Accounting project

SUBJECT:

FINANCIAL ACCOUNTING.
TOPIC: ACCOUNTING SYSTEM. ORGNIZATION:

SILVER STAR INSURANCE COMPANY LIMITED.

SUBMITTED TO:

SIR ZAHID.

Division of arts & social science

University of education, lower mall campus

Lahore Ph & fax: 042-7117825

PROJECT SUPERVISOR

SILVER STAR INSURANCE COMPANY LIMITED.

GROUP LEADER:

GROUP ANGELS
SAMIA SUNDUS

SR NO.

NAME SAMIA SUNDUS NARGIS SHABAZ MUBEEN MUNIR M. TAHIR YASIR IMTIAZ AWAIS QAYOM

ROLL NO 04 15 20 28 35 42

1. 2. 3. 4. 5. 6.

.WITH BEST WISHE.

Contents:
1. Introduction of Organization. 2. History. 3. Vision. 4. Mission. 5. Core Values. 6. Form of Business. 7. Nature of Business. 8. Major Products. INTRODUCTION OF ORGANIZATION:

1.

SILVER STAR INSURANCE COMPANY LIMITED:

A public limited Company, listed in Karachi, Lahore and Islamabad Stock Exchanges, Silver Star Insurance Company Limited (SSICL) has based on countrywide branch network containing twenty-five branches in the major cities of Pakistan up till 30th June 2005. The Company is engaged in providing General Insurance Services, the major lines of business are: Fire Marine Motor Miscellaneous Crop Live stock insurance

The present Chairman Chaudhry Muhammad Sadiq is the pioneer of the Company. He made the fortification of the Company deep along with the tremendous team efforts of the directors and employees of the Company. Chaudhry Muhammad Sadiq is the beacon in the field of general insurance. He is ex-reinsurance advisor to United Nations, former Deputy Managing Director to Pakistan Insurance Corporation and National Coinsurance Scheme, former General Manager to National Reinsurance Company, Sudan, Islamic Insurance Company, Sudan and Islamic Insurance and Reinsurance Company, Saudi Arabia; and former Consultant to Islamic Development Bank, Saudi Arabia and the insurance sector of Dallah Al-Barka Group, Saudi Arabia. He is still making his valuable contributions along with the Chief Executive & Managing Director Mr. Zahir Muhammad Sadiq and other Directors and employees for the prosperity of the Organization. InshAllah we will be the benchmark in the general insurance sector in near future

2. History of Organization:

Silver Star Insurance Company Limited A public limited Company, listed in Karachi, Lahore and Islamabad Stock Exchanges, was incorporated on May 3rd, 1984 under the repealed Companies Act, 1913 and the business commencement certificate was issued on September 2, 1984. It is classified as a domestic general insurance company under Insurance Ordinance 2000. 3.

Vision:
To remodel the company into an efficient and prompt provider of insurance solutions to the industry at large, through an integrated and well organized system of service, governed by motivated and prudently managed human resources"

4.

Mission:
Our mission is to achieve a prominent position in the insurance sector, initially by concentrating upon our vigilant expansion in the province of Punjab, while channeling out into other provinces, by way of continuing to provide reliable and quality insurance security, by the persistent support of "A" rated International Reinsurances; thus maintaining high ethical and professional standard, vis-a-vis profitable returns to all our shareholders."

5.

Core Values:
Over the past years, Silver Star Insurance Company Limited (SSICL) made sustained efforts to develop Companys image in insurance industry. My mission for SSICL is to make and develop Companys capabilities for: Bringing security & safety for both individuals and corporate customers at large Providing the finest products and services Continuously improving our business as well business resources, and strengthening and developing Companys business premium

Chairman's Message

I am confident that the management of the Company at each functional level is capable to achieve Companys objectives and to support me in my mission for SSICL. Finally, I would like to express my well wishes for prosperous future of SSICL and for all stakeholders including staff members of the Company.

It is also worthy to express that with Almighty of Allah SSICL is celebrating 25th Anniversary in year 2008.

Chaudhry Muhammad Sadiq

The chairman of Silver Star Insurance Company Limited 6.

Form of Business:

Silver Star Insurance Company Limited, a public limited Company. 7.

Nature of Business:
Nature of the business of Silver Star Insurance Company Limited is service business.

8.

Major Products:
Fire Insurance:

Silver Star Insurance Company Limited (SSICL) is providing the protection to broad spread of quality business relating to industrial, commercial and service activities, including transportation, manufacturing, engineering, banking, and other miscellaneous services. The Fire policy can be issued with allied perils such as:

Riot Strike Damage Riot Fire Damage

Atmospheric Disturbance Malicious Damage Explosion Earthquake Damage Terrorism Air Craft Damage Burglary

Marine Insurance:
Marine Insurance coverage is given to Import and Export of goods from one port to other port under the voyage by Sea, Air and by Rail/Road transit. Silver Star Insurance Company Limited (SSICL) offers different types of risks coverage for the explained categories. a) Marine Import: SSICL providing the coverage for different risks associated with the import of goods from one port to any other port of the world either by Sea, Air or by Rail/Road, whether by trains or trucks. b) Marine Export: In marine export SSICL provides the protection of insurance to the exported goods by various means of transport as explained in the marine import. c) Inland Transit: The Carriage of goods from one city to the other city either across the borders or inside the country or even within the city by Rail/Road, to protect the clients interest, SSICL is providing the simple Rail/Road single journey transit insurance cover.

Motor Insurance
Silver Star Insurance Company Ltd. (SSICL) offers the absolute protection to its clients, which are being used their vehicles for private or business purposes, in a shape

of comprehensive motor insurance. The comprehensive insurance embraces within one document a great deal of protection. SSICL under comprehensive coverage provides an indemnity against losses and damages to the Insureds vehicle. According to the Motor Vehicle Act, 1938, the vehicle should be compulsorily insured before to come on road.

Third Party Insurance:

SSICL also offers the third party motor insurance coverage to its clients. The Third Party Insurance indemnify the Insured against damages and claimants costs and expenses incurred in respect of damage to property where death, injury or damage arises out of an accident.

Third Party Liability Insurance

Third Party Liability Insurance policies can be issued separately. The extra benefits can be included in the insurance policy by paying risk wise additional premium regarding Legal Liability to Paid Driver, Accident to Insured & his / her spouse, Accident to passengers.

Agricultural Tractor Insurance:

Silver Star has taken the initiative to offer Comprehensive Agricultural Tractor Insurance to protect the cultivators from any kind of prospective loss to their Agricultural Tractors, as in Comprehensive Insurance.

Miscellaneous Insurance:
Silver Star Insurance Company Limited (SSICL) deals in various categories of Miscellaneous Insurance, which are as:

Cash in Transit Cash in Safe Fidelity Guarantee Contractor All Risks (Civil Engineering) Erection All Risks

Workmen's Compensation Bond

Cash in Transit:

SSICL, to protect the businessmens wealth at each level, is facilitating their physical cash transactions under the umbrella of Cash in transit policy. The cash maybe looted, robbed or stolen either during normal business hours or after normal business hours whether the cash is in the transit between the bank and office or any other route, which has been especially mentioned in the policy, at gunpoint or forcibly.

Cash in Safe:

The cash may be looted robbed or stolen from the counter, drawers from the locked iron safe at gunpoint by making hostage the staff of the office. To safeguard the clients from such unforeseen circumstances SSICL provides a separate policy of Cash in Safe.

Fidelity Guarantee:

Most of the banks obtain Fidelity Guarantee insurance for their employees, who are dealing with cash payments. As per policy coverage Silver Star Insurance Company Limited (SSICL) indemnifies the insured against the Loss of Money, Securities or other Property resulting directly from Employment Infidelity, theft of Money, Securities or the theft of any of the insured's funds from their transfer account as communicated to such Financial Institution.

Contractor All Risks (Civil Engineering):

The Contractors All Risks Insurance offers comprehensive coverage for all types of civil construction risks. This type of insurance policy is called blanket policy. This policy covers physical loss or damage to property, as well as third party liability related to work conducted on the contract site.

Erection All Risks:

The policy of Erection All Risks offers comprehensive coverage for plant and machinery construction risks. This policy covers physical loss or damage to property, as well as third party liability related to work conducted on the contract site.

Workmen's Compensation:

The Employer obtains the Workmen Compensation insurance for his workers engaged in different categories. The Act provides no-fault benefits in the event of death or injury to a workman due to an accident while at work. In case of death legal heirs are paid compensation through Workmen Compensation Commissioner.

Bond:
A Bond is not an insurance policy but is a form of financial guarantee. It is a guarantee issued by an insurance company (called surety) to another party (called insured), which is favoring to the third party (called Principal) to meet the contractual obligations.

ACCOUNTING SYSTEM
An accounting system consists of the personnel, procedures, devices, and records used by an entity to developed accounting information ant to communicate this information to

decision makers. The structure and capabilities of these systems vary greatly from one organization the next. The Silver Star Insurance Company Limited. a very good satisfactory system for preparing there financial informations.

Design of Accounting Systems: 1. Accounting Periods:

There are three accounting periods of this organization; Annually i.e. From Jan 1-Dec 30. Half year i.e. 6 months. Half year accounting period is audited review. Quarterly accounting period i.e. of 3 months. In this method first and third quarter is unaudited.

2. Computerized Accounting System:

The accounting system of Silver Star Insurance Company is totally computerized. And it is based on ORACLE BASE.

Basic functions of an Accounting system

Records:

Recording is by Vouchers i.e. Cash Voucher, Journal Vouchers.

Procedure/ Methods:-

There are two methods or procedures for recording transaction: Cash basis: day to day transaction is recorded by this method. Accrual basis: this type of method record transaction annually.

Devices: The devices used in this organization are computerized like computers,
printers, scanners etc. Networking is used through LAN (Local Area Networking) but it is limited only to Head Office only. Its networking is based on star topology.

Personnel: There are several personal working with relevant jobs. Following are
the members of this organization

Board of Directors: Ch. Muhammad Sadiq (Chairman) Mr. Mudassar Imran Mr. Muhammad Kashif Mr. Munir Ahmad (Chief Financial Officer) Mrs. Shahnaz Sadiq Mr. Waheed Ahmad Mr. Zahir Muhammad Sadiq (Managing Director & Chief Executive)

Company Secretary: Mr. Nazir Ahmad Khan

Management: Mr. Muhammad Imran Qureshi (General Manager) Ch. Shahnaz Ahmad (Joint General Manager- Development) Mr. Munir Ahmad (Chief Financial Officer) Mr. Yousaf Kamal ( Chief Manager) Mr. Zia-ud-Din Zia (Senior Manager) Mr. Muhammad Tariq Balouch (Manager) Mr. Nazir Ahmad Khan (Manager)

Auditors: Mr. Avais Hyder Liaquat Nauman (Chartered Accountant) SARWARS (Chartered Accountant)

Legal Advisor: Mr. Maqsood Hasan

Tax Advisor: SARWARS (Chartered Accountant)

Audit & Corporate Governance Committee: Ch. Muhammad Sadiq (Chairman) Mr. Muhammad Kashif (Member) Mr. Zahir Muhammad Sadiq (Member) Mr. Yousaf Kamal (Secretary)

3. Internal Control:
It is based on IT System. - Password protected system - Level of access to every member - Freely access not available - Individual wise password system

CHAPTER NO.3 ACCOUNTING CYCLE

1. JOURNAL 2. LEDGER 3. TRIAL BALANCE 4. ADJUSTMENTS 5. ADJUSTED TRIAL BALANCE 6. FINANCIAL STATEMENTS
INCOME STATEMENT

PROFIT & LOSS ACCOUNT

BALANCE SHHEET

STAEMENT OF OWNER'S EQUITY

CASH FLOW STATEMENT

7. CLOSING ENTRIES 8. AFTER-CLOSING TRIAL BALANCE

CHAPTER NO. 4
CONCLUSION & RECOMMENDATIONS
1. CONCLUSIONS 2. RECOMMENDATIONS 3. REFERENCES

CHAPTER NO.5
APPENDIX