Annual Report 2014 03 Code of Conduct
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Contents Company Information 02 Our Vision & Our Mission 03 Code of Conduct 04 Company Prole 05 Directors’ Prole 06 Notice of the Thirty Third Annual General Meeting 13 Horizontal Analysis of Balance Sheet & Income Statement 16 Vertical Analysis of Balance Sheet & Income Statement 17 Key Financial Data 18 Shareholders‘ Information 19 Categories of Shareholding 21 Pattern of Shareholding 22 Directors’ Report 23 Graphical Presentation 29 Statement of Compliance with the Code of Corporate Governance 30 Review Report to the Members on Statement of Compliance 32 Auditors' Report to the Members 33 Balance Sheet 34 Prot & Loss Account 36 Statement of Comprehensive Income 37 Statement of Changes in Equity 38 Statement of Cash Flows 39 Statement of Premiums 41 Statement of Claims 42 Statement of Expenses 43 Statement of Investment Income 44 Notes to the Financial Statements 45 Oces 75 Company Information BOARD OF DIRECTORS CREDIT RATING CHAIRMAN A ( SINGLE A ) BY JCR-VIS ISMAIL H. ZAKARIA OUTLOOK “STABLE” DIRECTORS AUDITORS MOHAMMED AMIN AHMED BAWANY BDO EBRAHIM & CO. A. AZIZ AYOOB CHARTERED ACCOUNTANTS IRFAN ZAKARIA BAWANY MUHAMMAD OMER BAWANY LEGAL ADVISOR ZOHAIR ZAKARIA ABDUL SATTAR PINGAR AHMED ALI BAWANY NOOR M. ZAKARIA BANKERS YASIN SIDDIK ABDUL JABBAR HABIB BANK LIMITED MCB BANK LIMITED CHIEF EXECUTIVE & MANAGING DIRECTOR ALLIED BANK LIMITED STANDARD CHARTERED BANK (PAKISTAN) LIMITED A. RAZAK AHMED BANK ALFALAH LIMITED NATIONAL BANK OF PAKISTAN CHIEF ACCOUNTANT AND COMPANY UNITED BANK LIMITED SECRETARY THE BANK OF PUNJAB FAYSAL BANK LIMITED HAROON A. SHAKOOR HABIB METROPOLITAN BANK LIMITED NIB BANK LIMITED AUDIT COMMITTEE JS BANK LIMITED ABDUL JABBAR CHAIRMAN IRFAN ZAKARIA BAWANY MEMBER REGISTERED OFFICE ZOHAIR ZAKARIA MEMBER 96-A, Sindhi Muslim Co-operative INVESTMENT COMMITTEE Housing Society, Karachi. IRFAN ZAKARIA BAWANY CHAIRMAN HEAD OFFICE ZOHAIR ZAKARIA MEMBER Reliance Insurance House, AHMED ALI BAWANY MEMBER 181-A, Sindhi Muslim Co-operative Housing A. RAZAK AHMED MEMBER Society, HUMAN RESOURCE & P . O . Box No. 13356, REMUNERATION COMMITTEE Karachi-74400. Phone : 34539415-17 Fax : 92-21-34539412 ZOHAIR ZAKARIA CHAIRMAN E-mail : [email protected] IRFAN ZAKARIA BAWANY MEMBER [email protected]. A. RAZAK AHMED MEMBER Website: www.relianceins.com SHARES REGISTRAR M/s. C&K Management Associates (Pvt.) Ltd. 404-Trade Tower, Abdullah Haroon Road, Near Hotel Metropole, Karachi-75530. Tel: (021) 35687839 & 35685930 02 Reliance Insurance Company Limited Our Vision To be recognized as a professional and dependable business entity committed to play a meaningful role in the development of insurance industry in Pakistan and to safeguard the legitimate interests of all stakeholders, namely policy-holders, share- holders, reinsurers, employees and all other business associates / partners. Our Mission To provide quality service and protection to its clients aiming at achieving a respectable volume of business and become a prominent player through good governance and sound professionalism focusing to become a well-known and respected Corporate entity in the eyes of Society and Government. Annual Report 2014 03 Code of Conduct Reliance Insurance Company Limited is engaged in general insurance business with the objective to achieve sustainable productivity, profitability and high standards of service The Company solemnly believes in the application of business ethics as have been embodied in this document. The credibility, goodwill and repute earned over the years can be maintained through continued conviction in our corporate values of honesty, justice, integrity and respect for people. The Company strongly promotes trust, openness, teamwork and professionalism in its entire business activities. The Company conducts its business in accordance with all applicable laws and Regulations. RICL recognizes following obligations, which need to be discharged with best efforts, commitment and efficiency: Safeguarding of shareholders’ interest and a suitable return on equity. Service to customers / policyholders by providing products, which offer value in terms of price, quality, safety and honest and fair dealing with people and organization. Respect human right, provide congenial working environment, offer competitive terms of employment, develop human resource and be an equal opportunity employer. Seek mutually beneficial business relationship with policyholders, business development staff / officers, investment partners and Banks. The Company believes that profit is essential for business survival. It is a measure of efficiency and the value that the customer place on services provided by the Company. The Company requires honesty and fairness in all aspect of its business and in its relationships with all those with whom it does business. The direct or indirect offer, payment, soliciting and accepting of bribe in any form are undesirable. The Company requires all its employees to essentially avoid conflict of interest between private financial activities and their professional role in the conduct of Company business. The Company does not support any political party or contributes funds to group having political interests. The Company will however, promote its legitimate business interests through trade associations. The Company, consistent with its priority, has the approach for protecting the health and safety of employees at the work-place. All employees are duty-bound to make business decisions in the best interest of the Company and not based on their personal interest and are obliged to protect all the assets including software and use all such properties for the exclusive benefit of the Company only. The Company is committed to observe laws of Pakistan and is fully aware of its social responsibility. It would assist the community in activities such as training programs, skills development and employment within the parameters of its commercial objectives. The Company supports free market system. It seeks to compete fairly and ethically within the framework of applicable competition laws in the country. The Company will not stop others from competing freely with it. In view of the critical importance of its business and impact on national economy, the Company provides all relevant information about its activities to legitimate interested parties, subject to any overriding constraints of confidentiality and cost. The members of RICL are forbidden to pass on inside information at any time or to any other person inside or outside the Company. 04 Reliance Insurance Company Limited Company Profile Reliance Insurance Company Limited, was The Present Authorised Capital of the Com- incorporated in Pakistan in the year 1981 pany is Rs. 500 Million while Paid-up Capital with a Share Capital of Rs. 5.0 Million by two has increased to 403.458 million. General Leading Industrial Houses of Pakistan, Reserve to Rs. 180 million & the Sharehold- namely (i) Al-Noor Group and (ii) Amin ers’ equity to Rs. 725.218 million. Bawany Group. Al-Noor Group is headed by renowned industrialist Mr. Ismail H.Zakaria, Reliance is one of the leading General Insur- who is also the Chairman of Reliance Insur- ance Company of Pakistan having a ance, while Amin Bawany Group is headed network of 26 Branches at all important by Mr. Mohammed Amin Ahmed Bawany, places throughout Pakistan employing a full who is also the Director of Reliance Insur- time work force of 200 persons. ance. Both the groups having successfully implemented a number of projects are Since its establishment Reliance has currently reputed industrial groups of progressed smoothly and steadily. Its Gross Pakistan. Premium Income has increased from Rs. One Million in 1983 to Rs. 1028.136 million RICL underwrites all classes of General at the end of the year 2014 and the Insurance and enjoys reputation second to Technical Reserves at Rs. 764.834 million. none. Apart from the traditional covers such as Fire, Accident, Motor, Marine (Import & RICL has an excellent Treaty Reinsurance Exports), Loss of Profits, Personal Accident, arrangements under the lead of world’s Group Hospitalization, Workmen’s Compen- renowned reinsurer namely Swiss Re, sation, Burglary, Cash-in-Safe or in Transit having handsome automatic Treaty etc., it also transacts non-traditional covers Capacity. such as Machinery Breakdown, and Loss of Profits following Machinery Breakdown, JCR-VIS Credit Rating Company an affiliate Terrorism, Contractors All Risks, Erection All of Japan Credit Rating Agency has assigned Risks, Bond, Aviation and the like. Insurers Financial Strength Rating (IFS) at A (Single A). Outlook on the assigned Rating is The Company’s results have been “(Stable)”. consistantly improving yielding handsome results. Annual Report 2014 05 Directors’ Profile Mr. Ismail H. Zakaria is Chairman of the Board of Directors of Reliance Insurance Company Limited since its inception. He has diversified experience of over forty five years covering various industrial, commercial and financial sectors. He is also Chairman of First Al Noor Modaraba, and Shahmurad Sugar Mills Limited. The depth of knowledge and breadth of experience of Mr. Ismail H. Zakaria is an invaluable asset and a guiding force to the Board of Reliance Insurance. He also holds the office of Honorary Consul General of Mauritius. Ismail H. Zakaria Chairman Mr. Muhammad Amin Ahmed Bawany is a non-executive Director of Reliance Insurance Company Limited since its inception. He obtained his secondary education from St.Patrick School, Karachi and acquired his professional