Internship Report on

ADAMJEE FAMILY TAKAFUL INSURANCE

Submitted by:
Safdar Khan
UW-18-MGT-BSAF-006

Supervised by:
Mam Noshaba Zulfiqar

Department of Management Sciences

University of Wah
Wah Cantt
Session 2018-2022
 Approval Sheet

Internship Report on Adamjee Family Takaful Insurance

By:
Safdar Khan
UW-18-MGT-BSAF-006

Mam Noshaba Zulfiqar

(Report Supervisor)

Dr. Osman Sadiq Paracha

(Head of Department)

Department of Management Sciences

University of Wah
Wah Cantt
Session 2018-2022
 Student’s Declaration
I declare that this material, which I now submit for assessment, is entirely my own work and has not
been taken from the work of others, save and to the extent that such work has been cited and
acknowledged within the text of my work. I understand that plagiarism, collusion, and copying are grave
and serious offences in the university and accept the penalties that would be imposed should I engage
in plagiarism, collusion or copying. I have read and understood the Assignment Regulations set out in
the module documentation. I have identified and included the source of all facts, ideas, opinions, and
viewpoints of others in the assignment references. Direct quotations from books, journal articles,
internet sources, module text, or any other source whatsoever are acknowledged, and the source cited
are identified in the assignment references. This assignment, or any part of it, has not been previously
submitted by me or any other person for assessment on this or any other course of study.

I have read and understood the referencing guidelines as recommended in the report guidelines.

Signature

Name: Safdar Khan

Registration # UW-18-MGT-BSAF-006

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Supervisor’s Certificate
This is to certify that Mr. Safdar Khan has incorporated all observations, suggestions and comments
made by the external evaluators as well as the internal examiners. The title of his report is “Internship
Report on Adamjee Family Takaful Insurance”.

Forwarded for necessary action

Supervisor’s Signature

Mam Noshaba Zulfiqar

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Internship Certificate

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 Dedication
This report is dedicated to my parents and siblings, who provided me with unwavering support
throughout the internship. I appreciate you giving me this opportunity to prove myself and develop over
my entire internship.
I also want to dedicate this report to all of my instructors, especially my supervisor, who supported me
during the internship whenever I felt lost or in need of assistance. Without them, I would not have been
able to successfully complete my internship.
Last but not least, I want to dedicate this report to all of my dear friends, both those who were present
during my internship and those who were not. They motivated me to succeed throughout this time.

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Table of Contents

CHAPTER 1 INTRODUCTION............................................................................................................................. 11
BACKGROND .................................................................................................................................................. 12
Corporate Profile .................................................................................................................................................. 13
MISSION:....................................................................................................................................................... 13
New values: ................................................................................................................................................... 13
Bank Assurance Partners ................................................................................................................................... 14
Organizational Structure .................................................................................................................................... 15
Corporate Social Responsibility ........................................................................................................................ 16
Shandaar Sarmaya.......................................................................................................................................... 17
Corporate Plans .............................................................................................................................................. 17
Group Life solution........................................................................................................................................ 18
Window Takaful Operation Introduction to Window Takaful ...................................................................... 18
ADAMJEE BARKAT ................................................................................................................................... 20
KEFAYAT PLAN ......................................................................................................................................... 21
Departments ................................................................................................................................................... 21
Branches ........................................................................................................................................................ 22
CHAPTER 2 MY INTERNSHIP .......................................................................................................................... 24
MY INTERNSHIP ............................................................................................................................................. 25
First Week...................................................................................................................................................... 25
Second Week ................................................................................................................................................. 26
Third Week .................................................................................................................................................... 27
Fourth Week and Fifth Week......................................................................................................................... 28
Forty Name Sheet. ......................................................................................................................................... 30
Sixth and seventh weeks ................................................................................................................................ 30
Eight Week .................................................................................................................................................... 31
Financial Statement Analysis: ........................................................................................................................... 32
Ratio Analysis: ............................................................................................................................................... 32
Current Ratio ................................................................................................................................................. 33
Networking Capital ........................................................................................................................................ 34
Debt To Equity Ratio ..................................................................................................................................... 35
Return On Equity ........................................................................................................................................... 39
Asset turnover ratio........................................................................................................................................ 41
Fixed asset turnover ....................................................................................................................................... 43
Return on Asset.............................................................................................................................................. 44
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 Equity to asset ratio........................................................................................................................................ 45
Basic earning power ratio .............................................................................................................................. 46
Earning Per share ........................................................................................................................................... 47
Horizontal Analysis: ....................................................................................................................................... 48
Vertical Analysis: ............................................................................................................................................ 53
Chapter 4 SWOT ANALYSIS ............................................................................................................................... 58
SWOT ANALYSIS STRENGHT: .................................................................................................................... 59
WEAKNESSES ................................................................................................................................................. 60
OPPORTUNITIES ............................................................................................................................................ 61
THREATS ......................................................................................................................................................... 62
Chapter 05 Conclusion and Recommendations ..................................................................................................... 63
Conclusion: ........................................................................................................................................................ 64
Recommendations.............................................................................................................................................. 65
References.............................................................................................................................................................. 66

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 Executive Summary
The internship program, which is a part of the BSAF curriculum, strives to close the knowledge
gap between academic theory and practical experience. The objective is to go from a conceptual
understanding to a hands-on experience.
The report is composed of five Chapters.
Chapter One is “Introductory Part”. This includes an introduction, the study's justification, its
objectives, its scope, its methodology, and its limitations. I concentrate on my study process in
this section.
Chapter Two “focuses on a summary of My Internship's week-by-week information.”.
This part includes my responsibilities as an intern and also includes the training and learning
details.
Chapter Three is the “Ratio Analysis”. This section will analyze the company financial
position and performance. How the company is performed. Can customer rely on the company to
provide equity and credits?
Chapter Four consist of the “SWOT Analysis” which includes the company strengths, weakness,
opportunities and threats
Chapter Five is “Recommendations and Conclusion part” which includes a conclusion and
recommendations.
Overall, the data demonstrates that Adamjee Family Takaful is expanding in a very positive and
optimistic way.

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 CHAPTER 1
INTRODUCTION

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BACKGROND
Adamjee group of companies was founded by Sir Adam Haji
Dawood Botany. Adam Haji Dawood was a Pakistani Businessman and philanthropist. He was
the Adam Gee Life belongs to Nishat Group which has the most diversified business groups in
Southeast Asia. Recently they have 7960 or more current assets in 2021. Currently this group has
three important business sectors in the region, Name Textiles Cement (D.G. Khan Cement) and
(MCB), (Adamjee Insurance Company Ltd.) and (Security General). In addition, the Group
also has a suitable market share in Power (Nishat Power Ltd.), Paper (Nishat Shoaiba Paper
Mills) and Aviation (Pakistan Aviation and Aviators Ltd).

In a long-term relationship, they ensure that the customer's needs are a primary consideration.
This service is for peace of mind and is responsive, personalized and compassionate to our
clients.

Adamjee Insurance Company Limited is the largest general insurance company in Pakistan. It
was founded in 1960 by MR. A.W Adamjee. Adamjee holds a certificate of incorporation on
30 November 1960. It was incorporated as a public limited company on 28 September 18600.
Moreover, it is listed on the Pakistan Stock Exchange. The company was also registered with
the Depository Company of Pakistan Limited.

Headquartered in Karachi, it operates a network of 38 branches across Pakistan. One branch is

in the United Arab Emirates (UAE, Dubai).

The company started its operations with a paid-up capital of 2.5 million, which has grown to
1.24 billion rupees over the past 5 decades, on 31 December 2010.

AICL consists of insurance that starts with top management teams that maintain a competitive
edge and is fully equipped with identifiable opportunities to increase value.They enter a joint
partnership with the financial sector and extended their business across Dubai and Pakistan.

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 Corporate Profile
Directors Mr.Mian Umer Mansha
Mr. shah meer Khalid Butt
Mr.Ahmad Alman Aslam

Mrs.Naz Mansha

Chairman Mr.S.M Javed

MISSION
Have a strong relationship and a trusted insurance partner.

Vision:
Adhere to exemplary sales practices, preferably in product packaging and
customer engagement.

New values:
Creating value: we deliver the best value in everything we do.
Openness: foster a culture of trust and clarity
Respect: promote mutual respect and comprehensive
Customer focus: they focus on the interests of the customer.

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Bank Assurance Partners

14
 Organizational Structure

Organizational Hierarchy:

MD/CEO

Internal Audit Advisor

Public Relations Human

Resources

Deputy Managing Director Deputy Managing Human

Resources

Finance Administratio Data Fire & Marin Motor Miscellaneous

Processing Propert
Investment Budget Credit & Reinsurance
& Suretyships
Statistic

Southern
Northern

Region & Division &

Branches

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 Corporate Social Responsibility
Adamjee life demonstrates its top company citizenship by focusing frequently on people and
the environment. some of the agency's many techniques to improve the prevailing causes in
our campaigns include Nigehbaan, Fill the story, offer a smile, and Tree Plantation drive.
these back-to-again CSR campaigns have received a lot of reputation among their partners in
addition to recognition from social media. Adamjee Life takaful Products
There are some Adamjee family takaful products. Following is the individual plan.
Investment plans
Education Plans
Marriage plans Saving
plans

Investment Plans:
Investment plans are further divided into three categories.
1. Mustakil Yakeen
2. Shandaar Sarmaya
3. Pay smart Plans.

Mustakil Yakeen
In addition to hard work, you have to plan. You need one solution that easily connects to all
your finances and protects your family in the event of an accident. Plan customization options.
Adamjee Life Mustakil Yaqeen is a unique life insurance plan that offers you a combination of
investment and protection solutions and the flexibility to customize your plan to suit your
specific needs. With a variety of riders and features, you can customize your plan to cover the
following future financial obligations.
 Saving for your education
 Savings for children's wedding
 Savings for the purchase of real estate or a house
 Saving for retirement income

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Shandaar Sarmaya

Unlike most types of life insurance that require ongoing premium payments to keep the
policy in force, with the Adamjee Life Shandar Sarmaya Plan you only need to pay a one-
time premium and the plan will remain valid for a period of your choosing or after your 80th
birthday , whatever the case may be. what happens first Shandar Sarmaya Plan generates
consistent income through excellent returns on its investments at a moderate level of risk
through a diversified investment approach. A highly flexible lump sum investment plan with
the benefit of life insurance with attractive returns with fund selection that matches your
risk appetite.

 Tax discount on the investment made, subject to limits according to the Income
Tax Decree of 2011 and subsequent amendments to the Financial Act
 Only a marginal 5% bid/offer spread
 Life protection covers up to 10 times your investment amount Partial withdrawal
option after applying the policy for a period of 6 months.
 Islamic Fund (Amaanat) option.
 Option to invest in three separate funds with different investment mixes based on
your risk appetite and religious beliefs

Corporate Plans

1. Group Credit Life

2. Group Life Solution
3. Group Saving Solution

Credit Life Protection is a declining term cover that a bank can offer to individuals who
take out any type of loan from the bank, including a personal loan, credit card, or mortgage.
The coverage is designed to protect both the borrower and the lender. Loan insurance is
always sold in connection with a specific loan. It is a type of cover in which the sum insured
corresponds to the loan balance at a given time; designed so that full payment will be made
in the event of death or disability. Easy and small premium payments.

 Valuable protection to your family by paying off your debts in case of unfortunate
death within the policy term.
 This product is also available in our takaful window.
 Peace of mind since your liabilities is protected.
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 Group Life solution
 Group Life solutions of Adamjee Life provides major life coverage with outstanding
benefits to be the best service provider in the industry, this plan is for employers who
want to provide the maximum benefits in this competitive world to ensure job
satisfaction to their valuable employees. It’s the key to attracting and keeping quality
employees.
 A low-cost, easy-to-administer policy that can be renewed annually.
 A single master policy for all employees of the group.
 Flexibility that shall provide the optimal plan suiting your needs. Insurance cover can
be uniform or grade linked with designations, length of service, or salaries.
 Most employees are assured without any evidence of health.
 Profit Sharing Rider.
 Premiums are treated as an allowable expense for tax purposes.
 The best turnaround time in case of claims payment is 5-7 working days after the
completion of documents from the claimant.
 This product is also available in our takaful window operations.
Group saving solution:
Group saving solutions of Adamjee Life provide major life coverage with outstanding benefits
to be the best service provider in the industry. Whereas, we understand the need for savings and
investment along with basic protection keeping this need in mind we have launched Group
Saving solutions.

 Group Saving provides you with the highest allocation in the first year.
 Group Saving provides a 53% Bonus in the 11th Year.
 Hassle-Freeee Premium deducted from your salary.
 Portability Option, Planning to switch your job? Convert the policy in case of separation
from the existing Organization.
 Easy Claim Settlement.
Window Takaful Operation
Introduction to Window Takaful
Window Takaful Operations were introduced by Adamjee Life in 2016 after receiving a grant
of operations for commencement of Window Takaful Operations from SECP; Deem us eligible
for providing Shariah Compliant products and services.

The word Takaful is derived from the Arabic verb Kafala, which means to guarantee; to help;
to take care of one’s needs. Takaful is a system based on the principle of Ta’awun (mutual
assistance) and Tabarru (voluntary contribution), where risk is shared collectively by a group
of participants. in the pact. Takaful is operated based on shared responsibility, brotherhood,
solidarity, and cooperation.

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The Window Takaful Operations of Adamjee Life offers two Shahriah CompShariahnds;
Tameen Fund and Maza’af Fund. Tameen Fund has a moderate to low risk profile that
generates stable and secure returns by balancing the investment in long-term money markets
instruments including term deposits in Islamic Banks and Sukuk Bonds. Whereas, Maza’af
Fund has a moderate to a high-risk profile that generates higher returns over the long run in
Shariah Compliant Equities and Islamic mutual funds.

DR. MUHAMAD ZUBAIR USMANI: SHARIAH ADVISOR

Dr. Muhammad Zubair Usmani is a qualified and one of the most experienced Shariah Scholars
in the Islamic Banking Industry. He did his Shariah graduation (Fazil Dars-e- Nizami) &
Takhassus Fil Fiqh (Mufti i.e. Specialization in Islamic Fiqh & Fatawa) from Jamia Dar ul
Uloom, Karachi. He has done Masters in International Relations and a Doctorate (PPh.D. in
Islamic Finance from the University of Karachi. Dr. Zubair Usmani is the author of several
books including those related to Accounting & Auditing for the Islamic Financial system, a
comparative study between Islam and Christianity, and Ijarah (Islamic Leasing). His research
papers have been published in various international journals.

Nasir Mehmood (Head of Takaful and national Sale Director)

Nasir is an accomplished management professional who brings with him over 19 years of
extensive experience in the Insurance industry. He is a Fellow of the Life Management Institute
and holds a Bachelor of Commerce from the University of Karachi. He was previously
associated with Dawood Family Takaful as Chief Executive Officer. Before this, he worked
with ALICO AIG as Business Development Manager.

Additionally, he has foreign exposure from Canadian Insurance Companies: Universal

Insurance & Financial Ltd as Insurance & Investment Broker, Sunlife Insurance as Insurance
Advisor, and Primerial Financial Service as Insurance Representative.

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Along with working hard, preparation is also a must. You require a single solution that can
easily link to all of your personal financial matters, safeguard your family, and satisfy your
religious obligations.

To meet your unique demands, Adamjee Family Takaful-Window Takaful Operations (AL-
WTO) has created a product that is fully customizable. The Salsabeel Plus Certificate is a
high allocation regular contribution unit connected certificate that complies with Islamic law.
In the early certificate years, a larger share of contribution is allotted to units. The certificate's
advantages are significantly correlated with the performance of the investments made by the
professionally managed Funds, wherein a portion of the contribution is placed.

ADAMJEE BARKAT

As we age, marry, raise children and start businesses, we increasingly understand the
importance of family takaful as a key component of a strong financial strategy. You can
easily afford Family Takaful depending on the type of plan you have, so there's no need to
wait to sign up for cover. Plus, as time goes on, you'll have the comfort of knowing that
money will be available to protect your loved ones in the event of any unfortunate
circumstance. Planning ahead would give them some relief, especially if a breadwinner dies
and they lose a steady source of income.

An ordinary home can survive without many things in life, but Family Takaful should not be
one of them. As more people live in the household, protecting your life becomes more
important.

Participating in our Family Takaful Product could take care of all these issues or
unanticipated events! Your savings will increase while being protected financially thanks to
the coverage, which is in line with Shariah standards. Through the Adamjee Family Takaful
Assurance Company Limited's Waqf pool, you can take part in the protection benefit of the
Barkat plan of Adamjee Family Takaful and invest in Shariah-compliant investment funds.

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KEFAYAT PLAN

Defend your future from unforeseen events.

Without money saved and/or invested wisely, together with adequate risk protection, a person
leaves themselves vulnerable to the unforeseeable.

Lack of a plan to cover any emergency expenses in the current volatile global economic
climate can put a heavy financial load on an individual. So, whether you need to save money
for a home remodel, an unexpected job loss, or higher medical costs, risk coverage is always
a good idea.

Adamjee Family Takaful - Window Takaful Operations provides the Kefayat Takaful Plan,
which is in accordance with Shariah principles and designed with the aforementioned
scenario in mind. A family takaful plan that, while adhering to Shariah principles, not only
reduces your unanticipated risks but also gives you a way to save.

Through the Kefayat Takaful Plan, participants have access to expertly managed Unit Linked
Funds with the added benefit of Family Takaful Coverage. The Adamjee Family Takaful
Assurance Company Limited manages a Waqf pool that provides the protection benefit.

Departments

Some of the main departments of Adamjee Family Takaful insurance are mentioned below.

 Investment department
 Claim department (Waqf)
 Expense department

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Branches
Sargodha Office
Office Head:
Mian Ibrar Shah
Flat No.1, 1st Floor, 73 Club Road, Sargodha.

Multan Branch
Branch Head:
Muhammad Ikram Rao
Office No. 604, 6th Floor, United Mall, Abdali Road, Multan.

Rahim Yar Khan Office

Branch Head:
Ghulam Mustafa
1st Floor Chowhan Plaza, Auto Market Kalla Mandi Gate 65, Shahi Road, Rahim Yar Khan.

Islamabad Branch
Branch Head:
Raza Yasoob
1st Floor, ISE Tower, 55-B, Jinnah Avenue, Blue Area, Islamabad.

Pindi Branch
Branch Head:
Muhammad Yaseen Malik
2nd floor, North Star Plaza, Opp Nadra Office, Rehmanabad, Murree Road, Rawalpindi

Sialkot Office Branch

Branch Head:
Ch. Ghulam Murtaza
1st Floor Riaz Plaza, Paris Road, Sialkot.

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Faisalabad Main Branch
Branch Head:

Syed Farhan Abbas Zaidi

MCB Building, 4th Floor, Bank Square Circular Road, Faisalabad.

Jhang Office
Office Head:
Session Chowk, Kutchery Road Near D.C. House, Jhang Saddar.

Sahiwal Office
Office Head:
Syed Wilayat Ali
Naveed Plaza, 2nd Floor, High Street Post Box#1, Sahiwal
Adamjee House Branch
Branch Head:
Syed Muhammad Ali
5th Floor, Adamjee House, I.I. Chundrigar Road, Karachi -74000
Karimabad Branch
Branch Head:
Syed Muhammad Ali
5th Floor, Adamjee House, I.I. Chundrigar Road, Karachi -74000

Shahrah-e-Faisal Branch
Branch Head:
Mir Babar Ali
5th Floor, Adamjee House, I.I. Chundrigar Road, Karachi -74000

Quetta Branch
Branch Head:
Bernard Farnon
Room # C 1&2, 2nd Floor, Agha Siraj, Complex Circular Road, Quetta.

Hyderabad Branch
Branch Head:
Mohammad Saleem Rao
Church Building, Tilak incline, Hyderabad.
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 CHAPTER 2
MY INTERNSHIP

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 MY INTERNSHIP
My internship duration consist on 6 weeks. In the Adamjee Family Life Takaful internship, I
learn my theoretical knowledge in practice. I learn too much things which is more than books.

First Week Introduction of company, how to contact your

colleague through social App.

Second Week The Concept of Selling, Why Adamjee family

life Takaful.

Third Week How to make relationship with Customer and

Customer Target. 3D’s(death, disability,
disease).

Fourth Week We Practicing with our own internship

Collegue and Generate 40 name Sheet .

Fifth Week Difference of Takaful and insurance. How to

meet the needs of Customer

Sixth Week I learn Fact Find and practice in seventh Week

Eight Week I go to practically in market. And I present

myself as Sale representative as Financial
Doctor.

First Week
In First Week, We introduce each other. We made a WhatsApp group with Waseem Iqbal
(SGM) who is Zonal Manager of Branch. He start a small journey as instructor with us. We all
belong to Management Science Department of the University of Wah. We are the senior of this
Batch. Mr. Waseem Iqbal introduce their self and share their whole journey in the Company.
He got introduction to us. He describe us the company profile and given branch. This branch
consist on Zonal Manager Name Mr. Waseem Iqbal. There are two Assistant Branch Manager.
This branch also consist two Unit Manager. It is one of the most main branch for Wah Cantt,
Ahsan abdaal, Taxila City.
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Adamjee life family Takaful provide peace of mind in future. I learn here difference in
Accounts job, Marketing and Sale job. I observed that which profession provide you best and
bright future.

This was the first week experience.

I was very excited that I am learning new concept in the next.

Second Week

During second week two more internship colleague added. We revised all
the conversation and concept at first day of second week. Now Mr. Waseem Iqbal start from
the concept of selling. He describe that selling is not about the debating while it is art of
convincing, it is as old as mankind. It is more than profession. It is way of life. Everyday ,
everywhere is either buying or selling their ideas, skills ,product and Services. For example
Teacher sells their knowledge and ability to transfer their knowledge.

Our Company sells peace of Mind. For example Income Protection for Widows. Funds for
children for higher education. Income after retirement. Long term saving for specific needs.We
look to prospect. Our Prospect are our relatives, and those who met us in daily life or meet in
future. Such as father, Mother, Brothers, Neighbours, Teachers, Colleagues, Barber shop
keeper, Doctors and Nurses etc. I learn more than ten types of customer that who should be
targeted. The client age should be equal to 30 years. Because every client have their different
needs. We find the needs of the customer and then we try to make the client for plan.

We providing the plans for Children for the higher education, retirement plans and saving plans
to customer. We provide these plans to client according to their needs. When we want to get
client. We Call him official from the company PTCL. We fix meeting for just 15 to 20 minutes.
When meeting is fixed. We use the formal dress of the company.

Wear Dress paint with neck tie. First we start formal talking and then gradually we move to
professional talk. In meeting we trying to know their expense and how he could save the money
who lost unnecessary wishes. We come know their Income then we deduct their expense from
their total income. Now here required their age last their short term needs, Mid term needs and
long term needs.

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The client should be healthy, need and should be mature who decision maker is. Plan should
be make for that client if client does meet that condition they should not be provide.

Third Week

In Third we learn that we provide the plans for their family protection against
three Hazards. Three hazard are given below. You also can say 3D’s.

Disability

Disease

Death

We protect our client from the first day when plan done with company. For example, In case
of death of client we protect their rest family, their wife, children’s and their parent. The
company do not make you rich but it helps from poverty line.

The main objective is ‘You don’t buy life insurance because you are going to die but because
those you love are going to live’.

This contract is with company and we as agent make their long term relationship with customer.

We don’t contribute in their emotion of life which they client have for their lovers. But we
protect them as financial loss. When client die soon. Its mean client die after their married two
years. We protect their children after that.

Second concept is “Living to long” living to long that client have private job his future job is
not secure. He get a retirement plan from the company. We provide them a fund which can
help their lovers in life.

Third concept is “ Disability “ client got disable during the active job and now he cannot
perform their duties and he lay off from their job. So the company would provide the service
to that client.

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Fourth Week and Fifth Week

The fourth week was very interesting that we learn here the difference
between Insurance and Takaful. There is big difference between these two concepts. Moreover
we learn how these company make the money which received from the client.

Difference between Takaful and Insurance.

Insurance Takaful

Fix profit in percentage Invested money profit fully provide to client

It is based on interst. Takaful is contribution guarantee.

It is not according to Shariah. It is type of insurance which is based on

Islamic principle.

It includes three element which prohibited Participant contribute a pool of money and
strictly in Islam. These three elements are those participant agree to protect each other
Riba, Maysir and Ghrar. by compensating those participant who
hunting from an insured peril.

Compnay regulation of Insurance and Takful below.

28
In insurance, For example 100$ client invest in company and company received cash from
the client. They put 20$ cash in protection fund and then they 70$ cash put into investment
fund, and remaining 10$ cash put into company expense. But company commit to client that
company will pay just 10% of invest fund. So this is prohibited in Islam. Takaful is vice versa
of insurance .

In Takaful no percentage is fix. As the cash generate a profit that total cash will be provided to
client. In Waqf fund if there is some claim of death for example 5 claim arise. So there was
20$ in the waqf fund remaining fund is 15$ this figure will also be divided on investment and
total contribution will be paid to all client.

Takaful contribution is amount that client has to pay regular annual bases to life company.
The element of contribution is Protection (waqf), investment and Wakala Fees. It is unit
linking system.

 Takaful have bid and offer price.

 In conventional there is 5% difference.

In Takaful we sure that we invest money of client in KMI 30. Which top 30 performing
companies in Pakistan Stock Exchange. Insurance company do not sure that where they will
invest your money.

29
Forty Name Sheet.
We generate 40 name sheet. We practice first with our internship collegue. After we
find our relative and sale the company plans
Sixth and seventh weeks

I learn the fact find of the client. It means that how to find the customer
needs. Why does he get plans from AICL company? If client got plan what benefit will be
entertained customer. We fact find by some asking question. We fact find as given below:

1. Assalamo alikum Sir! How are You.

2. May I ask your name as per your CNIC?

3. May I ask your Date Of Birth?

4. What is your marital status?

Marital status: Married or Unmarried

In case of Unmarried and his age is round about 29 we suggest pension plan.If he
married we ask him have your kids or not. Note: client is married and he has children with 2
or years. So we suggest children education plan. And provide the wedding plan if he has
daughter. By expenses and capacity of income we come to know how many he save the
money. But unfortunately may be he can not save that money and waste on unnecessary needs.
So we find that needs and some amount their saving. Which that client never thing about that
saving and needs through life.

5. How many members in your home.?

6. How many expenses of your family?

8. Are you salary person or you have any side income?

9. Do you have parents?

10. Who takes financial decision of your home?

If someone take another person the financial decision. So we fix meeting with
Both person.

So we suppose we come to know that client save 10,000 per month or if do not save or may
30
be we find that saving for the client and client is ready for that particular saving.

The client save 10,000 per month. If client save this figure in their home. So there issue is may
be cannot save. If the client save that money for 10 year he saved 12, 00,000 in 10 year.

This is just 12,00,000 but if he save with our plan. We will provide him protection
against 3D’s and we will protect their family from the first day. And we will provide him
profit on this saving which may be double by this figure. Now suppose that the client is
ready for getting plan to us. We move to our next question.

Do you have 120,000 now in your account?

If he say yes so we done that client.

We told our client already that our company will not make you rich but it’ll protect you from
poverty line.

We practice one week almost on this fact find. After that we go to practical in market.

Eight Week

This was our last week in Adamjee Family Life Takaful. This week was too
much interesting because our two internship colleague done two plans. Mr. Sayed Shakeel
and Akif Hussain done plan with clients with 12,00000Rs. At last they bring a check of their
commission from Adamjee Family life Takaful.

31
 Financial Statement Analysis:
The procedure of evaluating a company's financial statements in order to make decisions.This
analysis includes the balance sheet, notes, cash flow statement, equity change statement, and
all other financial statements.

These are the three main types of financial statement analysis.

 Ratio Analysis
 Horizontal Analysis
 Vertical Analysis
Ratio Analysis:

Ratio analysis is a mathematical technique for analyzing a company's financial documents,

such as the balance sheet and income statement, to gather knowledge about its liquidity,
operational effectiveness, and profitability. Fundamental equity research is based on ratio
analysis.

Types:

 Liquidity Ratio
 Leverage Ratio
 Profitability Ratio
 Activity Ratio

32
Current Ratio

CR is current asset / current Liabilities. Company current ratio’s

given below of 5 year.

Table 4.1 Current Ratio

Year 2017 2018 2019 2020 2021

Current Assets 47387537 47845094 49538262 49520149 61640583

Current Liabilities 47387537 47845094 49538262 49520149 61640583

Ratio 1 1 1 1 1

The current Ratio should be greater than 1, then ratio will be best for the company. From 2017
to 2021 Ratio is 1. It’s represent that company pay their liability at a time which is best indicator
for the company because the investors, creditor and other public rely on the company. It means
that company pay their obligation on time and they are managing their asset well. Now the
graph also shows that the company is in good condition.

Current Ratio
30000000

25000000

20000000

15000000

10000000

5000000

0.2 0.4 0.6 0.8 1.2

Series1 Series2 Series3

33
Networking Capital

Current asset minus current liabilities. As follow the company condition

that is much better in 2017. A company ensure that they pay their utility bills, salries on time.
If the company fails to pay their dues short term dues public will not be entertain for next credit.
As per as given table, during 2017 the company was performing well after 2017 .They face
some liquidity issues. The greater ratio is better for the company. From 2018 to 2019 it show
Zero for networking capital that is not good indicator for company. The same condition is
showing in the graph for quick representation.

Networking Capital
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000

0.2 0.4 0.6 0.8 1.2

Series1 Series2 Series3

34
Debt To Equity Ratio

Short Term Debt plus Long Term Debt / Total

Equity.

This Ratio shows that how many contribution of Equity and how many Debt included.

Less ratio is good for the company. When this ratio is 2:1 that is better for the company that
means 60% equity should be include and 40% debt. Too much loan is risky for the company.
From 2017 to 2019 ratio is good for the company because that was Zero but during 2020 and
2021 somehow it gradually increase but no issue for the company. It means that company have
good return and their investor , creditor rely on the company.

Debt to Equity Ratio

Year 2017 2018 2019 2020 2021

Total Debt 0 0 0 166367 926756

Total Equity 20364465 19663358 21380492 22234859 25389764

Ratio 0 0 0 0.1 0.1

Debt to Equity Ratio

30000000

25000000

20000000

15000000

10000000

5000000

6.5 201 7 201 7.5 201 8 201 8.5 201 9 201 9.5 202 0 202 0.5 202 1 202
201 1.5
-5000000

Series1 Series2 Series3

35
Cash Flow Ratio

Cash flow ratio is operating cash flow divide by current liabilities. Operating cash flow
gernerate by daily routine business operation. Operating cash flow include cash plus
marketable security .

Analysis: This ratio shows that how company manage their business operation to meet its
current liabilities. The greater ratio is good for the company. During 2017 it too was good
they meet their liabilities well. But from 2018 to 2021 ratio is less than 1 which worse
indicator for the company. It mean they facing difficulties in business operation.

Cash Flow Ratio

Year 2017 2018 2019 2020 2021

Cash+ MS 20592813 18695791 18853721 19205164 21168283

Current Liabilities 47387537 47845094 49538262 49520149 61640583

Ratio 4.3 0.3 0.3 0.3 0.3

Chart Title
1.2

0.8

0.6

0.4

0.2

0.2 0.4 0.6 0.8 1.2

Series1 Series2 Series3

36
Debt to capital Ratio

Debt to capital ratio should be less for the company is better. The high ratio is risky for the
company. Its calculated by the firm interest bearing debt include both long term and short term
divide by total capital.

Analysis: the company was performing well. Because previous five years their debt to capital
ratio is zero. They use their most of equity parts and use too much less of the debt. Where
they pay low interest on their debt.

Debt to Capital Ratio

Year 2017 2018 2019 2020 2021

Total Debt 0 0 0 166367 926756

Total D= 20364 1966 2138 2240122 26316520

T Equity 465 3358 0492 6

Debt to
Capital 0 0 0 0.00743 0.03522
Ratio

Chart Title
30000000
25000000
20000000
15000000
10000000
5000000
016 2017 2018 2019 2020 2021 202
-50000002

Series1 Series2 Series3 Series4

37
Debt to Total Asset Ratio

Debt to total asset indicates that the company balance sheet consist long term and short term
debt and tangible and intangible asset such as good will. That the company how use their asset
or how effectively manage their asset to meet financial leverage. Creditor use this ratio that
company has their debt or paying. Less ratio is best for the company. From 2017 to 2019
company have enough asset. But during 2020 and 2021 company somehow not performing
well. It is not good for the company in future.

Table 4.6 Debt to Total Asset

Year 2017 2018 2019 2020 2021

Total Debt 0 0 0 166367 926756

Total Asset 47387537 47845094 49538262 49520149 61640583

Ratio 0 0 0 0.1 0.1

Debt to Total Asset

70000000
60000000

50000000

40000000

30000000

20000000

10000000

201 6.5 201 7 201 7.5 201 8 201 8.5 201 9 201 9.5 202 0 202 0.5 202 1 202 1.5
-10000000

Series1 Series2 Series3

38
Return On Equity

Return on equity is calculated by dividing net income and shareholder equity. Because equity
is equal to firm’s asset minus liabilities. It is considered as return on net asset. Indicates that
how company generating its profit. The higher return on equity is that company management
is generating good income and growth from its equity. From 2017 to 2020 company perform
well with highest ratio. But in 2021 company ratio decreased with 0.1 which worse condition.
It is bad indicator for company in future.

Table 4.7 ROE

Year 2017 2018 2019 2020 2021

N.P After tax 1,221 1239 1813 1876 3136

Shareholder equity 20364465 19663358 21380492 22234859 25389764

Ratio 6 6.4 8.5 8.5 0.1

ROE Ratio
30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

2016.5 2017 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Series1 Series2 Series3

39
Return On investment

Return on investment ratio indicates that how firm investment is perform. It tells that cost of
your investment and what the firm received from that investment. Return on investment do
not take in the account of holding passage of time and it can miss the opportunity cost of
investing.

Analysis: The positive ROI is best for the company and it is considering a good position of
firm. Negative move to net loss. Following five years in AICL, the ratio is same from 2017 to
2021.The Ratio is 0.1 it is good for company but not too good. It is considered as middle not
bad and not too good.

Table 4.8 ROI

Year 2017 2018 2019 2020 2021

N.P After tax 1,221 1239 1813 1876 3136

Total Assets 47388 47845 49538 49520 61641

Ratio 0.1 0.1 0.1 0.1 0.1

Return on Investment
70,000

60,000

50,000

40,000

30,000

20,000

10,000

0
2016.5 2017 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Series1 Series2 Series3

40
Asset turnover ratio

Asset turnover ratio indicates that how firm use asset to generate sale. Investor use this ratio
to compare similar companies in same sector or group. It is ratio of total sales to average
asset.It is calculated on annual basis. High ratio indicates that company generate more
revenue per dollar of asset. In 2017,2020 and 2021 ratio is 0.4. in 2018 and 2019 the ratio is
0.5. it shows that company is not performing in sales to generate more revenue but ratio is not
too much bad. Somehow it is good.

Table 4.9 Asset Turnover

Year 2017 2018 2019 2020 2021

Net Sale 18522 20387 22507 18279 23320

Total Asset 47388 47845 49538 49520 61641

Ratio 0.4 0.5 0.5 0.4 0.4

Asset turnover ratio

25000
20000
15000
10000
5000

500 1,000 1,500 2,000 2,500 3,000 3,500

Series1 Series2 Series3

41
Net profit margin

Net profit margin simple formula is NPAT divide by net sale. It is typically in percentage but
also we can find it into decimal form. Net profit margin is how much net income is generate as
the percentage of revenue received. It is one of important indicator that how is overall
company financial health. High ratio is good for the company. In 2017 to 2019 the company
ratio is 0.1. its mean its generating good income. The firm is healthy as financial position. It
increase in next two year with 0.2.

Table 4.10 Net Profit Margin

Year 2017 2018 2019 2020 2021

Net Profit After Tax 1,221 1239 1813 1876 3136

Net Sale 18522 20387 22507 18279 23320

Ratio 0.1 0.1 0.1 0.2 0.2

Net Profit Margin

25,000

20,000

15,000

10,000

5,000

2016 2017 2018 2019 2020 2021 2022

Series1 Series2 Series3

42
Fixed asset turnover

It is used to measue operating performance. The ratio compare net sale to fixed asset. How
company’s ability to generate net sale from fixed asset. Higher ratio is good for the company.
It means that a company management use their fixed asset effectively.

Table 4.11 Fixed asset turnover

Year 2017 2018 2019 2020 2021

Net Sales 18522 20387 22507 18279 23320

Fixed Assets 3514313 2597899 4232130 4467919 4233325

Ratio 0.0071296 0.004817 0.005037 0.004317883 0.0055086

Fixed Asset Turnover

5000000
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000

2016.5 2017 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Series1 Series2 Series3

43
Return on Asset

This ratio indicates that how company use asset efficiently to generate maximum profit. The
higher ratio shows that company is more efficient and productive managing their balance
sheet to generate more profit. Low ratio indicates that company do not use their asset
affectively to make profit. Which is not good for the company. The company use their asset
effectively but not too much better.

Return on Asset

Year 2017 2018 2019 2020 2021

Profit After Tax 1,221 1239 1813 1876 3136

Total Asset 47388 47845 49538 49520 61641

Ratio 0.025766017 0.025896 0.036598 0.037883683 0.050875229

ROA Asset
70000

60000

50000

40000

30000

20000

10000

2016.5 2017 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Series1 Series2 Series3 Series4

44
Equity to asset ratio

It is used to measure that the percentage of total asset is financed by its equity. The high ratio
indicates that how company able to pay back their its debetor. A low ratio indicates that
company is going to bankrupt. From 2017 to 2021 the company is performing well. There is
no chance to bankruptcy or any bad event. Because equity to asset ratio is much higher which
best indicator for the company.
Equity to Assets Ratio

Year 2017 2018 2019 2020 2021

Total Equity 20364465 19663358 21380492 22234859 25389764

Total Asset 47388 47845 49538 49520 61641

Ratio 429.7388579 410.9804159 431.5978037 449.0076 411.897

Equity to asset ratio

30000000

25000000

20000000

15000000

10000000

5000000

2016.5 2017 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Series1 Series2 Series3

45
Basic earning power ratio

This ratio is used to measure company efficiency at producing earning relative to its asset. The
ratio is similar to return on assets ratio and both have the same denominator. High ratio is good for the
company. A low ratio can lead to some bad event like bankruptcy etc. During five years this company
ratio is round about 0.03 to 0.07 which is not too much bad value but not very good if it low more its
bad for the company.

Basic Earning Power Ratio

Year 2017 2018 2019 2020 2021

Profit Before Tax 2121 2174 2533 1910 4405

Total Asset 47388 47845 49538 49520 61641

Ratio 0.04 0.04 0.05 0.03 0.07

Basic earning power ratio

70000

60000

50000

40000

30000

20000

10000

0
2016.5 2017 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Series1 Series2 Series3

46
Earning Per share

This ratio indicates that how much dollar a company makes its for each stock. It used to
estimates corporate value. High ratio should be best for the company. Low ratio is not good
for the company. This company is perform well in previous five years. Because the ratio is
stable for this company.

Table 4.16 Earning Per Share Ratio

Year 2017 2018 2019 2020 2021

Net Income 11535 13806 15434 13295 12552

No of Shares 1,260,260 1,258,886 1,259,789 1,260,254 1,278,934

Ratios 0.012 0.014 0.017 0.024 0.029

Earning per share ratio

1400000

1200000

1000000

800000

600000

400000

200000

0
2016.5 2017 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Series1 Series2 Series3

47
Horizontal Analysis:

Comparing historical financial data from various reporting periods is known as horizontal
analysis. It helps in determining a company's financial status and rate of growth in comparison
to competitors.In order to calculate a company's growth, the horizontal analysis technique
requires a base year and a comparative year.

 Horizontal Analysis of Balance sheet

 Horizontal Analysis of Income statement

48
 Horizontal Analysis of Balance Sheet

Year 2017 2018 2019 2020 2021

% Change Over Preceding year

Cash and Bank Deposit 100.00% 97.02% 51.65% 57.57% 95.39%

Loan to Employees 100.00% 104.65% 113.95% 104.65% 120.93%

Investment 100.00% 101.54% 109.01% 111.99% 130.82%

Current Assets-Others 100.00% 94.88% 93.77% 86.86% 117.39%

Fixed Assets 100.00% 136.55% 163.41% 158.47% 164.86%

Total Assets of WTO-OP 100.00% 158.51% 176.76% 244.40% 300.41%

Total Assets 100.00% 100.96% 104.54% 104.50% 130.08%

Total Equity 100.00% 96.55% 104.98% 109.18% 124.67%

Underwriting Provision 100.00% 100.70% 101.01% 93.90% 115.98%

Deferred Taxation 100.00% 60.24% 84.88% 87.75% 129.61%

Deferred Liability 100.00% 129.22% 146.10% 137.66% 175.32%

Creditor & Accruals 100.00% 117.09% 91.24% 95.86% 129.83%

Other liabilities 100.00% 144.77% 145.56% 155.53% 241.13%

Total Liability 100.00% 163.12% 139.01% 172.34% 197.87%

Total Equity & Liability 100.00% 100.96% 104.54% 104.50% 130.08%

49
Interpretation:

The primary goal of a horizontal analysis, as we are all know, is to track changes to the line
items over an extended period of time. Here, we choose 2017 as the base year. If we look at
this data, we can see that the cash and bank deposits on the company's balance sheet start
to decline in 2019 compared to 2018 and then start to increase.

On the other hand, if we examine the company's investments, we discover that they have
been expanding over the course of the specified period.

Other current assets have a trend of decline, yet ultimately experience growth. The
company's fixed asset increased in 2019 when compared to 2018 but decreased in 2020 when
compared to 2019, however at the end of 2021 it increased once more to 164.86%.

In compared to 2019, the company's total asset increases in 2019 but decreases in 2020.
However, it increases once more in 2020.

The company's total equity and deferred obligation have increased over the referenced time
period, which is from 2017 to 2021. Throughout the time period, the organisation is not
borrowing any money.

According to the company's horizontal balance sheet, the other liabilities of the company is
trending upward. The overall liability of the corporation decreased in 2019 compared to 2018,
increased in 2020 compared to 2019, and then decreased once more in 2021 compared to
2020.

50
Horizontal Analysis of Income Statement

Horizontal Analysis of Income Statement

Year 2017 2018 2019 2020 2021

Revenue Account

Net Premium Revenue 100.00% 119.69% 133.80% 115.26% 108.82%

Net Claims 100.00% 112.81% 132.86% 107.44% 96.91%

Underwriting Expense 100.00% 129.04% 131.87% 120.30% 122.40%

Net Commission 100.00% 117.43% 138.26% 168.17% 139.72%

Underwriting Result 100.0% 146.5% 117.4% 67.50% 120.65%

Investment Income 100.00% 86.01% 91.83% 73.16% 165.26%

Rental Income 100.00% 77.78% 333.33% 125.56% 1455.56%

Other Income 100.00% 98.96% 66.67% 240.63% 143.75%

General & Administrative Expense 100.00% 165.91% 134.09% 140.91% 134.09%

Exchange Gain/(loss) 100.00% 120.0% 100.00% 240.00% 60.00%

Workers Welfare fund

100.00% 65.08% 565.08% - -
charge/(reversal)

Profit Before Tax From WTO-OP 100.00% 117.91% 161.19% 144.78% 207.46%

Profit before tax 100.0% 102.5% 119.42% 90.05% 207.69%

Provision For Taxation 100.00% 103.89% 80.00% 3.89% 141.00%

Profit After Tax 100.0% 101.4% 148.4% 153.56% 256.84%

51
Interpretation:

If we analyse the company's Horizontal Income Statement, we can see that, while net
premium revenue increased in 2019 as compared to 2018, it then began to decline in the
years that followed. The company's net claims rise in 2019, but after that year, they start to
decline. The company's Net commission has an upward tendency up until 2020, but when
compared to 2020, it starts to decline in 2021.

If we analyse the company's rental income, we discover that there has been an upward trend
in the rental income during the specified period. Throughout the mentioned time period,
which is from 2017 to 2021, there has been no change in the fair value of the company's
investment property. The company's general and administrative expense decreased in 2019
as compared to 2018, increased in 2020, and then decreased again in 2021 when compared
to 2020.For the duration of the specified time period, the company's loan fees are 0%. The
worker welfare charge, on the other hand, shows a declining trend through 2019 before
eventually becoming zero.

The profit before tax shows an increasing tendency until 2019 before declining in 2020 and
then showing an increasing trend once more. The company's tax provisions show a decreasing
trend until 2020, but they start to rise once more in 2021. In contrast, if we examine the key
component of the income statement—profit after tax—we discover that the company's profit
after tax exhibits an upward tendency.

52
Vertical Analysis:

Financial statements that list each line item as a percentage of the statement's base figure
are analysed vertically.

 Vertical Analysis of Balance Sheet.

 Vertical Analysis of Income Statement

53
 Vertical Analysis of Balance Sheet

Year 2017 2018 2019 2020 2021

Asset in Millions

Cash and Bank

Deposit 4.81% 4.62% 2.38% 2.65% 3.53%

Loan to Employees 0.09% 0.09% 0.10% 0.09% 0.08%

Investment 50.12% 50.40% 52.26% 53.71% 50.40%

Current Assets-Others 38.92% 36.57% 34.91% 32.35% 35.12%

Fixed Assets 5.55% 7.51% 8.68% 8.42% 7.04%

Total Assets of WTO-

OP 0.51% 0.80% 0.86% 1.19% 1.17%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

Total Equity 42.98% 41.10% 43.16% 44.90% 41.19%

Underwriting Provision 43.55% 43.44% 42.08% 39.14% 38.83%

Deferred Taxation 3.31% 1.97% 2.68% 2.78% 3.29%

Deferred Liability 0.32% 0.42% 0.45% 0.43% 0.44%

Creditor & Accruals 3.98% 4.61% 3.47% 3.65% 3.97%

Other liabilities 5.57% 7.98% 7.75% 8.29% 10.32%

Total Liability 0.30% 0.48% 0.40% 0.49% 0.45%

Total Equity &

Liability 100.00% 100.00% 100.00% 100.00% 100.00%

54
Interpretation:

Knowing the relationships between all heads, sales, and assets is the goal of vertical analysis.

As According to the vertical analysis balance sheet, the organization's cash and bank deposit in

2017 was 4.81%, and from that point on, the cash and bank deposit of the corporation have

been on a downward path through 2021. During the aforementioned time frame, the

company's deferred taxation was zero percent. In contrast, the company's fixed assets exhibit

an increasing tendency from 2017 through 2020 before declining once more in 2021. In 2019

and 2020, the company's total equity increased; however, in 2021, it decreased once more.

Between 2017 to 2019, the company's borrowing was zero, and from then on, it increased.

The overall liability of the corporation shows increases when compared to 2017, but it then
decreases in 2019 before increasing again, indicating that it has fluctuated during the
referenced period.

55
Vertical Analysis of Income Statement:

Vertical Analysis of Income Statement

Year 2017 2018 2019 2020 2021

Revenue Account

Net Premium Revenue 100.00% 100.00% 100.00% 100.00% 100.00%

Net Claims 64.45% 60.74% 64.00% 60.08% 57.39%

Underwriting Expense 22.33% 24.08% 22.01% 23.31% 25.12%

Net Commission 9.45% 9.27% 9.76% 13.79% 12.13%

Unexpired Risk Reserve -1.06% 0.00% 0.00% 0.00% 0.00%

Underwriting Result 4.83% 5.91% 4.24% 2.83% 5.35%

Investment Income 12.95% 9.31% 8.89% 8.22% 19.67%

Rental Income 0.08% 0.05% 0.19% 0.85% 1.04%

Other Income 0.83% 0.69% 0.41% 1.74% 1.10%

General & Administrative Expense 0.38% 0.53% 0.38% 0.47% 0.47%

Exchange Gain/(loss) 0.04% 0.04% 0.03% 0.09% 0.02%

Finance Charges 0.00% 0.00% 0.05% 0.11% 0.40%

Workers Welfare fund

charge/(reversal) 0.55% 0.30% -2.31% 0.00% 0.00%

Profit Before Tax From WTO-OP 0.58% 0.57% 0.70% 1.23% 1.11%

Profit before tax 18.39% 15.75% 16.41% 14.37% 35.09%

Provision For Taxation 7.80% 6.77% 4.67% 0.26% 10.11%

Profit After Tax 10.59% 8.97% 11.75% 14.10% 24.98%

56
Interpretation:

If we analyse the vertical analysis income statement, we can see that the company's net claim
decreased in 2018 when compared to 2017, increased again in 2019, but afterwards showed
a downward trend in the income statement of the organization. The Underwriting result of
the company's vertical analysis income statement rises in 2018 compared to 2017, but after
that it begins to trend downward in 2019 and 2020 before rising once more in 2021.

According to the income statement and business vertical analysis, the company's finance
charges were 0% in 2017 and 2018 but increased from 2019 to 2021. The company's earnings
before tax decreased in 2018 when compared to 2017 but increased in 2019 when compared
to 2018, but after that it began to trend downward in 2020 when compared to 2019 and then
began to trend upward in 2021 from all of the previously mentioned time periods.

57
 Chapter 4
SWOT ANALYSIS

58
 SWOT ANALYSIS STRENGHT:
 Innovative Culture
An innovative culture helps Adamjee Life Takaful to make different product
and services which

 Pricing power
Customer can switch to competitor product by increasing product prices but
if the company has pricing power, then customer will continue with Adamjee Life Takaful
product and services. While the company has the ability to charge higher price from the
customer.
is unique and meet their customer needs.

 Cost Advantage
AICL charge low cost. This low cost strategy help to increase profits and
undercut the competitor

 Financial Leverage
Financial leverage helps to Adamjee life Takaful to use their balance sheet
to increase their business and profits.
 Significant corporate clients
 Educated, motivated employees/a sales team under the direction of an accomplished senior
management team
 Various channels of distribution
 Geographical presence across the nation
 Dependable reinsurance measures
 Excellent customer service

59
WEAKNESSES
 Weak Research and Development

AICL have weak research and development which can lead to decrease
AICL growth and competitor out innovate AICL.

 Weak supply chain

AICL is hunting by weak supply chain which can delay the arrival of
product and services. Unnecessary delays can damage their reputation in target market
when customer will cancel the orders.

 Work inefficiency

An inefficiency work in environment that leads to AICL product and

services are not utilized well.

 Adamjee has a sizable workforce, the majority of which work from their own offices. The
company frequently has trouble covering employee salaries and resolving issues.
 Nowadays, many consumers have doubts about their plans and insurances, and Adamjee hasn't
been able to promptly respond to them.
 Today's consumers often worry about their privacy while deciding whether to purchase such
plans, therefore this could be one of Adamjee's disadvantages.

60
OPPORTUNITIES
 Innovation

Suitable innovation help AICL to make new products according to needs

of customer which help to increase the company growth.

 Online Market

AICL have great opportunity to expand their business by sell online

product and services. Because online market have little expanse and wide audience
available.

 New Services

AICL can expand their business by diversify their customer base. New
services can also lead to increase their customer and productivity.

 Emerging Market

AICL also attach with huge business groups and work in other countries
stock exchange. This will help to increase their profitability.

 New Technology

New technology help AICL to meet their specific needs of customer

which is lead to increase their target market and customer. New technology will also
help to left back his competitor.

 Increasing consumer awareness of the necessity for life and health insurance.
 Low penetration rates for life insurance.
 Low standards of customer service in the insurance sector.
 Life and health insurance premium tax credits.
 Family Takaful is becoming more prevalent.

61
THREATS

 Bad economy

A bad economy can cause to decrease the potential customer for

AICL.

 Government Regulation

By changing Government regulation AICL may negative effect and

cannot maintain their growth.

 Political Risk

Politics is the factor which affect every business somewhere it is good

for business and somewhere is bad for businesses. By political instability it increase
the risk factor for AICL because new politician change the business rules.

 Substitute Products

Availability of substitute product can decrease the growth of AICL

because the customer can switch easily to another firm’s products.

 Compromise on other insurance firms' best practices.

 Employee espionage by rival insurance companies.
 Competitor’s unrealistic group scheme pricing.

62
 Chapter 05
Conclusion and Recommendations

63
Conclusion:
Its relative position in the world, in Pakistan, and in its home country is evident. It is battling a
number of problems. Some problems are tied to evolving political and economic systems, while
many problems are the result of managerial negligence and ineptitude. These problems are the
ones that matter in the current competitive market, despite the fact that some of them are very
minor. Each of these problems was later named and given the appropriate advice. All of these
problems require significant consideration. The scenario will then likely change drastically in
the future if Adamjee Family Takaful Insurance’s policy, financial status, and other areas all
improve.

There are also other minor concerns; these are the important factors. Both global and local
businesses in Pakistan are now implementing new ideas and providing their workforce with
additional resources in an effort to maintain employee morale and completely motivate them.
However, the Adamjee Family Takaful Zonal Office is lacking in these things. I think that if
these problems are fixed, the employees will be more motivated, efficient, and effective. The
public and the workforce will be lured in as profitability rises.

There is a lot of competition in this regard. Only insurance companies that aim for perfection
will be successful. Adamjee Family Takaful, though, is working just as hard to make money.

Every business must put in a lot of effort to increase profits and get a competitive advantage.
The importance of growth and improvement increases with each step and minute that passes.
The insurance sector, in particular in Pakistan, faces significant challenges as well as enormous
opportunities.

There are also other minor concerns; these are the important factors. Both global and local
businesses in Pakistan are now implementing new ideas and providing their workforce with
additional resources in an effort to maintain employee morale and completely motivate them.
However, the Adamjee Family Takaful Zonal Office is lacking in these things. I think that if
these problems are fixed, the employees will be more motivated, efficient, and effective. The
public and the workforce will be lured in as profitability rises.

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Recommendations
 For all of the staff employees to advance their knowledge and skills, the top
management must plan the right seminars and workshops. This will increase output.
 All company policies should be clearly stated in paper so that performance may be
compared to established goals and be more specific. Eliminating these defects is
crucial in the current, cutthroat insurance market.
 The era of marketing has arrived. A corporation will create more sales the more
effective its marketing is. Therefore, Adamjee should place a high priority on its
marketing plans. By doing this, the bank may educate the general public about its
services while also gaining their trust. Advertising should appear in both newspapers
and television.
 Financial incentives should be given to workers to boost motivation. An incentive
of this nature increases workers' output, which ultimately benefits the bank.
 A salary update is required.
 Technical training is ongoing and important.
 They ought to appoint more educated salespeople in order to enhance the relationship
between the customer and the provider.
 The insurance expenses and commissions, which are the main reasons for the New
Adamjee Insurance Company's low profitability, should be the focus of the
management. Despite being effective, the firm is efficient in managing its entire
expenditures. After net claims, insurance expenses make up the majority of the income
statement due to the tiny percentages of premium volume.

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References
1. https://www.adamjeelife.com/window-takaful-operations/individual-family-takaful/
2. https://www.adamjeelife.com/investor-information/
3. https://www.adamjeeinsurance.com/pak/

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