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NATIONAL INSURANCE COMPANY LTD.

MINU I t::S BUOK

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KARACHI

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MINUTES OF THE 10TH MEETING OF THE BOARD OF DIRECTORS OF NATIONAL INSURANCE COMPANY LIMITED HELD ON 16TH MARCH, 2002 AT 0930 HOURS AT NIC HEAD OFFICE, KARACHI

Directors Present:

1. 2. 3. 4. 5.

Mr. M.A. Lodhi Mr. Abdul Karim Lodhi Mr. Fuad lshaq Mr. Orner Morshed Dr. Tariq Hassan

Chairman

Leave of Absence was granted to Mr. Ali Raza and Mr. M.S. I. Ghauri.

Mr. Wahid Baksh Mallah, Executive Director/Secretary Board was in attendance. The meeting commenced with recitation from Holy Quran.

1. TO APPROVE AND CONFIRM THE MINUTES OF THE 7TH & 8TH MEETINGS OF THE BOARD OF DIRECTORS OF THE NATIONAL INSURANCE COMPANY LTD. HELD ON 19TH & 20TH NOVEMBER, 2001 .

The draft minutes of the y!h & 81h meetings of the Board of Directors of NICL

already circulated to the Directors were reviewed by the Board. Some minor amendments were incorporated.

Thereafter Mr. Abdul Karim Lodhi proposed and Mr. Fuad lshaq seconded and the minutes were approved and the Chairman signed the same as token of confirmation.

2. TO CONSIDER FINAL REPORT OF MANAGEMENT CONSULTANTS REGARDING RESTRUCTURING OF NICL.

Mr. Waqar Hyder, representative of the Management Consultants was invited to continue with his presentation to the Board. He informed that the Management Consultants had presented their report about restructuring of NICL before the Board of Directors in its meeting held on 281

h May 2001 . In their final report they had submitted proposals regarding restructuring, staff strength divided into various departments, establishment of new departments like I.T., Marketing, Risk Management etc. and salary package of various categories of employees. As desired by the Board, the Consultants had made a comparison of salary structure of top 3 grades on Monetized Salary Package of contract employees with the package of existing regular employees as well as had assessed the present market rate of compensation for these levels which were as under:-

ED GM/CM Manager (a) Existing Monthly Package for 69,022 59,702 51 ,745

regular employees

(b) Existing Monetized Salary Package 90,000 60,000 45,000

(c) Monthly Package proposed by 112,500 75,000 56,250 Management Consultant for contract employees

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The Consultants suggested that in order to attract capable EDs, GMs/CMs and Managers from market, the NICL should offer proposed package. The Board, after some discussion decided that Chairman may continue to make appointments as per the Monetized Salary Package approved by it in its 5th meeting held on May 25, 2001. However, in case he feels that some candidate needs to be offered a higher start, such cases may be brought to the Board for specific approval.

3. TO REVIEW STAFF STRENGTH OF NICL AND ADOPT MEASURES TO FURTHER IMPROVE EFFICIENCY

Chairman apprised the Board that based on the recommendations of the Management Consultants and proposal of the management the Board in its meeting held on 28.5.2001 had approved staff strength of 486 (Officers 200, Staff 200 and non-clerical employees 86) and achieved reduction of 21 % from 613 approved in 1976 although the premium income and investment portfolio had tremendously increased over the years. He also stated that a large number of employees considered to be inefficient and d eadwood were eased out with the approval of the Board and in accordance with government directive. In order to fill the gap, employees were recruited on contract basis under the Monetized Salary Package Scheme as approved by the Board.

Chairman proposed that in order to further improve efficiency, employees appointed on contract basis with effect from 1st January 2001 onwards, subject to satisfactory performance, should be treated as regular employees under Monetized Salary Package i.e. they would not be entitled to pension and unlimited medical benefits and shall continue to be governed as per NICL Employees Service Regulations, 2001 in accordance with the decision of the Board in its meeting held on 19th & 20th November, 2001 . This would relieve them from the uncertainty of being contract employees as compared to regular employees which was also affecting NICL's ability to attract good professionals from the market.

The Board after some discussion came to the conclusion that those cases where the appointment letters issued on contract basis were open ended and were not for a specified period, be treated as regular employees to be governed by Service Regulations applicable to the employees recruited from January 01, 2001 onwards. They shall, however, not be entitled to pension, unlimited medical facility and post retirement medical benefits.

The Board re-emphasized need for expediting recruitment of technically qualified and professionally capable persons to safeguard the interests of the organization and advised Chairman to expedite filling of vacancies as per staff strength approved by the Board earlier.

4. TO CONSIDER AND APPROVE REVISED PAY SCALES AND ALLOWANCES TO OFFICERS OF NICL.

Chairman apprised the Board that salary structure of 1993 for NIC Officers was last revised with effect from 01.01.1998 allowing 17.5% to 35% increase in pay vide Finance Division (Regulation Wing) O.M.No.4(2)R-4/99 dated 23.12.1999. Now there was need for a review as cost of living has tremendously increased during the last four years. While making presentation Mr. Jamal Uddin Ansari, Executive Director(CS) stated that the salary structure of the Unionized Staff was revised/enhanced by more than 55% in the same period i.e. from 1995

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B. Furniture Works

S.No. Names of Short listed Amount Quoted Remarks Contractors

1 . M/s Adroit Furnishers Rs.3,283,220/- Lowest Islamabad

2. M/s New Era Furnishers, Rs.3,319,525/-Lahore

3. M/s officio Model Furnishers, Rs.3,664,850/-Lahore

4. M/s Furnishing Pavillion, lsi. Not Participated 5. M/s Asian Furniture Works, Not Participated

Lahore 6. M/s Gujrat Steel, Karachi Not Participated

B. Electrical Works (Including Telephone, Computer & Fire Alarm System)

S.No. Names of Short listed Amount Quoted Remarks Contractors

1. M/s AI Ameen Construction, Rs. 852,465/- Lowest Lahore

2. M/s Construction Techniques, Rs. 978,400/-Karachi

3. M/s Ziauddin Ahmed & Co. Rs. 987,757/-Karachi

4. M/s Highenss Group, Rs.1 , 777,793/-Rawalpindi

5. M/s Star Sam & Co. Karachi Not participated 6. Capital Builders, Karachi Not participated

Mr. Ansari also informed the Board that drawings and designs in respect of the above works were finalized through the courtesy of two of the honourable members of the Board - Mr. Abdul Karim Lodhi and Dr. Tariq Hassan during their visit of NIC Building Islamabad where they had carried out some modifications on 131

h floor. The two Directors had opined that while awarding the contracts, the interior designs of SECP and NCR offices in the same building should be kept in view so that NIC offices may not look odd. Subject to this condition, the Board approved a total maximum limit of Rs.8,046,465 based on the lowest tenders to be spent in accordance with the procedures laid down for capital expenditure.

14. TO DISCUSS NEW DESIGN OF LOGO OF NICL.

Mr. Jamal Uddin Ansari , Executive Director(CS) informed the Board that advertisement was placed in the newspapers on 24.09.2000 for designing the Logo of National Insurance Company Limited carrying prize money of Rs.1 0,000

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so as to replace the old Logo of National Insurance Corporation. The short listed designs were circulated among the Directors and subsequently placed before the Board in its 4th meeting held on 9.4.2001 . The Board however decided to invite fresh designs by offering increased prize money of Rs.50,000/- through publication in the newspapers and by approaching Schools of Art for bigger participation. Accordingly advertisement was placed in the newspapers on 8/6/2001 with copies endorsed to Schools of Art.

The Board reviewed various designs of Logo including those placed in its earlier meeting and selected the Logo given below and the following resolution was passed:-

"Resolved that the new Logo for NICL having Pakistan Map in green and words "NICL" in blue with globe in the background; surrounded by the words "National Insurance Company Limited" written in blue as per specimen given below, be and is hereby approved for adoption."

"Further Resolved that the rights to use this logo be purchased from the person who submitted this design by payment of Rs.1 0,000 (the prize money)."

Specimen

15. ANY OTHER ITEM WITH APRPOVAL OF THE CHAIRMAN.

REINSURANCE ARRANGEMENTS OF NICL

In response to a query from Mr. Omar Morshed regarding NICL's letter addressed to Federal Government providing Sovereign Indemnity in connection with Insurance/ Reinsurance of PIA, Chairman informed the Board that reply was received from Government stating that the matter would be discussed at appropriate level.

Chairman also apprised the Board that instructions from Ministry of Commerce contained in its letter No.1 (37)/2000-lns.ll dated 24th October 2001 rescinding SRO 146(1)2001 dated 8.3.2001 was received directing NICL to continue to reinsure with PRCL on generally acceptable terms and conditions, such portion of its insurance business as it could not retain on its own account as was being done previously in terms of SRO 909(1)2000 dated 30.12.2000 and SRO 98(1)2001 dated 14.2.2001 . It provided for the continuation of the business of NICL & PRCL to run on the same basis as it was being done prior to their corporatization. The matter was referred to SECP seeking its advice on the legal status of NICL in view of the fact that the NICL was incorporated under the Companies Ordinance 1984, National Insurance Corporation was converted into and its assets, liabilities and business taken over by the Company in accordance

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NATIONAL INSURANCE COMPANY L TO.

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with the provisions of NIC (Reorganization) Ordinance 2000. Securities & Exchange Commission of Pakistan had advised as under:-

Quote "The issues raised by NICL have since been examined and the

Commission's advice on these is as under:-

(i) NICL is required to obtain a certificate of registration, to carry on non-life insurance business in the country under Section 6 of the Insurance Ordinance, 2000. It may be clarified that NICL was exempted from obtaining the certificate of registration for a period of one year only, (i.e. , till 31st December, 2001) under sub-section (1) of Section 6 of the NIC (Reorganization) Ordinance, 2000.

(ii) NICL like other insurers is required, to follow the provisions of Section 41 of the Insurance Ordinance, 2000. Section-3 of the NIC (Reorganization) Ordinance, 2000 and Section-2 (b) of the Order of the Federal Government dated 30th December, 2000 do not, in any manner, relate to the provisions of Section 13 of the repealed NIC Act, 1976.

(iii) As stated under sub-para (ii) above, NICL has to meet all the requirements pertaining to its reinsurance arrangements laid down under Section 41 of the Insurance Ordinance, 2000.

(iv) The interpretation of the Ministry of Commerce contained in para-1 of their letter No.1 (37)/2000-lns.ll, dated 24th October, 2001 is clearly in conflict with Section 42 of the Insurance Ordinance, 2000 and, therefore, this being invalid not acceptable to the SEC." Unquote.

Chairman further informed the Board that an Internal Committee was also constituted to examine the issues with reference to provisions contained in the NIC (Reorganization) Ordinance 2000, Companies Ordinance 1984, Insurance Ordinance 2000 and other related Laws and SRO's etc. The Committee submitted its report confirming SECP's ruling. Similarly the legal opinion obtained from M/s Fakhruddin G. Ibrahim & Co. the Company's Corporate Legal Advisers stated that NICL would be governed in accordance with its Articles and Memorandum of Association, the Companies Ordinance 1984 and the Insurance Ordinance 2000. A copy of the report of the Committee along with the legal opinion etc. was circulated in the meeting for information of the Directors.

The matter was discussed at length and in view of the above the Board advised the management of NICL to continue following the directives of the Board regarding making reinsurance arrangement as per decisions taken in the 7'h & ath meetings of the Board held on 19th & 20th November, 2001 .

There being no other business the meeting adjourned with vote of thanks to the Chair.

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~.~ . ( M.A. LODHI ) CHAIRMAN l-6]-=1Jo1--'

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to 1998. Subsequently, in 1999 and 2001 Unionized Staff got further increase whereas, the pay of officers has not been revised. This resulted in overall gap of more than 100% including difference in amount of bonus and obvious disparity in the salaries of Unionized Staff being higher than officers of many cadres. So much so that even when they become eligible for promotion to officer's cadre, they forego the same to avoid monetary loss. Comparative statement of Pay Scales of officers of NICUPRCL (w.e.f. 1.1 .1998) and SLIC (w.e.f. 1.1 .2000), Unionized Staff as well as Monetized Salary Package was also presented.

The Board was further informed that Government of Pakistan had also revised pay scales and allowances for Government Servants with a minimum increase of 60% w.e.f. 1st December 2001 .

In order to mitigate the hardship, the previous management had allowed certain allowances e.g. Newspapers, House Maintenance and Canteen Subsidy etc. which needed to be withdrawn. He stated that State Life had done a comprehensive exercise and proposed pay scales and allowances which were based on the pay and allowances etc. already introduced in the State Life Insurance Corporation w.e.f. 01.01 .2000 for creating some balance in the pay and allowances of officers and staff and compensate them for the allowances proposed to be withdrawn.

The Board after detailed deliberations on the subject approved the proposals and passed the following resolution:-

"Resolved that Pay Scales and allowances for officers of NIC taken over by NICL as given below be and are hereby approved with effect from July 01 , 2002."

"Further Resolved that all such officers be allowed an increase of 50% in the existing gross salary and then be fixed in the new Pay Scales."

(a) Pay Scales Existing Pay Scales Revised Pay Scales

1. Asstt. Dept. Officer 3051-257-8191 4990-350-11990 2. Departmental Officer/EO 4362-335-1 0057 7200-490-15530 3. Assistant Manager 4900-373-1 0495 8970-610-18120 4. Deputy Manager 5454-417-11709 12630-640-22230 5. Manager 7825-431-14290 13660-680-23860 6. Chief Manager 7867-435-14392 15970-710-26620 7. General Manager - 18420-900-30120 8. Executive Director 10657-572-18093 21500-1 050-35150

(b) Allowances & Benefits

(I) Withdrawal i) All adhoc allowances and relief. ii) Move-over scheme. iii) COLA, LCA etc. iv) Newspapers and House Maintenance allowances. v) Canteen Subsidy and Orderly Allowance.

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(II) Revision in Allowances

(i) House Rent Allowance 40% of Basic Pay instead of existing 70%.

(ii) Utilities Allowance 10% of Basic Pay.

(iii) Entertainment Allowance 10% of Basic Pay.

(iv) Conveyance, Motorcycle/Car Maintenance Allowance (a) E.0./0.0 . to Dy. Manager 10% of Basic Pay. (b) Manager, Chief Manager/ Existing arrangements to

General Manager, E.D. continue i.e. Car as pe leasing policy with petro ceiling of 150, 200 & 25 litres respectively or th Company maintained car a the case may be.

(c) Technical Pay for Professional Qualifications

(i)

(ii)

Qualification ACII/ACMA/ACA

FCII/FCMA/FCA

Existing Rates Rs.1600 p.m.

Rs.2000 p.m.

Proposed Rates Rs.2500 p.m.

Rs.3000 p.m.

(d) Gratuity Scheme in lieu of Pension

(i) Pension Scheme

For past service upto 30th June, 2002 pension entitlement will b determined according to service upto that date and according to pa in force at that date. It will not be affected by pay increases after 30t June, 2002 or by service after 30th June, 2002. However, the pension calculated as above as at 30th June, 2002 will be increased each year upto the date of pension commencement by 1% p.a. less than the rate of investment return earned by the Pension Fund. Consequently, NICL will not make any further contribution to the Pension Fund in respect of officers governed under the revised package.

ILLUSTRATION:

For the purpose of elaboration, assume that the pension calculated as at 30.06.2002 for an officer was Rs.1 000, based on service on that date and pay as at that date. If in the year 2002-2003, the pension fund earns 13% investment return, then the past service pension will be increased by 12%, i.e. to Rs.1120/- and so on in future years till the employee's superannuation or earlier exit from service, if he/she is entitled to any pensionary benefits under NIC Employees (Pension) Regulations.

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(ii) Provident Fund Officers contribution at 8.33% of basic pay p.m. plus a matching contribution by the Company shall apply to all officers governed by the new structure, irrespective of whether they had earlier opted for the pension scheme.

(iii) Gratuity Scheme NIC to contribute 8.33% of basic pay p.m. to Gratuity Fund in respect of each officer. The contributed amount plus accumulated investment income thereon to be paid on superannuation or earlier exit from service. Amounts not payable on cessation of service because the officer did not qualify for gratuity or qualified for only part gratuity, shall be refundable to NIC."

(e) The permanent employees transferred from NIC to NICL shall be given option for adopting Monetized Salary Package as already approved by the Board in its 51

h meeting held on May 25, 2001.

(f) TRAVELLING ALLOWANCES

- The Board also considered in detail the proposal to revise the T AIDA Rates

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as the existing ones, due to inflation, had become inadequate. Following resolution was passed:-

"Resolved that the Travelling Allowances for officers of NICL be and are hereby approved as follows:-

(a) On Official Tour (i) Cost of ticket

(ii)

Single economy class fair by air or highest class by train and other modes of transport as admissible to officers of all categories under the existing rules.

Dail~ Allowance S.No. Post Existing Revised Remarks

1. 2. 3.

Rates Rates E.O. to D.M. Rs.400 Rs.600 (per day including local Manager to G.M. Rs.400 Rs.750 conveyance and incidental E.D. & above. Rs.600 Rs.1000 charges).

(iii) Hotel Accommodation As per existing practice i.e. (a) E.O. to E. D. subject to maximum of

(iv) Private Sta~

3 times Daily Allowance on production of Hotel Bill/ Receipt.

(b) Directors- At actual in a reasonable hotel.

As per existing practice i.e. equal to 1% Daily Allowance.

(b) On Transfer (i) Daily Allowance as in (a)(ii) above. (ii) Other Allowances shall be admissible as per existing rules."

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6. TO DISCUSS AND CONSIDER THE PROPOSAL OF THE EMPLOYEE UNION TO RETIRE EMPLOYEES HAVING 20 YEARS OR MORE 0 SERVICE.

Chairman placed before the Board letter dated 24.9.2001 of NIC Employees Union requesting that the employees having completed 20 years o service or more may be retired by the Management at its discretion by givin certain incentives in addition to those which were offered under the Volunta Retirement Scheme. Chairman also informed the Board that cases of all thos employees including officers who have completed service of 20 years or mor need to be reviewed every year and those whose performance is not satisfacto need to be retired as per latest instructions received from the government. He als proposed that Committee for Selection/Promotion be assigned the job of review.

The Board discussed the above proposal at length, approved that review b made by the Selection/Promotion Committees and passed the followin resolution:-

"Resolved that as per Service Regulations, cases of all employees (sta and officers) who have completed service of 20 years or more be reviewed eve year and those whose performance was not found satisfactory be retired on th following basis:-

(i) The employees shall be entitled to usual 50% of Pensio Commutation as per National Insurance Corporation Employee (Pension) Regulations 1986.

(ii) The employees shall be entitled to encashment of Earned Leave a their credit subject to a maximum of 180 days.

(iii) Those employees who would request for conversion of compulso retirement into their Voluntary Retirement shall, as an incentive t proceed on Voluntary Retirement Scheme presently launched, b allowed encashment of balance 50% of the Pension Commutation a well. "

"Further Resolved that if an employee opts to seek retirement o completion of 20 years service or more, he may be allowed 100% Commutation o Pension."

7. TO CONSIDER AND APPROVE THE PROPOSAL FOR COMMUTATIO OF PENSION FOR PENSIONERS

The Board observed that the proposal regarding Commutation of balanc amount of pension to existing pensioners in lump sum instead of monthly pensio did not fall within the purview of Board of Directors of NICL. The Board therefor advised the management to refer the proposal to Pension Trust for consideratio under NIC Employees Pension Regulations.

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8. TO DISCUSS THE PROPOSAL FOR ENCASHMENT OF ACCUMULATED EARNED LEAVE FOR OFFICERS OF NICL.

The proposal was dropped for the time being.

9. TO REVIEW CLAIMS OF RS.100 MILLION AND ABOVE PAID BY THE NICL DURING THE PAST THREE YEARS.

Chairman apprised the Board that not a single claim amounting to Rs.1 00 million and above was settled during the last 3 years i.e. from 1999 to 2001 . However he presented the details of outstanding claims as of 31 51 December 2001 as follows:-

S.No. Claim No.

A. Year1999

B. Year 2000

Amount

Nil

Description of Claim

Remarks

No claim

8-1 LF-1001/00 US$1 .625 M Fire Claim of M/s Part payment of US$225,000 made in Nov.2000

Eq.Pak Rs.100 M KAPCO

8 - 2 Loss in April About US$10 M not yet lodged (sum insured) of with NICL one well.

C. Year2001 C- 1 LF-1019/2000 Rs.102 M

c- 2 625/2001 US$10 Million Eq.Pak Rs.630 M

Loss at UCH Gas Field of OGDC

NIC's Retention 3%

Fire Claim of M/s Pak Paid in Jan. 2002 American Fertilizer

Damage to PIA Airbus 100% Retention A-300 at Dubai on 14.10.2001

The Board reviewed the above claims and found the same to be satisfactory.

'- 10. TO REVIEW THE INVESTMENT PORTFOLIO OF NICL

Board reviewed the Investment Portfolio of the Company as on 28.02.2002

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which stood at Rs.9037 million as detailed below:-

1 LONG TERM INVESTMENTS

(i) Government Securities I Bonds etc. (ii) Real Estate

(iii) Shares, Tenn Finance etc. (iv) Mutual Funds, CO Is etc.

2 SHORTTERMINVESTMENTS

1. ABN Amro Bank 2. Askari Bank 3. Soneri Bank Limited 4. PICIC Commercial Bank 5. Bank AI-Habib 6. National Saving Centre

3.544

303.144

202.165

150.183

101.437

0.009 7. Habib Bank Limited 814.550 8. National Bank of Pakistan 0.008

TOTAL SHORT TERM INVESTMENTS

Grand Total of LONG tenn & SHORT tenn

Foreign Currency Positions

Habib Bank Limited New York$ Habib Bank Limited Corporate Branch Karachi

(Kept at Habib Bank Limited London)

National Bank of Pakistan London Pound sterl ing

ON

Investment (Rs. Million)

5,495.742 519.590 725.545 721 .190

7,462.067

760.472

814.567

1575.039

9,037.106

3.216 3.181 6.397

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Actual % Allowed by Board

73.65 60% 6.96 15% 9.72 15% 9.66 10%

100.00 100%

Mr. Mitha G.M. Finance made a presentation about investment portfolio with the help of slides, graphs etc. He informed the Board that NICL has been able to maintain the rate of return of 13.7% for the year ended 31 51

December 2001 mainly due to diversification of Investment policy approved by the Board, inspite of the fact that State Bank of Pakistan reduced the discount rate from 14% to 9%. The Board appreciated this but noted that long term investments were maturing gradually and liquidity of NICL was increasing as no investment avenues were immediately available. Hence, the surplus funds were being placed in COl/ COD offered by the Commercial and Investment Banks for a period of 3 to 6 months with a yield of about 9% per annum. The Board advised its Investment Committee to find out some ways to contain the decline in rate of return on the investment portfolio as a result of the SBP policies.

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11. TO APPRISE THE BOARD REGARDING APPOINTMENT OF AUDITORS FOR THE YEAR 2001.

Chairman informed that the Board of Directors in its meeting held on 28th May 2001 had approved a panel of six firms of Chartered Accountants out of the list of firms under category 'A' & 'B' as per State Bank of Pakistan circular dated 31st January 2001. Accordingly consent along with the audit fees was obtained from these firms, on the basis of which the shareholders in their 1st Annual

'--"' General Meeting held on 25th June 2001 decided to appoint only one audit firm viz M/s M. Yousuf Adil Saleem & Co. Chartered Accountants at a fee of Rs.150,000 plus out of pocket expenses subject to approval of the Government. The case was therefore forwarded to the Ministry of Commerce on 19.7.2001 with complete details.

After series of correspondence the Ministry of Commerce communicated vide letter dated 19th January 2002 the concurrence of the Auditor General of Pakistan to the appointment of two audit firms - M/s Anjum Asim Shahid & Co. Chartered Accountants (at a fee of Rs.100,000 with no out of pocket expenses) and M/s Hussain Rehman & Co. Chartered Accountants (at a fee of Rs.1 00,000 plus maximum of 10% out of pocket expenses). The Auditor General's office desired NICL to make an effort with these firms to further bring down the audit fee. The rates were negotiated and both the audit firms agreed to reduce the fees to Rs.80,000 each plus out of pocket expenses subject to maximum of 10%. Accordingly the appointment letters in the name of auditors were issued and they were asked to complete the audit of accounts for the year 2001 by 31st March 2002. However, subsequently they informed that since the retiring auditors did not agree to give them the required consent/N.O.C., they could not take up the audit and requested NICL to resolve the matter in the first instance. NICL has conveyed the position to the Ministry of Commerce accordingly.

The Board reaffirmed that its decision was in accordance with the Companies Ordinance 1984 and directed the management to take up the matter with M/s M. Yousuf Adil Saleem & Co., Chartered Accountants to start the audit immediately as their appointment was approved in the Annual General Meeting held on 25th June, 2001 in which the shareholders were fully represented. The Board also advised that the position in detail should also be reported to SECP requesting them for allowing extension for possible delay in submission of accounts for the year.

12. TO CONSIDER THE REPORT OF GENERAL MANAGER (IT) REGARDING COMPUTERIZATION IN NICL.

Mr. Tahir Ahmad General Manager(IT) presented his report regarding computerization in NICL containing various proposals for perusal and consideration of the Board. He also expl~ined in detail an<;! substantiated his proposals about computerization with the help of slides and transparencies. He explained that though there were a few PCs in the organization there was no computerization in NICL for which some attempts were made in the past. Advertisement for prequalification of Software Vendors have been floated and budget for setting up a proper Computer Department has been prepared which he presented to the Board.

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Mr. Tahir further informed the Board that there were only two companies presently in Pakistan, which fitted the pre qualifications requirements and have ready-made general insurance software i.e. Cybertec and SHM. Price was renegotiated with Cybertec and they have come down to Rs 4.5 million with source code (Escrow account) inclusive of GLand receivable accounting, which was not part of the earlier tender/quotation. Additional modules, like purchase register and fixed assets, investment module and budgeting module could be developed for additional cost of Rs 0.5 million. Total cost would be around Rs. 5.00 million.

The General Manager(IT) proposed that in order to save time they should proceed with the same tender for supply of General Insurance Software at a total cost of Rs. 5.00 million by observing the required procedures and codal formalities within the approved budget estimates. The Board agreed with the proposal and passed the following resolution:-

"Resolved that a budget of Rs.22.00 million for hardware and software requirements of NICL be and is hereby approved."

13. TO CONSIDER AND APPROVE PROPOSALS FOR INTERIOR DESIGNING OF NICL OFFICES AT ISLAMABAD, LAHORE AND KARACHI.

Mr. Jamal Uddin Ansari , Executive Director apprised the Board that in pursuant to resolution of the Board of Directors in its 61

h meeting held on June 25, 2001 an advertisement was placed in the newspapers on August 29, 2001 inviting applications for pre qualification of contractors separately for Interior Furnishing Works, Furniture Works and Electrical Works (including Telephone, Computer and Fire Alarm System etc) excluding Carpets for NIC Building Islamabad. The short listed contractors for each work who were issued the tender documents had submitted their bids as follows:-

A. Interior Furnishing Works :

S.No. Names of Short listed

1.

2.

3.

4.

5.

6.

Contractors

M/s Wood Craft Industries, Karachi M/s Ahmed Associates, Lahore M/s AI Ameen Construction, Lahore M/s New Era Furnishers, Lahore M/s Star Sam & Company, Karachi M/s Highness Group, Rawalpindi

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Amount Quoted Remarks

Rs.3,910,780/-

Rs.4, 100,081/

Rs.4,211 ,535/

Rs.4,412, 114/

Rs.5, 126,545/-

Not Participated

Lowest

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