HALF YEARLY REPORT Half Yearly June 30, 2018 (Un-Audited)

Transcription

1 36 Years of Quality Service HALF YEARLY REPORT Half Yearly 208 (UnAudited) SERVING RELIABLY Reliance Insurance Company Limited Window Takaful

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3 Contents Company Information s Review s Review in Urdu Language Auditors Review Report to the Members Condensed Interim Financial Position Condensed Interim Profit & Loss Account Condensed Interim Statement of Comprehensive Income Condensed Interim Statement of Changes in Equity Condensed Interim Statement of Cash Flow Notes to the Condensed Interim Financial Statements Reliance Window Takaful Operations Auditors Review Report to the Members Condensed Interim Financial Position Condensed Interim Profit & Loss Account Condensed Interim Statement of Comprehensive Income Condensed Interim Statement of Changes In Fund Condensed Interim Statement of Cash Flow Notes to the Condensed Interim Financial Statements Categories of Share Holding Pattern of Share Holdings Offices

4 Company Information RATED A (Outlook: Positive ) By JCRVIS BOARD OF DIRECTORS CHAIRMAN ISMAIL H. ZAKARIA DIRECTORS A. AZIZ AYOOB IRFAN ZAKARIA BAWANY MUHAMMAD OMAR BAWANY ZOHAIR ZAKARIA AHMED ALI BAWANY NOOR M. ZAKARIA HAMZA OMAR BAWANY MUHAMMAD IQBAL CHIEF EXECUTIVE & MANAGING DIRECTOR A. RAZAK AHMED CHIEF ACCOUNTANT AND COMPANY SECRETARY HAROON A. SHAKOOR AUDIT COMMITTEE MUHAMMAD OMAR BAWANY CHAIRMAN IRFAN ZAKARIA BAWANY MEMBER ZOHAIR ZAKARIA MEMBER MUHAMMAD IQBAL MEMBER INVESTMENT COMMITTEE IRFAN ZAKARIA BAWANY CHAIRMAN ZOHAIR ZAKARIA MEMBER AHMED ALI BAWANY MEMBER A. RAZAK AHMED MEMBER HAROON A. SHAKOOR SECRETARY ETHICS, HUMAN RESOURCE & REMUNERATION COMMITTEE ZOHAIR ZAKARIA CHAIRMAN IRFAN ZAKARIA BAWANY MEMBER A. RAZAK AHMED MEMBER COMPLIANCE OFFICER GHULAM HAIDER CREDIT RATING A ( SINGLE A ) BY JCRVIS OUTLOOK POSITIVE AUDITORS KRESTON HYDER BHIMJI & CO. CHARTERED ACCOUNTANTS LEGAL ADVISOR ABDUL SATTAR PINGAR SHARIAH ADVISOR MUFTI MUHAMMAD FARHAN FAROOQ BANKERS HABIB BANK LIMITED MCB BANK LIMITED ALLIED BANK LIMITED SONERI BANK LIMITED BANK ALFALAH LIMITED NATIONAL BANK OF PAKISTAN MEEZAN BANK LIMITED DUBAI ISLAMIC BANK MCB ISLAMIC BANK LIMITED UNITED BANK LIMITED THE BANK OF PUNJAB FAYSAL BANK LIMITED HABIB METROPOLITAN BANK LIMITED JS BANK LIMITED REGISTERED OFFICE 96A, Sindhi Muslim Cooperative Housing Society, Karachi. HEAD OFFICE Reliance Insurance House, 8A, Sindhi Muslim Cooperative Housing Society, P.O. Box No. 3356, Karachi Phone : Fax : reliins@cyber.net.pk ricre@cyber.net.pk Website: SHARES REGISTRAR M/s. C&K Management Associates (Pvt.) Ltd. 404Trade Tower, Abdullah Haroon Road, Near Hotel Metropole, Karachi Tel: (02) & Reliance Insurance Company Limited

5 s Review The Shareholders, Reliance Insurance Company Limited, Your s are pleased to present before you the Half Yearly (Unaudited) Accounts for the period ended 208. During the period under review, your Company underwrote a Gross Premium of Rs million as compared to Rs million of the corresponding period of last year a decrease of 9.83% and Takaful contribution of Rs million for Window Takaful Operation totaling Rs million compared to Rs million of the corresponding period of the last year showing a decrease of 4.80%. Net claims incurred, increased from Rs million to Rs million compared to corresponding period of last year, showing a nominal increase of 0.%. Underwriting profit decreased from Rs million to Rs million. Investment income for the six months period increased to Rs million compared to Rs.(2.745) million restated of the corresponding period of last year. Profit before Tax during the period stood at Rs million compared to Rs. (8.233) million restated for the corresponding period of last year. Earnings per share (EPS) for the current period stood at Re.0.82, against Rs. (0.38) restated of last year. Future Outlook: Your management looks forward to the future with confidence and is optimistic that going forward political & economic scenario would improve. By order of the Board Karachi: 28th August, 208. A. RAZAK AHMED Chief Executive & Managing Half Yearly Report June

6 م ن آڈٹ ہ ت دو ى ا ت / ن ڈا ز ت ا ل ا ررا رو ز ہ ت دوران آپ ا ى آ اور و و 9.83 رو ت لا ت رو دارى رو ر ت ا ل رو ل ر رو ھ رو رو ر رو ا ا ررا ھ () ہ رو (2.745) ت ل آ رى رو ت ا ل رو از ت ا / ن ت ا ل رو 0.82 رو ن () ہ ہ () 0.38 رو ن اور ر ل آ ا د ا 04 Reliance Insurance Company Limited

7 HYDER BHIMJI & CO. CHARTERED ACCOUNTANTS REVIEW REPORT TO THE MEMBERS We have reviewed the accompanying: i. condensed interim statement of financial position; ii. condensed interim profit and loss account; iii. condensed interim statement of comprehensive income; iv. condensed interim statement of changes in equity; and v. condensed interim statement of cash flows; of RELIANCE INSURANCE COMPANY LIMITED ( the Company ) together with the explanatory notes as at and for the half year ended 208 (hereinafter referred to as the condensed interim financial statements ). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review. Scope of review We conducted our review in accordance with the International Standards on Review Engagements 240, Review of Interim financial information performed by the Independent Auditor of the Entity. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements is not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Emphasis of matter Without modifying our conclusion, we draw attention to note 4. (b) to the condensed interim financial statements disclosing a contingent liability relating to an aviation claim reported on November 03, 205. Other matters The figures for the quarters ended 208 and 207 in the accompanying condensed interim financial statements have not been reviewed and we do not express a conclusion on them. Karachi: 29th August, 208 Kreston Hyder Bhimji & Co. Chartered Accountants Engagement Partner: Muhammad Hanif Razzak Suite No. 60, 6th Floor, Kashif Centre, ShahraheFaisal, Karachi. Phone: to 52 Fax: Website: hyderbhimji@yahoo.com, hyderbhimji@gmail.com OTHER OFFICES LAHORE FAISALABAD ISLAMABAD A member of kreston international A global network of independent accounting firms. Half Yearly Report June

8 ASSETS Condensed Interim Statement of Financial Position (UnAudited) As at 208 Note (UnAudited) 208 (Audited) December 3, 207 Rupees (Audited) December 3, 206 Property and equipment 6 90,433,23 8,020,496 87,07,089 Investment Equity securities 7 648,552,52 607,30,50 697,738,46 Debt securities 7. 70,37,90 70,69,043 70,833,333 Term deposits ,833,590 26,748,63 26,79, ,522, ,29,57 795,29,25 Loan and other receivables 8,903,09,835,99 2,747,629 Insurance / Reinsurance receivables 9 250,404,02 207,786,920 68,684,772 Reinsurance recoveries against outstanding claims 99,66,923 67,283,860 72,078,362 Deferred Commission Expense 60,72,753 60,932,042 6,298,49 Prepayments 0 33,054, ,226, ,97,948 Accrued investment income 3,720,999,399,06,436,343 Deferred taxation,86,0 Cash & Bank 2,074,87 60,85,536 20,239,053 Total Assets Window Takaful Operations 77,409,26 64,929,992 53,34,804 TOTAL ASSETS,88,357,588,790,680,647,828,386, Reliance Insurance Company Limited

9 Condensed Interim Statement of Financial Position (UnAudited) As at 208 EQUITY AND LIABILITIES Share capital and reserves Authorised share capital 75,000,000 (207: 75,000,000) Ordinary shares of Rs 0 each Note (UnAudited) ,000,000 (Audited) December 3, 207 Rupees 750,000,000 (Audited) December 3, ,000,000 Issued, subscribed and paidup share capital General reserves Unappropriated profit /(accumulated loss) Surplus/(Deficit) on revaluation of available for sale investment Total Equity 2 56,42, ,000,000 42,485,03 2,77, ,075,787 56,42, ,000,000 (3,420,826) (9,498,703) 798,493,32 50,375, ,000,000 4,604,87 7,972, ,952,74 Liabilities Underwriting Provisions Outstanding claims including IBNR Unearned premium reserves Unearned Reinsurance Commission Deferred taxation Insurance / Reinsurance Payables Other Creditors and Accruals 3 Taxation provision less payment Unclaimed dividend Total Liabilities Window Takaful operations Total Liabilities 240,953,86 487,205,0 34,764,477 2,533,366 5,935,0 68,557,540 5,464,272 2,84,8 2,683,893,025,28,80 209,590, ,450,943 35,347,057 38,626,640 8,873,259 3,925,667 2,22,253 6,52,09 992,87, ,507, ,368,394 34,72,44 48,87 7,40,782 79,827,23 7,59,756,665,878 4,876, ,434,00 CONTINGENCIES AND COMMITMENTS 4 TOTAL EQUITY AND LIABILITIES,88,357,588,790,680,647,828,386,742 The annexed notes from to 23 form an integral part of these condensed interim financial statements. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing Half Yearly Report June

10 Condensed Interim Profit & Loss Account (UnAudited) For the Quarter and Half Year Ended 208 Note Quarter ended June Half year ended June Net insurance premium 5 79,407,233 86,745,882 54,79,354 77,53,685 Net insurance claims 6 (27,245,479) (22,877,366) (43,922,025) (43,874,307) Net Commission 7 (,496,24) (3,825,532) (24,50,975) (30,989,958) Total Insurance claims and acquisition expenses (38,74,693) (36,702,898) (68,433,000) (74,864,265) Management Expenses (34,76,473) (32,844,8) (65,349,90) (62,024,42) Underwriting results 6,489,067 7,98,866 20,936,453 40,624,999 Investment Income/(loss) 8 2,448,335 (28,266,033) 5,62,989 (2,744,947) Other income 293, , ,08,22,080 Other expenses (6,75,29) (7,288,389) (28,252,335) (29,757,97) Profit before tax from takaful operationsoperators Fund 6,0,33,20,993 6,82,548,522,249 Results of operating activities 2 (,409,908) (26,6,78) 5,708,673 (8,233,590) Income tax expense (,69,052) (5,950,000) (5,802,834) (3,200,000) Profit / (Loss) after tax (2,578,960) (32,56,78) 45,905,839 (2,433,590) EARNINGS/(LOSS) AFTER TAX PER SHARE basic and diluted 9 (0.05) (0.58) 0.82 (0.38) The annexed notes from to 23 form an integral part of these condensed interim financial statements. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 08 Reliance Insurance Company Limited

11 Condensed Interim Statement Of Comprehensive Income (UnAudited) For the Quarter and Half Year Ended 208 Quarter ended June Half year ended June (Loss)/Profit after tax (2,578,960) (32,56,78) 45,905,839 (2,433,590) Surplus on revaluation of available for sale securities,905,829 (8,224,34) 5,936,292 (6,937,88) Surplus on revaluation of available for sale securities takaful (406,609) (32,89) 34,802 2,990 Deferred taxation (85,328) 2,467,294 (4,394,467) 2,08,345 Total comprehensive (loss) / income for the period,33,892 (,265,068) (5,889,839) (38,45,620),676,627 57,582,466 (4,853,483) (26,287,073) The annexed notes from to 23 form an integral part of these condensed interim financial statements. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing Half Yearly Report June

12 Condensed Interim Statement Of Changes in Equity (UnAudited) For the Half Year Ended 208 Note Share capital General reserves Unappropriated profit Surplus revalution of AFS investments Total Balance as originally reported 50,375, ,000,000 33,50, ,525,680 Effect of restatement 3. 8,454,5 7,972,550 6,427,06 Balance as at January 0, 207 () 50,375, ,000,000 4,604,87 7,972, ,952,74 Total comprehensive income for the half year ended 207 (2,433,590) (4,853,483) (26,287,073) Transfer to general reserves 30,000,000 (30,000,000) Transactions with owners: Issuance of bonus shares Final cash dividend for the year ended Dec. 3, 206 Balance as at 207 5,037,530 5,037,530 56,42, ,000,000 (5,037,530) (25,58,766) (76,556,296) 3,64,985 3,9,067 (25,58,766) (25,58,766) 828,46,902 Balance as at January 0, ,42, ,000,000 (3,420,826) (9,498,703) 798,493,32 Total comprehensive income for the half year ended ,905,839,676,627 57,582,466 Balance as at ,42, ,000,000 42,485,03 2,77, ,075,787 The annexed notes from to 23 form an integral part of these condensed interim financial statements. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 0 Reliance Insurance Company Limited

13 Condensed Interim Statement of Cash Flow (UnAudited) For the Half Year Ended Operating cash flow a) Underwriting activities Premium received Reinsurance premium paid Claims paid Reinsurance and other recoveries received Commission paid Commission received Net cash generated from underwriting activities b) Other operating activities Income tax paid General management expenses paid Other operating payments Repayment received / (Loans advanced) Other creditors and accruals Other (payments) / receipts in respect of operating assets Net cash used in other operating activities Net cash used in operating activities Investment activities Interest / dividend received Payments for investments Proceeds from disposal of investments Fixed capital expenditures Proceeds from disposal of fixed assets Net cash generated from investing activities 459,852,936 (333,460,650) (0,28,786) 65,92,07 (57,656,753) 33,322,487 57,2,305 (4,264,229) (65,349,90) (22,8,78) (67,00) (3,35,79) (55,626) (05,70,753) (48,049,448) 5,06,4 (62,890) 9,529,36 (7,334,766) 2,378,000 8,975,80 529,53,090 (364,402,565) (02,5,973) 58,59,709 (64,649,56) 35,25,826 9,702,93 (7,480,08) (62,024,42) (23,206,256) (457,000) (9,778,809) (32,229) (03,267,823) (,564,892) 23,62,65 (68,607,200) 96,408,86 (8,447,593) 3,27,700 46,03,338 Half Yearly Report June 208

14 Condensed Interim Statement of Cash Flow (UnAudited) For the Half Year Ended Financing activities Dividend paid Net (decrease)/increase in cash and cash equivalent Cash and cash equivalent at the beginning of the period Cash and cash equivalent at the end of the period Reconciliation to profit and loss account Operating cash flow Depreciation / amortization expense Gain on disposal of fixed assets Increase in assets other than cash (Increase) in liabilities other than borrowings Investment income/(loss) Profit before tax from Takaful operationsoperators' Fund Profit/(Loss) after taxation Definition of cash Cash in hand and at banks, stamps in hand and short term placements with banks Cash for the purposes of the statement of cash flows consists of: Cash and equivalents Current and other accounts (37,072) (39,0,79) 60,85,536 2,074,87 (48,049,448) (6,34,57) 590,08 66,3,96 (25,066,307) 5,62,989 6,82,548 45,905,839,43,894 9,660,923 2,074,87 (25,58,766) 9,09,680 20,239,053 29,258,733 (,564,892) (6,55,75),22,080 32,524,504 (6,740,869) (2,744,947),522,249 (2,433,590) 694,22 28,564,52 29,258,733 The annexed notes from to 23 form an integral part of these condensed interim financial statements. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 2 Reliance Insurance Company Limited

15 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended 208. STATUS AND NATURE OF BUSINESS Reliance Insurance Company Limited (the Company) was incorporated in Pakistan as a public limited company on November 4, 98 and is engaged in general insurance business and has also been allowed to undertake Window Takaful operations (WTO) on May 25, 206 by Securities & Exchange Commission of Pakistan (SECP) under SECP Takaful Rules, 202 to carry on General Window Takaful Operations in Pakistan. The shares of the Company are quoted on Pakistan Stock Exchange Limited. The registered office of the Company is situated at 96A, Sindhi Muslim Cooperative Housing Society, Karachi. JCRVIS Credit Rating Company Limited has assessed the Insurer Financial Strength (IFS) rating of the Company as 'A' (Single A), Outlook on the assigned rating is "Positive". 2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE These condensed interim financial statements have been prepared in accordance with the requirements of International Accounting Standard 34: 'Interim Financial Reporting', as applicable in Pakistan and provisions of and directives issued under the Companies Act, 207, the Insurance Ordinance, 2000, the Insurance Rules, 207, the Insurance Accounting Regulations, 207 and SECP Takaful Rules, 202. In case where the requirements differ, the provisions or directives of the Companies Act, 207, the Insurance Ordinance, 2000, the Insurance Rules, 207, Insurance Accounting Regulations, 207 and SECP Takaful Rules 202 shall prevail. The disclosures made in these condensed interim financial statements have been limited based on the format prescribed by the Securities and Exchange Commission of Pakistan vide S.R.O 89()/207 and International Accounting Standard (IAS) 34, "Interim Financial Reporting" and do not include all the information required in the annual financial statements. Accordingly, this condensed interim financial statements should be read in conjuction with the annual financial statements of the Company for the year ended 3 December, BASIS OF MEASUREMENT These condensed interim financial statements have been prepared under the historical cost convention except for certain financial assets and liabilities which are stated at fair value or amortized cost as applicable. These condensed interim financial statements have been prepared under the accrual basis of accounting except for cash flow information. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies adopted in the preparation of these condensed interim financial statements are in line with the audited annual financial statements for the year ended December 3, 207, except as follows: 3. Change in Accounting Policy According to S.R.O 89()/207, the new Insurance Accounting Regulations 207 have been notified. The new regulations require application of IAS 39 (Financial Instruments: Recognition and Measurement) in respect of the available for sale investments in the format prescribed in the Insurance Rules 207. IAS 39 (Financial Instruments: Recognition and Measurement) has become applicable to the Company which resulted in change in accounting policy in respect of investments in available for sale securities. Previously available for sale investments were stated at lower of cost or market value, if the decline in the market value was other than temporary (i.e. impaired). A fall in market value of a security was treated as "other than temporary (i.e. impaired)", if there was a significant or prolonged decline in fair value of security below its cost. IAS 39 requires available for sale investments to be subsequently measured at fair value and any changes therein, other than impairment losses are recognized in other comprehensive income and presented in the surplus / (deficit) on revaluation of available for sale investments in equity. When an investment is derecognized, the gain and loss accumulated in equity is reclassified to profit and loss account. This change in accounting policy has been applied retrospectively in accordance with the requirements of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Half Yearly Report June 208 3

16 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended 208 Effect of the retrospective application of change in accounting policies are as follows: Statement of financial position and statement of changes in equity Total equity as at December 3, 206 Available for sale investment as at December 3, 206 Deferred taxation liabilities as at December 3, 206 Total equity as at 207 Total equity as at December 3, 207 Available for sale investment as at December 3, 207 Window Takaful Assets of operators fund as at December 3, 207 Deferred tax asset as at December 3, 207 Statement of Comprehensive Income Profit after taxation for the half year ended 207 Other comprehensive for the half year ended 207 Loss per share for the half year ended 207 As originally reported 863,525, ,377,459 88,859,855 79,262,06 277,83,562 65,749,628 (9,47,059) (0.34) Effect of Restatement 6,427,06 6,908,932 48,87 9,287,047 7,23,260 6,89,795 (89,636),86,0 (2,286,53) (4,853,483) (0.04) As restated 879,952,74 285,286,39 48,87 828,46, ,493,32 284,003,357 64,929,992,86,0 (2,433,590) (4,853,483) (0.38) 3.2 Certain changes have been made to the presentation of the financial statements which include the following: Changes in the sequence of assets/liabilities in the statement of financial position. Discontinuation of separate statements of premiums, claims, commission and investment income which are now presented (on aggregate basis) into the notes to the financial statements (notes 5, 6, 7 and 8). Underwriting results in relation to various classes of business which were previously presented on the face of the profit and loss account are now presented in a separate note (note 2) 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Preparation of the condensed interim financial information requires management to make judgments, estimates and assumptions that effect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing the condensed interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended December 3, FINANCIAL RISK MANAGEMENT The Company s financial risk management objectives and policies are consistent with those disclosed in the annual financial statements for the year ended December 3, PROPERTY AND EQUIPMENT Note 208 December 3, 207 Operating assets Capital work in progress ,77,823 8,75,300 8,020,496 90,433,23 8,020,496 4 Reliance Insurance Company Limited

17 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended Operating assets 208 December 3, 207 Opening written down value Additions and transfers during the period / year at cost Furniture & fixtures Motor Vehicles Office Equipments Office Computers Written down value of disposal during the period / year Motor Vehicles Depreciation for the period / year Closing written down value 6.2 Capital work in progress Advances against vehicles 8,020,496 8,37, ,466 8,69,466 (,787,982) (6,34,57) 8,77,823 8,75,300 87,07,089,063,565 9,724, ,397 44,000,9,882 (4,05,563) (3,36,92) 8,020, EQUITY SECURITIES Note 208 December 3, 207 Available for sale Mutual funds Related parties Other listed securities Investments at fair value through profit or loss held for trading Quoted shares 7. DEBT SECURITIES 26,373,755 6,375,06 75,660, ,409, ,42, ,552,52 22,490,534 4,388,545 67,24, ,003, ,298,44 607,30,50 Held to maturity GOP Ijara Sukuk Bonds ,37,90 70,69, The market value of GOP Ijara Sukuk amounted to Rs million (December 3, 207: Rs million) 7..2 Government of Pakistan Ijara Sukuk Bonds (GOPI) having face value amounted to Rs.60 million and market value amounted to Rs million (December 3, 207: Rs.60 million and market value amounted to Rs million) are placed with State Bank of Pakistan under Section 29 of Insurance Ordinance, TERM DEPOSIT Deposit maturing within 2 months 7.2. These carry profit at the rate of 4.5% to 5.75% ,833,590 26,748,63 Half Yearly Report June 208 5

18 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended 208 Note 208 December 3, LOANS AND OTHER RECEIVABLES Loan to employees Deposits,403, ,79,903,09,336, ,79,835,99 9. INSURANCE / REINSURANCE RECEIVABLE Premium due but unpaid Amount due from other insurers/reinsurers 248,794,820,609, ,404,02 205,540,384 2,246, ,786, PREPAYMENTS Prepaid reinsurance premium ceded Other prepayments 329,3,470,743,234 33,054, ,538,956,687, ,226,563. CASH AND BANK DEPOSITS Cash and other equivalents Cash in hand, Policy stamps and bond paper in hand Current and other bank accounts Current accounts PLS saving accounts.,43,894 64,48,499 55,79,424 9,660,923 2,074,87 498,290 63,555,078 96,32,68 59,687,246 60,85,536. PLS saving accounts carry markup at rates range from 4.00% to 5.50% per annum (207: 4.00% to 5.50% per annum). 2. ISSUED, SUBSCRIBED AND PAIDUP SHARE CAPITAL 208 (Number of shares),56,680,56,680 54,984,605 56,4,285 December 3, ,984,605 56,4,285 Ordinary shares of Rs. 0 each issued as fully paid in cash Ordinary shares of Rs.0 each issued as fully paid bonus shares 208 December 3, 207,566,800,566, ,846,050 56,42, ,846,050 56,42, OTHER CREDITORS AND ACCRUALS Other creditors Accrued expenses 66,52,3 2,405,409 68,557,540 78,378,887 3,494,372 8,873,259 6 Reliance Insurance Company Limited

19 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended CONTINGENCIES AND COMMITMENTS 4. Contingencies a. During the year 206, the Commissioner of Inland Revenue (FBR) had issued show cause notices and orders under section 22(5A) of the Income Tax Ordinance, 200 (the Ordinance) related to preceding tax years, by initialing the concept of single/one basket income to insurance industry, i.e., clubbing all other sources of income (e.g. dividend and rental income) into business income for charging the business rate of tax under Fourth Schedule of the Ordinance. In previous year, the Commissioner Inland Revenue (Appeals) has annulled all the assessments under section 22(5A) in which dividend was taxed at corporate rate. The Commissioner of Inland Revenue has filed an appeal in Appellate Tribunal, Inland Revenue against the order passed by the Commissioner Inland Revenue (Appeals) which is pending adjudication. The Company has not made provision in this regard with consultation of tax advisor as it is confident that the case will be decided in the Company's favor. b. An aviation claim has been reported on November 3, 205. Investigations are underway and loss adjustors have not yet established liability. Should this loss be considered payable at any later stage, a maximum gross reserve of Rs.550 million would arise. The impact on the Company's net account would be Rs million and the rest would be recoverable under fronting arrangements as per agreed terms. 4.2 Commitments There are no commitments as at the balance sheet date. 5. NET INSURANCE PREMIUM Written Gross Premium Add: Unearned premium reserve opening Less: Unearned premium reserve closing Premium earned Less: Reinsurance premium ceded Add: Prepaid reinsurance premium opening Less: Prepaid reinsurance premium closing Reinsurance expense Net Insurance Premium 503,07, ,450,943 (487,205,0) 50,353, ,406, ,538,956 (329,3,470) 355,633,85 54,79, ,935, ,368,394 (53,744,553) 57,559, ,396, ,533,433 (360,884,366) 394,045,94 77,53, NET INSURANCE CLAIMS EXPENSE Claim 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 (if any) closing Less: Reinsurance and other recoveries in respect of outstanding claims net of impairment (if any) opening Reinsurance and other recoveries revenue Net claims expenses 0,28, ,953,86 (209,590,488) 4,492,59 65,92,07 99,66,923 (67,283,860) 97,570,34 43,922,025 02,5,973 23,672,984 (220,507,963) 3,36,994 58,59,709 83,36,340 (72,078,362) 69,442,687 43,874,307 Half Yearly Report June 208 7

20 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended NET COMMISSION EXPENSE Commission paid or payable Add: Deferred commission expense opening Less: Deferred commission expense closing Net Commission Less: Commission received or recoverable Add: Unearned Reinsurance Commission Less: Unearned Reinsurance Commission Commission from reinsurers 8. INVESTMENT INCOME Income from equity securities AFS Dividend income Realised gains on Equity securities Income from equity securities Held for trading Dividend Income Gain on sale of investments Net unrealised gains/ (loss) on investments at fair value through profit or loss (held for trading purposes) Income from debt securities Held to maturity Return on debt securities Income from deposits Return on term deposits and PLS accounts Total investment income / (loss) Impairment in value of available for sale securities (Impairment) Equity Securities Less: Investment related expenses Net investment income 9. EARNINGS PER SHARE BASIC AND DILUTED Profit/(loss) after tax 57,656,753 60,932,042 (60,72,753) 58,46,042 33,322,487 35,347,057 (34,764,477) 33,905,067 24,50,975 2,533,800 97,934 2,73,734,32,959,720,080 33,784,20 46,826,240,820,97,670,983 53,049,54 (,48,305) (8,860) (,427,65) 5,62,989 45,905,839 64,649,56 6,298,49 (58,484,673) 67,462,974 35,25,826 34,72,44 (33,455,25) 36,473,06 30,989,958 9,79,238 4,482,48 3,66,386 0,893, ,896 (36,507,336) (24,68,655),556,044,86,774 (7,539,45) (4,98,046) (7,450) (4,205,496) (2,744,947) (2,433,590) Weighted average number of shares of Rs. 0 each 56,4,285 56,4,285 8 Earning/(loss) per share Rupees Reliance Insurance Company Limited 0.82 (0.38) No figures for diluted earnings per share has been presented as the Company has not issued any instrument which would have dilutive effect on earnings per share when exercised.

21 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended TRANSACTIONS WITH RELATED PARTIES Related parties comprise of associated companies, entities under common control, entities with common directors, major shareholders and key management personnel of the Company. Transactions with related parties are carried out at arm's length prices determined under "Comparable uncontrolled price method". Details of transactions with related parties during the period are as follows: Relation with the Company Transactions during the year Nature of transaction Associated companies Premium underwritten Premium collected Claims paid Premium due but unpaid Provision for outstanding claims 6,550,894 2,708,68 2,494,020 56,823,427 4,93,87 8,369,562 3,756, ,64 27,73,324 8,320,99 Key management personnel Staff retirement benefits Remuneration and other benefits Contribution to provident fund 3,536,590,45,588 3,925,072,43, SEGMENT INFORMATION Gross written premium (inclusive of Administrative surcharge) Insurance premium earned Insurance premium ceded to reinsurers Net insurance premium Commission income Net underwriting income Insurance claims Insurance claims recovered from reinsurers Net claims Commission expense Management expense Net insurance claims & expenses Underwriting result Net Investment income Other income Other expenses Profit before tax from takaful operationsoperators' Fund Profit before tax Fire & property damage 26,29,250 29,474,720 (84,45,9) 45,023,60 20,722,680 65,746,28 (03,45,073) 92,884,828 (0,566,245) (33,63,44) (9,06,935) (63,96,62) 2,549,660 Marine, aviation & Transport 28,870, ,48,894 (262,39,963) 25,828,93,097,302 36,926,233 (6,63,690) 3,249,829 (2,93,86) (4,786,973) (0,909,547) (28,60,38) 8,35, Motor Misc. Total 84,544,743 8,70,46 (,62,587) 80,097,829 8,066 80,5,895 (29,979,740) (29,979,740) (8,000,744) (33,83,483) (7,8,967) 8,303,928 0,400,39,09,75 (7,250,82) 3,768,993 2,067,09 5,836,02 (,897,656),435,477 (462,79) (2,04,884) (,59,936) (4,068,999),767,03 503,07,372 50,353,205 (355,633,85) 54,79,354 33,905,067 88,624,42 (4,492,59) 97,570,34 (43,922,025) (58,46,042) (65,349,90) (67,687,968) 20,936,453 5,62, ,08 (28,252,335) 6,82,548 5,708,673 Segment assets Unallocated assets 49,33,075 85,553, ,30,532 2,484,53 52,48,732,368,875,856,88,357,588 Segment liabilities Unallocated liabilities 29,43,36 67,76,539 58,429,423 24,394,630,00,43,728 23,868,073,025,28,80 Half Yearly Report June 208 9

22 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended Gross written premium (inclusive of Administrative surcharge) Insurance premium earned Insurance premium ceded to reinsurers Net insurance premium Commission income Net underwriting income Insurance claims Insurance claims recovered from reinsurers Net claims Commission expense Management expense Net insurance claims & expenses Underwriting result Net Investment loss Other income Other expenses Profit before tax from takaful operationsoperators' Fund Loss before tax December 3, 207 () Fire & property damage 40,764,33 44,338,52 (94,70,93) 50,67,590 23,86,254 73,353,844 (63,236,228) 56,589,905 (6,646,323) (37,000,080) (7,528,878) (6,75,28) 2,78,563 Marine, aviation & Transport 326,556, ,860,299 (288,585,543) 42,274,756 0,40,552 52,676,308 (20,953,688),089,043 (9,864,645) (9,473,975) (4,77,07) (44,09,69) 8,566,67 Motor Misc. Total 76,035,086 79,27,989 (,38,480) 77,809,509 77,809,509 (27,055,525) 48,000 (27,007,525) (7,730,327) (27,87,42) (6,924,994) 5,884,55 4,579,88 7,232,87 (9,970,987) 7,26,830 2,885,20 0,47,040 (2,07,553),75,739 (355,84) (3,258,592) (2,537,33) (6,5,737) 3,995, ,935,785 57,559,626 (394,045,94) 77,53,685 36,473,06 23,986,70 (3,36,994) 69,442,687 (43,874,307) (67,462,974) (62,024,42) (73,36,702) 40,624,999 (2,744,947),22,080 (29,757,97),522,249 (8,233,590) Segment assets Unallocated assets 45,399,55 79,698,70 99,034,604 4,057, ,90,48,352,490,499,790,680,647 Segment liabilities Unallocated liabilities 323,29,45 77,7, ,325,542 3,24, ,84,054 8,373, ,87, DATE OF AUTHORIZATION FOR ISSUE These condensed interim financial statements have been authorized for issue on 28th August, 208 by the Board of s of the Company. 23. GENERAL Figures have been rounded off to the nearest rupee. Corresponding figures have been reclassified and rearranged where necessary for better presentation and comparison and to comply with Insurance Regulation 207. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 20 Reliance Insurance Company Limited

23 For the Half Year Ended 208

24 Our Services Reliance Insurance underwrites in all classes of General Insurance and enjoys reputation second to none. Apart from Conventional General Insurance RIC has also commenced its General Takaful operations. General Insurance (Conventional) Reliance Insurance commenced its general insurance business in 98 and it underwrites in all classes of traditional and nontraditional lines. Reliance Insurance offering a wide range of covers such as Fire & Property, Marine Cargo, Motor Vehicles (Commercial & Private), Personal Accident, Money Insurance, Burglary & Liability (Public & Product) and Workmen Compensation while nontraditional covers such as Engineering Risks (MBD, CAR, EAR), Aviation Insurance, Terrorism and Bonds are also being offered. General Takaful (Islamic) Takaful is an Islamic alternate of Insurance and is growing steadily. Reliance Insurance commenced its Window Takaful Operations in June 206 under the guidance of renowned, qualified and certified Sharia Scholars. Reliance Takaful is offering a wide range of Sharia Compliant General Takaful Products such as Fire & Property Takaful, Marine Cargo Takaful, Motor Takaful (Private / Commercial Vehicles), Engineering Takaful, Terrorism & Political Violence Takaful and Miscellaneous Accident Takaful. 22 Reliance Insurance Company Limited

25 HYDER BHIMJI & CO. CHARTERED ACCOUNTANTS REVIEW REPORT TO THE MEMBERS We have reviewed the accompanying: i. condensed interim statement of financial position; ii. condensed interim profit and loss account; iii. condensed interim statement of comprehensive income; iv. condensed interim statement of changes in fund; and v. condensed interim statement of cash flows; of RELIANCE INSURANCE COMPANY LIMITED (WINDOW TAKAFUL OPERATIONS) ( the Operator ) together with the explanatory notes as at and for the half year ended 208 (hereinafter referred to as the condensed interim financial statements ). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review. Scope of review We conducted our review in accordance with the International Standards on Review Engagements 240, Review of Interim financial information performed by the Independent Auditor of the Entity. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements is not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Other matters The figures for the quarters ended 208 and 207 in the accompanying condensed interim financial statements have not been reviewed and we do not express a conclusion on them. Karachi: 29th August, 208 Kreston Hyder Bhimji & Co. Chartered Accountants Engagement Partner: Muhammad Hanif Razzak Suite No. 60, 6th Floor, Kashif Centre, ShahraheFaisal, Karachi. Phone: to 52 Fax: Website: hyderbhimji@yahoo.com, hyderbhimji@gmail.com OTHER OFFICES LAHORE FAISALABAD ISLAMABAD A member of kreston international A global network of independent accounting firms. Half Yearly Report June

26 ASSETS Condensed Interim Statement of Financial Position (UnAudited) As at 208 Note Operator's Fund 30th June 208 (UnAudited) Participants' Fund Aggregate 3st December 207 (Audited) Operator's Fund Participants' Fund Aggregate 3st December 206 (Audited) Aggregate Investment Equity securities 6 9,375,73 9,375,73 9,240,372 9,240,372 0,008,720 Wakala and mudarib fees receivable 5,23,25 5,23,25 2,668,970 2,668,970 30,900 Contribution takaful receivables 7 7,562,39 7,562,39 7,783,670 7,783,670,685,797 Retakaful recoveries against outstanding claims 2,508,347 2,508,347 4,844,862 4,844,862 2,045,500 Deferred Commission Expense 5,597,940 5,597,940 4,444,553 4,444,553,037,485 Advance Income Tax 655, ,752 49,850 49,850 27,94 Prepayments 8 0,292,558 0,292, ,750 8,848,32 9,272,062 3,50,427 Accrued investment income 4, ,962 34,942 7,364 7, , ,654 Deferred wakala fee 8,970,0 8,970,0 4,920,998 4,920,998 2,235,53 Cash & Bank 9 46,452,20 67,258,90 3,70,30 37,543,33 38,875,556 76,48,689 44,89,096 TOTAL ASSETS 77,409,26 06,88,387 84,227,603 64,929,992 75,390,926 40,320,98 75,509, Reliance Insurance Company Limited Window Takaful Operations

27 Condensed Interim Statement of Financial Position (UnAudited) As at 208 EQUITY AND LIABILITIES Operator's Fund Statutory Fund Accumulated profit / (loss) Deficit on revaluation of AFS investmentsnet of deferred tax Waqf/Participants' Takaful Fund Ceded Money Accumulated Surplus Note Liabilities Underwriting Provisions Outstanding claims including IBNR Unearned contribution Unearned retakaful rebate Retakaful operators payable Wakala and mudarib fee payable Unearned wakala fees Other creditors and accruals Total Liabilities Contingencies and Commitments 0 Operator's Fund 50,000,000 6,40,57 (684,834) 55,725,323 8,970,0 2,73,882 2,683,893 30th June 208 (UnAudited) Participants' Fund 500,000 23,43,945 23,93,945 6,746,566 47,425,027,975,490 7,079,08 5,23,25 4,465,000 82,904,442 Aggregate 50,000,000 6,40,57 (684,834) 55,725, ,000 23,43,945 23,93,945 6,746,566 47,425,027,975,490 7,079,08 5,23,25 8,970,0 7,78,882 04,588,335 3st December 207 (Audited) Operator's Fund 50,000,000 (402,39) (89,636) 48,777,973 4,920,998,23,02 6,52,09 Participants' Fund 500,000 0,22,062 0,72,062 7,444,085 37,302,496,574,843 4,420,208 2,668,970,268,262 64,678,864 Aggregate 50,000,000 (402,39) (89,636) 48,777, ,000 0,22,062 0,72,062 7,444,085 37,302,496,574,843 4,420,208 2,668,970 4,920,998 2,499,283 80,830,883 3st December 206 (Audited) Aggregate 50,000,000 (,534,899) 8,720 48,473,82 500,000 3,97,9 4,47,9 2,200,000 6,902, ,796 8,055,350 30,900 2,235,53 2,646,953 22,564,634 TOTAL FUND AND LIABILITIES 77,409,26 06,88,387 84,227,603 64,929,992 75,390,926 40,320,98 75,509,646 The annexed notes from to 2 form an integral part of these condensed interim financial statements. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing Half Yearly Report June

28 Condensed Interim Profit & Loss Account (UnAudited) For the Quarter and Half Year Ended 208 Note Quarter ended June Half year ended June Reveune Account Participants' Takaful Fund Net contribution revenue Wakala expense Net takaful claims Direct expenses Retakaful rebate Surplus before Investment Income ,359,822 (2,02,46) (2,526,237) (39,493),600,667 9,292,63 8,27,456 (4,008,449) (978,47) (28,70) 889,326 4,09,476 34,68,39 (20,058,427) (5,45,700) (55,609) 3,04,364 2,526,09 5,920,869 (9,36,798) (3,339,29) (49,58) 2,405,847 5,80,208 Investment Income Modarib's share Surplus for the period 6 574,52 (229,808) 9,637,326 37,697 (4,309) 4,87,864,26,439 (450,575) 3,20, ,440 (68,532) 5,96,6 Accumulated surplus Balance at the beginning of the period Surplus for the period Balance at the end of the period 3,776,69 9,637,326 23,43,945 5,744,443 4,87,864 9,932,307 0,22,062 3,20,883 23,43,945 3,97,9 5,96,6 9,932,307 Reveune Account Operator's Fund Wakala fee Commission expenses Management expenses 7 8 Investment Income 6 Modarib's shares from PTF General and administrative expenses Profit for the period 2,02,46 (3,728,498) (2,569,424) 5,804, , ,808 (280,500) 6,0,33 4,008,449 (,753,757) (,263,535) 99,57 428,663 4,309 (250,36),20,993 20,058,427 (6,524,24) (7,26,379) 6,272,834 69, ,575 (530,500) 6,82,548 9,36,798 (4,53,077) (3,856,796) 766, ,928 68,532 (250,36),522,249 Profit and loss appropriation account Balance at the beginning of the period Profit for the period Balance at the end of the period 299,826 6,0,33 6,40,57 (,223,643),20,993 (2,650) (402,39) 6,82,548 6,40,57 (,534,899),522,249 (2,650) The annexed notes from to 2 form an integral part of this condensed interim financial information. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 26 Reliance Insurance Company Limited Window Takaful Operations

29 Condensed Interim Statement Of Comprehensive Income (UnAudited) For the Quarter and Half Year Ended 208 Operator's Fund Quarter ended June Half year ended June Profit after tax 6,0,33,20,993 6,82,548,522,249 ( Deficit ) / Surplus on revaluation of available for sale securities (406,609) (32,89) 34,802 2,990 Total comprehensive income for the period 5,703,722,078,74 6,947,350,525,239 The annexed notes from to 2 form an integral part of this condensed interim financial information. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing Half Yearly Report June

30 Condensed Interim Statement Of Changes in Fund (UnAudited) For the Half Year Ended 208 Operator's Fund Note Statutory Fund (Accumulated loss) / Profit Surplus / (Defecit) on revaluation of AFS investments Total Balance as originally reported 50,000,000 (,534,899) 48,465,0 Effect of restatement 3. 8,720 8,720 Balance as at st January 207 () 50,000,000 (,534,899) 8,720 48,473,82 Total comprehensive income for the half year ended 207,522,249 2,990,525,239 Balance as at ,000,000 (2,650),70 49,999,060 Balance as at January 0, ,000,000 (402,39) (89,636) 48,777,973 Total comprehensive income for the half year ended 208 6,82,548 34,802 6,947,350 Balance as at ,000,000 6,40,57 (684,834) 55,725,323 Ceded money Participants Takaful Fund (Accumulated loss) / Profit Surplus/(Defecit) on revaluation of AFS investments Total Balance as at st January ,000 3,97,9 4,47,9 Surplus for the half year ended 207 5,96,6 5,96,6 Balance as at ,000 9,932,307 0,432,307 Balance as at January 0, ,000 0,22,062 0,72,062 Surplus for the half year ended 208 3,20,883 3,20,883 Balance as at ,000 23,43,945 23,93,945 The annexed notes from to 2 form an integral part of this condensed interim financial information. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 28 Reliance Insurance Company Limited Window Takaful Operations

31 Condensed Interim Statement of Cash Flow (UnAudited) For the Half Year Ended 208 Operating Cash Flows a) Takaful activities Contribution received Retakaful contribution paid Claims paid Retakaful and other recoveries received Commission paid Retakaful rebate received Wakala fee received / (paid) Net cash inflows from takaful activities Operator's Fund (7,677,60) 2,563,59 3,885,558 30th June 208 Participants' Aggregate Takaful Fund 6,269,749 (5,029,822) (6,850,859) 3,344,55 3,505,0 (2,563,59) 24,675,075 6,269,749 (5,029,822) (6,850,859) 3,344,55 (7,677,60) 3,505,0 38,560,633 30th June 207 Total 29,767,86 (3,300,987) (3,460,58) 2,043,79 (2,38,83) 2,664,55 5,395,804 b) Other operating activities Income tax paid (63,902) (63,902) (25,082) General, administration and management expenses paid (7,368,29) (55,609) (7,423,738) (3,73,53) Other payments on operating assets,482,86,482,86 (3,47,493) Other receipts in respect of operating assets 3,96,738 3,96,738 22,844 Net cash (outflows) / inflows from other operating activities (6,049,70) 3,4,29 (2,908,04) (7,25,244) Total cash inflows from takaful activities 7,836,388 27,86,204 35,652,592 8,44,560 Investment activities Mudaraba shares received / (paid) 450,575 (450,575) Profit received 622,024,07,005,639,029,250,83 Total cash inflows from investing activities,072, ,430,639,029,250,83 Net cash inflows from all activities 8,908,987 28,382,634 37,29,62 9,395,373 Cash and cash equivalent at the beginning of the year 37,543,33 38,875,556 76,48,689 44,89,096 Cash and cash equivalent at the end of the year 46,452,20 67,258,90 3,70,30 54,286,469 Half Yearly Report June

32 Condensed Interim Statement of Cash Flow (UnAudited) For the Half Year Ended 208 Operator's Fund 30th June 208 Participants' Aggregate Takaful Fund 30th June 207 Total Reconciliation to profit and loss Account Operating cash flows 7,836,388 27,86,204 35,652,592 8,44,560 Increase in assets other than cash 3,437,820 2,935,393 6,373,23 20,024,053 Increase in liabilities other than running finance (5,53,874) (8,225,578) (23,757,452) (2,850,66) Investment income,070,24 675,864,746,078,65,368 Surplus for the period 6,82,548 3,20,883 20,04,43 7,483,365 Cash for the purpose of the statement of cash flows consists of: Cash and other equivalents Current and bank deposits 46,452,20 67,258,90 3,70,30 54,286,469 The annexed notes from to 2 form an integral part of this condensed interim financial information. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 30 Reliance Insurance Company Limited Window Takaful Operations

33 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended 208. LEGAL STATUS AND NATURE OF BUSINESS Reliance Insurance Company Limited (the Operator) has been allowed to undertake Window Takaful Operations (WTO) on May 25, 206 by Securities and Exchange Commission of Pakistan (SECP) under SECP Takaful Rules, 202 to carry on General Window Takaful Operations in Pakistan. For the purpose of carrying on the Takaful business, the Operator has formed a Waqf (Participants' Takaful Fund (PTF)) on May 30, 206 under the Waqf deed with a Cede money of Rs. 500,000. The Waqf deed and PTF policies (Waqf Rules) which govern the relationship of Operator, Waqf and Participants for management of Takaful operations, investment of Waqf and Operator's Fund are approved by the Shariah Advisor of the Operator. The accounts of the Waqf are maintained by the Operator in a manner that the assets and liabilities of Waqf remain separately identiable. The condensed intem financial information of the Operator are prepared such that the financial position and results from the operations of Waqf and the Operator are shown separately. 2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE These condensed interim financial statements have been prepared in accordance with the requirements of International Accounting Standard 34: 'Interim Financial Reporting', as applicable in Pakistan and provisions of and directives issued under the Companies Act, 207, the Insurance Ordinance, 2000, the Insurance Rules, 207, the Insurance Accouting Regulations, 207 and SECP Takaful Rules, 202. In case where the requirements differ, the provisions or directives of the Companies Act, 207, the Insurance Ordinance, 2000, the Insurance Rules, 207, Insurance Accounting Regulations, 207 and SECP Takaful Rules, 202 shall prevail. The disclosures made in these condensed interim financial statements have been limited based on the format prescribed by the Securities and Exchange Commission of Pakistan vide S.R.O 89()/207 and International Accounting Standard (IAS) 34, "Interim Financial Reporting" and do not include all the information required in the annual financial statements. Accordingly, these condensed interim financial statements should be read in conjection with the annual financial statements of the Operator for the year ended 3 December, BASIS OF MEASUREMENT These condensed interim financial statements have been prepared under the historical cost convention except for certain financial assets and liabilities which are stated at fair value if there any asset at amortized cost. These condensed interim financial statements have been prepared under the accrual basis of accounting except for cash flow statement. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies adopted in the preparation of this condensed interim financial statements are in line with the audited annual financial statements for the year ended December 3, Change in Accounting Policy According to S.R.O 89()/207, the new Insurance Accounting Regulations 207 have been notified. The new regulations require application of IAS 39 recongnition and measurement in respect of the available for sale investements in the format prescribed in the Insurance Rules 207. IAS 39 (Financial Instruments Recognition and Measurements) have become applicable to the Company which resulted in change in accounting policy in respect of investments in available for sale secutities. Previously investments in available for sale secutities were stated at lower of cost or market value, if the decline in the market value was other than temporary (i.e. imparied). A fall in market value of a security is treated as "other than temporary (i.e. impaired)", if there was a significant or prolonged decline in fair value of security below its cost. IAS 39 requires available for sale investments to be subsequently measured at fair value and any changes therein, other than impairment losses are recongnized in other comprehensive income and presented in the surplus / (deficit) on revaluation of available for sale investments in equity. When an investment is derecongnized, the gain and loss accumulated in equity is reclassified to profit and loss account. This change in accounting policy was applied retrospectively in accordance with the requirements of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Effect of deferred tax is immaterial and is not considered. Half Yearly Report June 208 3

34 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended 208 Effect of the retrospective application of change in accounting policies are as follows: Statement of financial position and statement of changes in fund Operator's fund as at December 3, 206 Available for sale investment as at December 3, 206 Operetor's fund as at 207 Operetor's fund as at December 3, 207 Available for sale investment as at December 3, 207 Statement of Comprehensive Income Profit after taxation for the half year ended 207 Other comprehensive for the half year ended 207 As originally reported 48,465,0 0,000,000 49,987,350 49,597,609 0,060,008,522,249 Effect of Restatement 8,720 8,720,70 (89,636) (89,636) 2,990 As restated 48,473,82 0,008,720 49,999,060 48,777,973 9,240,372,522,249 2, Certain changes have been made to the presentation of the financial statements which include the following: Changes in the sequence of assets/liabilities in the statement of financial position. Discontinuation of separate statements of contribtion, claims, expenses and investment income which are now presented (on aggregate basis) into the notes of the financial statements (notes, 2, 3, 4, 5 and 6). Underwriting results in relation to various classes of business which were previously presented on the face of the profit and loss account are now presented in a separate note (note 9). 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Preparation of the condensed interim financial statements requires management to make judgements, estimates and assumptions that effect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing the condensed interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended December 3, FINANCIAL RISK MANAGEMENT The Company s financial risk management objectives and policies are consistent with those disclosed in the annual financial statements for the year ended December 3, EQUITY SECURITIES OPF 208 December 3, 207 Available for sale Mutual funds 9,375,73 9,240, CONTRIBUTION TAKAFUL RECEIVABLES PTF Contribution due but unpaid Amount due from other takaful / retakaful operators 4,574,746 2,987,573 7,562,39 5,575,893 2,207,777 7,783, PREPAYMENTS Prepaid retakaful contribution ceded Prepaid expenses OPF December 3, , ,750 0,292,558 0,292,558 PTF December 3, 207 8,848,32 8,848,32 32 Reliance Insurance Company Limited Window Takaful Operations

35 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended CASH AND BANK DEPOSITS OPF December 3, PTF December 3, 207 Cash and other equivalents Stamps in hand Saving accounts 46,452,20 46,452,20 37,543,33 37,543,33 46,709 67,2,48 67,258,90 23,840 38,85,76 38,875, CONTINGENCIES AND COMMITMENTS There were no contingencies and commitments as at the NET CONTRIBUTION REVENUE Written Gross Contributions Add: Unearned contributions reserve opening Less: Unearned contributions reserve closing Contributions earned Less: Retakaful contributions ceded Add: Prepaid retakaful contributions opening Less: Prepaid retakaful contributions closing Retakaful expense Net contributions revenue 60,268,602 37,302,496 (47,425,027) 50,46,07 6,908,926 8,848,32 (0,292,558) 5,464,680 34,68,39 33,839,307 6,902,482 (3,236,769) 27,505,020 3,086,809 3,50,427 (4,653,085),584,5 5,920, WAKALA EXPENSE Gross Wakala fee Add: Deferred wakala fee Opening Less: Deferred wakala fee closing 24,07,440 4,920,998 (8,970,0) 20,058,427,056,502 2,235,53 (4,54,857) 9,36, NET TAKAFUL CLAIMS EXPENSE Claim 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 (if any) closing Less: Retakaful and other recoveries in respect of outstanding claims net of impairment (if any) opening Retakaful and other recoveries revenue Net claims expenses 6,850,859 6,746,566 (7,444,085) 6,53,340 3,344,55 2,508,347 (4,844,862),007,640 5,45,700 3,460,58 4,276,749 (2,200,000) 5,536,907 2,043,79 2,99,487 (2,045,500) 2,97,778 3,339,29 Half Yearly Report June

36 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended DIRECT EXPENSES Fire and property damage Marine, Aviation and Transport Motor Miscellaneous 5. RETAKAFUL REBATE Gross rebate from retakaful operators Add: Unearned retakaful rebate Opening Less: Unearned retakaful rebate Closing 3,885 3,0 47,270,353 55,609 3,505,0,574,843 (,975,490) 3,04,364 3,226 2,43 24, ,58 2,664,55 493,796 (752,04) 2,405, INVESTMENT INCOME PTF OPF 207 Profit on bank deposits,26, ,440 69, ,928 Total investment income,26, ,440 69, , WAKALA FEE INCOME Gross wakala fee Add: Unearned wakala fee opening Less: Unearned wakala fee closing 8. COMMISSION EXPENSE Commission paid or payable Add: Deferred commission expense opening Less: Deferred commission expense closing Commission expenses 24,07,440 4,920,998 (8,970,0) 20,058,427 7,677,60 4,444,553 (5,597,940) 6,524,24,056,502 2,235,53 (4,54,857) 9,36,798 5,27,206,037,485 (,74,64) 4,53, Reliance Insurance Company Limited Window Takaful Operations

37 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended SEGMENT INFORMATION Gross Contributions (inclusive of Administrative surcharge) Contributions earned Takaful contributions ceded to retakaful operators Net contribution Rebate from retakaful Net revenue Takaful claims Takaful claims recovered from retakaful operators Net claims Wakala expense Direct expense Net takaful claims & expenses Surplus before Investment Income Net Investment income Modarib's shares Surplus for the period Fire & property damage 0,373,09 9,86,794 (6,763,808) 2,422,986,554,47 3,977,403 (850,405) 695,876 (54,529) (3,674,78) (3,885) (3,833,32) 44,27 Marine, aviation & Transport 6,490,558 6,375,66 (4,44,87),933,844,02,68 2,955,462 (40,07) 84,42 (55,650) (2,550,264) (3,0) (2,609,05) 346, Motor Misc. Total 39,08,836 3,282,24 (,80,72) 29,480,502 29,480,502 (5,62,864) 227,343 (4,935,52) (2,52,885) (47,270) (7,495,676),984,826 4,323,7 3,30,402 (2,457,343) 844, ,329,372,388 (,320,560) (,353) (,32,93) 50,475 60,268,602 50,46,07 (5,464,680) 34,68,39 3,04,364 37,785,755 (6,53,340),007,640 (5,45,700) (20,058,427) (55,609) (25,259,736) 2,526,09,26,439 (450,575) 3,20,883 Segment assets PTF Unallocated assets PTF Unallocated assets OPF 2,747,983 2,93,232 33,434, ,273 39,333,235 67,485,52 77,409,26 84,227,603 Segment liabilities PTF Unallocated liabilities OPF Consolidated total Liabilities 5,792,049 4,622,775 70,47,930 2,07,688 82,904,442 2,683,893 04,588, Fire & property damage Marine, aviation & Transport Motor Misc. Total Gross written contributions (inclusive of Administrative surcharge) Contributions earned Takaful contributions ceded to retakaful operators Net takaful contributions Rebate from retakaful Net revenue Takaful claims Takaful claims recovered from retakaful operators Net claims Wakala expense Direct expense Net takaful claims & expenses Surplus before Investment Income Net Investment income Modarib's shares Surplus for the period 4,960,365 3,558,667 (2,522,72),035, ,223,66,78 (,245,533) (3,226) (,248,759) 367,49 3,640,276 4,426,030 (7,550,00) 6,876,029,736,50 8,62,530 (5,262,003) 2,97,778 (3,064,225) (5,049,0) (2,43) (8,34,748) 477,782 4,225,79 8,962,60 (,096,909) 7,865,70 7,865,70 (274,904) (274,904) (2,688,783) (24,495) (2,988,82) 4,877,59,02, ,73 (44,529) 43,84 89,23 232,307 (53,372) (447) (53,89) 78,488 33,839,307 27,505,020 (,584,5) 5,920,869 2,405,847 8,326,76 (5,536,907) 2,97,778 (3,339,29) (9,36,798) (49,58) (2,525,508) 5,80, ,440 (68,532) 5,96,6 December 3, 207 () Segment assets PTF Unallocated assets PTF Unallocated assets OPF Consolidated total assets 3,03,863 9,767,970 22,984,684 54,325 36,397,842 38,993,084 64,929,992 40,320,98 Segment liabilities PTF Unallocated liabilities OPF Consolidated total Liabilities 5,55,556 7,357,655 40,843,720 96,933 64,678,864 6,52,09 80,830,883 Half Yearly Report June

38 Notes to the Condensed Interim Financial Statements (UnAudited) For the Half Year Ended DATE OF AUTHORIZATION FOR ISSUE These condensed iterim financial statements have been authorized for issue on 28th August, 208 by the Board of s of the Company. 2. GENERAL Figures have been rounded off to the nearest rupee. Ismail H. Zakaria Chairman Karachi 28 August, 208 A. Aziz Ayoob Mohammad Omar Bawany Haroon A. Shakoor Chief Accountant and Company Secretary A. Razak Ahmed Chief Executive & Managing 36 Reliance Insurance Company Limited Window Takaful Operations

39 Categories of Share Holding as at 208 Sr. No. Categories of share holders Number of share holders Total shares hold Percentage % INDIVIDUALS ,748, INVESTMENT COMPANIES 7, INSURANCE COMPANIES JOINT STOCK COMPANIES 2 8,290, FINANCIAL INSTITUTIONS STOCK EXCHANGE 2, WELFARE SOCIETY 52, CHARITABLE TRUSTS 252, MODARABA MANAGEMENT COMPANIES 0 0 TRADE GOVERNMENT DEPARTMENT 2 786, EDUCATIONAL & WELFARE SOCIETY 5, ,4, Half Yearly Report June

40 Total shares held Number of Shareholders To From Shareholdings 7,775 56,992 08, ,96 878,45 62,865 59,67 67, , , ,4 340, ,020 33, ,58 34,24 36, ,53 236,60 62,87 89,839 94,500 95, ,238 5, , ,07 29,84 36,987 42,67 46,82 54, ,049 80,000 86,50 398, ,37 206,828 87, , , ,07 476, , , ,58 307, , ,04 374,32 397, , , , ,426 5,320 55, , ,95 60,85 633, , ,50 690, , , , , ,844,03,733,3,486,285,92,683,86,787,583 2,29,88 2,93,970 2,250,884 2,397,955 2,497,976 3,356,700 6,59,833 56,4, Reliance Insurance Company Limited Pattern of Shareholding as at 208

41 Offices Head Office Reliance Insurance House PABX : A, Sindhi Muslim Cooperative Fax : Housing Society, reliins@cyber.net.pk. Karachi. ricre@cyber.net.pk. Web : Mr. A. Razak Ahmed Direct : , Chief Executive & Managing Extension : 204 Mr. Haroon A. Shakoor Direct : Chief Accountant & Extension : 203 Company Secretary Mr. Syed Rizwan Akhtar Direct : Executive Vice President (Operations) Extension : 20 Mr. Muhammad Ishaque Azim Direct : Vice President (Underwriting) Extension : 22 Mr. Sadruddin Hussain Direct : Vice President (Claims) Extension : 208 Mr. Ghulam Haider Vice President (Compliance) Extension : 209 Mr. Najamullah Khan Direct : Head of Takaful Extension : 20 Mr. Muhammad Kashif Wadiwala Extension : 26 Sharia Complaince Officer Mr. Ghulam Mujaddid Extension : 205 Chief Manager (Accounts) Mr. Abdul Rahim Patni Direct : Deputy Chief Manager (Reinsurance) Extension : 25 Mr. Muhammad Saleem Memon Extension : 24 Deputy Chief Manager (Investment/shares) Mr. Muhammad Masood Ali Extension : 202 Deputy Chief Manager (I.T. Deptt.) Mr. Muhammad Masood Alam Direct : Manager (Administration) Extension : 206 Mr. Mahmood Shuja Baig Extension : 208 Manager (Internal Audit) South Zone Offices & Branches Business Plaza Branch 407, 4th floor, Business Plaza, Mr. Muhammad Iqbal Dhedhi Ph (02) , Off. I.I.Chundrigar Road, Karachi. Executive Vice President Fax (02) , Tariq Road Branch Room No. A2 & A3, Mr. Zafar A. Pasha Ph (02) , st Floor, Rahat Jo Daro, Executive Vice President , Plot No.72/L, Block2, PECHS, Fax (02) Main Tariq Road, Karachi. Namco Centre Branch A, 5th Floor, Campbell Street, Mr. Iqbal Umer Bawany Ph (02) , Karachi. Vice President Fax (02) Land Mark Plaza Branch 405, 4th Floor, Land Mark Plaza, Mr. Muhammad Reza Rajani Ph (02) , Off. I. I. Chundrigar Road, Assistant Vice President Fax (02) Karachi. M. A. Jinnah Road Branch 0, Japan Plaza, Mr. Rizwan Ahmed Khan Ph (02) , M. A. Jinnah Road, Karachi. Branch Manager Fax (02) Hyderabad Branch st Floor, AlFalah Chamber, Mr. Abdullah Ahmed Ph (022) Tilak Road, Hyderabad. Regional Manager Fax (022) Half Yearly Report June

42 Offices North Zone Offices & Branches Zonal Office, Lahore (North Zone) 4th Floor, Gardee Trust Building. No.2, Mr. Hassan Sabih PABX (042) , Napier Road, Lahore. Chief Manager , Direct (042) Fax (042) Regional Office, Lahore 90A/3, st Floor, Canal Park, Mr. Waseem John Ph (042) , GulbergII, Lahore. Branch Manager , Fax (042) Gulberg Branch House No.7A, BlockE/, Mr. Muhammad Javeed Ahmed Ph (042) , GulbergIII, Lahore. Manager , Fax (042) AlRehman Branch 2nd Floor, AlRehman Building, Mr. Nisar Ahmed Chughtai Ph (042) , Regal Cinema Lane, 65, The Mall, Senior Vice President Lahore. Fax (042) Garden Town Branch Suit No.7, st Floor, Shan Arcade, Mr. Basit Anwar Butt Ph (042) , New Garden Town, Lahore. Executive Vice President Fax (042) Eden Centre Branch 32, Eden Centre, Mr. Ch. H.S. Asghar Ph (042) , Ghausal Azam Road, (Jail Road) Vice President Fax (042) Lahore. Empress Tower Branch Room No.8,st Floor, Mr. S.Azhar Ali Shah Ph (042) , Empress Tower, Senior Vice President Fax (042) Empress Road, Lahore. Khan Plaza Branch 4th Floor, Khan Plaza, Mr. Sohailuddin Zafar Ph (055) , G. T. Road, Gujranwala. Assistant Vice President Fax (055) Gujrat Branch Marhaba Tower (Top Floor) Opp. Mr. Abdul Sattar Malik Ph (053) Ram Piary Mahal Near Fawara Chawk,. Branch Manager Gujrat. Faisal Complex Branch 3rd Floor, Faisal Complex, Mr. A. Majeed Abid Ph (04) 26938, Bilal Road, Civil Lines, Faisalabad. Senior Vice President Fax (04) Taj Plaza Branch Room No.6, 2nd Floor, Taj Plaza, Mr. Muhammad Akhlaq Ph (04) , Kotwali Road, Faisalabad. Vice President Fax (04) United Plaza Branch 3,3rd Floor, United Plaza, Mr. Abdul Karim Siddiqi Ph (05) Shamsabad, Murree Rd. Rawalpindi. Vice President Fax (05) Peshawar Branch T3 & 4, Bilour Shopping Plaza, Mr. Shah Mast Khan Ph (09) , rd Floor, Saddar Road,. Assistant Vice President Fax (09) Peshawar Cantt. Regional Office Multan st Floor, 5Commercial Plaza, Mr. Syed Mohsin Bukhari Ph (06) Opp. Civil Hospital, Abdali Road, Assistant Vice President Fax (06) Multan. Hasilpur Branch 27B, st Floor, Main Bazar, Mr. Muhammad Shafi Anjum Ph (062) Hasilpur. Senior Vice President Fax (062) Sialkot Branch Room No.4 & 5, st Floor, Mr. Ghulam Rasool Farrukh Zahidi Ph (052) , Mughal Plaza, Kutchery Road, Branch Manager Fax (052) Sialkot. Gojra Branch P32, Post Office Road, Mrs. Shahnaz Akhtar Ph (046) 3597 Gojra. Branch Manager Fax (046) 353 Sukkur Minara Road, Sukkur. Mr. Anees Memon Ph (07) Resident Representative Cell Reliance Insurance Company Limited Window Takaful Operations

43 BOOK POST U.P.C./BY COURIER SERVICE If undelivered please return to: Reliance Insurance Company Limited SHARES DEPARTMENT 8A, Sindhi Muslim Cooperative Housing Society, P.O. Box: 3356, Karachi Ph: