TAKAFUL PAKISTAN LIMITED · To deliver Takaful as a ... part of this condensed interim financial information. Chairman Chief Executive Officer Director Director. AS AT 31 MARCH 2015.

TAKAFUL PAKISTAN LIMITED

QUARTER ENDED MARCH 31, 2015

OUR VISION

To spread Takaful benefits beyond borders, beyond Time!

OUR MISSION

To deliver Takaful as a viable alternative to conventional insurance.

To become the ‘top-of-the-mind’ Takaful brand for our Participants in terms of competitiveness,

service standards and business ethics

To give value for money to our shareholders and make Takaful Pakistan their prized asset.

To become an ideal organization for our employees that encourages them to achieve self-actualization

and growth.

To contribute positively and proactively for the welfare of our society at large as well as for the

preservation of our environment.

OUR AMBITION

To be a role model for the contemporary insurance industry and eventually bring it in conformity with

the Shariah compliant Takaful mode of insurance.

CONTENTS

Corporate Information 03

Board Committees 04

Management Team 05

Branch Network 05

Directors’ Review 06

Condensed Interim Balance Sheet 07

Condensed Interim Profit & Loss Account 09

Condensed Interim Statement of Comprehensive Income 10

Condensed Interim Statement of Changes in Equity 11

Condensed Interim Statement of Cash Flows 12

Condensed Interim Statement of Contributions 14

Condensed Interim Statement of Claims 15

Condensed Interim Statement of Expenses 16

Condensed Interim Statement of Investment Income 18

Notes to the Condensed Interim Financial Information 19

CORPORATE INFORMATION

Chairman of Board of Directors Mr. Tahir Naz Siddique

Directors Syed Tariq Husain

Syed Abdul Razzaq

Mr. Ahmad Shuja Kidwai

Mr. Haseeb Ahmed

Dr. Mumtaz A. Hashmi

Mr. Nadeem Rafi

Chief Executive Officer Dr. Syed Arif Hussain

Chief Finance Officer and

Company Secretary

Jamil Ahmed

Shariah Advisor Mufti Imtaiz Alam

Auditor M.Yousuf Adil Saleem & Co.

Chartered Accountants

Legal Advisors Surridge & Beecheno

Advocates, Consultants, Attorneys

Mohsin Tayebaly & Co.

Corporate Legal Consultants, Barristers &

Advocates High Courts & Supreme Court

Head office 6th floor, Business Centre,

Plot No 19-1-A, Block -6, P.E.C.H.S.,

Shahrah-e-Faisal, Karachi-75400, Pakistan.

UAN : (021) 111-875-111

Tel : (+92-21) 34373171-80

(10 Lines)

Fax : (+92-21) 34373195-6

E-mail : [email protected]

Website : www.takaful.com.pk

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Bankers Meezan Bank Limited

Bank Islami Pakistan Limited

Dubai Islamic Bank Limited

Burj Bank Limited

Al Baraka Bank (Pakistan) Limited

Habib Bank Limited (Islamic Banking Division)

Faysal Bank Limited (Islamic Banking Division)

Askari Bank Limited ( Islamic Banking Division)

Bank AlFalah Limited (Islamic Banking Division)

Habib Metropolitan Bank (Islamic Banking Division)

National Bank of Pakistan (Islamic Banking Division)

Bank of Khyber (Islamic Banking Division)

UBL (Islamic Banking Division)

BOARD COMMITTEES

Audit Committee

Syed Tariq Husain Dr. Mumtaz A. Hashmi Abdul Razzaq

Risk Management Committee Tahir Naz Siddique Syed Tariq Hussain Dr. Mumtaz A. Hashmi

Human Resource Committee Syed Tariq Hussain Ahmed Shuja Kidwai Nadeem Rafi

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MANAGEMENT TEAM Dr. Syed Arif Hussain Chief Executive Officer

Jamil Ahmed General Manager, Chief Financial Officer and Company Secretary

Kashif Masood Assistant General Manager and Head of Operations

Muhammad Adnan Sharif Assistant General Manager (Marketing)

Moeen ud Din Assistant General Manager (Marketing)

Rizwan-ul-Haq Assistant General Manager (Marketing)

Akbar Ali Qureshi Senior Manager & Head of Fire, Property Underwriting & Re-takaful

Jawwad Bin Yousuf Senior Manager & Head of Motor & Accident Underwriting

Dr. Aamir Siddiqui Senior Manager & Head of Group Health Underwriting

Abdul Haseeb Fakih Senior Manager & Head of Risk Management

Muhammad Irfan Senior Manager & Head of Accounts

Muhammad Saeed Senior Manager & Head of Information Technology

Shaikh Azeemuddin Senior Manager & Head of Human Resources & Administration

BRANCH NETWORK

Branch Branch Head Branch Address

Karachi Muhammad Adnan Sharif 6th floor, Business Centre,

Plot No 19-1-A, Block -6, P.E.C.H.S.,

Shahrah-e-Faisal, Karachi.

UAN: (021) 111-875-111

Fax: (021) 34373195-6

Lahore Moeen ud din 130-E/1, Main Boulevard

Gulberg-III, Lahore.

UAN: (042) 111-875-111

Fax: (042) 35716790

Peshawar Raza Ali 6th Floor, State Life Building,

34-The Mall, Peshawar Cantt,

Peshawar.

UAN: (091) 111-875-111

Fax: (091) 5260107

Faisalabad Ghulam Mustafa Office # 3, 2nd floor, Wahab

Centre, Main Susan Road,

Faislabad.

UAN: (041) 111-875-111

Fax: (041) 8720063

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CONDENSED INTERIM BALANCE SHEET (UNAUDITED)

AS AT 31 MARCH 2015

31 December

Shareholders' Participants' 2014

Fund Takaful Fund Aggregate Aggregate

------------------------------------(Rupees)------------------------------------

SHARE CAPITAL AND RESERVES

Authorised share capital

[50,000,000 (2014: 50,000,000)

ordinary shares of Rs. 10 each] 500,000,000 - 500,000,000 500,000,000

Paid-up share capital

[30,000,000 (2014: 30,000,000)

ordinary shares of Rs. 10 each] 300,000,000 - 300,000,000 300,000,000

Accumulated losses (129,072,370) - (129,072,370) (136,877,694)

Qarda-e-hasna (11,211,134) - (11,211,134) (11,211,134)

159,716,496 - 159,716,496 151,911,172

PARTICIPANTS' TAKAFUL EQUITY (PTF)

Balance of Waqf / Participants' Takaful Fund (PTF) - (16,732,638) (16,732,638) (11,211,134)

Qarda-e-hasna - 11,211,134 11,211,134 11,211,134

- (5,521,504) (5,521,504) -

UNDERWRITING PROVISIONS

Provision for outstanding claims

(including IBNR) - 97,067,181 97,067,181 99,377,655

Provision for unearned contributions - 154,893,417 154,893,417 137,318,047

Provision for Contribution Deficiency Reserve - 3,000,000 3,000,000 3,000,000

Unearned re-takaful rebate - 4,313,127 4,313,127 5,644,186

Total underwriting provisions - 259,273,725 259,273,725 245,339,888

CREDITORS AND ACCRUALS

Contributions received in advance - 2,332,619 2,332,619 2,203,316

Amounts due to takaful/re-takaful companies - 35,383,804 35,383,804 37,418,436

Unearned wakala fees 61,957,366 - 61,957,366 54,927,216

Wakala fees payable and other account balances - 59,772,157 59,772,157 54,310,027

Mudarib fees payable - 911,177 911,177 1,841,660

Accrued expenses 1,791,919 1,791,919 1,575,773

Other creditors and accruals 5. 10,246,823 15,934,296 26,181,119 27,648,303

73,996,108 114,334,053 188,330,161 179,924,731

TOTAL LIABILITIES 73,996,108 373,607,778 447,603,886 425,264,619

TOTAL EQUITY AND LIABILITIES 233,712,604 368,086,274 601,798,878 577,175,791

CONTINGENCIES AND COMMITMENTS

The annexed notes form an integral part of this condensed interim financial information.

Chairman Chief Executive Officer Director Director

AS AT 31 MARCH 2015

Note

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CONDENSED INTERIM BALANCE SHEET (UNAUDITED)

AS AT 31 MARCH 2015

31 December

Shareholders' Participants' 2014

Fund Takaful Fund Aggregate Aggregate

------------------------------------(Rupees)------------------------------------

ASSETS

CASH AND BANK DEPOSITS

Cash and other equivalents 101,436 407,691 509,127 404,910

Current and other accounts 2,454,530 39,072,533 41,527,063 35,375,350

Deposits maturing within 12 months 114,400,000 135,100,000 249,500,000 251,500,000

6. 116,955,966 174,580,224 291,536,190 287,280,260

LONG TERM DEPOSITS 1,523,034 - 1,523,034 1,523,034

INVESTMENTS 7. 20,241,381 19,936,583 40,177,964 35,525,121

CURRENT ASSETS - OTHERS

Contributions due but unpaid - 50,453,376 50,453,376 37,698,198

Amounts due from other takaful companies - 876,529 876,529 2,326,333

Salvage recoveries accrued - 500,000 500,000 500,000

Taxation - payment less provision 9,193,523 - 9,193,523 9,013,032

Accrued investment income 5,884,454 2,183,072 8,067,526 11,409,556

Re-takaful recoveries against outstanding claims - 24,826,147 24,826,147 27,002,169

Wakala fees receivable and other account balances 55,261,385 - 55,261,385 49,799,256

Mudarib fees receivable 911,177 - 911,177 1,841,659

Deferred wakala fees - 61,957,366 61,957,366 54,927,216

Deferred commission expense 7,963,111 - 7,963,111 7,900,924

Prepayments 1,979,095 32,439,313 34,418,408 35,494,437

Sundry receivables 848,620 333,664 1,182,284 1,251,612

82,041,365 173,569,467 255,610,832 239,164,392

FIXED ASSETS

Tangibles and Intangibles

Leasehold improvements 1,877,507 - 1,877,507 1,979,707

Furniture and Fixtures 3,984,511 - 3,984,511 4,291,043

Office Equipment 2,783,744 - 2,783,744 2,930,140

Computers 1,956,274 - 1,956,274 1,941,770

Motor vehicles 2,348,822 - 2,348,822 2,540,324

12,950,858 - 12,950,858 13,682,984

Computer software - - -

TOTAL ASSETS 233,712,604 368,086,274 601,798,878 577,175,791



AS AT 31 MARCH 2015

Note

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CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED)

FOR THREE MONTHS PERIOD ENDED 31 MARCH 2015

31 March

2014

Fire and Marine, Motor Health Miscellaneous Aggregate Aggregate

property aviation and

damage transport

PARTICIPANTS' TAKAFUL FUND (PTF)

Net contribution revenue 2,149,897 1,277,198 40,612,350 14,383,592 24,030 58,447,067 41,374,657

Net claims 34,469 - (19,161,906) (13,654,553) (231,742) (33,013,732) (29,225,363)

Wakala fee (4,167,438) (1,871,745) (17,348,339) (5,753,436) (132,076) (29,273,034) (21,531,593)

Retakaful rebate earned 2,396,745 1,050,211 - - 55,587 3,502,543 1,913,689

Direct expenses (1,061) (1,753) (7,393,899) - (39) (7,396,752) (4,563,792)

Net underwriting results before

participants' investment income 412,612 453,911 (3,291,793) (5,024,398) (284,240) (7,733,908) (12,032,403)

Investment income 2,888,223 3,573,737

Less: Modarib's share (722,056) (893,434)

Net investment income 2,166,167 2,680,303

Other income 52,561 5,476

Bank charges (6,324) (15,858)

Total Surplus/(deficit) transferred to balance of

Waqf / Participants' Takaful Fund (5,521,504) (9,362,481)

SHAREHOLDERS' FUND (SHF)

Wakala fee 29,273,034 21,531,593

Commission expense (4,475,085) (4,127,913)

Management expenses 9. (12,672,183) (8,628,658)

12,125,766 8,775,022

Modarib's share of PTF investment income 722,056 893,434


Other income 174,912 205,015

General and administration expenses 10. (7,519,770) (5,765,340)

Profit before taxation 8,537,150 6,808,632

Provision for taxation - current (731,826) (538,290)

Net profit after tax 7,805,324 6,270,342

Earning per share - basic and diluted 0.26 0.21



--------------------------------------------------------(Rupees)-----------------------------------------------------------------------


Note

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CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME


31 March 31 March

2015 2014

SHAREHOLDERS' FUND (SHF)

Net profit after tax 7,805,324 6,270,342

Other comprehensive income - -

Total comprehensive income for the period 7,805,324 6,270,342



………. (Rupees) ………

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CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY / FUND

FOR THE PERIOD ENDED MARCH 31, 2015

Issued,

subscribed and

paid-up

capital

Balance at 01 January 2014 300,000,000 (142,970,825) 157,029,175

Profit for the three months period ended March 31, 2014 - 6,270,342 6,270,342

Balance at 31 March 2014 300,000,000 (136,700,483) 163,299,517

Profit for the nine months period ended 31 December 2014 - 2,361,676 2,361,676

Other compreshensive income - recognition of

actuarial gain for nine months ended 31 December 2014 - (2,538,887) (2,538,887)

Balance at 31 December 2014 300,000,000 (136,877,694) 163,122,306

Total comprehensive income for the three months period ended 31 March 2015 - 7,805,324 7,805,324

Balance at 31 March 2015 300,000,000 (129,072,370) 170,927,630

Balance at 01 January 2014 500,000 4,514,815 5,014,815

Deficit for the three months period ended 31 March 2014 - (1,677,342) (1,677,342)

Balance at 31 March 2014 500,000 2,837,473 3,337,473

Deficit for the nine months period ended 31 December 2014 - (14,548,577) (14,548,577)

Balance at 31 December 2014 500,000 (11,711,104) (11,211,104)

Deficit for the three months period ended 31 March 2015 - (5,521,504) (5,521,504)

Balance at 31 March 2015 500,000 (17,232,608) (16,732,608)



--------------------------------------(Rupees)--------------------------------------

SHAREHOLDERS' FUND

Accumulated

loss Total

--------------------------------------(Rupees)--------------------------------------

WAQF / PARTICIPANTS' TAKAFUL FUND

Cede

money

Accumulated

(deficit) /

surplus Total

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STATEMENT OF CASH FLOWS


31 March 31 March

2015 2014

Operating cash flows ----------(Rupees)----------

Underwriting activities

Contributions received 80,490,989 54,502,255

Net re-takaful paid (1,626,302) (1,919,110)

Claims paid (42,470,372) (29,929,825)

Commissions paid (4,567,900) (3,276,781)

Other underwriting receipts/(payments) (9,169,357) (2,451,427)

Net cash flow from underwriting activities 22,657,058 16,925,112

Other operating activities

Income tax paid (912,318) (1,201,155)

General administrative and management expenses paid (20,991,649) (14,432,045)

Other operating receipts/(payments) (452,160) (168,098)

Advances to employees (324,712) (492,595)

Net cash flow from other operating activities (22,680,839) (16,293,893)

Total cash flow from all operating activities (23,782) 631,219

Investment activities

Profit / return received 9,386,278 7,004,054

Recovery of principal ijara sukuks 5,275,862 531,564

Proceeds from disposal of investments 92,987 137,096

Net movement in term deposits (10,000,000) (3,000,000)

Fixed capital expenditure (161,600) (304,000)

Total cash flow from investing activities 4,593,527 4,368,714

Financing activities

Ijarah rentals paid (313,815) (279,614)

Total cash flow from financing activities (313,815) (279,614)

Net cash inflow from all activities 4,255,930 4,720,319

Cash at the beginning of the period 287,280,260 282,019,405

Cash at the end of the period 291,536,190 286,739,724

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31 March 31 March

2015 2014

----------(Rupees)----------

Reconciliation to profit and loss account

Operating cash flows (23,782) 631,219

Depreciation expense (893,726) (759,790)

Ijarah rentals (313,815) (279,614)

Provision for taxation (731,826) (538,290)

Provision for staff retirment benefit - 513,040


Increase/(decrease) in assets other than cash 14,981,306 (7,606,413)

(Increase)/decrease in liabilities other than running finance (23,233,497) (5,697,242)

Cash flow from investing activities 4,593,527 4,368,714

Profit/(Loss) after taxation 278,904 (3,092,140)

Breakup of profit / (loss) after tax

Participants' Takaful Fund (5,521,504) (9,362,481)

Shareholders' Fund 7,805,324 6,270,342

2,283,820 (3,092,140)

Definition of cash and cash equivalents



Cash and cash equivalents for the purposes of Statement of Cash Flows consist of cash in hand, policy stamps, bond

papers, bank balances and other deposits which are readily convertible to cash and which are used in the cash

management function on a day-to-day basis.

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STATEMENT OF CONTRIBUTIONS


Business underwritten inside Pakistan 31 March

2014

Gross Contribution Re-takaful Re-takaful Net Net

written Opening Closing earned ceded expense contribution contribution

contribution Opening Closing revenue revenue

A B C D=A+B-C E F G H=E+F-G I=D-H

Direct and Facultative

Fire and property damage 5,349,788 21,772,442 16,703,635 10,418,595 4,044,421 15,997,225 11,772,948 8,268,698 2,149,897 4,389,034

Marine, aviation and transport 5,689,106 2,758,861 3,768,602 4,679,365 3,946,813 1,976,678 2,521,324 3,402,167 1,277,198 2,041,895

Motor 64,687,394 88,851,644 110,168,188 43,370,850 2,758,500 - - 2,758,500 40,612,350 25,704,417

Health 15,001,601 23,084,037 23,702,046 14,383,592 - - - - 14,383,592 9,137,552

Miscellaneous 30,072 851,063 550,946 330,189 140,088 446,085 280,014 306,159 24,030 101,759

Total 90,757,961 137,318,047 154,893,417 73,182,591 10,889,822 18,419,988 14,574,286 14,735,524 58,447,067 41,374,657

Treaty

Proportional / non proportional - - - - - - - - - -

Grand total 90,757,961 137,318,047 154,893,417 73,182,591 10,889,822 18,419,988 14,574,286 14,735,524 58,447,067 41,374,657



-----------------------------------------------------------------------------------------------------------------------(Rupees)--------------------------------------------------------------------------------------------------------------


Unearned contribution reserve Prepaid re-takaful

Class contribution ceded

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STATEMENT OF CLAIMS


Business underwritten inside Pakistan 31 March

2014

Claims Claims Re-takaful Re-takaful Net claims Net Claim

Paid Opening Closing expense and other and other expense Expense

recoveries recoveries

received Opening Closing revenue

A B C D=A-B+C E F G H=E-F+G I=D-H


Fire and property damage 2,810,355 20,273,170 ` 17,980,575 517,760 1,568,754 15,918,626 14,902,101 552,229 (34,469) 6,421,304

Marine, aviation and transport - 5,333,589 5,333,589 - - 2,281,244 2,281,244 - - 3,076,648

Motor 24,901,036 55,844,209 56,271,746 25,328,573 7,552,667 7,762,750 6,376,750 6,166,667 19,161,906 11,883,441

Health 14,552,969 15,082,591 14,184,175 13,654,553 - - - - 13,654,553 7,714,525

Miscellaneous 10,485 2,844,096 3,297,096 463,485 5,243 1,539,549 1,766,049 231,743 231,742 129,445

Total 42,274,845 99,377,655 97,067,181 39,964,371 9,126,664 27,502,169 25,326,144 6,950,639 33,013,732 29,225,363

Treaty

Proportional / non proportional - - - - - - - - - -

Grand total 42,274,845 99,377,655 97,067,181 39,964,371 9,126,664 27,502,169 25,326,144 6,950,639 33,013,732 29,225,363



--------------------------------------------------------------------------------------------------(Rupees)---------------------------------------------------------------------------------------------

outstanding claims


Class Outstanding claims Re-takaful and other

recoveries in respect of

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STATEMENT OF EXPENSES - PARTICIPANTS' TAKAFUL FUND


Business underwritten inside Pakistan

31 March

FOR THREE MONTHS PERIOD ENDED 31 MARCH 2015 2014

Net Retakaful Net Net

Gross Wakala fee Other direct Underwriting earned takaful takaful

wakala fee Opening Closing expired expenses expenses rebate * expense expense

A B C D=A+B-C E F=D+E G H=F-G

----------------------------------------------------------------------------------------(Rupees)----------------------------------------------------------------------------------------


Fire and property damage 2,139,915 8,708,977 6,681,454 4,167,438 1,061 4,168,499 2,396,745 1,771,754 3,398,527

Marine, aviation and transport 2,275,642 1,103,544 1,507,441 1,871,745 1,753 1,873,498 1,050,211 823,287 1,623,981

Motor 25,874,958 35,540,656 44,067,275 17,348,339 7,393,899 24,742,238 - 24,742,238 15,445,168

Health 6,000,640 9,233,614 9,480,818 5,753,436 - 5,753,436 - 5,753,436 3,658,021

Miscellaneous 12,029 340,425 220,378 132,076 39 132,115 55,587 76,528 55,999

Total 36,303,184 54,927,216 61,957,366 29,273,034 7,396,752 36,669,786 3,502,543 33,167,243 24,181,696

Treaty

Proportional / non proportional - - - - - - - - -

Grand total 36,303,184 54,927,216 61,957,366 29,273,034 7,396,752 36,669,786 3,502,543 33,167,243 24,181,696



Class Deferred wakala fee

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STATEMENT OF EXPENSES - SHAREHOLDERS' FUND


Business underwritten inside Pakistan

31 March

2014

Commission Net Other Net Net

paid or commission management SHF SHF

payable Opening Closing expense expenses Expenses Expenses

A B C D=A+B-C E F=D+E

------------------------------------------------------------- (Rupees) -------------------------------------------------------------


Fire and property damage 545,384 3,291,843 2,333,714 1,503,513 746,970 2,250,483 3,088,535

Marine, aviation and transport 847,579 380,254 553,443 674,390 794,348 1,468,738 1,779,781

Motor 2,647,861 3,183,008 4,244,710 1,586,159 9,032,051 10,618,210 6,408,301

Health 493,821 964,656 778,885 679,592 2,094,616 2,774,208 1,452,096

Miscellaneous 2,627 81,163 52,359 31,431 4,199 35,630 27,858

Total 4,537,272 7,900,924 7,963,111 4,475,085 12,672,183 17,147,268 12,756,571

Treaty

Proportional / non proportional - - - - - - -

Grand total 4,537,272 7,900,924 7,963,111 4,475,085 12,672,183 17,147,268 12,756,571




Deferred commission

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STATEMENT OF INVESTMENT INCOME


31 March 31 March

2015 2014

Income from non-trading investments

Participants' Takaful Fund (PTF)

Profit on bank deposits and placements 2,866,531 3,456,860

Available for sale

Gain on sale of Islamic Mutual Fund 21,692 116,877

2,888,223 3,573,737

Less: Modarib's fee (722,056) (893,434)


Shareholders' Fund (SHF)

Profit on bank deposits and placements 2,465,078 2,016,749

Held to maturity

Return on government securities 198,375 221,918

Return on other securities 373,733 463,833

572,108 685,751

3,037,186 2,702,500

Less: Investment related expenses (3,000) (2,000)



(Rupees)

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NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


1. STATUS AND NATURE OF BUSINESS

2. BASIS OF PREPARATION

3. ESTIMATES AND JUDGEMENTS

4. SIGNIFICANT ACCOUNTING POLICIES

The financial and takaful risk management objectives and policies of the Company are consistent with those disclosed in the

financial statements as at and for the year ended December 31, 2014.

The accounting policies and methods of computation followed in the preparation of this condensed interim financial

information are the same as those applied in the preparation of the annual financial statements of the Company for the year

ended December 31, 2014.

The preparation of this condensed interim financial information in conformity with approved accounting standards requires

management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts

of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are

based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting

estimates are recognized prospectively commencing from the period of revision.

Takaful Pakistan Limited (the Company) is an unlisted public limited company incorporated in Pakistan on 2 June 2006

under the Companies Ordinance, 1984. The Company has been established with the objective to carry out General Takaful

Business as specified under the Insurance Ordinance 2000, Insurance Rules, 2002 and Takaful Rules, 2012.

On 9 March 2007, the Securities and Exchange Commission of Pakistan's Insurance Division has issued "Certificate of

Registration" to the Company under the provisions of section 6 of the Insurance Ordinance, 2000. Consequently, the

Company has commenced commercial operations from 12 March 2007. The registered office of the Company is at Plot No.

19-1-A, 6th Floor, Business Centre, P.E.C.H.S., Shahrah-e-Faisal, Karachi.

For the purpose of carrying on the Takaful business, the Company has formed a Waqf for Participants' equity. The Waqf,

namely Takaful Pakistan Waqf (hereinafter referred to as the Participants' Takaful Fund or PTF) was formed on 22 January

2007 under the Trust deed executed by the Company with a seed money of Rs. 500,000. The seed money is required to be

invested in Shariah compliant investments and any profit thereon can be utilized only to pay benefits to participants or defray

PTF expenses. The accounts of the Waqf are maintained by the Company in a manner that the assets and liabilities of the

Waqf remain separately identifiable. These financial statements have been prepared on an aggregate basis, duly including the

financial position and results of operations of the Waqf. Waqf deed also governs the relationship of shareholders and

participants for management of Takaful operations, investment of participants' funds and investment of shareholders' funds

approved by the Shariah Board established by the Company.

These condensed interim financial statements are unaudited and have been prepared in condensed form in accordance with

the approved accounting standards as applicable to insurance companies in Pakistan for interim financial reporting and in the

format requirement of prescribed by Securities and Exchange Commission (Insurance) Rules, 2002, with appropriate

modifications based on the advice of the Shariah Board of the Company. These condensed interim financial statements do

not include all of the information required for full financial statements and should be read in conjunction with financial

statements for the year ended 31 December 2014. As required by the Code of Corporate Governance applicable to unlisted

insurance companies, these financial statements are being submitted to the shareholders as well as to the Securities and

Exchange Commission of Pakistan.

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31 December

Shareholders' Participants' Aggregate 2014

Fund Takaful Fund Aggregate

5. OTHER CREDITORS AND ACCRUALS

Commission payable to agents 8,135,097 - 8,135,097 8,165,726

Federal excise duty - 3,662,785 3,662,785 3,377,497

Federal insurance fee - 306,166 306,166 267,177

Withholding Tax 13,462 313,487 326,949 295,625

Contribution due to other re-takaful/insurance companies - 3,244,431 3,244,431 2,335,331

Provision for compensated absences 256,054 - 256,054 256,054

Security deposit 771,509 - 771,509 1,352,039

Other payables 1,070,701 8,407,427 9,478,128 11,598,854

10,246,823 15,934,296 26,181,119 27,648,303

6. CASH AND BANK DEPOSITS

Cash and other equivalents

- Cash 101,436 - 101,436 49,010

- Policy stamps and bond papers in hand 407,691 407,691 355,900

101,436 407,691 509,127 404,910

Current and other accounts

- Current accounts 3,106 187,298 190,404 1,628,567

- PLS savings accounts 2,451,424 38,885,235 41,336,659 33,746,782

2,454,530 39,072,533 41,527,063 35,375,349

Deposits maturing within 12 months

-Term deposits 114,400,000 135,100,000 249,500,000 251,500,000

116,955,966 174,580,224 291,536,190 287,280,259

7. INVESTMENTS

Held to maturity

- GOP Ijarah Sukuks 12th Issue 7.1 10,000,000 - 10,000,000 10,000,000

- Other Sukuks 7.2 25,239,506 - 25,239,506 30,515,368

35,239,506 - 35,239,506 40,515,368

Less: Provision for impairment (14,998,125) - (14,998,125) (14,998,125)

20,241,381 - 20,241,381 25,517,243

Available for sale

- Quoted - Islamic Funds - 19,936,583 19,936,583 10,007,878

20,241,381 19,936,583 40,177,964 35,525,121

7.1 GOP Ijarah sukuks 12th Issue Effective yield Profit Face value Market value Maturity date

% payment (Rupees) (Rupees)

GOP Ijarah sukuk certificates

6 months T Bill Semi-annually 10,000,000 10,109,000 November 21,

2015

7.2 Other Sukuk Certificates

Engro Chemical Pakistan Limited - Sukuk Certificates 6 months Semi-annually 5,000,000 5,063,255 September 06,

KIBOR + 1.5% 2015

Agritech Limited - Sukuk Certificate 6 months Semi-annually 15,000,000 NPA* August 06,

KIBOR + 2% 2019

Quetta Textile Mills Limited - Sukuk Certificates 6 months Quarterly 8,000,000 NPA* March 26,

KIBOR + 1.75% 2020

31 March 2015

--------------------------------(Rupees)------------------------------------

100 certificates (2014: 100 certificates)

of Rs. 100,000 each

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8. FIXED ASSETS

Additions Disposals

Tangibles

Computers 161,600 -

Total 161,600 -

Three months' Three months'

period ended period ended

31 March 31 March

2015 2014

9. MANAGEMENT EXPENSES - SHF

Salaries, wages and benefits 9,443,633 5,700,329

Rent, rates and taxes 992,289 962,052

Utilities 222,830 164,752

Communications 242,550 225,127

Printing and stationery 217,237 187,720

Travelling and entertainment 424,836 224,356

Repairs and maintenance 101,834 281,259

Vehicle running and maintenance 250,648 238,330

Advertisements and promotions 238,322 322,626

Ijarah rentals 219,671 195,730

Fees and subscription 216,503 103,650

Other expenses 101,830 22,727

12,672,183 8,628,658

10. GENERAL AND ADMINISTRATION EXPENSE - SHF

Salaries, wages and benefits 4,047,271 2,442,998

Rent, rates and taxes 425,267 412,308

Utilities 95,498 70,608

Communications 103,950 96,483

Printing and stationery 93,102 80,451

Travelling and entertainment 182,073 96,153

Repairs and maintenance 43,643 120,539

Vehicle running and maintenance 107,421 102,142

Advertisements and promotions 102,138 138,268

Ijarah rentals 94,145 83,884

Fees and subscription 92,787 44,422

Depreciation 893,726 759,790

Takaful expense 120,470 34,187

Shariah board/advisor honorarium 210,000 522,000

Legal and professional 674,189 559,625

Auditors' remuneration 183,425 187,240

Bank charges 7,024 4,502

Other expenses 43,641 9,740

7,519,770 5,765,340

11. DATE OF AUTHORIZATION


-------------(Rupees)--------------

-------------(Rupees)--------------

This condensed interim financial information was authorized for issue on 06 May 2015 by the Board of Directors of the Company

Cost of operating assets that were acquired/disposed off during the three months period ended 31 March 2015 is as follows:

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TAKAFUL PAKISTAN LIMITED · To deliver Takaful as a ... part of this condensed interim financial information. Chairman Chief Executive Officer Director Director. AS AT 31 MARCH 2015.

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