Atlas Insurance : Transmission of Quarterly Report for the Period Ended 30-6-2023

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2023Half Yearly Report June 0, 2

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Contents

Company Overview

02 Company Information

Corporate Governance

1. Chairman's Review (English)

1. Chairman's Review (Urdu)
2. Directors' Review (English)
3. Directors' Review (Urdu)

Condensed Interim Financial Statements

1. Independent Auditor's Review Report
2. Condensed Interim Statement of Financial Position
3. Condensed Interim Profit and Loss Account
4. Condensed Interim Statement of Comprehensive Income
5. Condensed Interim Statement of Changes in Equity
6. Condensed Interim Statement of Cash Flow

17 Notes to and Forming Part of the Condensed Interim Financial Statements

Condensed Interim Financial Statements - Window Takaful Operations

1. Independent Auditor's Review Report
2. Condensed Interim Statement of Financial Position
3. Condensed Interim Profit and Loss Account
4. Condensed Interim Statement of Comprehensive Income
5. Condensed Interim Statement of Changes in Funds
6. Condensed Interim Statement of Cash Flow

41 Notes to and Forming Part of the Condensed Interim Financial Statements

Other Information

52 Company Offices

Company Information

Board of Directors

Iftikhar H. Shirazi

Chairman / Non-Executive Director

Ali H. Shirazi

Non-Executive Director

Frahim Ali Khan

Non-Executive Director

Hasan Reza ur Rahim

Independent Director

Muhammad Habib-ur-Rahman

Non-Executive Director

Roohi Raees Khan

Independent Director

Babar Mahmood Mirza

Chief Executive / Executive Director

Muhammad Afzal

Company Secretary

Audit Committee

Hasan Reza ur Rahim

Chairman

Ali H. Shirazi

Member

Frahim Ali Khan

Member

Muhammad Afzal

Secretary

Saleem Mahmood Akhtar

Chief Internal Auditor

Ethics, Human Resource & Remuneration Committee

Roohi Raees Khan

Chairperson

Ali H. Shirazi

Member

Frahim Ali Khan

Member

Babar Mahmood Mirza

Member

Qudsia Naheed

Secretary

Investment Committee

Ali H. Shirazi

Chairman

Frahim Ali Khan

Member

Muhammad Habib-ur-Rahman Member

Babar Mahmood Mirza

Member

Muhammad Aasim Gul

Member

Muhammad Afzal

Secretary

Underwriting, Reinsurance &

Co-Insurance Committee

Ali H. Shirazi

Chairman

Babar Mahmood Mirza

Member

Rashid Amin

Member

Syed Nasir Hussain

Member

Syed Irtiza Kazmi

Secretary

Claims Settlement Committee

Frahim Ali Khan

Chairman

Babar Mahmood Mirza

Member

Muhammad Aasim Gul

Member

Muhammad Saeed

Member

Athar Maqsood Paracha

Secretary

Half Yearly Report June 2023

Company Information

Risk Management & Compliance Committee

Babar Mahmood Mirza

Chairman

Muhammad Aasim Gul

Member

Rashid Amin

Member

Muhammad Saeed

Member

Athar Maqsood Paracha

Secretary

Information Technology (IT) Committee

Babar Mahmood Mirza

Chairman

Rashid Amin

Member

Muhammad Saeed

Member

Abdul Razzaq Ghauri

Member

Wasim Ahmed

Secretary

Management Committee

Babar Mahmood Mirza

Chief Executive Officer

Muhammad Aasim Gul

Chief Financial Officer

Rashid Amin

GM Reinsurance & Compliance

Abbas Sajjad

General Manager Sales & Marketing

Muhammad Saeed

General Manager Claims

Qudsia Naheed

General Manager HR & Admin

Syed Irtiza Kazmi

General Manager Underwriting

Abdul Razzaq Ghauri

Head of IT

Syed Nasir Hussain

Head of Reinsurance

Shariah Advisor

Mufti Zeeshan Abdul Aziz

GM Compliance

Rashid Amin

Auditors

EY Ford Rhodes

Chartered Accountants

Legal Advisors

Mohsin Tayebaly & Co.

Haroon Dugal Law Chambers

Tax Advisor

EY Ford Rhodes

Chartered Accountants

Share Registrar

Hameed Majeed Associates (Pvt) Limited

H. M. House, 7-Bank Square,

Shahrah-e-Quaid-e-Azam, Lahore

Tel: [phone]

Fax: [phone]

Bankers

Askari Bank Limited

Bank Alfalah Limited

Bank Al Habib Limited

Bank Islami Limited

Faysal Bank Limited

Habib Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

NRSP Microfinance Bank

Sindh Bank Limited

Soneri Bank Limited

Summit Bank Limited

United Bank Limited

FINCA Microfinance Bank Limited

Registered & Head Office

63/A, Block - XX, Phase III (Commercial), Khyaban-e-Iqbal, DHA, Lahore.

Tel: [phone],

Fax: [phone]

E mail: [e-mail]

Website: www.ail.atlas.pk

Atlas Insurance Limited

Chairman's Review

It gives me great pleasure to present the un-audited accounts of your Company for the half year ended June 30, 2023.

The Economy

The country is going through a correction phase to address long-standing structural challenges. To address the challenges and sustain macroeconomic stability, the authorities have recently reached a 9-month Staff Level Agreement (SBA) with IMF. However, the nation looks forward to a long-term sustainable plan to ensure financing needs are met in the years ahead.

On the external front, policy tightening, and adoption of stabilization strategies has yielded positive results. The current account deficit (CAD) has narrowed by 85.4% to USD 2.6 billion in FY-23. The improvement in CAD was mainly driven through the reduction in the import bill from USD 80.1 billion to USD 55.3 billion. However, due to slowdown in global demand and an exchange rate peg, exports and workers' remittances declined by 14.1% and 13.6%, respectively. Despite positive development in CAD, foreign exchange reserves held by the Central Bank dipped below USD 5 billion for the first time in ten years. However, improvements are expected in the coming months with the receipt of bailout funds from IMF and substantial deposits from multilateral countries. The significant low level of forex reserves put extra ordinary pressure on the local currency, which breached the 285 per USD level. Accordingly, to maintain macroeconomic stability and regulate aggregate demand, the Central Bank increased the benchmark interest rate to 22%, representing 825 bps increase since July 2022. On the fiscal front, due to the slowdown in economic activity, revenue collection remained short of target. PKR 7,000 billion was collected against the projection of PKR 7,600 billion. Going forward, in order to narrow the fiscal deficit, the Government has recently passed Finance Act, 2023 which has imposed further taxes on targeted segments and withdrawal of certain tax credits. The KSE-100 index was also impacted by the ongoing economic challenges till June 2023. However, it remained resilient and improved significantly to over 48,000 points in August due to improving investor sentiment. Many other macroeconomic factors including energy tariff adjustments resulted in slow growth and increased inflation. The GDP was 0.3% in FY23 compared to 6.1% in FY22.

The agriculture sector recorded a growth of 1.6% in FY-23 as compared to 4.3% of last year. This is due to a heavy monsoon spell and floods which caused massive damage to the standing crops. To support the sector, the agriculture financial institutions disbursed PKR 1,222 billion as compared to PKR 958 billion last year. Further, with better input situation and water supply, Rabi crops performed better. This helped to improve farm incomes. As a result, demand for consumer durables remained stable in rural areas.

The Large-Scale Manufacturing (LSM) index contracted by 9.9% in FY-23. The sector's contraction is mainly due to import restrictions, rupee devaluation, higher financing costs, expensive energy, and local economic and political instability. Resultantly, most demand indicators including sales of cement, POL, automobiles, and textiles reflected a downward trend. However, the recent development under SBA with IMF ensuring unrestricted import movement and uplifting of foreign reserves will support the industrial sector.

Half Yearly Report June 2023