| Citation(s) |
|---|
| 2017 SLG 656 2017 SLD 656 2017 CLD 412 |
Securities and Exchange Commission of Pakistan
Appeal No. 50 of 2013, decided on 10th February, 2015, heard on: 21st January, 2015.
Irfan Ilyas, FCA, Ilyas Saeed & Co. Chartered Accounts, A. Rasheed Mirza, CEO, Asian Mutual Insurance Company (Guarantee) Limited and M. Faisal Rashid, Director, Asian Mutual Insurance Company (Guarantee) Limited for Appellant. Tariq Hussain, Director (I
Appeal No. 50 of 2013, decided on 10th February, 2015, heard on: 21st January, 2015.
Irfan Ilyas, FCA, Ilyas Saeed & Co. Chartered Accounts, A. Rasheed Mirza, CEO, Asian Mutual Insurance Company (Guarantee) Limited and M. Faisal Rashid, Director, Asian Mutual Insurance Company (Guarantee) Limited for Appellant. Tariq Hussain, Director (I
ASIAN MUTUAL INSURANCE COMPANY (GUARANTEE) LIMITED --Appellant
VS
DIRECTOR (INSURANCE) --Respondent
Law: Insurance Ordinance, 2000
Section: 36(3)(a),46(1)(b),51(1),156
Law: Securities and Exchange Commission (Insurance) Rules, 2002
Section: 16(1)(b)
Insurance Ordinance (XXXIX of 2000)--- ----Ss. 36(3)(a), 46(1)(b), 51(1) & 156---Securities and Exchange Commission (Insurance) Rules, 2002, R.16(1)(b)---Submission of Annual Audited Financial Statements to Commission---Insurance Company, in pursuance of Ss.46(1) & 51(1) of Insurance Ordinance, 2000, filed its Annual Audited Financial statement for the relevant year---Said statements of assets for solvency purposes, showed that company had taken all its available for sale investments at market value---Said statements, revealed that company had an investment property (Land and Building) amounting to Rs.9,180,000, which was previously revalued in the year 2004; and company had booked surplus on revaluation of Fixed Assets amounting to Rs.8,395,000---Company, had not carried out any revaluation of said property since the year 2004; and had not recorded any impairment in the value of said property, if any, which was required under R.16(1)(b) of the Securities and Exchange Commission (Insurance) Rules, 2002---Company, had not stated the carrying amount of the property at cost and, it appeared that company had chosen to follow the fair value model under IAS-40, which was against the provisions of R.16(1)(b) of Securities and Exchange Commission (Insurance) Rules, 2002---Company was required to revalue its investment property at least once in every financial year---Company, in circumstances, had contravened the requirements of the Rules read with S. 156 of Insurance Ordinance, 2000 relating to the recording and reporting of the investment properties---Company had admitted its default---Director Insurance of the Commission, dissatisfied with the response of the company in show-cause notice, vide impugned order imposed fine of Rs.100,000 on the company, with direction to reverse the statements; and book their Investment properties using cost model under IAS-40---Lenient view having already been taken in the matter under S.156 of the Insurance Ordinance, 2000 by not imposing the maximum penalty, appellate Bench declined interference. THIS ORDER PASSED BY: TAHIR MAHMOOD, COMMISSIONER (CLD):---.--- 1. This order is in Appeal No. 50 of 2013 filed under section 33 of…
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