PAKISTAN REINSURANCE COMPANY LIMITED
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004
31 December  31 December 
2004 2003
Operating Cash Flows:
Underwriting activities
Premium received  5,332,194,986 3,319,463,561
Reinsurance premium paid (2,775,447,711) (1,795,523,594)
Claims paid (1,931,021,515) (1,435,339,332)
Reinsurance and other recoveries received 669,976,684 424,069,522
Commision paid (924,012,334) (288,853,461)
Commision received  126,050,833 69,381,108
Deposits received from/paid to ceding companies          (116,116,736) 13,700,535
Expenses paid (151,856,787) (140,446,444)
Net cash flows from underwriting activities 229,767,420 166,451,895
Other Operating Activities
Income tax paid             (80,788,670)                (9,428,926)
General management expenses paid (19,725,339) (16,451,741)
Loans recovered from employees               1,666,898                 1,582,943
Other receipts  6,354,057                80,577,634
Other payments - staff contribution            (23,187,000)              (19,477,000)
Net cash flows from other operating activities          (115,680,054)                36,802,910
Total cash flow from all operating activities           114,087,366              203,254,805
Investment activities
Fixed Capital expenditure              (1,849,856) (2,287,770)
Acquisition of investments       (1,039,770,510)              (19,213,641)
Rental income received             18,209,468                 9,984,700
Dividend income received           272,662,872              181,433,014
Interest income on bank deposits               2,559,108                 3,374,957
Investment income received           195,298,277              111,664,343
Sale proceeds of investments           317,648,301                            -  
Total cash flow from investment activities           (235,242,340)              284,955,603
Financing activities
Surplus paid                   (61,095) (523,008)
Dividend paid           (111,720,998)              (67,367,302)
Payments of finance leases              (1,879,085)                (1,577,160)
Total cash flows from financing activities          (113,661,178)              (69,467,470)
Net cash flow from all activities           (234,816,152)              418,742,938
Cash and cash equivalents at beginning of the year 549,610,334 130,867,396
Cash and cash equivalents at end of the year Rupees 314,794,182 549,610,334
Naheed Hyder
Maj (R) Muhammad Fazal Durrani
  Fazalur Rehman Dittu
Executive Director (F&A)
Cheif Executive
31 December  31 December 
2004 2003
Reconciliation to profit and loss account
Operating cash flows 114,087,366              203,254,805
Depreciation expense (8,135,228)                (8,968,482)
Exchange gain 25,078,440 9,878,673
Provision for doubtful debts/Litigation            (60,000,000) (49,976,338)
Amortization of deferred cost              (1,192,945) (596,472)
Rental income             27,192,029                11,899,686
Pension officers expense              (6,132,000)                (1,946,000)
Pension staff expense              (8,597,000)                (6,516,000)
Medical expense              (6,126,000)                (2,424,000)
Gratuity expense             14,405,000                 1,657,000
Leave encashment              (1,925,000)                (5,050,000)
Investment income           374,955,711              332,810,882
Amortisation of premium (17,319,229)                            -  
Gain on sale of investment (2,889,213)                            -  
(Decrease) / Increase in operating assets other than cash          (195,298,277)              253,961,286
(Increase) / Decrease in operating liabilities             58,075,000            (371,942,889)
306,178,654              366,042,151
Other adjustments:
Decrease / (Increase) in provision for diminution in
  value of investments               3,874,734                (9,175,378)
Income tax paid 80,788,670                 9,428,926
84,663,404                    253,548
Profit before taxation 390,842,058              366,295,699
Provision for taxation (65,306,312)              (69,000,000)
Profit after taxation Rupees           325,535,746              297,295,699
Cash and cash equivalents:
   Cash and other equivalent   83,229                      81,822
   Current and other accounts   313,010,953              547,828,512
   Deposit maturing within 12 months 1,700,000                 1,700,000
Rupees           314,794,182              549,610,334