D FTL Annual Report 2014

CONTENTS
Page No.
Vision and Mission Statements ................................................................................................... 01

Core Values ................................................................................................................................ 02
Corporate Information ................................................................................................................. 03
Directors Report to the Shareholders ......................................................................................... 05
Shariah Review Report ................................................................................................................ 10
Auditors Report to the Members ................................................................................................. 11
Financial Statements ................................................................................................................... 13
Statement of Directors ................................................................................................................. 61
Certificate of Appointed Actuary .................................................................................................. 62
Pattern of Shareholding ............................................................................................................... 63
Notice of Annual General Meeting ............................................................................................... 65
Proxy Form ..................................................................................................................................
Corporate Information
As on December 31, 2014
03
Group / Alternative Distribution
04
05
06
Insurer
254,393,851
179,748,721
(434,142,572)
(39,266,403)
(24,305,569)
07
49%
08
Through SRO 16(I)/2012 issued on January 09, 2012 by the SECP the minimum solvency requirement
for Insurance/Takaful companies have been significantly increased, alongside the Rules also provided
an option that Insurance/Takaful may opt to maintain the increased solvency in aggregate.
As a newly established Shariah Compliant Takaful Company with minimal surpluses in its statutory fund,
your Board had naturally decided to maintain the solvency in aggregate and applied for the grant of
permission to maintain aggregate solvency margin through letter No. SEC/12-08/31 dated August 8,
2012. In response to the application SECP has called up an undertaking by the board, certified copy of
the minutes which were duly provided and we are awaiting SECPs response.
There is precedent in the market, where SECP has accommodated Company(ies) in the sector on
solvency matter and it is likely that DFTL would also be obliged. DFTL has got only one Waqf, therefore,
it is appropriately justified to calculate aggregate solvency for that one Waqf; instead two separate
solvencies for each fund. The external auditors and actuary confirm that DFTL is complaint, if aggregate
solvency is calculated for the Waqf.
Subsequent to the balance sheet date on April 30, 2014, the Shareholders Fund had transferred an
investment of Rs.10 million as Qard-e-Hasna in its Group Family Takaful Fund to comply with solvency
requirement under Insurance Ordinance, 2000.
The Auditors of the Company has also highlighted the matter in their Auditors Report to the Member
and detail of transaction has been disclosed in Note 29 to the Financial Statements for the year ended
December 31, 2014.
Except for the above matter, there have been no material changes since December 31, 2014 to date
of this report and the Company has not entered into any material commitment during this period which
would adversely affect the financial position of the Company.
Karachi, May 08, 2015
Chief Executive Officer
09
SHARIAH REVIEW REPORT

We have conducted the Shariah Compliance Review of Dawood Family Takaful Limited (the
Company) for the year ended December 31, 2014.
The Shariah Compliance Review principally involves review of the Companys compliance with
the Shariah principles throughout the year including examination of annual financial statements
prepared by the management of the Company.
In our opinion and to the best of our knowledge and belief, the transactions undertaken and the
policies followed by the Company during the year and the financial statements of the Company
for the year ended December 31, 2014 were in compliance with Shariah principles.
Date: April 02, 2015
Karachi
Prof. Mufti Munib-ur-Rehman

Chairman
Mufti Syed Sabir Hussain

Member
Mufti Syed Zahid Siraj

Member
10
AUDITORS' REPORT TO THE MEMBERS

We have audited the annexed financial statements comprising of:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
balance sheet;
profit and loss account;
statement of comprehensive income;
statement of cash flows;
statement of changes in equity;
revenue account;
statement of contributions;
statement of claims;
statement of expenses; and
statement of investment income
of Dawood Family Takaful Limited (the Company) as at 31 December 2014 together with
notes forming part thereof, for the year then ended.
It is the responsibility of the Companys management to establish and maintain a system of
internal control and prepare and present the financial statements in conformity with the
approved accounting standards as applicable in Pakistan and the requirements of the Insurance
Ordinance, 2000 (XXXIX of 2000) and the Companies Ordinance, 1984 (XLVII of 1984). Our
responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting policies used and significant
estimates made by management, as well as, evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion:
(a) proper books of account have been kept by the Company as required by the Insurance
Ordinance, 2000, and the Companies Ordinance, 1984;
11
-: 2 :(b)
the financial statements together with the notes thereon have been drawn up in
conformity with the Insurance Ordinance, 2000, and the Companies Ordinance,
1984, and accurately reflect the books and records of the Company and are further
in accordance with accounting policies consistently applied, except for the changes
in accounting policies as stated in notes 5.1 and 5.2 to the financial statements
with which we concur;
(c)
the financial statements together with the notes thereon present fairly in all material
respects, the state of the Companys affairs as at 31 December 2014, its loss,
comprehensive loss, cash flows and changes in equity for the year then ended in
accordance with approved accounting standards as applicable in Pakistan and
give the information required to be disclosed by the Insurance Ordinance, 2000
and the Companies Ordinance, 1984;
(d)
the apportionment of assets, liabilities, revenue and expenses between two or

more funds has been performed in accordance with the advice of the appointed
actuary; and
(e)
zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of
1980), was deducted by the Company and deposited in the Central Zakat Fund
established under Section 7 of that Ordinance.
We draw attention to note 29 to the accompanying financial statements which states that
the Company had a shortfall of Rs.9.3 million in the Group Family Takaful Fund as at 31
December 2014 in the solvency margin required under the Insurance Ordinance, 2000.
Our opinion is not qualified in respect of the above matter.
Chartered Accountants
Audit Engagement Partner: Shabbir Yunus
Date: 08 May, 2015
Karachi
12
13
30
14
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 2014
15
STATEMENT OF COMPREHENSIVE INCOME

16
STATEMENT OF CHANGES IN EQUITY

17
STATEMENT OF CASH FLOWS
18
REVENUE ACCOUNT
19
REVENUE ACCOUNT
20
STATEMENT OF CONTRIBUTIONS
21
STATEMENT OF CLAIMS
22
STATEMENT OF EXPENSES
23
STATEMENT OF INVESTMENT INCOME

24
NOTES TO THE FINANCIAL STATEMENTS

25

26

27

28

29

30

treaties
31

derivative.
32

33

34

approved.
35

36
37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

08 May, 2015 by the Board of Directors of the Company.
60
Statement of Directors
As per the requirement of Section 46(6) and Section 52(2) of the Insurance Ordinance, 2000
Section 46(6)
a)
In our opinion the annual statutory accounts of Dawood Family Takaful Limited, set out in the
forms attached to the statement have been drawn up in accordance with the Ordinance and
any rules made there under;
b)
Dawood Family Takaful Limited has at all times in the year complied with the provisions of the
Ordinance and the Rules made there under relating to paid-up capital, solvency and reinsurance
arrangements, with exception of solvency in Group Family Takaful Fund, which complied with
the provisions of the Ordinance and the Rules at all times in the year except for specifically
on December 31, 2014.
c)
As at December 31, 2014, Dawood Family Takaful Limited continues to be in compliance with
provisions of the Ordinance and the Rules made there under relating to paid-up capital,
solvency and reinsurance arrangements, with exception of solvency in Group Family Takaful
Fund. In 2012, the Company had applied for the permission to maintain solvency margin in
aggregate, but still the matter is pending. The Company is solvent on aggregate basis however
considering the solvency of each statutory fund separately, the Group Family Takaful Fund
of the Company had shortfall of Rs.9.3 million as at December 31, 2014. Therefore, to meet
the solvency requirements, on April 30, 2015, Shareholders Fund has transferred an investments
of Rs.10 million as Qard-e-Hasna in its Group Family Takaful Fund.
Section 52(2) (c)

d)
In our opinion, the Shareholders Fund (SHF) and the Individual Family Takaful Statutory Fund
of Dawood Family Takaful Limited complies with the Solvency requirements of the Insurance
Ordinance, 2000, and the Insurance Rules, 2002. However, the Group Family Takaful Fund
of the Company had shortfall of Rs.9.3 million to meet the solvency requirements. Therefore,
on April 30, 2015, Shareholders fund has transferred an investments of Rs.10 million as Qarde-Hasna in its Group Family Takaful Fund.
61
8 th May 2015
Certificate under Section 52(2)

of the Insurance Ordinance, 2000
I, Shujat Siddiqui, of Akhtar & Hasan (Private) Limited, being an Actuary duly qualified under the
terms of the Insurance Ordinance, 2000, and being the Appointed Actuary of Dawood Family Takaful
Limited, do hereby certify as under:
(a)
that in my opinion, the participants liability included in the Companys balance sheet as at
31 December 2014 has been determined in accordance with the provisions of the Insurance
Ordinance; and
(b)
the Shareholders Fund (SHF) and the Individual Family Takaful Statutory Fund comply
with the solvency requirements of the Insurance Ordinance as at 31 December 2014, while
the Group Family Takaful Statutory Fund had a deficit amounting to Rs 9.3 million. I have
been informed by the Company that a Qard-e-Hasna amounting to Rs 10 million was made
on 30
April 2015 by the Shareholders Fund to the Group Family Takaful Statutory Fund.
Shujat Siddiqui, MA, FIA, FPSA

Appointed Actuary
62
Pattern of Shareholding as on December 31, 2014

Number of
Shareholders
8
12
21
7
2
3
1
1
9
1
1
10
2
1
2
6
1
3
1
4
1
8
1
2
1
1
1
1
1
1
1
1
1
1
118
Shareholdings
From
101
501
1,001
5,001
10,001
15,001
25,001
35,001
45,001
65,001
75,001
95,001
120,001
130,001
145,001
195,001
225,001
245,001
255,001
295,001
320,001
495,001
695,001
995,001
1,995,001
2,720,001
3,495,001
3,915,001
4,980,001
6,060,001
6,465,001
7,395,001
11,245,001
13,455,001
To
-
500
1,000
5,000
10,000
15,000
20,000
30,000
40,000
50,000
70,000
80,000
100,000
125,000
135,000
150,000
200,000
230,000
250,000
260,000
300,000
325,000
500,000
700,000
1,000,000
2,000,000
2,725,000
3,500,000
3,920,000
4,985,000
6,065,000
6,470,000
7,400,000
11,250,000
13,460,000
Total Number
of Shares Held
4,000
12,000
61,000
57,500
28,000
59,500
30,000
40,000
450,000
70,000
80,000
999,990
246,000
135,000
300,000
1,200,000
230,000
750,000
257,000
1,200,000
325,000
4,000,000
700,000
2,000,000
2,000,000
2,722,500
3,500,000
3,919,000
4,983,500
6,064,000
6,466,010
7,400,000
11,250,000
13,460,000
75,000,000
Categories of Shareholders as on December 31, 2014
Shareholder's
Category
Number of
Shareholders
Directors, Chief Executive Officer

and their spouse and minor child
Modaraba
Banks and Financial Institutions
Other Companies
Foreign Company
General Public - Local
- Foreign
Others
12
1
5
12
1
83
1
3
118
Number of
Shares Held
5,887,000
7,400,000
31,032,500
7,769,000
6,064,000
10,131,000
500
6,716,000
75,000,000
Percentage
8%
10%
41%
10%
8%
14%
0%
9%
100%
Detail of Shareholders
Associated companies and related parties
BRR Guardian Modaraba
First Dawood Investment Bank Limited
Dawood Capital Management Limited
Dawood Equities Limited
Shareholders holding 10% or more

First Dawood Investment Bank Limited
The Bank Of Khyber
7,400,000
13,460,000
2,722,500
3,919,000
27,501,500
9.87%
17.95%
3.63%
5.23%
13,460,000
11,250,000
24,710,000
17.95%
15.00%
Company Secretary
65
May 30, 2015
Country Wide
Branch Network
Head Office:
1701-A, Saima Trade Towers, I.I. Chundrigar Road, Karachi-74000
UAN: 111-DFT-786 (111-338-786) Fax: (92-21) 3227-7188
Falcon Branch (Lahore)
E-26, 3rd Floor, Paradise Centre,
Walten Road, Lahore
Phone : (+92 42) 36688253-57
Fax
: (+92 42) 36626290
Bahadurabad Branch (Karachi)

Office No 302 & 303 3rd Floor, Meriums
Complex, Bahadurabad Karachi.
Phone : (+92 21) 34145441-6
Eagle Branch (Lahore)

E-26, 3rd Floor, Paradise Centre, Walten Road,
Lahore
Phone : (+92 42) 36688253-57
Fax
: (+92 42) 36626290
Hyderabad Branch
Plot -325, 2nd Floor, Block C Unit VII,
Latifabad-Hyderabad.
Phone : (+92 22) 3865326-7 3865330-1
Fax
: (+92 22) 3865318
Sukkur Branch
1st Floor, City Survey No. B-3403/2/M/4,
Workshop Road, Near Hira Medical Center,
Sukkur.
Phone : (+92 71) 5615751-3
Larkana Branch
Ground Floor, Near Shaheed Shahnawaz
Childern Park, Larkana
Phone : (+92 74) 4040383-6
MirpurKhas Branch
1st Floor, City Survey # 716 & 718 Tourabad
UmerKot Road Above Faisal Bank, MirpurKhas
Phone : (+92 23) 3876127-28
Fax
: (+92 23) 3876129
Nawabshah Branch
Plot B-599, 2nd Floor, Above Askari Bank
Katchery Road Nawabshah
Phone : (+92 244) 366295-97
Fax
: (+92 244) 366296
Tando Adam Branch
1st Floor Al Rahim Plaza Above Bank Alfalah
Hyderabad Road Tando Adam
Phone : (+92 23) 5576113-15
Fax
: (+92 23) 5576112
Gulberg Branch (Lahore)
1st Floor, Burj Bank Building, 57-B, Hussain
Chowk, Gulberg-III, Lahore.
Phone : (+92 42) 111- 338-786
Fax
: (+92 42) 35772618
Pioneer Branch (Lahore)
2nd Floor, Burj Bank Building, 57-B,
Hussain Chowk, Gulberg-III, Lahore.
Phone : (+92 42) 111- 338-786
Fax
: (+92 42) 35772618
Royal Branch (Lahore)
2nd Floor, Burj Bank Building, 57-B, Hussain
Chowk, Gulberg-III, Lahore.
Phone : (+92 42) 111- 338-786
Fax
: (+92 42) 35772618
Shaheen Branch (Lahore)
E-26, 3rd Floor, Paradise Centre, Walten Road,
Lahore
Phone : (+92 42) 36688253-57
Fax
: (+92 42) 36626290
Gujrat Branch
Dawood Center, Opp. UBL, G.T Road, Gujrat
Phone : (+92 53) 3538073-6 3538078-3538085
Fax
: (+92 53) 3538088
Chenab Branch (Gujrat)
Dawood Center, Opp. UBL, G.T Road, Gujrat
Phone : (+92 53) 3538073-6 3538078-3538085
Fax
: (+92 53) 3538088
Kharian Branch
1st Floor, Above NIB Bank, G.T Road, Kharian.
Phone : (+92 53) 7602180-94-96
Faisalabad Branch
871-B 2nd Floor, Hassan Arcade Peoples Colony
No.1, Chen Road Faisalabad
Phone : (+92 41) 8554212-8554113-114vtt
Fax
: (+92 41) 8554117
Lyallpur Branch
871-B 1st Floor Hassan Arcade Peoples Colony
No.1, Chen Road Faisalabad
Phone : (+92 41) 8554212-8554113-114
Fax
: (+92 41) 8554117
Jhang Branch
1st Floor, Sunny Heights, Church Road,
Saddar, Jhang.
Phone : (+92 47) 7626648-49
Fax
: (+92 47) 7626691
Mandi Bahauddin Branch
2nd Floor, Qasim Plaza, Phalia Road,
Mandi, Bahauddin.
Phone : (+92 54) 6502311-13
Fax
: (+92 54) 6502314
Sargodha Branch
1st Floor, Nizami Centre, Club Road,
Shama Chowk, Sargodha
Phone : (+92 48) 3768774-76
Fax
: (+92 48) 3768773
Sahiwal Branch
3rd Floor, Saeed Centre,
Fareed Town Road, Sahiwal.
Phone : (+92 40) 4221531-33
Fax
: (+92 40) 4221534
Multan Branch
1st Floor, Khawar Centre, 92-Nusrat Road,
SP Chowk, Multan Cantt. Multan.
Phone : (+92 61) 4581001-4
Fax
: (+92 61) 4541104
Multan City Branch
Office No 4,5,6 & 7, 2nd Floor, Business City
Plaza, Bosan Road, Multan
Phone : (+92 61) 6224820-24
Bahawalpur Branch
2nd Floor, 1-A, Muhammadia Colony,
Noor Mehal Road, Bahawalpur
Phone : (+92 62) 2887680-5
Sialkot Branch
1st Floor, Opposite by Jamia Naumania Rizvi,
near Shaheen CNG, Shahab Pura Road,
Sialkot
Phone : (+92 523) 3550471-74
Rahimyar Khan Branch
15-A, 2nd Floor, Model Town, Shahi Road,
Rahim Yar Khan
Phone : (+92 68) 5880191-94
Islamabad Branch
1st Floor Shalimar Plaza 99-West Blue Area
Islamabad
Phone : (+92 51) 2814401-15
Fax
: (+92 51) 2814411
Rawalpindi Branch
2nd Floor, B-414, Satellite Town,
Rawalpindi.
Phone : (+92 51) 4571841-49
Fax
: (+92 51) 4571851
Adiyala Rawalpindi Branch
2nd Floor, Abdullah & Brothers Plaza,
Khawaja Corporation, Adiyala Road,
Rawalpindi
Phone : (+92 51) 5187167-68
Peshawar Branch
Office No 4,5,6&7, 4th Floor, Syed's Towers,
Opp. Income Tax Office, University Road,
Peshawar.
Phone : (+92 91) 5846617-20
Fax
: (+92 91) 5846614
Peshawar Cantt Branch
2nd Floor, Jasmine Arcade, Fakhar-e-Alam Road,
Peshawar Cantt
Phone : (+92 91) 5275055
Mardan Branch
Poshak Centre Shaheen Market, Bank Road,
Mardan
Phone : (+92 93) 7870300-01
Fax
: (+92 93) 7870302
Abbotabad Branch
First Floor, Haidri Plaza,
Near ArmiBurn Hall College, Mansehra Road,
Mandian Abbotatad.
Phone : (+92 992) 383216,383178
Fax
: (+92 992) 383191
Swat Branch
First 1st Floor Shahzad Plaza Makan Bagh
Saidu Sharif Road Mingora Sawat
Phone : (+92 946) 723972-721502
Fax
: (+92 946) 721503
Kotli Branch
1st Floor, Deen Arcade, Shaheed Chowk, Kotli,
Azad Kashmir
Phone : (+92 5826) 448601-4
Haripur Branch
1st Floor, Rehana Plaza,
Main G.T Road, Haripur, KPK.
Phone : (+92 995 ) 616333- 613698
DAWOOD FAMILY TAKAFUL LIMITED

w w w. d a w o o dta k a f u l . c o m
M.A. Brothers: 0332-3434050, 0347-2515299
Gulshan Branch (Karachi)

FL 3/9, Block No 3, Scheme-24,
Gulshan-e-Iqbal, Karachi.
Phone : (+92 21) 34970576-80
Fax
: (+92 21) 34970575

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CONTENTS

Vision and Mission Statements ................................................................................................... 01

Group / Alternative Distribution

Karachi, May 08, 2015

Chief Executive Officer

SHARIAH REVIEW REPORT

Prof. Mufti Munib-ur-Rehman

Mufti Syed Sabir Hussain

Mufti Syed Zahid Siraj

AUDITORS' REPORT TO THE MEMBERS

the apportionment of assets, liabilities, revenue and expenses between two or

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED DECEMBER 31, 2014

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2014

FOR THE YEAR ENDED DECEMBER 31, 2014

FOR THE YEAR ENDED DECEMBER 31, 2014

FOR THE YEAR ENDED DECEMBER 31, 2014

FOR THE YEAR ENDED DECEMBER 31, 2014

FOR THE YEAR ENDED DECEMBER 31, 2014

STATEMENT OF INVESTMENT INCOME

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2014

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

08 May, 2015 by the Board of Directors of the Company.

Section 52(2) (c)

Certificate under Section 52(2)