Reliance Insurance Company Limited’s interim financial statements for the half year ended June 30, 2011 (Unaudited)

Reliance Insurance Company Limited’s interim financial statements for the half year ended June 30, 2011 (Unaudited)

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

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