East West Insurance : Schedule 1 (for issuance of Right Shares)

Schedule 1 Under

The Companies (further issue of shares) Regulation, 2020

East West Insurance Co., Ltd.

To be sent to the Members along with the Notice Offering New Shares

EAST WEST INSURANCE CO., LTD

Registered Office: 27, Regal Plaza, Jinnah Road, Quetta

Company Shares Registrar

THK Associates Private Limited

First Floor, 40-C,Block-6, P.E.C.H.S.,

Karachi.75400 Pakistan

UAN:111-000-322

A. Information pertaining to the Company offering rights Issue"

a) Company Profile and history:

i)	Name of Company		East West Insurance Co., Ltd.
ii)	Incorporation date		08-01-1983
iii) Date of commencement of business	23-01-1983
iv)	Corporate Universal identification	0010017
	Number (CUIN)
v) Website address and web link for latest	http://eastwestinsurance.com.pk/(Financial
	available financial information	reports and highlights)
vi) Contact details for shareholders	Address:
				Head office: 401-404, Block 'B' 4th Floor, Lakson
				Square Building No.3, Sarwar Shaheed Road,
				Karachi.
				Tel: [phone]
				Email:[e-mail]
b) Profile of Management & sponsors
i)	Profile of Directors		Please see Annexure - A
ii)	Other Directorship held	Please see Annexure - A
c)	Name of Auditor		Crowe Huusain Chaudhury & Co. (Chartered
				Accountants)
d)	Existing Capital indicating Classes, if
	any
i)	Authorized Capital		Rs. 2,000,000,000/= divided into 200,000,000
				Ordinary Shares of Rs.10/- each.
ii)	Paid up Capital		Rs. 1,360,861,810/= divided into 136,086,181
				Ordinary Shares of Rs.10/- each
e) Name of holding company, if any	East West Holding Company Ltd.
f) Financial highlights of the Company for
	preceding three years:
IN PKR		FY 2019	FY 2020	FY 2021
Net Revenue/ Sales		1,467,312,889	1,852,505,976	2,117,506,997
Gross/Underwriting		284,742,128	330,775,721	377,227,078
Profit

Profit before interest	237,875,562	299,044,897	358,059,796
and tax
Profit after tax	183,846,020	231,374,748	312,466,772
Accumulated profit	259,963,814	96,987,512	231,950,574
Total Assets	3,640,208,067	3,961,277,992	4,533,804,660
Total Liabilities	2,214,907,897	2,312,513,752	2,572,862,439
Net Equity	1,425,300,370	1,648,764,240	1,960,942,221
Break up value per	13.85	13.93	14.41
share
Earnings per share	1.81	1.96	2.30
(PKR)
Cash dividend per	N/A	N/A	N/A
share(PKR)
Bonus issue	152,445,490	154,351,050	177,503,710

1. Financial highlights of consolidated financial statements for preceding one year as given above (f), (if any): N/A
2. Details of Issue of capital in previous five years:

(i) Year wise detail of issue of	2021	2020	2019	2018	2017
capital
∙	Right Shares	-	-	114,334,110	-	-
∙	Bonus shares	177,503,710	154,351,050	152,445,490	152,445,490	101,630,320

B. Details of the Current Right Issue:

a)	Description of Issue:	Issuance of ordinary shares as Right Shares at par
I)	Amount proposed issue:	Rs. 136,086,180/- divided into 13,608,618 Ordinary
		Shares of Rs. 10/- each.
b)	Face value of the share	Rs. 10/- each.
c)	Basis of determination of price of right	The Board of Directors of the Company decided the
	issue:	price of Right issue on April 30, 2022 the price was
		set at PKR 10/- at par.
d)	Proportion of new issue to existing	Approximately 10% right shares in proportion of 10
	shares with any condition applicable	shares for every 100 shares held. The new shares shall
	thereto:	rank pari passu with existing shares of the Company in
		all respect.
e)	Date of meeting of Board of Directors	April 30, 2022.
	(BOD announcing right issue:
f)	Name of directors attending the Board	Mian Mahboob Ahmad
	Meeting;	Mr. Javed Yunus
		Mr. Pervez Yunus

Mr. Saad Yunus

Mr. Umeed Ansari

Mr. Ahsan Mahmood Alvi

Mr. Mazhar Zubair Abbasi

Mrs. Urooj Yunus Ansari

g)	Justification for the issue
	i) Details of the main objects for which funds are	We are operating in the
	raised through present right issue	insurance industry and do not
	a) Detail of the project	have projects like manufacturing
		companies. However, the raise
	b) Total fund required for the project	of funds will help us to operate in
		regions where at this moment
		we do not have presence in
	c) Percentage finance through right issue
		terms of insurance business. The
		expansion in branch network and
	d) Percentage finance from other sources
		also	regulatory	requirements
		pertains	to		statutory
	e) Time of completion of project
		compliances	and	financial
		reporting in pursuance to the
		recent	International	Financial
		Reporting Standards	requires
		funds		for	the	technology
		enhancement	and	thus for
		business growth.
	ii) Expected benefits of the issue to the company and	1.	The issue of right shares
	its members (description and amount):			will enhance the share
				capital of the company
				by Rs. 136,086,181/-
				and help in
				strengthening of
				working capital of the
				Company.
		2.	The Company to save on
				the finance cost and
				improve profitability;
		3.		Equity injection to
				improve liquidity
				position of the
				Company.
	h. Average market price during last six months:	PKR 85.00
	i. financial effects arising from right issue:				Rs. 136,086,181/-.

(i) increase in Paid up share Capital:

Shares

Before Right Issue	After Right Issue
No. of Shares	Amount at par	No. of Shares	Amount at par
	(PKR)		(PKR)
136,086,181	1,360,861,810	149,694,799	1,496,947,990

Net Asset/Break-up value per share and gearing ratio

As per audited financial of	Before Right Issue	After Right issue
December 31, 2021
ii) Net asset per share (PKR)	14.41	13.10
iii) Gearing Ratio (Times)	N-A	N-A
J) Total expenses to the issue:
Heading	Amount	Total charges PKR
Bankers Commission	340,215/-	340,215/-
Other expenses	PXS, SECP, CDC and printing	Rs. 1,200,000/- approximately
	expenses.

C. Information regarding risks and risks mitigating factors

1. Description of major risks and the Company's efforts to mitigate them:

i)	Risk relating to the	N-A
	project for which
	right issue is
	announced
ii)	Risks relating to	The balance of unsubscribed
	subscription/under-	portion will be subscribed by two
	subscription of right	underwriters named M/s Adam
	issue.	Securities Ltd., and MRA
		Securities Ltd.
iii)	Material	There is no contingencies as per
	contingencies (As	note No. 23 of the annual
	per financial	financial statements 2021.
	statements for the
	period ended
	December 31, 2021.
iv)	Material	There is no commitments as per
	commitments (As	note No. 23 of the annual
	per financial	financial statements 2021.
	statements for the