General Takaful Accounting Regulations, 2019

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.- Islamabad, the 20 th November, 2019 NOTIFICATION S.R.O. 1416 (I)/2019.- In exercise of powers conferred by sub-section (3) of section 167 read with sub-section (1) and (2) of section 46 of the Insurance Ordinance 2000 (XXXIX of
2000) and rule 29 of the Takaful Rules, 2012, the Securities and Exchange Commission of
Pakistan, with the approval of the Policy Board, is pleased to make the following regulations, the same having been previously published in the official Gazette through S.R.O. 992(I)/2018 dated August 8, 2018.

1. Short title and commencement.- (1) These regulations shall be called the General
   Takaful Accounting Regulations, 2019.
   (2) These regulations shall come into force the accounting periods commencing on or after January 1 st , 2020.
2. Application and scope.- (1) These Regulations shall be applicable to regulatory returns
   and the published financial statements of operators.
   (2) The Operators shall comply with the requirements of International Financial Reporting Standards adopted by the Institute of Chartered Accountants of Pakistan and the Islamic Financial Accounting Standards, as notified by the Commission subject to the specific provisions contained in these regulations. (3) The provision of Rule 19 of the Insurance Rules, 2017 along with Annexure – II and the provisions of the Insurance Accounting Regulations, 2017 shall not be applicable on a Takaful operator. (4) The provision of Rule 19 of the Insurance Rules, 2017 along with Annexure – II and the provision of the Insurance Accounting Regulations, 2017 shall stand applicable on a window Takaful operator to the extent of its conventional insurance business modified to the extent stated at regulation 6 of these regulations in respect of its window Takaful business:
   Provided that the provisions of these regulations shall stand equally applicable on the window Takaful business of window Takaful operator.
3. Definitions.- (1) In these Regulations, unless there is anything repugnant in the subject
   or context.-
   (a) “Commission” means the Securities and Exchange Commission of Pakistan established under section 3 of the Securities and Exchange Commission of

Pakistan Act, 1997 (XLII of 1997);
(b) “Form” means forms appended to these regulations; (c) “Operator” means a Takaful Operator or a Window Takaful Operator, authorized by the Commission under the Takaful Rules, 2012, to undertake general takaful business; (d) “OPF” means the Operator Fund as defined in clause (ix) of sub-rule (1) of rule 2 of the Takaful Rules, 2012; (e) “Ordinance” means the Insurance Ordinance, 2000 (XXXIX of 2000); (f) “PTF” means the Participant Takaful Fund as defined in sub-clause (b) of clause (xiii) of sub-rule (1) of rule 2 of the Takaful Rules, 2012; (g) “Published Financial Statements” means the statements which are required to be prepared by an insurer under section 223 of the Companies Act, 2017 (XIX of 2017); and (h) “Regulatory Returns” means the statements which are required to be prepared and delivered to the Commission by an Operator under section 46 of the Ordinance. (2) Words and expressions used but not defined in these Regulations shall, unless there is anything repugnant in the subject or context, have the same meaning as are assigned to them in the Ordinance or the Takaful Rules, 2012.
4. Provisions applicable only to regulatory returns.- (1) Subject to section 46 of the
Ordinance the following forms of regulatory returns shall be submitted according to the Forms annexed to these Regulations,- (a) Balance sheet which shall be deemed to constitute the “statement of assets and liabilities” as required by sub-clause (i) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GAT); (b) Profit and loss account which shall be deemed to constitute the “statement of profits and losses” as required by sub-clause (ii) of clause (b) of sub-section (1) of
section 46 of the Ordinance (Form GBT);
(c) Statement of changes in shareholders equity and participants takaful fund prescribed under sub-clause (x) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GBBT); (d) Statement of cash flows required under sub-clause (iii) of clause (b) of sub￾section (1) of section 46 of the Ordinance (Form GCT); (e) Statement of contributions required under sub-clause (iv) of clause (b) of sub￾section (1) of section 46 of the Ordinance (Form GDT);

(f) Statement of claims/benefits required under sub-clause (v) of clause (b) of sub￾section (1) of section 46 of the Ordinance; (Form GET); (g) Statement of expenses required under sub-clause (vi) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GFT); (h) Statement of investment income required under sub-clause (vii) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GGT); (i) Statement of claims/benefits analysis required under sub-clause (viii) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GHT); (j) Statement of estimated exposures required under sub-clause (ix) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GIT); (k) Statement of assets for solvency purpose prescribed under sub-clause (x) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GJT); (l) Classified summary of assets in Pakistan prescribed under sub-clause (x) of clause (b) of sub-section (1) of section 46 of the Ordinance; (Form GKT). (2) Where an Operator controls other entities, consolidated regulatory returns are not required to be submitted. (3) If an Operator writes business outside Pakistan then a complete set of regulatory returns except for Form GAT shall be prepared for such business and shall be made part of the primary set of regulatory returns through separate statement.
5. Provisions applicable only to published financial statements.- (1) The published
financial statements shall consist of the following statements which shall be prepared in accordance with the requirements stated in sub-regulation (2) of regulation 2 above and shall be submitted in accordance to the forms annexed to these Regulations:
(a) statement of financial position;
(b) statement of comprehensive income;
(c) statement of cash flows;
(d) statement of changes in shareholders equity and participants’ Takaful Fund; and (e) notes to the financial statements (2) The Operator shall prepare statement of financial position in columnar form with statement of comprehensive income combined of PTF and OPF showing the two separately within the single statement.
6. Presentation of general Window Takaful Operations in published financial
statements and regulatory returns.- (1) Insurers authorised by the Commission to undertake

Window General Takaful Operations under the Takaful Rules, 2012 will disclose their Takaful results in their regulatory returns as follows,- (a) total assets and liabilities of the Window Takaful Operations shall be disclosed as single line item in the balance sheet of the insurer; (b) the profit/(loss) of the OPF of the window Takaful operations shall be disclosed as a single line item ‘Profit/(Loss) before taxation from General Takaful Operations’ in the profit and loss account of the insurer. (2) Insurers undertaking Window Takaful Operations shall prepare a separate complete set of regulatory returns as required under regulation 4 for its Takaful operations which shall be filed with the Commission along with the annual regulatory returns of the insurer:
Provided that an insurer undertaking Window Takaful Operations shall in place of the statement of assets for solvency purpose (Form GJT) prescribed under sub-clause (x) of clause (b) of sub-section (1) of section 46 of the Ordinance, submit statement of assets for solvency purpose of the Participant Takaful Fund (Form GJT-WTO), which is also hereby prescribed under said clause of section 46 of the Ordinance. Provided further that the statement of assets for solvency purpose (Form GJ), for non-life insurers, prescribed under Annexure II of the Insurance Rules, 2017 shall, in the case of non-life insurers with window general takaful operations, include the assets and liabilities of its conventional business and window takaful operations. Explanation: For the purposes of ascertaining the minimum solvency requirements of the non-life insurer under clause (b) and (c) of sub-section (3) of section 36 of the Ordinance, the earned contribution revenue, retakaful expense, liability for unexpired risk, liability for outstanding claims, prepaid retakaful ceded and retakaful recoveries against outstanding claim of window takaful operations shall be taken into account in addition to the related balances of the conventional insurance business. Furthermore, for the purposes of ascertaining the admissibility of assets prescribed under rule 12 of the Insurance Rules, 2017, the limits provided at column 3 thereof shall be applied by combining the assets of the conventional operations and window takaful operations. (3) Insurers undertaking with window operations will disclose their Takaful results in their published financial statements as follows:
(a) total assets and liabilities of the Window Takaful Operations shall be disclosed as single line item in the statement of the financial position of the insurer; (b) profit/(loss) of the OPF of the Window Takaful Operations shall be disclosed as a single line item ‘Profit/(Loss) before taxation from General Takaful Operations’ as follows:

(i) in the case of one statement approach, in the statement of comprehensive income of the insurer; (ii) in the case of two statement approach, in the profit and loss account of the insurer; (c) supporting notes where considered necessary for the understanding of the users of the published financial statements may be included as part of the notes to the financial statements; (d) segment disclosures for General Takaful Operations in accordance with the requirements of IFRS 8 – Operating Segments, shall be included in the published financial statements. (4) Insurers undertaking Window Takaful Operations shall prepare a separate complete set of published financial statements as required under regulation 5 for its Takaful operations and shall
annex the same with the annual/interim published financial statements (as applicable) of the
insurer.
7. Segment analysis.- (1) Some of the forms annexed to these Regulations provide segment
analysis by class of business. Separate figures for any class of business are required in addition to the segments already identified in the forms if the gross contribution for that class constitutes ten percent or more of the gross contribution of the Operator. Amounts relating to classes constituting less than ten percent may be clubbed together in ‘Miscellaneous”. (2) In case of Window Takaful Operators the above limit shall be applicable for the Window Takaful Operations only.
8. Audit report.- The regulatory returns and published financial statements (and separately
in case of window Takaful financial statements) shall be accompanied by an Audit Report as required under sub-section (2) of section 48 of the Ordinance in accordance with the format as specified through Auditors (Reporting Obligations) Regulations, 2018, or in accordance with the format as specified by the Commission from time to time.
9. Contributions.- (1) An Operator shall recognize contribution receivable as written in any
PTF when the participant becomes a member of the PTF against a specific risk. This is generally the same time when the PTF can no longer withdraw from its obligation to provide Takaful coverage to the participant against such risk. (2) Over the period of Takaful from inception to expiry, except as stated in sub-regulation (3), contribution shall be recognized as revenue of the PTF as follows:
(a) for direct business, evenly over the period of the policy / coverage; (b) for proportional Re-Takaful business, evenly over the period of the underlying policies / coverages;

(c) for non-proportional Re-Takaful business, in accordance with the pattern of Re￾Takaful service. (3) Where the pattern of incidence of risk varies over the period of the policy / coverage, the contribution shall be recognized as revenue in accordance with the pattern of incidence of risk. (4) To the extent of unexpired risks of direct, including co- Takaful, and facultative acceptance business, an Operator shall maintain a reserve for unexpired contributions from the contribution credited to PTF (net of any wakala fee), which shall be determined based on the methods specified as follows:
(a) as a proportion of the gross contribution of each policy, determined as the ratio of the unexpired period of the policy and the total period, both measured to the nearest day; or (b) where the majority of policies are issued for one year, the unearned contribution reserve may, as an alternative to the basis specified in (a) above, be determined by applying the twenty-fourths method, whereby the liability shall equal 1/24 of the contributions relating to policies commencing in the first month of the Operator’s financial year, 3/24 of the contributions relating to policies commencing in the second month of the Operator’s financial year, and so on; (c) If a company develops an alternative basis for determining reserves relating to re￾Takaful acceptances which it feels is more appropriate to its circumstances it may use such basis provided it discloses this fully in the notes to the financial statements. (5) Contribution/ contribution adjustments not yet processed but relating to the financial year shall, so far as is practicable, be recognized as a receivable and earned over the period in accordance with these Regulations. (6) Contributions shall not include any levy which is an amount collected on behalf of a third party. (7) Any levy charged on contributions which is not an amount collected on behalf of a third party shall be considered to be part of contributions. (8) Contributions accepted under a co-Takaful or pool arrangement shall be considered to be revenue of the participating Takaful Operators each for their own share only. (9) Where contributions for a policy are payable in installments, the full contribution for the duration of the policy / coverage shall be recognized as income at the inception of the policy and a related asset set up for contributions, notwithstanding the fact that some installments may not, by agreement between the Takaful Operator and the participants, be payable until later.

10. Fee to the operator.- The wakala fee due to the Operator under general Takaful
    arrangements shall be recognized by the Operator in its OPF and the PTF in the following manner:
    (a) where such fees are a defined part of contributions (wakala based contract), the same be recognised as an expense of relevant PTF at the same time that the contribution is recognised. The Operator shall recognise the same at the same time in its OPF as income. The income amount shall be deferred and amortised over the Takaful contract term in accordance with the pattern of Takaful contribution earned; (b) where such fees are defined as a share of investment income (mudaraba based contract), be recognised at the same point the investment income is recognised; and (c) where such fees are defined in any other way, be recognised on such method as is defined in PTF policies so as to ensure that the same becomes due according to Shariah and no significant uncertainty remains with regard to it recoverability and realization.
11. Qard-e-Hasna.- (1) Qard-e-Hasna will be shown on the face of the statement of financial
    position as a separate line item after ‘ Balance of Participants’ Takaful Fund’ and a note on its movement is also to be given. (2) The ability of the PTF to return the Qard-e-Hasna should be tested by preparing projections which should be for a period not less than three years and not more than five years, with any future surplus returns being discounted to determine the value as of the date of the impairment test. In the absence of projections demonstrating recoverability of the Qard-e-Hasna, the Qard-e-Hasna should be fully provided for. (3) The projections shall be prepared by the management of the Operator and shall be duly approved by the board of directors of the Operator. The Operator may seek the advice of an actuary or a firm of Chartered Accountants on the preparation of the projections.
12. Takaful benefits (claims).- (1) A liability for outstanding Takaful benefit shall be
    recognized in respect of all Takaful benefits incurred to balance date, and must be measured at the undiscounted value of expected future payments. (2) A Takaful benefit shall be considered to be incurred at the time of the incident giving rise to the Takaful benefit, except as otherwise expressly indicated in the participants’ membership document of Takaful. (3) The Takaful benefit liability must include amounts in relation to unpaid reported Takaful benefits; a provision for Takaful benefits incurred but not reported (IBNR), and expected Takaful benefits settlement costs.

(4) Provision for Takaful benefits incurred but not reported (IBNR) shall be recognized in accordance with SEC Guidelines for Estimation of Incurred But Not Reported Claim Reserves, 2016.
13. Re-takaful expense.- (1) Contribution ceded to re-Takaful operators shall be recognized
as a liability of the PTF as follows:
(a) for re-Takaful arrangements operating on a proportional basis, on attachment of risk on the underlying policies ceded; and (b) for re-Takaful arrangements operating on a non-proportional basis, on inception of the re-Takaful arrangements. (2) Over the period of re-Takaful from inception to expiry, except as stated in sub-regulation (3), re-Takaful contribution shall be recognized as an expense of the PTF as follows:
(a) For proportional re-Takaful business, evenly over the period of the underlying policies / coverages; and (b) For non-proportional re-Takaful business, evenly over the period of indemnity. (3) Where the pattern of incidence of risk varies over the period of the policy / coverage, the contribution shall be recognized as an expense in accordance with the pattern of incidence of risk. (4) The portion of re-Takaful contribution not yet recognized as an expense shall be recognized as a prepayment. (5) Contribution adjustments not yet processed, and contribution not yet processed but relating to the financial year shall, so far as is practicable, be recognized as a liability and brought to account as an expense in accordance with these Regulations.
14. Takaful benefits (claims) recoveries.- (1) Claims recoveries receivable from re-Takaful
and other recoveries receivable shall be recognized as assets and measured at the amount expected to be received. (2) Claims recoveries receivable from re-Takaful and other recoveries receivable shall be recognized at the same time as the Takaful benefits (claims) which give rise to the right to the recovery are recognized.
15. Acquisition costs.- (1) Acquisition costs, which include commissions and other directly
attributable / incremental acquisition costs are costs which are incurred in obtaining and recording policies of Takaful and re-Takaful, if not earlier credited to the PTF, shall be recognized as expense of the OPF at the same time when the related Wakala fee is recognized. Explanation: Incremental acquisition costs of a policy are costs of selling, underwriting and initiating a Takaful policy, which has been incurred because that particular policy has

been issued, i.e., the costs are identified at the level of an individual policy and not at the level of a portfolio of policies. Such costs may include, for example, surveyor costs where a survey has been carried out as a part of the underwriting process. They will not, however, include costs of permanent underwriting staff of the Takaful Operator. (2) An acquisition cost which is not directly attributable / incremental shall be recognized as an expense of OPF during the period in which it is incurred on an accrual basis.
16. Re-Takaful rebate.- Re-Takaful rebates and other forms of revenue (apart from
recoveries) receivable from re-Takaful shall be deferred and brought to account as revenue in accordance with the pattern of recognition of the re-Takaful contributions to which they relate.
17. Contribution deficiency.- (1) The provision for contribution deficiency (liability
adequacy test) shall be recognized by PTF in accordance with the requirements given in International Financial Reporting Standard 4 “Insurance contracts”. (2) The movement in the contribution deficiency reserve shall be recorded as an expense and shall form a part of the underwriting result.
18. PTF taxation.- The Operator shall ensure that the tax benefit or expense pertaining to the
PTF shall be passed on to the PTF.
19. Statement of estimated exposure.- The statement of estimated exposure shall be
prepared in accordance with form GIT of the regulatory returns which also explains the basis of its preparation.
20. Admissibility of assets.- (1) The value of assets for the purposes of the balance sheet (for
the purpose of regulatory returns) shall be in accordance with the company’s accounting policies for such assets and the method of assigning values to investments provided for in these Regulations. (2) Where the value of any asset arrived at in accordance with sub-regulation (1) is different from the value which may be treated as admissible under section 32 of the Ordinance, then the regulatory returns will include Form GJT (“statement of assets for solvency purpose”).
21. Relaxation of Regulations.- Where the Commission is satisfied that it is not practicable
to comply with the requirements of these Regulations in a particular case or class of cases, the Commission may, for reasons to be recorded in writing, relax such requirement subject to such conditions as it may deem appropriate.

FORMS OF REGULATORY FOR GENERAL TAKAFUL OPERATORS FORM GAT Company Name:
Balance Sheet
Figures in Rs 000
Note
Current Year Prior Year Current Year Prior Year Note Current Year Prior Year Current Year Prior Year Capital and Reserves Attributable to company's shareholders * Cash and Bank Deposits Domestic companies Authorised Share Capital Cash and other equivalent Paid-up share capital Current and other accounts Retained earnings Deposits maturing within 12 months Reserves Deposits maturing after 12 months Other equity (please specify) Loans (Secured or un-secured - classify as appropriate) To employees Foreign companies To agents Head office account Others Other equity (please specify) Investment in subsidiaries and associates Fixed Income Securities Participants Takaful Fund (PTF) Listed Equities Seed money Unlisted Equities Accumulated surplus / (deficit) Other Investments Qard-e-Hasna Government Securities Other Fixed Income Securities Listed Equities PTF Underwriting provisions Unlisted Equities Provision for outstanding benefits (including IBNR) Mutual Funds Unearned contribution reserves Others (describe) Contribution deficiency reserve Less: Provision for diminution in value Reserve for unearned retakaful rebate Investment Property Total underwriting provisions Deferred Taxation Deferred Liabilities Preliminary and Deferred Expenses Deferred Taxation Staff Retirement Benefits Current Assets - Others Unearned wakala fee Contributions due but unpaid Others (please specify) Takaful / Retakaful receivables Retakaful recoveries against outstanding claims / benefits Creditors and Accruals Salvage recoveries accrued Contributions Received in Advance Contribution and benefit reserves retained by cedants Takaful / Retakaful payables Accrued investment income Accrued Expenses Taxation - payments less provision Taxation - Provision less payments Receivable from OPF / PTF Other Creditors and Accruals (describe) Deferred wakala fee Deferred commission expense Borrowings Prepayments Other loans Sundry receivables(provide details) Fixed Assets Other liabilities Payable to OPF / PTF Tangible & Intangible Income tax liabilties Land and Builldings Other liabilities (please specify) Furniture, Fixtures and Office Equipment Motor Vehicles Capital Work in Progress TOTAL LIABILITIES Intangibles (Please specify) TOTAL ASSETS TOTAL EQUITY AND LIABILITIES CONTINGENCIES AND COMMITMENTS (if applicable) The annexed notes form an integral part of these accounts. Chairman Director Director Chief Executive Officer

• In the case of window takaful operations, in place of "Capital and reserves attributable to company's shareholders", the insurer shall provide head
  of accounts related to reserves attributable to the OPF of the insurer i.e. statutory reserve, other reserves and accumulated profit/(loss) etc. PTF Rs Rs OPF PTF OPF

Company Name: FORM GBT
Figures in '000
Profit and Loss Account
Note Fire Marine, Motor Act Others Current Prior & Aviation & Year Year Property Transport Aggregate Aggregate PTF Revenue Account Contributions earned Contributions ceded to retakaful Net contributions revenue Retakaful rebate earned Net underwriting income Net claims - reported / settled

• IBNR
  Reversal / (charge) of contribution deficiency reserve Other direct expenses Surplus / (Deficit) before investment income Investment income Rental income Other income Less: Modarib's share of investment income Provisions for doubtful contributions (net of Wakala fee) Surplus / (Deficit) transferred to accumulated surplus / (deficit) Operator Fund Wakala fee Commission expense General,administrative and management expenses Modarib's share of PTF investment income Investment income Direct expenses Other charges Rental income Other income Profit / (loss) before taxation Taxation Profit / (loss) after taxation attributable to shareholders The annexed notes form an integral part of these accounts. Chairman Director Director Chief Executive Officer

COMPANY NAME FORM GBBT
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY AND PARTICIPANTS' TAKAFUL FUND AS AT 31 DECEMBER 20XX Balance as at January 1, prior year - - - - Restatement due to change in accounting policy (if any) - - - - Restated balance as at January 1, prior year (if any) - - - - Profit for the period - - - - Other Comprehensive Income for the year - - - - Other (if any, please specify) - - - - Dividend - - - - Balance as at December 31, prior year - - - - Restatement due to change in accounting policy (if any) - - - - Profit for the period - - - - Other Comprehensive Income for the year - - - - Other (if any, please specify) - - - - Dividend - - - - Balance as at December 31, current year - - - - Balance as at January 1, prior year - - - Restatement due to change in accounting policy (if any) - - - Restated balance as at January 1, prior year (if any) - - - Surplus/(deficit) for the year - - - Other comprehensive income for the year - - - Other (if any, please specify) - - - Balance as at December 31,prior year - - - Restatement due to change in accounting policy (if any) - - - Surplus/(deficit) for the year - - - Other comprehensive income for the year - - - Total Comprehensive Income for the year - - - Other (if any, please specify) - - - Balance as at December 31, current year - - - The annexed notes form an integral part of these accounts. Chairman Director Director Chief Executive Officer Rupees in thousand Attributable to participants of the PTF Seed money Accumulated surplus / (deficit) Total Attributable to share holders of the Company Share capital Reserves (if any, please specify) Unappropriat ed profit / (Accumulated loss) Total Rupees in thousand

Company Name: FORM GCT
Statement of Cash Flows
Current Year Prior Year Current Year Prior Year Operating Cash Flows a) Takaful activities Contributions received Retakaful contribution paid Claims / Benefits paid Surrenders paid Retakaful and other recoveries received Commissions paid Commissions received Wakala fees received Wakala fees paid Modarib share received Modarib share paid Others if any (please specify) Net cash flow from takaful activities 0 0 b) Other operating activities Income tax paid General and other expenses paid Other operating payments Other operating receipts Advances and Deposits Net cash flow from other operating activities 0 0 Total cash flow from all operating activities 0 0 Investment activities Profit/ Return received Dividends received Rentals received Payments for investments/investment properties Proceeds from disposal of investments / investment properties Fixed Capital Expenditure Proceeds from disposal of fixed assets Total cash flow from investing activities 0 0 Figures in '000 OPF PTF

Financing activities
Share capital received
Remittance to/from Headoffice
Loans received
Loans repaid
Dividends paid
Financial charges paid
Payments on operating leases
Total cash flow from financing activities
Net cash inflow/outflow from all activities
Cash at the beginning of the year 0 0
Cash at the end of the year 0 0
Reconciliation to Profit and Loss Account
Operating cash flows
Depreciation expense
Amortisation
Financial charges expense
Profit/(loss) on disposal of fixed assets
Profit/(loss) on disposal of investments / investment properties Dividend income Other Investment income Increase in unearned contribution Income tax paid Increase/(decrease) in assets other than cash (Increase)/decrease in liabilities other than borrowings Other adjustments (please specify) Profit or loss before taxation 0 0 Surplus / (Deficit) in participants' equity Profit / (loss) before tax attributable to shareholders Definition of cash Please provide a definition of which items have been treated as cash for the purposes of this statement, and if different from Cash and Overdrafts as disclosed in the Balance Sheet, provide a reconciliation. Cash for the purposes of the Statement of Cash Flows consists of:
The annexed notes form an integral part of these accounts.
Chairman Director Director Chief Executive Officer

FORM GDT
Company Name:
Financial Year ended 31 December ........... Figures in '000 Statement of Contributions Takaful Business Underwritten Inside Pakistan Current Prior Year Year Class of Business Contributions Wakala Contributions Unearned contribution reserve Contributions Retakaful Retakaful Net Contribution Net Contribution written Fees Net of Opening Closing earned ceded opening closing expense revenue revenue Rs Rs Wakala Fee Rs Direct and Facultative 1 Fire and Property Damage 0 0 2 Marine, Aviation and Transport 0 0 3 Motor () 0 0 4 Miscellaneous 0 0 Total 0 Treaty 1 Proportional 0 0 2 Non-Proportional 0 0 Total 0 Grand Total 0 Note: If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. () Motor should include both third party liability and comprehensive The annexed notes form an integral part of these accounts. Chairman Director Director Chief Executive Officer Prepaid Retakaful ceded

Company Name: FORM GET
Statement of Cliams/Benefits Figures in '000
Takaful Business Underwritten Inside Pakistan
Current Year Prior Year
Class of Business Benefits Outstanding benefits Benefits Retakaful Retakaful and other Retakaful Net benefits Net benefits paid Opening Closing expense and other rec overies in res pec t of and other expense expense recoveries outstanding benefits recoveries Rs received Opening Closing revenue Rs Rs Direct and Facultative Rs 1 Fire and Property Damage 0 2 Marine, Aviation and Transport 0 3 Motor () 0 4 Miscellaneous 0 Total 0 Treaty 1 Proportional 0 2 Non-Proportional 0 Total 0 Grand Total 0 Note: If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. () Motor should include both third party liability and comprehensive The annexed notes form an integral part of these accounts. Chairman Director Director Chief Executive Officer

Company Name: FORM GFT
Statement of Expenses Figures in '000
Takaful Business Underwritten Inside Pakistan
Current Year Prior Year
Opening Closing
Class of Business Commissions Deferred Deferred Net commission Other man- Underwriting Retakaful Net underwriting Net underwriting paid or payable commission commission expense agement expenses expense rebate expense expense Rs a b c d = a+b-c e f = d+e g = e-f refer note below Direct and Facultative 1 Fire and Property Damage 2 Marine, Aviation and Transport 3 Motor () 4 Miscellaneous Total 0 Treaty 1 Proportional 2 Non-Proportional Total 0 Grand Total 0 Notes: Retakaful rebate is arrived at taking impact of opening and closing unearned commission. If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. () Motor should include both third party liability and comprehensive The annexed notes form an integral part of these accounts. Chairman Director Director Chief Executive Officer

Company Name: FORM GGT
Statement of Investment Income
Takaful Business Underwritten Inside Pakistan
Current Prior Current Prior
Income from Trading Investments
Gain/loss on trading (I.e. buying and selling difference) Dividend Income ( earned while holding the securities) Others, if any (Please specify) Income from Non-Trading Investments Held to Maturity or Available for sale (classify as appropriate) Return on Government Securities Return on Other Fixed Income Securities and Deposits Dividend Income Amortisation of discount/premium relative to par Others, if any (Please specify) Gain/Loss on Sale of Non-Trading Investments (classify as appropriate) Gain/Loss on Revaluation of Investments

• Trading Investments
• Others
  Provision for Impairment in Value of Investments Provision for Portfolio Held to Maturity Provision for Portfolio Available for Sale Less: Investment Related Expenses Net Investment Income The annexed notes form an integral part of these accounts. Chairman Director Director Chief Executive Officer Figures in '000 OPF PTF

Company Name: FORM GHT
Analysis of Claims/Benefits
Policy year basis / Accident year basis
(delete as applicable)
Class of Business Benefits Paid Outstanding benefits (notified) at end of year Development year: Development year:
0 1 2 3 4 5 and above Total 0 1 2 3 4 5 and above Total IBNR Total Direct and Facultative Rs 1 Fire and Property Damage Benefits 0 Recoveries on benefits 0 Net 0 2 Marine, Aviation and Transport Benefits 0 Recoveries on benefits 0 Net 0 3 Motor Act Benefits 0 Recoveries on benefits 0 Net 0 4 Liability Benefits 0 Recoveries on benefits 0 Net 0 5 Workers' Compensation Benefits 0 Recoveries on benefits 0 Net 0 6 Credit and Suretyship Benefits 0 Recoveries on benefits 0 Net 0 7 Accident and Health Benefits 0 Recoveries on benefits 0 Net 0 8 Agriculture (including crop insurance) Benefits 0 Recoveries on benefits 0 Net 0 9 Miscellaneous Benefits 0 Recoveries on benefits 0 Net 0 Total Benefits 0 Recoveries on benefits 0 Net 0 Treaty 9 Proportional Treaty Benefits 0 Recoveries on benefits 0 Net 0 10 Non-Proportional Treaty Benefits 0 Recoveries on benefits 0 Net 0 Total Benefits 0 Recoveries on benefits 0 Net 0 Grand Total Benefits 0 Recoveries on benefits 0 Net 0

FORM GHT
Number of benefits in year: 0 1 2 3 4 5 and above Total Rs Direct and Facultative 1 Fire and Property Damage Notified in year 0 Paid in year 0 Outstanding at end of year 0 2 Marine, Aviation and Transport Notified in year 0 Paid in year 0 Outstanding at end of year 0 3 Motor Act Notified in year 0 Paid in year 0 Outstanding at end of year 0 4 Liability Notified in year 0 Paid in year 0 Outstanding at end of year 0 5 Workers' Compensation Notified in year 0 Paid in year 0 Outstanding at end of year 0 6 Credit and Suretyship Notified in year 0 Paid in year 0 Outstanding at end of year 0 7 Accident and Health Notified in year 0 Paid in year 0 Outstanding at end of year 0 8 Agriculture (including crop insurance) Notified in year 0 Paid in year 0 Outstanding at end of year 0 9 Miscellaneous Notified in year 0 Paid in year 0 Outstanding at end of year 0 Total Notified in year 0 Paid in year 0 Outstanding at end of year 0 Treaty 1 Proportional Treaty Notified in year 0 Paid in year 0 Outstanding at end of year 0 2 Non-Proportional Treaty Notified in year 0 Paid in year 0 Outstanding at end of year 0 Total Notified in year 0 Paid in year 0 Outstanding at end of year 0 Note If there is any business written outside Pakistan then a separate statement on a similar format should be prepared in respect of that business. The annexed notes form an integral part of these accounts. Chairman Director Director Chief Execiutive Officer

Company Name: FORM GIT
Statement of Estimated Exposures
(Amounts in Rupees million )
1) Risk Exposures Maximum gross risk exposure Maximum gross risk PML Highest net risk retention Maximum reinsurance cover
(Gross sum insured of risk (Underwriter's estimation of (Retention on PML basis) (Cession on PML basis) having highest PML) maximum possible loss of 'a') (a) (b=x% of a) (.c) (d=b-c) Classes of business into which non-life insurance business is divided as per section 4(3) of the Insurance Ordinance 2000, and Performa given in Accounting Regulations for General Takaful, i.e., Direct and facultative 1 Fire and property damage - 2 Marine, aviation and transport - 3 Motor act - 4 Liability 5 Workers' compensation 6 Credit and suretyship 7 Accident and health 8 Agriculture (including crop insurance) 9 Miscellaneous Treaty 9 Proportional - - 10 Non-proportional - -
2) Aggregate Event Exposures
Provide below up to five aggregate events which constitute the maximum exposures of the company. Include:
the highest gross aggregate exposure; the highest gross maximum probable loss; the highest net maximum probable loss. Event (description) Gross aggregate exposure Gross event PML Net event retention Maximum reinsurance cover (Gross aggregate sum insured (Underwriter's estimation of (Retention on event (Cession on event PML basis) of highest cat. event PML) event maximum possible PML basis) loss of "a") (a) (b=x% of a) (.c) (d=b-c)
1) Flood - Multan
2) Earth Quake - Multan
3) Earth Quake - Karachi
4) Flood - Hafizabad
5) Earth Quake - Hafizabad
The annexed notes form an integral part of these accounts.
Director Director Chief Executive Officer
Risk Exposures Is any condition that presents a possibility of a financial loss. Every exposure has the following elements

• Financial value exposed to loss
• Cause of loss (peril)
• Potential financial consequences of that loss
  Probable maximum loss (PML) is the value of the largest loss that is likely to occur. The underwriter's estimation of maximum possible loss is based on an organization's own experience or on other organizations' experience. If statistical data are available, it may be useful to assume that PML is close to average past losses. Aggregate Event Exposures Is a condition that presents a possibility of a highest financial loss due to a catastrophic event involving various risks simultaneously in a large area or the whole city. Probable maximum loss (PML) is the value of the largest loss that is likely to occur in an event. The underwriter's estimation of maximum possible loss is based on an organization's own experience or on other organizations' experience. If statistical data are available, it may be useful to assume that PML is close to average past losses. Chairman

Company Name: Form GJT
Statement of Assets for Solvency Purpose
OPF PTF Aggregate
Assets
Property and equipment - - -
Intangible assets - - -
Investment property - - -
Investments in subsidiary and associate (applicable where equity accounting is followed) - - - Investments Equity securities - - - Debt securities - - - Term deposits - - - Loans and other receivables - - - Takaful / Retakaful receivables - - - Retakaful recoveries against outstanding claims/ benefits - - - Salvage recoveries accrued - - - Deferred commission expense - - - Deferred taxation - - - Receivable from OPF/PTF - - - Accrued investment income - - - Taxation - payment less provision - - - Deferred wakala fee - - - Prepayments - - - Cash & Bank - - - Total Assets (A) - - - In-admissible assets as per following clauses of section 32(2) of the Insurance Ordinance, 2000 (a) - - - (b) - - - … - - - … - - - … - - - .. - - - . - - - (U)-(i) - - - (U)-(ii) - - - (U)-(iii) - - - (v) - - - (w) - - - Total of In-admissible assets (B) - - - Total Admissible Assets (C=A-B) - - - Total Liabilities Underwriting Provisions - - - Outstanding benefits including IBNR - - - Unearned contribution reserves - - - Contribution deficiency reserves - - - Unearned commission income - - - Retirement benefit obligations - - - Deferred taxation - - - Unearned wakala fee - - - Borrowings - - - Contributions received in advance - - - Takaful / Retakaful Payables Other Creditors and Accruals Taxation - provision less payment Accrued expenses Income tax liabilities Payable to OPF / PTF Any other Liabilities (Specify) Total Liabilities (D) - - - Total Net Admissible Assets (E=C-D) - - - Minimum Solvency Requirement (higher of following) - Method A - U/s 36(3)(a) Method B - U/s 36(3)(b) Method C - U/s 36(3)(c) Excess / Deficit in Net Admisible Assets over Minimum Requirements - Chief Executive Officer Director Director Chairman - - - Current year Rupees in thousand

Company Name: Form GJT-WTO
Statement of Assets for Solvency Purpose of the Participants Takaful Fund PTF Current year Rupees in 000 Assets Property and equipment - Intangible assets - Investment property - Investments in subsidiary and associate (applicable where equity accounting is followed) - Investments Equity securities - Debt securities - Term deposits - Loans and other receivables - Takaful / Retakaful receivables - Retakaful recoveries against outstanding claims/ benefits - Salvage recoveries accrued - Deferred commission expense - Deferred taxation - Receivable from OPF/PTF - Accrued investment income - Taxation - payment less provision - Deferred wakala fee - Prepayments - Cash & Bank - Total Assets (A) - In-admissible assets as per following clauses of section 32(2) of the Insurance Ordinance, 2000 (a) - (b) - … - … - … - .. - . - (U)-(i) - (U)-(ii) - (U)-(iii) - (v) - (w) - Total of In-admissible assets (B) - Total Admissible Assets (C=A-B) - Total Liabilities Underwriting Provisions - Outstanding benefits including IBNR - Unearned contribution reserves - Contribution deficiency reserves - Unearned commission income - Retirement benefit obligations - Deferred taxation - Unearned wakala fee Borrowings - Contributions received in advance - Takaful / Retakaful Payables - Other Creditors and Accruals Taxation - provision less payment Accrued expenses Income tax liabilities Payable to OPF / PTF Any other Liabilities (Specify) Total Liabilities (D) - Total Net Admissible Assets (E=C-D) - Excess / Deficit in Net Admisible Assets over Liabilities - Chief Executive Officer Director Director Chairman

Company Name: FORM GKT
Classified Summary of Assets in Pakistan
Figures in '000
OPF PTF OPF PTF OPF PTF OPF PTF
CLASS OF ASSETS
The annexed notes form an integral part of these accounts.
Chairman Director Director Chief Executive Officer Remarks Current Year Cost or Book Value Market Value Aggregate Aggregate Prior Year Valuation Basis

FORMS OF PUBLISHED FINANCIAL STATEMENTS OF GENERAL TAKAFUL OPERATORS Contents Statement of Financial Position Statement of Comprehensive Income of PTF and OPF (One and two Statement Approach) Statement of changes in shareholders equity and participants takaful fund Cash flow statement 1 Legal status and nature of business 2 Basis of preparation and statement of compliance
2.1 Basis of measurement
2.2 Functional and presentation currency
2.3 Standards, interpretations and amendments effective in current year
2.4 Standards, interpretations and amendments not effective at year end
3 Summary of significant accounting policies
3.1 Property and equipment
3.2 Intangible assets
3.3 Investment property
3.4 Takaful contracts
3.5 Deferred commission expense
3.6 Reserve for unearned contribution
3.7 Contribution deficiency reserve
3.8 Retakaful contracts held
3.9 Amount due to / from retakaful operators
3.10 Segment reporting
3.11 Cash and cash equivalents
3.12 Revenue recognition
3.13 Ijarah
3.14 Investments
3.15 Offsetting of financial assets and liabilities
3.16 Provisions
3.17 Taxation
3.18 Staff retirement benefits
3.19 Takaful surplus
3.20 Impairment of assets
3.21 Management expenses
3.22 Qard-e-Hasna
4 Critical accounting estimates and judgments
5 Property and equipment
5.1 Operating assets
5.2 Capital work-in-progress
6 Intangible assets
7 Investment property
8 Investment in subsidiary and associates
9 Investments
10 Qard-e-Hasna
11 Loans and other receivables
12 Takaful / retakaful receivables - PTF

13 Retirement benefit obligations - OPF
14 Receivable / payable (current account between OPF and PTF) 15 Deferred Taxation 16 Prepayments 17 Cash and bank 18 Share capital 19 Reserves 20 Borrowings 21 Takaful / Retakaful payables 22 Other creditors and accruals 23 Contingency(ies) and commitment(s)
23.1 Commitements for the acquisition of operating fixed assets
23.2 Commitements in respect of operating lease / Ijarah
24 Net contribution
25 Retakaful Rebate
26 Takaful benefits / Claims expense
27 Benefit / Claim development
28 Commission Expense
29 Wakala Fee
30 General, Administrative & Management expenses
30.1 Employee benefit cost
31 Investment income
32 Rental income
33 Other income
34 Modarib's fee
35 Direct expenses
35.1 Auditors remuneration
36 Finance cost
37 Taxation
37.1 Relationship between tax expense and accounting profit
38 Earnings per share
39 Compensation of Directors and Executives
40 Related party transaction
41 Segment information
42 Movement in investments
43 Management of takaful risk and financial risk
43.1 Takaful risk
43.2 Financial risk
43.3 Credit risk
43.4 Capital management
44 Charity account
45 Corresponding figures
46 Subsequent events - non adjusting
47 Date of authorisation
48 General

COMPANY NAME
STATEMENT OF FINANCIAL POSITION OF OPF AND PTF AS AT 31 DECEMBER 20XX Note Current year Prior year Current year Prior year Assets Property and equipment 5 - - - - Intangible assets 6 - - - - Investment property 7 - - - - Investments in subsidiary and associates 8 - - - - Investments 9 - - - - Equity Debt Term deposits Loans and other receivables 11 - - - - Takaful / Retakaful receivables 12 - - - - Salvage recoveries accrued - - - - Deferred taxation 15 - - - - Deferred wakala fee Receivable from OPF / PTF 14 - - - - Accrued investment income - - - - Taxation - payments less provision - - - - Retakaful recoveries against outstanding claims / Benefits - - - - Deferred commission expense Prepayments 16 - - - - Cash and bank 17 Total Assets - - - - Equity and liabilities Capital and reserves attributable to company's shareholders * Share capital 18 - - - - Share premium - - - - Reserves 19 - - - - Retained earnings - - - - Total Shareholders Equity - - - - Participants' Takaful Fund (PTF) Seed money XX - - - - Accumulated surplus / (deficit) XX - - - - Balance of Participants' Takaful Fund - - - - Qard-e-Hasna 10 - - - - Liabilities PTF Underwriting Provisions Outstanding claims including IBNR - - - - Unearned contribution reserves - - - - Contribution deficiency reserves - - - - Reserve for unearned retakaful rebate - - - -

---

Retirement benefit obligations 13 - - - -
Deferred taxation 15 - - - -
Borrowings 20 - - - -
Unearned wakaka fee - - - -
Contribution received in advance - - - -
Takaful / Retakaful payables 21 - - - -
Other creditors and accruals 22 - - - -
Taxation - provision less payments - - - -
Accrued expenses - - - -
Payable to OPF / PTF 14 - - - -
Income tax liabilities - - - -
Total liabilities - - - -
Total Equity and Liabilitites - - - -
Contingency(ies) and commitment(s) 23
Rupees in thousand
OPF PTF
Rupees in thousand

• In the case of window takaful operations, in place of "Capital and reserves attributable to company's shareholders", the insurer shall
  provide head of accounts related to reserves attributable to the OPF of the insurer i.e. statutory reserve, other reserves and accumulated profit/(loss) etc.

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20XX (as per one Statement approach) Note Current year Prior year Rupees in thousand PTF Contributions earned - - Less: Contributions ceded to retakaful - -

• -
  Retakaful rebate earned 25 - -
  Net underwriting income - -
  Net claims - reported / settled - -
• IBNR - -
  Reversal / (charge) of contribution deficiency reserve - -

Other direct expenses - -
Surplus / (Deficit) before investment income - - Investment income 31 - - Rental income 32 Other income 33 - - Less: Modarib's share of investment income 34 - - Provisions for doubtful contributions (net of Wakala fee) - -

• -
  Other comprehensive income:
  Unrealised gains / (losses) on available-for-sale investments - - Others (please specify) - - Other comprehensive income for the year - - Total comprehensive income for the year OPF Wakala fee 29 - - Commission expense 28 - - General administrative and management expenses 30 - -

Modarib's share of PTF investment income 34 - - Investment income 31 - - Direct expenses 35 - - Other charges - - Rental income 32 Other income 33 - - Profit / (loss) before taxation - - Taxation 37 - - Profit / (loss) after taxation attributable to shareholders - - Other comprehensive income:
Unrealised gains / (losses) on available-for-sale investments - - Others (please specify) - - Other comprehensive income for the year - - Total comprehensive income for the year Earnings (after tax) per share - Rupees 38 - - Chief Executive Officer Director Director Chairman Surplus / (Deficit) transferred to accumulated surplus / (deficit) Net contributions revenue The Company has the option to prepare the Statement of Comprehensive Income as per one Statement approach or two Statement approach Note:

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 20XX (as per two Statement approach) Note Current year Prior year Rupees in thousand PTF Contributions earned - - Less: Contributions ceded to retakaful - -

• -
  Retakaful rebate earned 25 - -
  Net underwriting income - -
  Net claims - reported / settled - -
• IBNR - -
  Reversal / (charge) of contribution deficiency reserve - -

Other direct expenses - -
Surplus / (Deficit) before investment income - - Investment income 31 - - Rental income 32 - - Other income 33 - - Less: Modarib's share of investment income 34 - - Provisions for doubtful contributions (net of Wakala fee) - -

• -
  OPF
  Wakala fee 29 - -
  Commission expense 28 - -
  General,administrative and management expenses 30 - -

Modarib's share of PTF investment income 34 - - Investment income 31 - - Direct expenses 35 - - Other charges - - Rental income 32 Other income 33 - - Profit / (loss) before taxation - - Taxation 37 - - Profit / (loss) after taxation attributable to shareholders - - Earnings (after tax) per share - Rupees 38 - - Chief Executive Officer Director Director Chairman Net contributions revenue Surplus / (Deficit) transferred to accumulated surplus / (deficit) Note: The Company has the option to prepare the Statement of Comprehensive Income as per one Statement approach or two Statement approach

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20XX (as per two Statement approach) Note Current year Prior year Rupees in thousand PTF Surplus/(Deficit) during the period - - Other comprehensive income:
Unrealised gains / (losses) on available-for-sale investments - - Others (please specify) - - Other comprehensive income for the year - - Total comprehensive income for the year OPF Profit after tax - - Other comprehensive income:
Unrealised gains / (losses) on available-for-sale investments - - Others (please specify) - - Other comprehensive income for the year - - Total comprehensive income for the year Chief Executive Officer Director Director Chairman Note: The Company has the option to prepare the Statement of Comprehensive Income as per one Statement approach or two Statement approach

Balance as at January 1, prior year - - - -
Restatement due to change in accounting policy (if any) - - - - Restated balance as at January 1, prior year (if any) - - - - Profit for the period - - - - Other Comprehensive Income for the year - - - - Other (if any, please specify) - - - - Dividend - - - - Balance as at December 31, prior year - - - - Restatement due to change in accounting policy (if any) - - - - Profit for the period - - - - Other Comprehensive Income for the year - - - - Other (if any, please specify) - - - - Dividend - - - - Balance as at December 31, current year - - - - Balance as at January 1, prior year - - - Restatement due to change in accounting policy (if any) - - - Restated balance as at January 1, prior year (if any) - - - Surplus/(deficit) for the year - - - Other comprehensive income for the year - - - Other (if any, please specify) - - - Balance as at December 31,prior year - - - Restatement due to change in accounting policy (if any) - - - Surplus/(deficit) for the year - - - Other comprehensive income for the year - - - Total Comprehensive Income for the year - - - Other (if any, please specify) - - - Balance as at December 31, current year - - - Chief Executive Officer Director Director Chairman Attributable to share holders of the Company STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY AND PARTICIPANTS' TAKAFUL FUND AS AT 31 DECEMBER 20XX Seed money Accumulated surplus / (deficit) Total Rupees in thousand Attributable to participants of the PTF Share capital Unappropriated profit / Total Reserves (if any, please specify) Rupees in thousand

CASH FLOW STATEMENT AS AT 31 DECEMBER 20XX
Note Current year Prior year Current year Prior year Operating Cash flows (a) Takaful activities Contributions received Retakaful contribution paid Claims / Benefits paid Retakaful and other recoveries received Commission paid Commission received Wakala fees received Wakala fees paid Modarib share received Modarib share paid Others if any (please specify) Net cash flow from takaful activities - - - - (b) Other operating activities Income tax paid - - General and other expenses paid - - Other operating payments - - Other operating receipts - - Advances and deposits - - Net cash flow from other operating activities - - Total cash flow from all operating activities - - - - (c) Investment activities Profit / return received - - Dividend received - - Payment for investments / investment properties - - Proceeds from investments / investment properties - - Fixed capital expenditure - - Proceeds from disposal of property, plant and equipment - - Total cash flow from investing activities - - - - (d) Financing activities Advance against issue of share capital Dividends paid Total cash flow from financing activities - - - - Net cash flow from all activities - - - - Cash and cash equivalents at beginning of year - - Cash and cash equivalents at end of year - - Reconciliation to Profit and Loss Account Operating cash flows - - Depreciation expense - - Ammortisation - - Financial charges expense - - Profit/(loss) on disposal of property, plant and equipment - - Profit/(loss) on disposal of investments / investment properties - - Dividend income - - Other Investment income - - Increase in unearned contribution - - Income tax paid - - Increase/(decrease) in assets other than cash - - (Increase)/decrease in liabilities other than borrowings - - Other adjustments (please specify) - - Profit or loss before taxation - - Surples / (Deficit) in participants' equity - - Profit / (loss) before tax attributable to shareholders - -

• -
  The annexed notes 1 to ….. form an integral part of these financial statements Chief Executive Officer Director Director Chairman Rupees in '000 Rupees in '000 OPF PTF

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 20XX 1 LEGAL STATUS AND NATURE OF BUSINESS 2 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
2.1 Basis of measurement
2.2 Functional and presentation currency
2.3 Standards, interpretations and amendments effective in (current year)
2.4
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Property and Equipment
3.2 Intangible assets
3.3 Investment property
3.4 Takaful contracts
Standards, interpretations and amendments not effective at year end Disclose the domicile and legal form of the company, its country of incorporation and the address of the registered office (or principal place of business, if different from the registered office); a description of the nature of company's operations and its principal activities; the name of the parent enterprise and the ultimate parent enterprise of the group, as applicable. These financial statements are prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan, as are notified under the Companies Act, 2017, provisions of and directives issued under the Companies Act, 2017, the Insurance Ordinance, 2000, the Takaful Rules 2012 and the General Takaful Accounting Regulations,
2019. In case requirements differ, the provisions or directives of the Companies Act, 2017, the Insurance Ordinance, 2000, the
Takaful Rules 2012 and the General Takaful Accounting Regulations, 2019 shall prevail. These financial statements reflect the financial position and results of operations of both the company and PTF in a manner that the assets, liabilities, income and expenses of the company and PTF remain seperately identifiable. Specify accounting convention e.g. historical cost model. Specify presentation and functional currency of the company. Specify for each standard the details as required by the applicable IFRS. Specify for each standard the details as required by the applicable IFRS. Disclose the general term of the Takaful contracts issued by the company and that such contracts consist of fire and property, marine, aviation and transport insurance contracts, etc. For each type of Takaful contract issued by the company, identify the Takaful risks which the Participant Takaful Fund (PTF) accepts from another party (the policyholder). Once a contract has been classified as a Takaful contract, it remains a Takaful contract for the remainder of its lifetime, even if the Takaful risk reduces significantly during this period, unless all rights and obligations are extinguished or expire. Also disclose for each type of contract, the contribution recognition policy, the recording mechanism for liabilities against each such contract and claims / benefits recognition. The accounting policies applied in the preparation of these financial statements are set out below.

3.5 Deferred Commission expense
3.6 Reserve for unearned contribution
3.7 Contribution deficiency reserve
3.8 Retakaful contracts held
3.9 Amount due to / from retakaful operators
3.10 Segment reporting
3.11 Cash and cash equivalents
3.12 Revenue recognition
a) Contribution income under a policy is recognised over the period of takaful net of Wakala fee b) Wakala fee charged from PTF is recognised upfront. c) Rebate from retakaful operators is recognised at the same time of insurance of the underlying takaful policy by the company. d) Dividend income is recognised when the right to receive the dividend is established. e) Profit on Islamic investment products is recognised on an accrual basis. f) Gain / loss on sale of available for sale invetsments are included in proft and loss account. Add others if considered significant
3.13 Ijarah
3.14 Investments
in subsidiary and associate
Investments at fair value through profit and loss Held to maturity Available for sale
3.15 Offsetting of financial assets and liabilities
The unearned portion of contribution written net of Wakala is set aside as a reserve. Specify the method of recording of unearned contribution. The company's operating businesses are recognised and managed separately according to the nature of services provided with each segment representing a stratgeic business unit that serves different markets. Commission incurred in obtaining and recording takaful are deferred and recognised as an asset. These costs are charged to the profit and loss acocunt based on the pattern of recognition of contribution revenue. Disclose the details of the method used to determine contribution deficiency reserve (liability adequacy test) and whether this is determined for each class of business separately along with the accounting treatment thereof. The company cedes retakaful in the normal course of business for the purpose of limiting its net loss potential through the diversification of its risks. Assets, liabilities and income and expense arising from ceded retakaful contracts are presented separately from the assets, liabilities, income and expense from the related takaful contracts because the retakaful arrangements do not relieve the PTF from its direct obligation to its policyholders. Amounts due to / from retakaful operators are carried at cost less provision for impairment, if any. Cost represents the fair value of the consideration to be received / paid in the future for services rendered. A financial asset and financial liability other than those relating to takaful contract is offset and the net amount is reported in the balance sheet when the company has a legally enforceable right to set-off the recognised amounts and it intends either to settle on the net basis or to realise the asset and settle the liability simultaneously. Ijarah rentals are recognised as an expense on accrual basis as and when the rentals become due.

3.16 Provisions
3.17 Taxation
Current
Deferred
3.18 Staff retirement benefits
Defined contribution plan
Defined benefit plan
3.19 Takaful surplus
3.20 Impairment of assets
3.21 Management expenses
3.22 Qard-e-Hasna
Takaful surplus attributable to the participants is arrived as per the policy (provide policy) of the Company. Qard-e-Hasna is provided by OPF to PTF in case of deficit in PTF.(Briefly explain the details of impairment assessment) Expenses allocated to the takaful business represent directly attributable expenses. Expenses not directly allocable to takaful business are charged to OPF and allocated on the basis of gross contribution written during the year.

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
(Current
Year)
(Prior
Year)
Note Rupees in '000
5 PROPERTY AND EQUIPMENT
Operating assets - note --- 5.1 - -
Capital work-in-progress - note --- 5.2 - -

• -
  Disclose that the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year and that such estimates and judgments are continually evaluated based on historical experience and expectations of future events that are believed to be reasonable under the circumstances. Disclose that the management has exercised its judgment in the process of applying accounting policies. Disclose the significant estimates made by the company and the basis of such estimation. Also specify the factors subject to uncertainty and the classes of transactions most prone to changes.

5.1 Operating assets
Cost Depreciation Written down Depreciation
As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December 31 December % Furniture and fixtures Office equipment Computer equipment Vehicles Others (if any) Cost Depreciation Written down Depreciation As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December 31 December % Furniture and fixtures Office equipment Computer equipment Vehicles Others (if any) Cost Depreciation Written down Depreciation As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December 31 December % Tracker Others (if any) Cost Depreciation Written down Depreciation As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December 31 December % Tracker Others (if any) Cost Depreciation Written down Depreciation As at Additions / Adjustments As at As at For the year / Adjustments As at value as at rate 1 January (disposals) 31 December 1 January (disposals) 31 December 31 December % Total Total
5.1.1 Disposal of fixed assets
a) cost or valuation, as the case may be; b) the book value; and c) the sale price and the mode of disposal (e.g. by tender or negotiation) and the particulars of purchaser
5.1.2 Please specify the value of assets held by third parties and assets with zero values.
Current year
OPF
(Rupees in '000)
Current year
Prior year
PTF
(Rupees in '000)
Current year
Prior year
Total
(Rupees in '000)
Prior year
Disclose if the book value of the asset or assets sold exceeds in aggregate fifty thousand rupees, particular of the assets and in aggregate:

5.2 Capital Work-In-Progress
(Current
Year)
(Prior
Year)
(Current
Year)
(Prior
Year)
Civil works - - - -
Advances to suppliers - - - -
Others (please specify) - - - -
Tracker equipment - - - -

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6 Intangible assets
Cost Amortisation Written down Amortisation
As at Additions Adjustments As at As at For the year Adjustments As at value as at period 1 January 31 December 1 January 31 December 31 December Computer softwares Others (Please specify) Current year Prior year [Note: also disclose seperately for PTF, if any.] In the case of sale of fixed assets (otherwise than through a regular auction) made to chief executive or a director or an executive or a shareholder holding not less that ten percent of the voting shares of the company or any related party, irrespective of the value, and in the case of any other person if the original cost or the book value of the asset or assets in aggregate exceeds Rupees one million or two hundred fifty thousands respectively (whichever is lower) disclose (a) particulars of the assets (b) cost or revalued amount (c) the book value (d) the sale price (e) the mode of disposal (e.g. by tender or negotiation) and(f) the particulars of the purchaser. Disclose the existence of any restrictions/ discrepancies on the title along-with amount involved; and the existence of any pledge/ mortgage along-with the nature of facilities obtained against such pledge/ mortgage. Disclose the classification of intangible as either finite or infinite life and basis of amortisation for each intangible asset. Disclose description, the carrying amount and remaining amortization period of any individual intangible asset that is material to the financial statements as a whole; the existence and carrying amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged as security for liabilities; a description of any fully amortized intangible asset that is still in use; and a brief description of significant intangible assets controlled by the enterprise but not recognized as assets because they did not meet the recognition criteria. Where assets have been revalued, the first balance sheet subsequent to the revaluation shall show the original cost; the revalued amount; the date and amount of the revaluation and the basis thereof; name and qualification of the valuer who should be an independent person competent to do so; the nature of any indices used to determine revaluation; and the carrying amount of each class of property and equipment that would have been included in the financial statements had the assets not been carried at revalued amount. Every balance sheet subsequent to the revaluation shall show the total amount of the revaluation; and the carrying amount of each class of property and equipment that would have been included in the financial statements had the assets not been carried at revalued amount. OPF PTF Rupees in '000 Rupees in '000

7 INVESTMENT PROPERTIES ( where cost model is followed) Written down Useful As at Additions As at As at For the As at value as at life 1 January (disposals) 31 December 1 January year 31 December 31 December Land (Distinguish between freehold and leasehold) - - - - - - - - Building (Distinguish between freehold and leasehold) - - - - - - - - Other installations

---

Written down Useful
As at Additions As at As at For the As at value as at life 1 January 31 December 1 January year 31 December 31 December Land (Distinguish between freehold and leasehold) Building (Distinguish between freehold and leasehold) Other installations

---

7.1 The market value of the investment properties as per valuation carried out by professional valuers in _____ is Rs. ________
Written down Useful
As at Additions As at As at For the As at value as at life 1 January (disposals) 31 December 1 January year 31 December 31 December Land (Distinguish between freehold and leasehold) Building (Distinguish between freehold and leasehold) Other installations

---

Written down Useful
As at Additions As at As at For the As at value as at life 1 January 31 December 1 January year 31 December 31 December Land (Distinguish between freehold and leasehold) Building (Distinguish between freehold and leasehold) Other installations

---

The market value of the investment properties as per valuation carried out by professional valuers in _____ is Rs. ________ (Current Year) (Prior Year) (Current Year) (Prior Year) 7 INVESTMENT PROPERTY (where fair value model is followed) Opening net book value - - - - Additions and capital improvements - - - - Unrealized Fair value gain / (loss) 7.1 - - - - Closing net book value - - - - 7.1 Prior year - PTF Cost Depreciation (Rupees in '000) Current year - OPF Cost Depreciation Prior year - OPF (Rupees in '000) Current year - PTF Cost Depreciation Cost Depreciation OPF PTF Rupees in '000 Rupees in '000 (Only where Company is following fair value model for investment property, disclose information about fair valuation techniques used as required above for PPE.)

8 INVESTMENTS IN SUBSIDIARY AND ASSOCIATE
(Current
Year)
(Prior
Year)
(Current
Year)
(Prior
Year)
Rupees in '000 Rupees in '000
Beginning of year - - - -
Acquisition / (Disposal) of subsidiary / investment in associate - Note --- - - - - Share of (loss)/profit - - - - Less: Dividend Received Changes in Comprehensive income - Note --- - - - - End of year - - - - The company’s interests in its subsidiaries and associates were as follows:
Cost Impairement
/Provision
Carrying
Value
Cost Impairement
/Provision
Carrying
Value
OPF
Related Parties
Listed shares
Unlisted shares
Mutual Funds
Others
Listed shares
Unlisted shares
Mutual Funds
PTF
Related Parties
Listed shares
Unlisted shares
Mutual Funds
Others
Listed shares
Unlisted shares
Mutual Funds
Current Year Prior Year
OPF PTF
INVESTMENTS
INVESTMENTS IN EQUITY SECURITIES - (DISTINGUISH BETWEEN AT FAIR VALUE THROUGH PROFIT AND LOSS AND AVAILABLE FOR SALE)

OPF
Cost Impairement
/Provision
Carrying
Value Cost Impairement
/Provision
Carrying
Value
Related parties
Sukuk
Others
Sukuk
Face value
Current
Year Prior Year
Current
Year Prior Year
Related parties
Sukuk
Others
Sukuk
PTF
Cost Impairement
/Provision
Carrying
Value Cost Impairement
/Provision
Carrying
Value
Related parties
Sukuk
Others
Sukuk
Face value
Current
Year Prior Year
Current
Year Prior Year
Related parties
Sukuk
Others
Sukuk
No. of Certificates Value of Certificates
Rs. 000
Current Year Prior Year
Current Year Prior Year
Value of investments in unlisted investees in which the company holds ten percent or more of the investee's total equity should be calculated by reference to net assets of the investee on the basis of the last available audited accounts in the case of unlisted companies and modarabas and last available accounts incase of other investees together with the period of such accounts shall be disclosed. Rs. 000 Disclose particulars of provision for impairment and the movement in the said account in the year. There shall be stated the name of each company, modaraba, firm, government, municipal committee and local authority; in case of shares, various classes and different paid-up values together with the terms of redemption, if any, in case of preference shares; in case of modaraba and redeemable capital the number of certificates and the nominal value of each certificates; and in case of debentures and bonds the terms of redemption, if any, and the rate of interest. If investment is made in unlisted companies and modarabas (other than associates and subsidiaries) there shall be stated the name of the chief executive, managing agent or modaraba company. Percentage of the equity held by the company in an investee company or modaraba or a controlled firm or other associated undertaking, where it exceeds ten percent of the investee's total equity, shall be disclosed. INVESTMENTS IN DEBT SECURITIES - (DISTINGUISH BETWEEN AT FAIR VALUE THROUGH PROFIT AND LOSS, HELD TO MATURITY AND AVAILABLE FOR SALE) No. of Certificates Value of Certificates

10 QARD-E-HASNA
(Current
Year)
(Prior
Year)
Opening Balance of Qard-e-Hasna - -
Qard-e-Hasna transferred from OPF during the year - - Qard-e-Hasna returned by PTF during the year - - Impairment Adjustment - - Closing Balance of Qard-e-Hasna - - 11 LOANS AND OTHER RECEIVABLES (Current Year) (Prior Year) (Current Year) (Prior Year) Loans to related parties - - - - Receivable from related parties - - - - Rent receivable - - - - Accrued investment income - - - - Security deposit - - - - Advance to supplier - - - - Agents commission receivable - - - - Loans to employees - - - - Other receivable - - - -

---

---

12 TAKAFUL / RETAKAFUL RECEIVABLES - PTF (Current Year) (Prior Year) Due from takaful participants holders - - Less: provision for impairment of receivables from - takaful participants holders - - Due from other insurers/retakaful operators Less: provision for impairment of due from other - - insurers / retakaful operators

• -
  Less: provision for impairment of loans and receivables Rupees in '000 OPF PTF Rupees in '000 Rupees in '000

13 RETIREMENT BENEFIT OBLIGATIONS - OPF
Disclose the general description of the type of plans, changes in the plans, if any, and effect of any changes in the plans during the period; employees covered; and the accounting policy for recognising actuarial gains and losses. Disclose when was the latest actuarial valuation of the defined benefit plans was conducted and specify the method used for valuation. Details of the defined benefit plans are:

14 RECEIVABLE / PAYABLE (Current account between OPF and PTF) (Current Year) (Prior Year) (Current Year) (Prior Year) Wakala fee Modaraba fee Other receivable / payable

---

OPF PTF
Rupees in '000 Rupees in '000

(Current
Year)
(Prior
Year)
15 DEFERRED TAXATION
Deferred debits arising in respect of
(To be specified)
Deferred credits arising due to
(To be specified)
(Current
Year)
(Prior
Year)
(Current
Year)
(Prior
Year)
16 PREPAYMENTS
Prepaid retakaful contribution ceded
Tracker monitoring fee
Prepaid rent
Prepaid miscellaneous expenses
Others (if any)
(Current
Year)
(Prior
Year)
(Current
Year)
(Prior
Year)
17 CASH & BANK
Cash and Cash Equivalent
Cash in hand
Policy & Revenue stamps
Cash at bank

• Current account
• Savings account
  Deposits maturing within 12 months
  Term deposits receipts
  (Current
  Year)
  (Prior
  Year)
  Cash and bank balances - -
  Short term investments with 3 months or less maturity - -

OPF PTF
Rupees Rupees
OPF
Rupees in '000
Rupees in '000
OPF PTF
Cash and cash equivalents include the following for the purposes of the cash flow statement:

18 SHARE CAPITAL
18.1 Authorized Capital
(Current Year) (Prior Year) (Current Year) (Prior Year) Number of Shares Rupees in '000 xxxxxxx xxxxxxx Ordinary shares of Rs.10 each xxxxxx xxxxxx
18.2 Issued, subscribed and paid-up share capital
(Current Year) (Prior Year)
19 RESERVES Rupees in '000
Capital reserves
Reserve for exceptional loss - -
Revenue reserves
General reserve - -
Others (Please specify) - -
20 BORROWINGS
(Current Year) (Prior Year)
Rupees in '000
Bank financings - -
Other (please specify) - -
Total borrowings - -
Current portion - -
Non-current portion - -
21 TAKAFUL / RETAKAFUL PAYABLES
(Current Year) (Prior Year)
Rupees in '000
Due to takaful participants / Re-takaful payable - - Others (Specify)

• -
  22 OTHER CREDITORS AND ACCRUALS
  (Current
  Year)
  (Prior
  Year)
  (Current
  Year)
  (Prior
  Year)
  Agents commission payable
  Federal Excise Duty - - - -
  WWF * - - - -
  Payable to related parties - - - -
  Accrued expenses - - - -
  Other tax payables - - - -
  Unpaid and Unclaimed Dividend - - - -
  Others (please specify) - - - -

---

(Specify the nature of provision recorded and the reason thereof.)

• Note: Can be for PTF also
  23 CONTINGENCY(IES) AND COMMITMENT(S)
  23.1 Commitments for the acquisition of operating fixed assets
  (Current Year) (Prior Year)
  Rupees in '000
  23.2 Commitments in respect of operating leases / Ijarah
  Not later than one year - -
  Later than one year and not later than five years - - Later than five years - - Disclose information about the extent and nature, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows. Further, disclose the nature and carrying amount of the assets pledged as security. Define Islamic modes and clarify the amounts and provide diclosures as necessary. All Contingent liabilities other than those arising from contract with policy holders shall be disclosed, unless the possibility of any outflow in settlement is remote, disclose for each class of contingent liability (including taxation contingency) at the balance sheet date a brief description of the nature of contingent liability and, where practicable an estimate of its financial effect; an indication of the uncertainties relating to the amount or timing of any outflow; and the possibility of any reimbursement. Where any of the information required above is not disclosed because it is not practicable to do so, disclose that fact. Disclose a general description of the lessee's significant leasing / Ijarah arrangements including, but not limited to, the basis on which contingent rent payments are determined; the existence and terms of renewal or purchase options and escalation clauses; and restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing. OPF PTF OPF PTF Rupees in '000 Rupees in '000

24 NET CONRTIBUTION
(Current
Year)
(Prior
Year)
Written Gross Contribution - -
Less: Wakala Fee - -
Contribution Net of Wakala Fee - -
Add: Unearned contribution reserve opening - - Less: Unearned contribution reserve closing - - Contributions Earned - - Retakaful contribution ceded - - Add: Prepaid retakaful contribution opening - - Less: Prepaid retakaful contribution closing - - Retakaful expense - - Net Contribution - - 25 RETAKAFUL REBATE Retakaful rebate/commission received - - Add: Unearned retakaful rebate/commission opening - - Less: Unearned retakaful rebate/commission closing - -

• -
  26 TAKAFUL BENEFITS / CLAIMS EXPENSE
  Benefits / Claims Paid - -
  Add: Outstanding benefits / claims including IBNR closing - - Less: Outstanding benefits / claims including IBNR Opening - - Claims Expense - - Retakaful and other recoveries received - - Add: Retakaful and other recoveries in respect of outstanidng claims closing - - Less: Retakaful and other recoveries in respect of outstanidng claims opening - - Retakaful and other recoveries revenue - - Net Claims Expense - - PTF Rupees in '000

27 Benefit / Claim Development
28 COMMISSION EXPENSE
(Current
Year)
(Prior
Year)
Commission paid or payable - -
Add: Deferred commission expense opening - - less: Deferred commission expense closing - -

• -
  29 WAKALA FEE
  30 GENERAL ADMINISTRATIVE AND MANAGEMENT EXPENSES (Current Year) (Prior Year) Rupees in '000 Employee benefit cost - note 30.1 - - Traveling expenses - - Advertisements & sales promotion - - Printing and stationery - - Depreciation - - Amortisation - - Rent, rates and taxes - - Legal and professional charges - business related - - Electricity, gas and water - - Entertainment - - Vehicle running expenses - - Office repairs and maintenance - - Bank charges - - Postages, telegrams and telephone - - Shariah Advisor's fee - - Takaful contribution - - Training expenses - - Fees and subscription - - Bad and doubtful debts - - Miscellaneous (separately identify individual expense head if more than 5% of total) - - Management expense

30.1 Employee benefit cost
Salaries, allowance and other benefits - -
Charges for post employment benefit - -

• -
  Actual claims compared to last four years will be disclosed as follows if there is still uncertainty about the amount and timing of the claims payments for material claims. The disclosure is not required if there is no change in previous estimates as uncertanity regarding amount of material claim payments do not exist. The disclosed balance may not need to be reconciled with the balance reported in the statement of financial position. The policyholder also need not to disclose this information if uncertainty about the amount and timing of claims payments is usually resolved within one year. OPF OPF Rupees in '000 The shareholders of the company manage the general takaful operations for the participants and charges XX % for motor, XX % for fire and property damage and XX % for others etc. of the gross contribution written net off administrative surcharge on co-takaful inward as wakala fee against the services. Accident year 2016 2017 2018 2019 Current year Estimate of ulmitate claims costs:
  At end of accident year - - - - -
  One year later - - - - -
  Two years later - - - - -
  Three years later - - - - -
  Four years later - - - - -
  Current estimate of cumulative claims

---

Cumulative payments to date

---

Liability recognised in the statement of financial position

---

31 INVESTMENT INCOME
(Current
Year)
(Prior
Year)
(Current
Year) (Prior
Year)

• Dividend income - - - -
• Other (please specify) - - - -
• Return on debt securities - - - -
• Other (please specify) - - - -
• Return on term deposits - - - -
• Other (please specify) - - - -
  Return on bank balances

---

Net realised gains / (losses) on investments
Available for sale financial assets
Realised gains on:
-Equity securities - - - -
-Debt securities - - - -
Realised losses on:
-Equity securities - - - -
-Debt securities - - - -

---

Net unrealised gains / (losses) on investments

---

---

---

Total investment income - - - -
Less: Impairment in value of available for sale securities -Equity Securities - - - - -Debt Securities - - - - Less: Investment related expenses - - - -

---

Income from equity securities (Separate classification for AFS and held for trading) Income from debt securities (Separate classification for AFS and held to maturity) Rupees in '000 OPF PTF Rupees in '000 Income from term deposits Net unrealised gains / (losses) on investments at fair value through profit or loss (held for trading purposes) Net unrealised gains / (losses) on investments at fair value through profit or loss (designated upon initial recognition)

32 RENTAL INCOME
Rental income - - - -
Less: Expenses of investment property - - - -

---

33 OTHER INCOME
Return on bank balances
Gain on sale of fixed assets - - - -
Return on loans to employees - - - -
Liabilities written back - - - -
Miscellaneous (please specify individual head if - - - - more than 5% of total)

---

34 MODARIB'S FEE
35 DIRECT EXPENSES
(Current
Year)
(Prior
Year)
Rupees in '000
Legal & professional fee other than business related - - Auditors' remuneration - note 35.1 - - Shariah audit fee Subscription - - Registration fee - - Expenses on bonus issue - - Donations - - Workers Welfare Fund - - Provision for Wakala refund - - Others (Please specify separately if more than 5% of total) - -

• -
  35.1 Auditors' remuneration
  (Current
  Year)
  (Prior
  Year)
  Rupees in '000
  Audit fee - -
  Fee for audit of provident, pension and other funds - - Special certifications and sundry advisory services - - Tax services - - Out-of-pocket expenses - -

OPF
In case of joint auditors the above information should be shown separately for each of the joint auditors. In case of donations where any director/ executive or their spouse has interest in the donee, disclose the names of such directors / executive, their interest in the donee and the names and addresses of all donees irrespective of the amount of donation. OPF The shareholders of the company manage the participants' investments as a Modarib and charge XX % Modarib's share of the investment income earned by PTF.

36 FINANCE COST
(Current
Year)
(Prior
Year)
Rupees in '000
Profit on short term financing - -
Bank charges (financing related) - -
Exchange loss - -

• -
  37 TAXATION
  (Current
  Year)
  (Prior
  Year)
  Rupees in '000
  For the year
  Current - -
  Deferred - -
  For the prior year(s)
  Current - -
  Deferred - -
  37.1 Relationship between tax expense and accounting profit
  (i)
  (ii)
  Disclose an explanation of changes in the applicable tax rate compared to the previous accounting period. 38 EARNINGS PER SHARE (Current Year) (Prior Year) Profit (after tax) for the year Weighted average number of ordinary shares (adjusted for the effects of all dilutive potential ordinary shares) Diluted earnings per share Company should also disclose reconciliation between diluted earnings per share and basic earnings per share. An explanation of the relationship between tax expense (income) and accounting profit in either or both of the following forms:
  a numerical reconciliation between tax expense (income) and the product of accounting profit multiplied by the applicable tax rate(s), disclosing also the basis on which the applicable tax rate(s) is (are) computed; and/ or a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis on which the applicable tax rate is computed. OPF Rupees Distinguish, where applicable, between the provision for Pakistan taxation and the provision for taxation elsewhere. OPF OPF

39 COMPENSATION OF DIRECTORS AND EXECUTIVES
Current
Year Prior Year
Current
Year Prior Year
Current
Year Prior Year
Fee
Managerial remuneration
Leave encashment
Bonus
Ex-gratia allowance
Charged for defined benefit plan
Contribution to defined benefit plan
Rent and house maintenance
Utilities
Medical
Conveyance
Retirement benefits
Others (to be specified, if material)
Number of persons
40 RELATED PARTY TRANSACTIONS a) the nature of the related party relationship; b) the type of transactions; c)

i) ii) iii)

iv) d) e)

Note: Disclose seperately for OPF and PTF. irrevocable commitments and contingencies and commitments arising from off-balance sheet items; provisions for doubtful debts related to the amount of outstanding balances; and the elements of transactions necessary for an understanding of the financial statements of the company. Also disclose short term employee benefits, post employment benefits, other long term benefits, termination benefits and share (stock options) based payments. Executives mean employees, other then the chief executive and directors, whose basic salary exceed five hundred thousand rupees in a financial year. Disclose related party relationships where control or significant influence exists, irrespective of whether transactions have taken place between the parties. If there have been transactions between related parties, disclose:
amount or appropriate proportions of (this should be disclosed in the foot note to the relevant outstanding items in the notes to the accounts):
each of principal types of income/mark-up and commissions paid; each of financing obtained and advances, deposits and acceptances; disclosure may include the aggregate amounts outstanding at the beginning and end of the period, as well as advances, deposits, repayments and other changes during the period; Chief Executive Directors Executives Rupees in '000 the amount of the expense recognized in the period for losses on financing obtained and advances and the amount of the provision at the balance sheet date; and

41 SEGMENT INFORMATION
Current year OPF & PTF
Rupees in '000
Disclose the net insurance premium information on country basis for the current and prior year. Segment information in respect of the following is to be given at a minimum. In case business included in Miscellaneous is 10% or more separate disclosure is expected. In addition disclosures in accordance with IFRS 8 regarding major customers etc will also be given in this note. Rupees in '000 Curent Year - PTF Contribution receivable (inclusive of Federal Excise Duty and Administrative Surcharge - - - - - - Less: Federal Excise Duty - - - - - - Federal Insurance Fee - - - - - - Gross written contribution (inclusive of administrative surcharge) - - - - - - Gross direct contribution - - - - - - Facultative inward contribution - - - - - - Administrative surcharge - - - - - - Wakala fees - - - - - - Takaful contribution earned - - - - - - Takaful contribution ceded to retakaful - - - - - - Net takaful contribution - - - - - - Retakaful rebate - - - - - - Net underwriting income - - - - - - Takaful claims - - - - - - Takaful claims recovered from retakaful - - - - - - Net claims - - - - - - Contribution deficiency expense - - - - - - Other direct expenses - - - - - - Surplus / (Deficit) before investment income - - - - - - Net investment income - - - - - - Mudarib share of investment income - - - - - - Surplus / (Deficit) transferred to Balance of PTF - - - - - - Corporate segment assets - - - - - - Corporate unallocated assets - - - - - - Total assets - - - - - - Corporate segment liabilities - - - - - - Corporate unallocated liabilities - - - - - - Total liabilities - - - - - - Total Fire and property damage Marine, aviation and transport Motor Miscellaneous Treaty Current Year - OPF Wakala Fee - - - - - - Commission Expenses - - - - - - Management Expenses - - - - - -

---

Mudarib share of PTF Investment Income - - - - - - General and administrative expenses - - - - - - Other charges / income - - - - - - Profit before taxation - - - - - - Taxation - - - - - - Profit after tax - - - - - - Corporate segment assets - - - - - - Corporate unallocated assets - - - - - - Total assets - - - - - - Corporate segment liabilities - - - - - - Corporate unallocated liabilities - - - - - - Total liabilities - - - - - - Fire and property damage Marine, aviation and transport Motor Miscellaneous Treaty Total

Prior year OPF & PTF
Rupees in '000
Rupees in '000
Prior Year - PTF
Contribution receivable (inclusive of Federal Excise Duty and Administrative Surcharge - - - - - - Less: Federal Excise Duty - - - - - - Federal Insurance Fee - - - - - - Gross written contribution (inclusive of administrative surcharge) - - - - - - Gross direct contribution - - - - - - Facultative inward contribution - - - - - - Administrative surcharge - - - - - - Wakala fees - - - - - - Takaful contribution earned - - - - - - Takaful contribution ceded to retakaful - - - - - - Net takaful contribution - - - - - - Retakaful rebate - - - - - - Net underwriting income - - - - - - Takaful claims - - - - - - Takaful claims recovered from retakaful - - - - - - Net claims - - - - - - Contribution deficiency expense - - - - - - Other direct expenses - - - - - - Surplus / (Deficit) before investment income - - - - - - Net investment income - - - - - - Mudarib share of investment income - - - - - - Surplus / (Deficit) transferred to Balance of PTF - - - - - - Corporate segment assets - - - - - - Corporate unallocated assets - - - - - - Total assets - - - - - - Corporate segment liabilities - - - - - - Corporate unallocated liabilities - - - - - - Total liabilities - - - - - - Total Fire and property damage Marine, aviation and transport Motor Miscellaneous Treaty Prior Year - OPF Wakala Fee - - - - - - Commission Expenses - - - - - - Management Expenses - - - - - -

---

Mudarib share of PTF Investment Income - - - - - - General and administrative expenses - - - - - - Other charges / income - - - - - - Profit before taxation - - - - - - Taxation - - - - - - Profit after tax - - - - - - Corporate segment assets - - - - - - Corporate unallocated assets - - - - - - Total assets - - - - - - Corporate segment liabilities - - - - - - Corporate unallocated liabilities - - - - - - Total liabilities - - - - - - Fire and property damage Marine, aviation and transport Motor Miscellaneous Treaty Total

42 MOVEMENT IN INVESTMENTS
43 MANAGEMENT OF TAKAFUL RISK AND FINANCIAL RISK
43.1 Takaful risk
a) Frequency and severity of claims / benefits The disclosure regarding concentration risk will form part of this note. b) Sources of uncertainty in estimation of future claim payments Specify what is the risk under any takaful policy for e.g. the possibility that the covered event occurs and the uncertainty of the amount of the resulting claim / benefit. Also disclose the mitigating factors for such risks. The risk under any one Takaful policy is the possibility that the covered event occurs and the uncertainty of the amount of the resulting claim / benefit. By the very nature of an takaful contract, this risk is random and therefore unpredictable. For a portfolio of Takaful policy where the theory of probability is applied to pricing and provisioning, the principal risk that the Company faces under its takaful contracts is that the actual claims and benefit payments exceed the carrying amount of the takaful liabilities. This could occur because the frequency or severity of claims and benefits are greater than estimated. Takaful events are random and the actual number and amount of claims and benefits will vary from year to year from the level established using statistical techniques. Experience shows that the larger the portfolio of similar Takaful policy, the smaller the relative variability about the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected by a change in any subset of the portfolio. The Company has developed its Takaful underwriting strategy to diversify the type of Takaful risks accepted and within each of these categories to achieve a sufficiently large population of risks to reduce the variability of the expected outcome. Factors that aggravate Takaful risk include lack of risk diversification in terms of type and amount of risk, geographical location and type of industry covered. Disclose the claims recognition criteria and the claim settlement mechanism in this respect. Specify the factors that affect the claim liabilities and how such liabilities are affected. Also specify what cost components are included as claim expense. Disclose the criteria for estimation of cost of unpaid claims (both reported and not), the estimation techniques used by the company. Disclose how the techniques are used by the company. Disclose the process for estimation of IBNR and its provisioning mechanism in detail. Disclose how the Company manages these risks for e.g. through its underwriting strategy, adequate retakaful arrangements and proactive claims handling. Disclose the objective of each risk mitigating factor along with the details as to how these mitigating factors are applied to each takaful contract. This information shall include qualitative as well as quantitative criteria used for such risk management.

c) Process used to decide on assumptions d) Changes in assumptions e) Sensitivity analysis 43.2 -
43.3 Credit risk
The disclosure regarding credit rating will form part of this note.
43.4 Capital management
44 CHARITY ACCOUNT
Movement of charity account to be provided.
45 CORRESPONDING FIGURES
Disclose the reclassification from and to of the prior period figures. 46 SUBSEQUENT EVENTS - NON ADJUSTING

• Dividend
• Issue of bonus shares
• Transfer to / (from) reserves
  47 DATE OF AUTHORISATION
  These financial statements have been authorised for issue in accordance with a resolution of the Board of Directors on ________________. 48 GENERAL An entity shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital. The figures in the financial statements may be rounded off to the nearest thousand. Disclose the risks associated with these takaful policies and variables that complicate quantitative sensitivity analysis. Specify the details about separate assumptions and the basis on which such assumptions are used by the company. Disclose the changes in assumptions if any, the qualitative and quantitative information in this respect and the monetary impact of such changes on the statement of comprehensive income. Also disclose why such changes in assumptions have been incorporated in our estimation. In respect of all the variables affecting the estimates reported in the financial statements. Financial risk Maturity profile of financial assets and liabilities:
  Sensitivity analysis - equity risk
  [ID/PRDD/GTR/2019]