Last work of Master degree. Great Contribution of Rashid to follow a standards. Helpful For Finance students. Horizontal, vertical and all Ratios are covered and also interprets their results. we have also excel sheet of its if any one needed let me confirm

1. Ratio Analysis of Financial
Statements (Based on Three years data)
Non-life insurance
Adamjee insurance company LTD
Atlas insurance company LTD
Presenting by
Tanweer Sudhan
Rashid Ali
Presented to Sir Wasim Abbas Shaheen
Quaid-I-Azam university Islamabad Pakistan

2. Presented to Sir Wasim Abbas Shaheen

3. Economic Indicators
The economy of Pakistan is the 26th largest in the
world in terms of purchasing power parity (PPP), and
44th largest in terms of nominal GDP
GDP growth 2011 to 2014
Real GDP growth for 2011-12 was 3.7%
2012-13 was 3.6%
4.14% in 2013-14
Agriculture sector growth in 2011-2014
3.13% in 2011-2012
3.5% in 2012-2013
2.9% in 2013-2014Presented to Sir Wasim Abbas Shaheen

4. Economic Indicators
Industrial sector growth 2011-2014
Service Sector
 4.02% in 2011-12
 3.7% in 2012-13
 5.2% in2013-2014
PER CAPITA INCOME
 $ 1368 in 2012-13
 $ 1,386 in 2013-14
Presented to Sir Wasim Abbas Shaheen

5. Economic Indicators
INFLATION
13.8% 2011-2012
10.8% 2012-2013
8.7% 2013-14
Money and credit
14% in 2011-12
10% in 2012-2013
10% till Nov and 9.5% in last 2 months of 2014
Presented to Sir Wasim Abbas Shaheen

6. Non-life Insurance Sector Introduction
 There are 30 registered companies operating in non-life
insurance sector according to 2011 data release by SECP
 The Pakistani non-life insurance segment recorded robust
growth during the review period (2008-12)
 Reason of growth
 increasing levels of risk awareness and risk avoidance
knowledge among consumers
 positive economic outlook and favorable government
regulations for the segment
 Due to security issues
Presented to Sir Wasim Abbas Shaheen

7. Companies Introduction
Adamjee insurance company
Adamjee Insurance Company Ltd. [AIC] established in 1960
It is the leader amongst 30 general insurance companies and
commands a 38% market share
1000 employees at its 84 branches all over Pakistan
Product and services
Engineering Insurance
Fire & Property Insurance
Retail Insurance
Marine Insurance
Financial Lines Insurance
Motor Insurance
Presented to Sir Wasim Abbas Shaheen

8. COMPANIES INTRODUCTION
ATLAS INSURANCE COMPANY
The Company was founded in 1934 by Dr. Sir Muhammad Iqbal, the
founder thinker of Pakistan
The Company was taken over by the Atlas Group in 1980
PRODUCT AND SERVICES
Fire Insurance
Marine Insurance
Motor Insurance
Atlas Insurance Health Plan
Money Insurance
Presented to Sir Wasim Abbas Shaheen

9. LITERATURE REVIEW
 Five definitions for each tools used in analysis of
financial statements and five definitions for their sub
items.
 Main source of literature review
 Books
 Web
 Articles
 Our literature review based on
 Books
 web
Presented to Sir Wasim Abbas Shaheen

10. METHODOLOGY
Tools used
 Horizontal analysis
 Vertical analysis
 Ratio analysis
Objectives of the tools
 Converting financial data into some useful information for further decision
making
 Judge the present and future profitability
 Judge the operational efficiency
 Judge the short-term and long-term solvency
 Make a comparative study within inter-firm, within inter-department, to
assess a firm’s financial health
Presented to Sir Wasim Abbas Shaheen

11. METHODOLOGY
Reason to use the tools
• Horizontal analysis is used to measure the percentage
change and amount change in different items of balance
sheet and income statement by comparing series
financial years
• Vertical analysis is used to measure the percentage of
different items of balance sheet and income statement to
their respective base amount
• Ratio analysis is used to compare the relationship
between different items of balance sheet to measure
liquidity, activity, solvency and profitability of a firms
Presented to Sir Wasim Abbas Shaheen

12. METHODOLOGY
Significance of tools
 The horizontal analysis of financial statements are good in
determining performance of companies and are a great tool in
deciding factors for management of all level
 The importance ofvertical analysis is that it makes comparisons
between companies of different sizes within the same industry
easier to prepare. It also allows a company to weigh its current
reports against reports from its past, revealing possible trends
or areas that need improvement
 Ratio analysis
 Measures Liquidity Position
 Measures operational Efficiency
 Measures Profitability
 Trend Analysis
Presented to Sir Wasim Abbas Shaheen

13. Horizontal Analysis
Assets Liability and Owner Equity
Inc/Dec % Inc/Dec Inc/Dec % Inc/Dec Inc/Dec % Inc/Dec Inc/Dec % Inc/Dec
cash and other assets 58 580.00% 44 64.71% Share capital and revenues
current and other accounts 227,364 416.56% (119,894) -42.52% Authorized share capital 300,000 60.00% - 0.00%
Depositing Maturing with in twelve Months - 0.00% - 0.00% (50,000,000 ) odinary shares of Rs 10 each - 0.00% - 0.00%
227,422 416.59% (119,850) -42.50% Issued, subscribed and paidup capital 88,588 20.00% 106,305 20.00%
Loans to employee secured considered goods 53 45.30% (8) -4.71% (44,293,800) ordinary shares of Rs 10 each - 0.00% - 0.00%
Investment 166,630 15.30% 294,486 23.45% Reserves 36,000 13.58% 43,000 14.28%
Deferred taxation (1,297) -12.67% 11,316 126.56% Retained earnings 60,454 20.02% 93,765 25.88%
Current Assets others - 0.00% - 0.00% 185,042 18.32% 243,070 20.34%
Premium due but Unpaid (84,109) -26.79% 30,330 13.20% Underwriting Provisions - 0.00% - 0.00%
Amount due from others insurance/reinsurance (14,504) -12.79% 11,673 11.80% Provision for outstanding claims (58,602) -22.58% 108,617 54.06%
salvage recovries accured 5,165 153.26% (1,725) -20.21% Provision for unearned premium 332,149 74.93% (42,565) -5.49%
Accured investment income 1,455 109.56% (2,435) -87.50% commission income unearned 21,940 47.43% (5,270) -7.73%
Reinsurance recovries against outstanding claims (32,236) -21.00% 115,209 95.02% Total underwriting provision 295,487 39.45% 60,782 5.82%
Deferred commission expense 44,424 194.03% (3,647) -5.42% - 0.00% - 0.00%
prepayments 279,772 110.45% 615 0.12% Creditiors and Accurals - 0.00% - 0.00%
Taxation-payments less provision 6,387 0.00% (6,387) -100.00% premium receive in advance 2,814 102.03% 2,480 44.51%
Sundary receivables 3,778 24.76% (5,097) -26.78% Amount due to other insures / reinsurers 87,994 51.84% (21,080) -8.18%
210,132 23.96% 138,536 12.74% Accured expenses 3,461 6.71% 21,981 39.93%
Fixed Assets - 0.00% - 0.00% Taxation provission less payments (11,193) -100.00% 30,488 0.00%
Tangible - 0.00% - 0.00% Others creditors and Accurals 54,015 88.26% (37,345) -32.41%
Freehold land - 0.00% - 0.00% 137,091 46.24% (3,476) -0.80%
Building on freehold land (654) -5.00% (622) -5.00% Others liabilities - 0.00% - 0.00%
Furniture and fixtures 723 29.16% (265) -8.28% Deposit Against performance Bonds 474 25.12% 7,092 300.38%
office equipmenst 6,423 119.72% (1,227) -10.41% Unclaimed devidens 4,364 21.02% 6,725 26.77%
Computers owned 1,788 39.52% 1,308 20.72% 4,838 21.36% 13,817 50.27%
Motor vechiles - owned 11,804 62.55% (10,914) -35.58% - 0.00% - 0.00%
20,084 44.15% (11,720) -17.87% - 0.00% - 0.00%
Intangible - 0.00% - 0.00% - 0.00% - 0.00%
computer software (566) -39.94% 1,433 168.39% Total liabilities 437,416 40.95% 71,123 4.72%
- 0.00% - 0.00% - 0.00% - 0.00%
Total Assets 622,458 29.95% 314,193 11.63% Total Equity and liabilities 622,458 29.95% 314,193 11.63%
Atlas Insurance company
Horizontal analysis of Balance sheets
for the year ended 31st dec 2011, 2012 & 2013
(Rupees in thousands)
2012 20132012 2013
(Rupees in thousands)
Presented to Sir Wasim Abbas Shaheen

14. Horizontal Analysis of Profit & Loss
.
Inc/Dec % Change Inc/Dec % Change
Net premium revenue 12,327 2.08% 152,068 25.19%
Net claims 20,057 -13.08% (30,181) 22.65%
Expenses (6,602) 2.90% (70,449) 30.09%
Net commission 11,810 27.41% 278 0.51%
Under writing results 37,592 14.82% 51,716 17.76%
Investment income 47,120 35.28% 65,707 36.36%
Rental income 128 2.41% 1,070 19.64%
Other income (20,881) -63.30% 13,156 108.68%
Financila charges (43) 10.14% 30 -6.42%
General and adminestration expense (376) 1.51% (7,731) 30.52%
25,948 17.71% 72,232 41.89%
- 0.00% - 0.00%
Profit before taxation 63,540 15.88% 123,948 26.73%
Provision for taxation (2,491) 2.52% (30,192) 29.77%
profit after taxation 61,049 20.27% 93,756 25.88%
- -
profit and loss appropriation account - 0.00% - 0.00%
- 0.00% - 0.00%
Balnce at commencement year 58,699 24.13% 59,966 19.86%
Profit after taxation for the year 61,049 20.27% 93,756 25.88%
final dividend for 2010 @ 4 /share (2009: Rs 4/share) (29,529) 20.00% (35,435) 20.00%
Transfer to general reserve (15,000) 71.43% (7,000) 19.44%
Transfer to reserve for issue of bonuse share (14,765) 20.00% (17,717) 20.00%
- 0.00% - 0.00%
Balance unappropriated Profit at the end of year 60,454 20.02% 93,570 25.82%
- -
Basic and dialuted earning/ share _ Rupees - 0.00% - 0.00%
(Rupees in thousands)
2012 2013
Atlas Insurance company
Horizontal Analysis of Profit and loss account
for the year ended 31 dec 2012 & 2013
Presented to Sir Wasim Abbas Shaheen

15. Vertical Analysis of B-S
Assets 2011 2012 2013 Liabilites and owner Equity 2011 2012 2013
(Rupees in thousand) (Rupees in thousands)
cash and other assets 0.00% 0.00% 0.00% Share capital and revenues
current and other accounts 2.63% 10.44% 5.38% Authorized share capital 24.06% 29.62% 26.54%
Depositing Maturing with in twelve Months 0.00% 0.00% 0.00% (50,000,000 ) odinary shares of Rs 10 each 0.00% 0.00% 0.00%
2.63% 10.44% 5.38% Issued, subscribed and paidup capital 21.31% 19.68% 21.16%
Loans to employee secured considered goods0.01% 0.01% 0.01% (44,293,800) ordinary shares of Rs 10 each 0.00% 0.00% 0.00%
Investment 52.42% 46.50% 51.43% Reserves 12.76% 11.15% 11.41%
Deferred taxation 0.49% 0.33% 0.67% Retained earnings 14.53% 13.42% 15.13%
Current Assets others 48.60% 44.25% 47.70%
Premium due but Unpaid 15.11% 8.51% 8.63% Underwriting Provisions
Amount due from others insurance/reinsurance5.46% 3.66% 3.67% Provision for outstanding claims 12.49% 7.44% 10.27%
salvage recovries accured 0.16% 0.32% 0.23% Provision for unearned premium 21.33% 28.71% 24.31%
Accured investment income 0.06% 0.10% 0.01% commission income unearned 2.23% 2.53% 2.09%
Reinsurance recovries against outstanding claims7.39% 4.49% 7.84% Total underwriting provision 36.04% 38.68% 36.66%
Deferred commission expense 1.10% 2.49% 2.11%
prepayments 12.19% 19.74% 17.70% Creditiors and Accurals
Taxation-payments less provision 0.00% 0.24% 0.00% premium receive in advance 0.13% 0.21% 0.27%
Sundary receivables 0.73% 0.70% 0.46% Amount due to other insures / reinsurers 8.17% 9.54% 7.85%
42.20% 40.26% 40.66% Accured expenses 2.48% 2.04% 2.55%
Fixed Assets Taxation provission less payments 0.54% 0.00% 1.01%
Tangible Others creditors and Accurals 2.94% 4.27% 2.58%
Freehold land 0.06% 0.04% 0.04% 14.27% 16.06% 14.27%
Building on freehold land 0.63% 0.46% 0.39% Others liabilities
Furniture and fixtures 0.12% 0.12% 0.10% Deposit Against performance Bonds 0.09% 0.09% 0.31%
office equipmenst 0.26% 0.44% 0.35% Unclaimed devidens 1.00% 0.93% 1.06%
Computers owned 0.22% 0.23% 0.25% 1.09% 1.02% 1.37%
Motor vechiles - owned 0.91% 1.14% 0.66%
2.19% 2.43% 1.79%
Intangible
computer software 0.07% 0.03% 0.08% Total liabilities 51.40% 55.75% 52.30%
Total Assets 100.00% 100.00% 100.00% Total Equity and liabilities 100.00% 100.00% 100.00%
Atlas Insurance company
Vertical Analysis of Balance sheets
As on 31st of dec 2011, 2012 & 2014
Presented to Sir Wasim Abbas Shaheen

16. Vertical Analysis of Profit & loss
. 2011 2012 2013
(Rupees in thousands)
Net premium revenue 100.00% 100.00% 100.00%
Net claims -25.93% -22.07% -21.63%
Expenses -38.47% -38.78% -40.30%
Net commission 7.29% 9.09% 7.30%
Under writing results 42.89% 48.24% 45.38%
Investment income 22.59% 29.93% 32.61%
Rental income 0.90% 0.90% 0.86%
Other income 5.58% 2.01% 3.34%
Financila charges -0.07% -0.08% -0.06%
General and adminestration expense -4.22% -4.20% -4.38%
24.78% 28.57% 32.38%
Profit before taxation 67.66% 76.81% 77.75%
Provision for taxation -16.73% -16.80% -17.41%
profit after taxation 50.93% 60.01% 60.34%
profit and loss appropriation account
Balnce at commencement year 41.13% 50.02% 47.89%
Profit after taxation for the year 50.93% 60.01% 60.34%
final dividend for 2010 @ 4 /share (2009: Rs 4/share) -24.97% -29.35% -28.13%
Transfer to general reserve -3.55% -5.96% -5.69%
Transfer to reserve for issue of bonuse share -12.49% -14.68% -14.07%
Balance unappropriated Profit at the end of year 51.06% 60.03% 60.33%
Basic and dialuted earning/ share _ Rupees 0.00% 0.00% 0.00%
Atlas Insurance company
Vertical Analysis of Profit and Loss Account
for the year ended 2011, 2012 & 2013
Presented to Sir Wasim Abbas Shaheen

17. Adamjee Insurance company
Horizontal analysis of balance sheet
Liabilities and owners Equity ASSETS
Inc/Dec % Inc/Dec Inc/Dec % Inc/Dec Cash and bank deposits Inc/Dec % Inc/Dec Inc/Dec % Inc/Dec
Share capital and reserves Cash and other equivalents 3,331 278% (20,397) -94.44%
Authorized share capital 2,250,000 150.00% 0 0.00% Current and other accounts (6,406) -0.38% 178,296 11.68%
Deposits meturing with in
twelve months 129,817 12.65% 68,679 7.17%
Paid-up share capital 2,262,955 182.93% - - 126,742 4.64% 226,578 9.04%
Retained earnings (746,073) -8.40% 252,935 2.93% Loans - -
Reserves (25,798) -2.27% 111,138 10.86% To Employees 3,360 26.27% (4,384) -25.53%
(771,871) -7.70% 364,073 3.77% Investments 4,238,999 36.60% 1,624,931 16.32%
Equity Attributable to equity
holders of parent 1,491,084 13.25% 364,073 3.34% - -
Non controlling intrest (6,188) -21.42% (48,859) -62.84% Deffered Taxation (139,719) -56.55% 45,461 22.55%
Total Equity 1,484,896 13.16% 315,214 2.87% Current Assets - others - -
Premiums due but un paid (543,263) -16.89% (381,698) -10.61%
Balance of stature funds
Amount due from other
insurers / reinsurers 488,355 80.51% (73,072) -10.75%
{including policy holdres
liabilities of Rs 4,824.672 mill 2,842,653 140.89% 1,508,103 295.95% salvage Recovries accured 10,032 5.91% 3,953 2.39%
Premium and claim reserves
retained by cedents - 0.00% - 0.00%
undrerwriting provisions Accured investment income 3,505 13.17% (13,917) -34.33%
Provisions for
outstanding claims 994,191 15.50% 836,290 15.00%
Reinsurence recovries
against outstanding claims 1,244,199 28.73% 530,863 13.97%
Provisions for unearned 83,538 2.11% (367,053) -8.48% Taxation - payments less (5,702) -6.12% 80,106 615.06%
Commission income (131,095) -41.85% (58,408) -15.71% Deffered commisiion (31,554) -7.47% (50,196) -10.63%
946,634 8.86% 410,829 4.00% Prepayments 37,968 2.17% (296,536) -14.52%
Deferred liabilities Sundary Receivables (2011: (3,471) -1.66% 1,380 0.67%
Staff retairments benefit 18,465 49.00% 11,229 42.44% 1,200,069 11.07% (199,117) -1.80%
Creditors and accurals
Fixed assets - tengible and
intengible owned - -
Premium receive in 100,792 78.66% 39,983 45.35% land and buildings (18,843) -4.06% 192,319 70.78%
Amount due to other 157,783 31.26% (698,847) -58.06% furniture and fixtures 41,824 36.58% 37,672 49.14%
Accured expenses (4,976) -4.15% (41,178) -25.57% Motor vechiles 48,061 21.46% 6,103 2.80%
Other creditors and (7,300) -0.42% 219,843 14.50% Mechinary and Equipments 16,866 16.94% (114,357) -53.46%
246,299 9.90% (480,199) -16.17% Computers and related 4,159 8.26% (7,003) -12.21%
Borrowings Intengible asset - computers 22,589 36.92% 2,290 3.89%
Liabiliities against Assets
subject to finance lease (18,304) -73.25% (33,580) -57.34%
Capital work in progress
Tengible (2,545) -2.77% (41,523) -31.13%
Other liabilities 112,111 10.14% 75,501 7.33%
Unclaimed dividends 2,117 5.95% 2,063 6.16% leased - -
TOTAL LIBILITIES 1,195,211 9.00% (89,658) -0.67% Motor vechiles (18,802) -35.86% (35,311) -40.25%
TOTAL EQUITY AND 5,522,760 20.78% 1,733,659 6.98% TOTAL ASSETS 5,522,760 20.78% 1,733,659 6.98%
2013 2012 2013 2012
Presented to Sir Wasim Abbas Shaheen

18. Horizontal Analysis of Profit & Loss
REVENUE ACCOUNT
Inc/Dec % Inc/Dec Inc/Dec % Inc/Dec
Net premium revenue 1,956,826 24.89% 87,124 1.12%
Net claims -Restated 202,676 -4.72% 481,176 -10.07%
Expenses (23,367) 1.31% (388,554) 27.74%
Net commission (308,018) 31.59% (110,925) 12.83%
Net investment income - statutary refunds 162,357 105.08% 131,703 577.59%
Add : Policy Holders liability at begning of the years 1,475,113 307.60% 380,083 382.07%
Less : Policy holders liability at the end of the years (2,869,996) 146.83% (1,475,114) 307.60%
Capital constribution from share holders' fund (107,094) -75.94% (43,428) -23.54%
surplus of policy holders fund 60,334 -182.89% (2,968) 9.89%
Under writing Rsults 548,831 -133.12% (940,903) -177.99%
- -
Investment income - others 1,269,031 113.70% 352,583 46.18%
Rental income 4,402 807.71% (112) -17.05%
other income (15,647) -9.46% 6,798 4.29%
1,806,617 207.70% (581,634) -40.07%
- -
General and Adminestration Expense (28,332) 6.59% 1,147,636 -72.74%
Exchange gain / (loss) 7,857 281.41% 2,402 615.90%
Finance charge on lease libilities 3,800 -68.09% 9,598 -63.23%
Share of profit from Associated companies (47,627) -100.00% (170,983) -78.21%
Profit before tax 1,742,315 359.51% 407,019 524.43%
Provision for taxation (205,622) 477.27% (213,921) -125.22%
Profit after tax 1,536,693 348.02% 193,098 77.72%
Profit attributable to : - -
Equity holders of parent 1,536,328 350.37% 198,354 82.60%
Non controlling intrest 365 11.94% (5,256) -63.23%
1,536,693 348.02% 193,098 77.72%
Profit and loss appropriation Account - parent
company - -
- -
- -
Balance at the commencement of the year 198,886 2.30% (69,124) -0.79%
profit after tax for the year attributable to equity
holders of the parent 1,536,328 350.37% 198,354 82.60%
Final dividends for the year ended 31st dec 2010 @
15% Rs 1.5/share (123,705) 185,557 -100.00%
Issue of the bonus share for the year ended 31st
dec 2010 nil (2009 : 10%) - -
Interium dividend @10% (Rs 1/share) (123,705) 66.67% (61,852) 50.00%
issue of bonus share @182.93% (2012: nill) (2,262,955) -
other comprehensive income : remeasurment of
defined benefit obligation-Restated 29,078 -
Balance unappropriated Profit at the end of the year (746,073) -8.40% 252,935 2.93%
- -
Earning per share 2 59.32% 2 82.47%
2013 2012
Presented to Sir Wasim Abbas Shaheen

19. Vertical Analysis of Balance Sheet
Liabilities and owners Equity 2013 2012 2011 ASSETS 2013 2012 2011
Cash and bank deposits
Share capital and reserves Cash and other equivalents 0.01% 0.00% 0.09%
Authorized share capital 11.68% 5.64% 6.04% Current and other accounts 5.29% 6.42% 6.15%
Deposits meturing with in twelve
months 3.60% 3.86% 3.85%
Paid-up share capital 10.90% 4.65% 4.98% 8.91% 10.28% 10.09%
Retained earnings 25.36% 33.43% 34.75% Loans
Reserves 3.45% 4.27% 4.12% To Employees 0.05% 0.05% 0.07%
28.81% 37.70% 38.87% Investments 49.29% 43.58% 40.08%
Equity Attributable to equity holders
of parent 39.71% 42.35% 43.84% 0.00% 0.00% 0.00%
Non controlling intrest 0.07% 0.11% 0.31% Deffered Taxation 0.33% 0.93% 0.81%
Total Equity 39.78% 42.46% 44.16% Current Assets - others
Premiums due but un paid 8.33% 12.10% 14.49%
Balance of stature funds
Amount due from other insurers /
reinsurers 3.41% 2.28% 2.74%
{including policy holdres liabilities of
Rs 4,824.672 mill (2012:RS 1,954.675
mill)} 15.14% 7.59% 2.05% salvage Recovries accured 0.56% 0.64% 0.67%
Premium and claim reserves retained by
cedents 0.07% 0.09% 0.09%
undrerwriting provisions Accured investment income 0.09% 0.10% 0.16%
Provisions for outstanding claims
(including IBNR) 23.07% 24.13% 22.44%
Reinsurence recovries against outstanding
claims 17.37% 16.29% 15.29%
Provisions for unearned premium 12.60% 14.90% 17.42% Taxation - payments less provision 0.27% 0.35% 0.05%
Commission income unearned 0.57% 1.18% 1.50% Deffered commisiion expense 1.22% 1.59% 1.90%
36.24% 40.21% 41.36% Prepayments 5.56% 6.57% 8.22%
Deferred liabilities Sundary Receivables (2011: restated) 0.64% 0.79% 0.83%
Staff retairments benefit 0.17% 0.14% 0.11% 37.52% 40.80% 44.45%
Creditors and accurals
Fixed assets - tengible and intengible
owned
Premium receive in advance 0.71% 0.48% 0.35% land and buildings 1.39% 1.75% 1.09%
Amount due to other insurers/
reinsurers 2.06% 1.90% 4.84% furniture and fixtures 0.49% 0.43% 0.31%
Accured expenses 0.36% 0.45% 0.65% Motor vechiles 0.85% 0.84% 0.88%
Other creditors and Accurals-
Restated 5.39% 6.53% 6.10% Mechinary and Equipments 0.36% 0.37% 0.86%
8.52% 9.36% 11.95% Computers and related accessories 0.17% 0.19% 0.23%
Borrowings Intengible asset - computers softwares 0.26% 0.23% 0.24%
Liabiliities against Assets subject
to finance lease 0.02% 0.09% 0.24% Capital work in progress Tengible 0.28% 0.35% 0.54%
Other liabilities 3.79% 4.16% 4.15%
Unclaimed dividends 0.12% 0.13% 0.13% leased
TOTAL LIBILITIES 45.08% 49.95% 53.79% Motor vechiles 0.10% 0.20% 0.35%
TOTAL EQUITY AND LIBILITIES 100.00% 100.00% 100.00% TOTAL ASSETS 100.00% 100.00% 100.00%
(Rupees in thousand) (Rupees in Thousand)
Presented to Sir Wasim Abbas Shaheen

20. Vertical Analysis of Income Statement
REVENUE ACCOUNT 2013 2012 2011
Net premium revenue 100.00% 100.00% 100.00%
Net claims -Restated -41.70% -54.66% -61.46%
Expenses -18.46% -22.76% -18.01%
Net commission -13.07% -12.40% -11.12%
Net investment income - statutary
refunds 3.23% 1.97% 0.29%
Add : Policy Holders liability at begning
of the years 19.91% 6.10% 1.28%
Less : Policy holders liability at the end
of the years -49.13% -24.86% -6.17%
Capital constribution from share
holders' fund 0.35% 1.79% 2.37%
surplus of policy holders fund 0.28% -0.42% -0.39%
Under writing Rsults 1.39% -5.24% 6.80%
Investment income - others 24.29% 14.20% 9.82%
Rental income 0.05% 0.01% 0.01%
other income 1.53% 2.10% 2.04%
27.26% 11.06% 18.67%
General and Adminestration Expense -4.67% -5.47% -20.29%
Exchange gain / (loss) 0.11% 0.04% 0.01%
Finance charge on lease libilities -0.02% -0.07% -0.20%
Share of profit from Associated
companies 0.00% 0.61% 2.81%
Profit before tax 22.68% 6.16% 1.00%
Provision for taxation -2.53% -0.55% 2.20%
Profit after tax 20.15% 5.62% 3.20%
Profit attributable to : 0.00% 0.00% 0.00%
Equity holders of parent 20.11% 5.58% 3.09%
Non controlling intrest 0.03% 0.04% 0.11%
20.15% 5.62% 3.20%
Profit and loss appropriation Account -
parent company
Balance at the commencement of the
year 89.94% 109.79% 111.91%
profit after tax for the year attributable
to equity holders of the parent 20.11% 5.58% 3.09%
Final dividends for the year ended 31st
dec 2010 @ 15% Rs 1.5/share -1.26% 0.00% -2.39%
Issue of the bonus share for the year
ended 31st dec 2010 nil (2009 : 10%) 0.00% 0.00% 0.00%
Interium dividend @10% (Rs 1/share) -3.15% -2.36% -1.59%
issue of bonus share @182.93% (2012:
nill) -23.05% 0.00% 0.00%
other comprehensive income :
remeasurment of defined benefit
obligation-Restated 0.30% 0.00% 0.00%
Balance unappropriated Profit at the
end of the year 82.89% 113.01% 111.02%
Rupees Rupees Rupee
Earning per share 0.00% 0.00% 0.00%
Profit and loss for the years ended 31st dec
2011 2012 2013
Presented to Sir Wasim Abbas Shaheen

21. Ratio Analysis
• Liquidity Ratio
• Activity Ratio
• Leverage Ratio
• Profitability Ratio
• Market Ratio
Presented to Sir Wasim Abbas Shaheen

22. Liquidity Ratio
companies 2011 2012 2013 Average
Atlas Inc company 2.56 2.17 2.49 2.40
Adam jee Inc company 3.72 4.36 4.40 4.16
Average 3.14 3.26 3.44 3.28
Current Ratio
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Atlas Inc
company
Adam jee Inc
company
Average
companies 2011 2012 2013 Average
Atlas Inc company 2.56 2.17 2.49 2.40
Adamjee Inc company 3.72 4.36 4.40 4.16
Average 3.14 3.26 3.44 3.28
CurrentRatio
0.00
1.00
2.00
3.00
4.00
5.00
Atlas Inc
company
Adam jee Inc
company
Average
Presented to Sir Wasim Abbas Shaheen

23. Activity Ratio
companies 2011 2012 2013 Average
Atlas Inc company 38.76 35.21 45.84 40
Adam jee Inc company 37.49 37.78 37.49 38
Average 38 36 42 39
Account receivable Turn over
companies 2011 2012 2013 Average
Atlas Inc company 9.42 10.37 7.96 9
Adam jee Inc company 9.60 9.53 7.59 9
Average 10 10 8 9
Average Collection Period
companies 2011 2012 2013 Average
Atlas Inc company 37.78 53.34 46.63 46
Adam jee Inc company 70.21 74.47 63.52 69
Average 54 64 55 58
Average payment period
0.00
20.00
40.00
60.00
80.00
Atlas Inc
company
Adam jee
Inc
company
Average
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Atlas Inc
company
Adam jee Inc
company
Average
0.00
10.00
20.00
30.00
40.00
50.00
Atlas Inc
company
Adam jee Inc
company
Average
Presented to Sir Wasim Abbas Shaheen

24. Cont….
companies 2011 2012 2013 Average
Atlas Inc company 9.42 10.37 7.96 9
Adam jee Inc company 9.60 9.53 7.59 9
Average 10 10 8 9
Operating cycle
0.00
5.00
10.00
15.00
Atlas Inc
company
Adam jee Inc
company
Average
companies 2011 2012 2013 Average
Atlas Inc company -28.36 -42.97 -38.67 -37
Adam jee Inc company -60.61 -64.94 -39.84 -55
Average -44 -54 -39 -46
Cash Conversion Cycle
-80.00
-60.00
-40.00
-20.00
0.00 Atlas Inc
company
Adam jee Inc
company
Average
companies 2011 2012 2013 Average
Atlas Inc company 0.28 0.22 0.25 0.25
Adam jee Inc company 0.31 0.59 0.33 0.41
Average 0.30 0.41 0.29 0.33
TotalAssets turn over
0.00
0.20
0.40
0.60
0.80
Atlas Inc
company
Adam jee Inc
company
Average
Presented to Sir Wasim Abbas
Shaheen

25. Leverage Ratio
2011 2012 2013 Average
Atlas insurance co 2.171 0.000 0.000 0.724
Adam jee insurance co 1.384 1.354 0.667 1.135
Average 1.777 0.677 0.334 0.929
Debt to equity ratio
2011 2012 2013 Average
Atlas insurance co 0.51 1.00 1.00 0.84
Adam jee insurance co 0.54 0.52 0.47 0.51
Average 0.52 0.76 0.74 0.67
Debt ratio
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Atlas
insurance co
Adam jee
insurance co
Average
0.000
0.500
1.000
1.500
2.000
2.500
Atlas
insurance co
Adam jee
insurance co
Average
Presented to Sir Wasim Abbas Shaheen

26. ProfitabilityRatios
2011 2012 2013 Average
Atlas insurance co 45.38% 0.00% 0.00% 15.13%
Adam jee insurance co 6.80% -5.24% 1.39% 0.98%
Average 26.09% -2.62% 0.70% 8.05%
Gross Profit Margin
2011 2012 2013 Average
Atlas insurance co 51.06% 60.03% 60.33% 57.14%
Adam jee insurance co 3.20% 5.62% 20.15% 9.65%
Average 27.13% 32.82% 40.24% 33.40%
Net Profit Margin
-50.00%
0.00%
50.00%
2011 2012 2013 Average
Gross Profit Margin
Atlas insurance co Adam jee insurance co
Average
0.00%
50.00%
100.00%
2011 2012 2013 Average
Net Profit Margin
Atlas insurance co Adam jee insurance co Average
Presented to Sir Wasim Abbas Shaheen

27. Cont..
2011 2012 2013 Average
Atlas insurance co 28.45% 25.26% 26.44% 26.72%
Adam jee insurance co 31.30% 1.72% 6.74% 13.25%
Average 29.87% 13.49% 16.59% 19.99%
Retun on Assets
2011 2012 2013 Average
Atlas insurance co 29.90% 32.87% 34.63% 32.47%
Adam jee insurance co 2.57% 4.49% 47.22% 18.09%
Average 16.23% 18.68% 40.93% 25.28%
Return on Equity
0.00%
20.00%
40.00%
2011 2012 2013 Average
Return on Assets
Atlas insurance co Adam jee insurance co
Average
0.00%
20.00%
40.00%
60.00%
2011 2012 2013 Average
Return on Equity
Atlas insurance co Adam jee insurance co Average
Presented to Sir Wasim Abbas Shaheen

28. Market Value Ratio
2011 2012 2013 Average
Atlas insurance co 3.26 3.90 4.65 3.94
Adam jee insurance co 2.465 1.48 1.231 1.73
Average 2.86 2.69 2.94 2.83
Dividend per share
2011 2012 2013 Average
Atlas insurance co 6.82 6.82 7.15 6.93
Adam jee insurance co 2 4 6 3.74
Average 4.41 5.19 6.40 5.34
Earning per share
2011 2012 2013 Average
Atlas insurance co 0.48 0.57 0.65 0.57
Adamjee insurance co 1.23 0.42 1.23 0.96
Average 0.85 0.49 0.94 0.76
Dividend payement ratio
0.00
1.00
2.00
3.00
4.00
5.00
2011 2012 2013 Average
Atlas insurance co
Adam jee insurance
co
Average
0.00
2.00
4.00
6.00
8.00 Atlas insurance co
Adam jee insurance
co
Average
0.00
0.50
1.00
1.50 Atlas insurance
co
Adam jee
insurance co
Average
Presented to Sir Wasim Abbas Shaheen

29. Cont….
2011 2012 2013 Average
Atlas insurance co 9.97 9.97 9.51 9.81
Adam jee insurance co 15.16 45.94 36.97 32.69
Average 12.57 27.95 23.24 21.25
Price or Earning ratio
0.00
10.00
20.00
30.00
40.00
50.00
2011 2012 2013 Average
Atlas insurance co
Adam jee insurance co
Average
Presented to Sir Wasim Abbas Shaheen

30. RECOMMENDATION
• Both the companies need to improve their liquidity positions
• Both companies should use more debt to reduce WACC.
• Cash conversion cycle of both the companies should near to
positive so that more people will trust
• Adamjee insurance company should increase it gross profit
margin by controlling the operating cost.
• Adamjee insurance company should increase its net profit
margin by reducing different administration cost.
• Both companies need to improve their average collection
period.Presented to Sir Wasim Abbas Shaheen

31. Presented to Sir Wasim Abbas Shaheen