in increase ion foreign exchange reserve above US$ 11 billion. The exchange rate is stabilized, and remittances have crossed US$ 3 billion mark. Moreover, the foreign direct investment is around US$ 570 million. Stock Markets are performing extremely well and have crossed unprecedented 4300 points.
In the backdrop of above scenario, company has also taken a turn around in the year 2002 and made substantial profit which turned continue during the 1st Half, 2003.
The premium income was Rs. 1,722 million during the period and the net premium of the company was Rs. 839 million.
The net claims have aggregated to Rs. 251 million during the period. It will be seen from the profit & loss account that the company has earned underwriting profit of Rs.375 million during 1st Half, 2003. Besides, the income from investment for the period was recorded at Rs.81 million. Moreover with the improvement of the KSE index, the value of company’s Investment Profit has also substantially improved. As a result, there was an overall improvement of its business as well as profitability.
Your company has earned a pre-tax profit of Rs.458 million during the 1st Half ended June 30, 2003. It is expected that the Company would continue to achieve positive results in successive period and the year 2003 will close with increased profit.
Maj.(R)
Mohammad Fazal Durani M. Sharif
Ghauri Fazlur Rehman Dittu
Chief Executive Director
Director
Karachi:
August 20, 2003
We have reviewed the annexed Balance Sheet of
PAKISTAN REINSURANCE COMPANY LIMITED as at June 30, 2003, and the related
profit and loss Account, Statement of Premium, Statement of Claims, Statement
of Expanses, Statement of Investment, Cash Flow Statement and Statement of
changes in Equity together with the note forming part therefore (her-in-after
referred to as the “financial statement”) for the half-year then ended. These
financial statements are the responsibility of the company’s management. Our
responsibility is to issue a report on these financial statements based on our
review.
We conducted our review in accordance with the
International Standard on Auditing application to review engagements. This
Standard requires that we plan and perform the review to obtain moderate
assurance as to whether the financial statements are free of material
misstatement. A review is limited primarily to inquiries of company personnel
and analytical procedures applied to financial data and thus provides less
assurance than an audit. We have not performed an audit and, accordingly, we do
not express an audit opinion.
Based on our review, subject to the qualifications
in the audit report on the financial statement for the year ended December 31,
2003, for which we were not provided with any evidence to enable us to believe
that these qualification could be removed at the time of review, nothing has
come to our attention to make us believe that the annexed financial statement
are not presented fairly, in all material respects, in accordance with approved
accounting standard as applicable in Pakistan.
Without further qualification our opinion, we drew
attention to note no.1.2 to the financial statements, which states the reason
for preparing these accounts on a going concern basis.
KHALID MAJID RAHMAN SARFARAZ
RAHIM IQBAL RAFIQ
Chartered Accountants
Karachi :
Dated :
August 20, 2003