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			Diff	Adjustment by client
						100,353,116	(100,353,116)	55000000
Other Operating Activities						135,842,074	135,842,074
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
		Imtiaz Kazi		Fazlur Rehman Dittu
		Director		Director
		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
		Imtiaz Kazi		Fazlur Rehman Dittu
		Director		Director