Karachi: We have to inform you that the Board of Directors of our company in their meeting held at 11:30 a.m. on Wednesday August 24, 2011, recommended the following:
1. Cash Dividend NIL
An Interim Cash Dividend for period ended June 30, 2011
2. Bonus Issue 12.50%
An Interim Bonus Share / ordinary share for every 8 ordinary shares.
3. Right Shares NIL
The financial results of the company are attached herewith (Profit and Loss Account).
The Share Transfer Book of the Company shall remain closed from 23rd September, 2011 to 30th September, 2011 (both days inclusive).
Transfer received at Company’s Share Registrar Office, M/s. C and K Management Associates (Pvt.) Limited 404-Trade Tower, Abdullah Haroon React Near Hotel Metropole Karachi at the close of business on 22nd September, 2011 will be treated in time f or the purpose to determine entitlement of Bonus Share.
Reliance Insurance Company Limited
Condensed Interim Profit and Loss Account (Unaudited)
For The Quarter and Half Year Ended June 30, 2011
(Amount in Rs.) |
||||||
Fire
and Property |
Marine
Aviation and Transport |
Motor | Misc | 2011 Aggregate | Quarter ended
June 30, 2010 Aggregate |
|
Revenue Account | ||||||
Net Premium Revenue | 11,992,448 | 16,060,428 | 23,975,516 | 884,428 | 52,918,820 | 53,932,999 |
Net Claims | (2,545,459) | (4,977,482) | (16,573,550) | (177,118) | (24,273,609) | (25,405,428) |
Expenses | (4,454,327) | (5,956,712) | (8,893,474) | (328,073) | (19,632,586) | (17,788,139) |
Net Commission | (2,270,246) | (2,206,664) | (3,431,851) | 641,203 | (7,267,558) | (8,220,325) |
———– | ———– | ———– | ———– | ———— | ———— | |
Underwriting result | 2,722,416 | 2,919,570 | (4,923,359) | 1,020,440 | 1,739,067 | 2,519,107 |
———– | ———– | ———– | ———– | ———— | ———— | |
Investment Income | 34,493,832 | 17,429,529 | ||||
Other Income (Profit on sale of Fixed Assets) | 855,969 | 202,719 | ||||
Financial Charges | – | – | ||||
General and administration expenses | (5,038,084) | (6,953,439) | ||||
———– | ———— | |||||
Profit before tax during the quarter | 32,050,784 | 13,197,916 | ||||
Provision for Taxation: | ||||||
Current | (1,650,000) | (500,000) | ||||
———– | ———— | |||||
Profit after tax during the Quarter | 30,400,784 | 12,697,916 |
Six Months Ended June 30
Fire
and Property |
Marine
Aviation and Transport |
Motor | Misc | 2011
Aggregate |
Quarter ended
June 30, 2010 Aggregate |
|
Revenue Account | ||||||
Net Premium Revenue | 30,894,095 | 31,059,079 | 47,696,771 | 1,763,294 | 111,413,239 | 111,392,821 |
Net Claims | (4,986,167) | (9,437,377) | (30,467,074) | (353,192) | (45,245,810) | (44,421,847) |
Expenses | (11,343,437) | (11,495,501) | (17,653,397) | (652,626) | (41,235,961) | (46,687,565) |
Net Commission | (6,347,896) | (4,566,502) | (6,848,606) | (1,309,325) | (16,453,679) | (14,251,459) |
———– | ———– | ———– | ———– | ———— | ———— | |
Underwriting result | 8,125,595 | 5,559,699 | (7,274,306) | 2,066,801 | 8,477,789 | 6,031,950 |
———– | ———– | ———– | ———– | ———— | ———— | |
Investment Income | 46,183,789 | 25,595,950 | ||||
Other Income (Profit on Sale of Fixed Assets) | 852,857 | 323,115 | ||||
Financial Charges | (113,983) | (105,237) | ||||
General and administration expenses | (11,717,209) | (11,919,943) | ||||
———– | ———— | |||||
Profit before tax during the half year | 43,682,523 | 19,925,832 | ||||
Provision for Taxation; | ||||||
Current | (3,000,000) | (1,400,000) | ||||
———– | ———— | |||||
Profit after tax during the half year | 40,682,523 | 18,525,832 | ||||
———– | ———— | |||||
Profit and Loss Appropriation Account | ||||||
Balance at commencement of the Period | 35,014,918 | (22,024,570) | ||||
Profit after Lax during the half year | 40,682,523 | 18,525,832 | ||||
Transfers to reserves (General Reserve) | (2,500,000) | |||||
Issuance of Bonus Shares for the year 2010; 12.5% (2009: NIL) | (31,500,220) | |||||
———– | ———— | |||||
Balance Unappropriated profit at the end of the period | 41,697,221 | (3,498,738) | ||||
———– | ———— | |||||
Earning per share – Basic and Diluted | 1.43 | 0.65 |
The annexed notes from 1 Lo 14 form in integral part of these condensed interim financial information
Based on the un audited accounts of Reliance Insurance Company Ltd for the half year ended June 30, 2011, the company’s “Free Reserves” as defined in the Companies (Issue of Capital) Rules 1996, in our opinion retained after the proposed issue of fully paid bonus shares of Rs. 35,437,750 will exceed twenty five percent of the enhanced paid up share capital of the company.
2. We have reviewed the contingent liabilities outstanding as at June 30, 2011 to determine the contingent loss, if any, falling within the scope paragraph # 8 of the International Accounting Standard 10 and confirm that no such liabilities are deductible from the aforementioned “Free Reserves”.
3. The company’s “Free Reserves” retained after the issue of bonus shares do not include any reserves created as a result of revaluation of fixed assets or any intangible or fictitious assets such as preliminary expenses goodwill, brokerage or commission.
Computation of Reserves Available After Issue of Bonus Shares
Rupees |
|
General Reserve | 90,000,000 |
Retained earnings | 41,697,221 |
Less Reserve for issue of bonus shares | (35,437,750) |
———— | |
Free Reserves | 96,259,471 |
———— | |
Ordinary paid-up capital as per balance sheet | 283,501,970 |
Add: Proposed bonus issue | 35,437,750 |
———— | |
Increased share capital “A” | 318,939,720 |
Minimum retained earnings required being 25% of “A” | 79,734,930 |
For more information, contact:
Reliance Insurance Company Limited
Reliance Insurance House”
181-A, Sindhi Muslim Co-operative Housing Society,
Karachi-74400,
Pakistan.
Tel: 34539415-17