Transmission of Quarterly Report for the Period Ended June 30, 2024

CONTENTS

Vision and Mission Statement and Core Values

Company Information

Director's Report to the Members on Financial Statements (English) Director's Report to the Members on Financial Statements (Urdu) Review Report

Financial Statements

VISION STATEMENT

PICIC Insurance shall emerge as the leading insurance and risk management services organization in Pakistan. We are in the business of providing solutions to mitigate insurable risk exposure of our clients. We shall do this on the basis of thorough risk evaluation and product knowledge.

MISSION STATEMENT

PICIC Insurance shall fully satisfy the needs and expectations of all its stakeholders:

• We shall put the interest of our clients first and ensure that they make informed decisions with respect to the products and services that we offer them.
• We shall give our employees a congenial work environment and shall give them opportunities for personal growth and development strictly on the basis of merit.
• We shall strive to continually provide above average returns to our shareholders.
• We shall support the development of the communities in which we live and work.

Company Information

Board of Directors

DIRECTORS' REPORT

The Directors would like to present the condensed interim un-audited financial statements of the Company for the six month period ended June 30, 2024.

Please note that the Company's external auditor's review of the financial statements was limited in scope.

For the 2nd quarter ended June 30, 2024, the Board's overall performance and effectiveness has been assessed as satisfactory, it is based on an evaluation of integral components, including vision, mission and values; engagement in strategic planning; monitor financial resource management. Improvement is an ongoing process leading to action plans.

The Company has stopped underwriting and is in the process of merger with Crescent Star Foods (Private) Limited which is pending before The High Court of Sindh. The Board has full confidence that once the merger is completed your company will unfold the Business Plan and strategy after approval from the Board.

Crescent Star Foods (Pvt.) Limited is in the process of merger with and into the Company which is pending approval by The Sind High Court. Further the Company has applied for surrender of its insurance license after which the Company will no longer remain in the insurance sector and rules and regulation of the Insurance Ordinance such as maintaining solvency etc. will not be applicable on the Company.

The management is confident that after the merger, the Company will have adequate resources to effectively enter a new phase with diversified interests to protect stake holders interest. The Company will unfold the Business Plan and strategy after the merger is approved enabling the Company to remain a going concern.

Future Plan

The management in confident that after the merger, the company will have adequate resources to effectively enter a new phase with diversified interests to protect stake holders interest

Financial Highlights

The comparative financial highlights of your Company for the half year ended June 30, 2024 are as follows:

Acknowledgement

The Board of Directors would like to express its sincere appreciation to the Company's valued clients, reinsurers, +- brokers, business partners and other stakeholders. The Board would also like to thank the Securities and Exchange Commission of Pakistan, the Stock Exchanges and the Central Depository Company for their continued guidance and support. The Company's accomplishments would not have been possible without the dedication and commitment of the Company's motivated & dedicated employees; they deserve special recognition on behalf of the Board.

Karachi

Date: August 20, 2024

INDEPENDENT AUDITORS' REVIEW REPORT

TO THE MEMBERS OF PICIC INSURANCE LIMITED

REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

Introduction:

We have reviewed the accompanying condensed interim statement of financial position of PICIC Insurance Limited ("the Company") as at June 30, 2024 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows and notes to the condensed interim financial statements for the six‐months period then ended (here‐in‐after referred to as the " condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with approved accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

The figures for the quarters ended 30 June 2024 and 30 June 2023 in the condensed interim statement of profit or loss account and other comprehensive income have not been subject to the review and therefore, we do not express a conclusion thereon.

Scope of Review:

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial statements Performed by the Independent Auditor of the Entity." A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Adverse Conclusion:

1. The Company is required to maintain minimum paid up capital of Rs. 500 million net of discount offered on issue of shares. Whereas the current paid‐up capital of the company amounts to Rs. 350 million only thus making it non‐compliant.
2. The minimum solvency requirement is Rs. 150 million. Whereas the company has negative minimum solvency of Rs. 14.72 million making it non‐compliant.
3. The company has discontinued the insurance business and applied for surrendering of its insurance license to the Securities & Exchange Commission of Pakistan (SECP). However, the application was rejected by SECP. Consequently, the company has filed a petition in

the Honorable High Court of Sindh against the order of SECP, which is still pending.

1. On July 06 2017, shareholders of the company had resolved to approve the scheme of merger of PICIC Insurance Limited and Crescent Star Foods (Private) Limited, a going concern. However, the merger process is pending sanction in the High Court.
2. The company earned profit of Rs. 7.344 million during the six months period ended June 30, 2024 resulting in accumulated loss of Rs. 365.094 million as on June 30, 2024 which has turned the equity into negative. Further, as of June 30, 2024 the Company's current liabilities have exceeded its current assets by Rs. 14.721 million and the operating cash flows of the Company are also negative since 2011.

The above circumstances, along with sizeable decline in business activities, indicate the existence of material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

Further, due to the matters stated in paragraph (a) to (e) above, the Company may not be able to realize its assets and discharge its liabilities in the normal course of business. However, as stated in Note 1.6, the financial statements have been prepared on a going concern basis. However, under the circumstances, management's use of the going concern assumption in the financial statements is considered inappropriate and the financial statements should have been prepared on realization basis.

Adverse Conclusion

Based on our review, due to significance of matter described in the preceding paragraph, the accompanying condensed interim financial information as at June 30, 2024 is not prepared in all material aspects, in accordance with approved accounting standards as applicable in Pakistan for Interim Financial Reporting.

The engagement partner on the review resulting in this independent auditor's review report is

Azeem Hussain Siddiqui.

Chartered Accountants

Karachi:

Date: 20th August, 2024

UDIN: RR202410232jSbe2Is6K