Note 1-Purpose & Constitution
The
Association stands on a mutual basis and is to uphold prestige and safeguard
the interests of its Members, for which the Association affords insurance cover
and offers professional services. The principal activities of the Association
are the insurance against Protecting and Indemnity risks to the Members. The
liability of the Members is to pay Calls and premiums to the Association. In
the event of the termination of the Association, any net assets of the
Association are to be returned equitably to the Members insured by it in the
policy year during which the Association is terminated in accordance with the
Bye-Laws.
Note 2-Accounting Principle
a Accounting Convention
These Financial Statements have been prepared in
accordance with the material Accounting Principles based on applicable Chinese
accounting standards and Generally Accepted Accounting Principles.
b Accounting Year
The figures under items as incorporated in the
Financial Statements are up to February 20 2009
c Annual Accounting and Policy Year Accounting
The Income and Expenditure Account is prepared on an
annual accounting basis and includes all the Calls and premiums levied in the
accounting year and the cost of claims and co-insurance for the current year
and any adjustments relating to previous years together with operating
expenses, financial expenses and investment income. All revenue transactions
appear in the Income and Expenditure Account are allocated to the relevant
policy years or to a reserve.
Calls and premiums, co-insurance premiums, claims and claim recoverable from co-insurers or third parties are allocated to the policy years to which they relate. Both the realised and unrealised investment income and operating expenses are allocated to the current policy year.
d Valuation basis
The Association adopts accrual basis in accounting
unless otherwise stipulated. The values of all assets, except the equity
investment of listed company which is stated at lower of its market value and
the net asset value per share at the balance sheet date, are to be recorded at
historical costs at the time of acquisition.
e Bookkeeping base currency
The United States Dollar is the bookkeeping base
currency of the Association. The Association adopts the principle of separate
accounting for similar accounts. Balances of RMB accounts at the end of the
year shall be translated into the US Dollar at the official exchange rate
prevailing on February 20 2009. The differences arising from the translation
are stated as gains or losses in the Income and Expenditure Account.?
f Cash Balance
Cash in hand, bank deposits and other monetary assets
which include cash in other cities, cashier’s check，bank draft，cash for investment and advisory
funds are listed separately for their different keeping place and certain
purpose in bookkeeping. Their total amount in the name of cash balance is
showed as a current asset in the Balance Sheet.
g Short-term investments
Short-term investments refer to the financial assets
which include stocks, bonds, and advisory funds with the intention that they be
sold within one year.
h Calls and Premiums Receivable
It refers to the accumulated amount of Calls and
premiums receivable due from Members. The Association conducts the direct
write-off method and the bad debts are charged to the reserves directly under
the Board decision when the Calls and premiums are discovered to be
uncollectible.
i Guarantee
It refers to cash balance held by domestic or
overseas Banks for issuing letters of guarantee.
j Long-term investments
The equity method is used when the Association has
significant influence, control or co-control over the operation of the invested
listed company. In the equity method, the initial or supplementary investment
is firstly recorded at cost but later is adjusted each year for changes in the
equity in the invested company. The Association recognizes the balance from the
changes of the equity in the invested company as an investment income or loss.
The cost method is used for other long-term investments.
The investment income includes all the gains and
losses. The investment income (or loss) less the investment management cost is
stated in the Income and Expenditure Account.
Since the policy year of 1998 when the
Association afforded the new cover against
k Fixed Assets
Fixed assets refer to the assets whose useful life is
over one year, unit value is above RMB 2000.00 and where original physical form
remains during the process of utilization. The straight-line method is used in
fixed assets depreciation.
l Short-term Loans
Short-term loans are the bank loans which mature
within one year.
m Liabilities Provision
Liabilities provisions and co-insurance recoveries receivable
for open and closed policy years are drawn based on the best estimates of the
Managers and consent of the chief underwriter to prepare for the claims
incurred in the relevant policy years and their difference is charged to the
Income and Expenditure Account. They are also stated in the Balance Sheet
separately.
n Reserves
The reserves are the net assets of the Association
and available to meet any deterioration in the open and closed policy years and
to contribute to Overspill claims, actual or potential investment losses or
other certain purposes.
o Calls and Premiums
Calls and premiums include Advance Calls,
Supplementary Calls, Release Calls and Fixed premiums, less return Calls and
premiums. These Calls and premiums are the total receivables for the whole
period of cover provided by the contracts incepting during the accounting
period together with any premium adjustments relating to prior accounting
periods. The amount of Calls and premiums less co-insurance premiums is
credited to the Income and Expenditure Account.
p Co-insurance Premiums
The liabilities of the Association are co-insured
above certain levels with some International Group Clubs. This item shows the
amount of the co-insurance premiums the Association paid to these Clubs.
q Claims
The claims include all claims paid during the year.
The recoveries from co-insurers and the recoveries from the third parties are
both as the anti-items to the claims paid and credited into the Income and
Expenditure Account.
r Claims Recoveries From the Third Party
It refers to the amount recovered from the third
party, which is credited into the Income and Expenditure Account as the
deduction of claims.
s Co-insured Recoveries
The liabilities of the Association are co-insured above
certain levels with some International Group Clubs. It is the anti-item to the
claims paid and credited in the Income and Expenditure Account. Accordingly the
co-insurance recoveries receivable are listed as assets in the Balance Sheet.
t Operating Expenses
Operating expenses include management costs and costs
of the Board. The management costs include the cost of the offices, staff,
communications, travel and administration. The costs of the Board include the
cost of annual General Meetings of Members and Board meetings, travels and
other costs. It has been drawn on the ratio in accordance with the Board’s
instruction and is listed in the Income and Expenditure Account.
u Taxation
The Association enforces the relevant tax policies of
the People’s Republic of China.
v Related Party Disclosures
The Association has no share capital and is
controlled by the Members who are also the insureds. The subsequent insurance
transactions are consequently deemed to be the transactions between the related
parties, but they are the only transactions between the Association and the
Members.
Note 3-Sundry debtors/creditors/ Short-term loans
|
|
2008/2009 |
2007/2008 |
|
Sundry debtors |
|
|
|
Account with HM Cover |
1,563,341.03 |
|
|
Advance payment * |
- |
4,137,471.24 |
|
Staff housing loan |
908,455.05 |
1,020,777.66 |
|
Other debtors |
650,208.19 |
649,729.07 |
|
Total Sundry debtors |
3,122,004.27 |
5,807,977.97 |
|
Sundry creditors |
|
|
|
Account with HM Cover |
- |
2,835,445.79 |
|
Other creditors |
1,923,817.61 |
4,836,071.76 |
|
Total Sundry creditors |
1,923,817.61 |
7,671,517.55 |
|
Short-term loans |
5,000,000.00 |
- |
*The Association purchased the
office building “
The short-term loan of USD5
million had been returned to China Merchants Bank Beijing Branch before
maturity in March 2009.
Note 4-Long-term investments （see Note 2.j）
|
|
|
|
|
China Minsheng Bank Corp. |
|
335,238,908.86 |
|
China Everbright Bank |
|
18,147,373.35 |
|
COSCO Jinjiang Development Co.,Ltd. |
|
2,341,056.83 |
|
Beijing Vantone Industry Co.,Ltd. |
|
2,099,199.79 |
|
Hai Tong Securities Co.,Ltd. |
|
28,288,557.13 |
|
Fujian Hairun properties Co.,Ltd |
|
585,163.19 |
|
|
|
386,700,259.15 |
|
Less: Transfer to HM Cover Account |
|
334,921.48 |
|
Total long-term investments |
|
386,365,337.67 |
Up to February 20 2009, the Association, as
the fifth biggest shareholder of China Minsheng Bank
Corp.(hereinafter called as the Bank), invested
totally USD
The Association sold 4.6 million shares of Hai Tong Securities Co. Ltd
(hereinafter called as the Company) at price of RMB8.3 per share in December
29, 2008 and got the net profit RMB31.49 million from the trading. Up to
December 31 2008, the Association holds 134.2 million shares of the Company
which have circulated in the stock-market.
Note 5-Calls & Premiums （see note 2o/p）
Net Calls & Premiums
|
|
|
2008/2009 |
2007/2008 |
|
Calls & premiums |
A |
44,801,674.32 |
39,490,758.84 |
|
Co-insurance premiums |
B |
18,787,853.79 |
13,877,115.66 |
|
Net calls & premiums |
A－B |
26,013,820.53 |
25,613,643.18 |
Calls & Premiums
|
|
|
2008/2009 |
2007/2008 |
|
Policy year |
|
|
|
|
2008 |
|
39,667,471.40 |
|
|
2007 |
|
56,993.55 |
31,981,347.01 |
|
2006 |
|
4,919,731.40 |
1,251,850.64 |
|
2005 |
|
157,477.97 |
5,296,954.39 |
|
2004 |
|
|
960,606.80 |
|
Total |
|
44,801,674.32 |
39,490,758.84 |
Co-insurance Premiums
|
|
|
2008/2009 |
2007/2008 |
|
Policy year |
|
|
|
|
2008 |
|
18,076,650.07 |
|
|
2007 |
|
506,904.63 |
12,980,799.37 |
|
2006 |
|
201,721.12 |
737,401.25 |
|
2005 |
|
2,577.97 |
121,241.05 |
|
2004 |
|
|
37,673.99 |
|
Total |
|
18,787,853.79 |
13,877,115.66 |
Note 6-Claims （see note 2q/r/s）
Net Claims
|
|
|
2008/2009 |
2007/2008 |
|
Claims |
A |
16,784,000.55 |
17,620,881.73 |
|
Less:Recoveriesfrom3rdparty |
B |
12,028.97 |
172,486.18 |
|
Other P&I Association |
C |
1,483,067.38 |
4,293,719.42 |
|
Net claims |
A-B-C=D |
15,288,904.20 |
13,154,676.13 |
Recoveries From 3rd Party
|
|
|
2008/2009 |
2007/2008 |
|
Policy year |
|
|
|
|
2008 |
|
- |
|
|
2007 |
|
- |
- |
|
2006 |
|
- |
9,485.99 |
|
2005 |
|
12,028.97 |
- |
|
2004 |
|
|
163,000.19 |
|
Total |
|
12,028.97 |
172,486.18 |
Recoveries From Other P&I Association
|
|
|
2008/2009 |
2007/2008 |
|
Policy year |
|
|
|
|
2008 |
|
- |
|
|
2007 |
|
1,349,658.11 |
2,540,191.19 |
|
2006 |
|
130,794.94 |
- |
|
2005 |
|
2,614.33 |
321,033.98 |
|
2004 |
|
|
1,432,494.25 |
|
Total |
|
1,483,067.38 |
4,293,719.42 |
Claims
|
|
2008 |
2007 |
2006 |
2005 |
Total |
|
Correspondents fee |
187,711.03 |
348,206.31 |
335,357.79 |
75,655.38 |
946,930.51 |
|
Survey fee |
887,179.42 |
607,775.63 |
49,779.24 |
13,089.54 |
1,557,823.83 |
|
Lawyer's fee |
145,290.55 |
523,697.79 |
704,822.39 |
434,284.04 |
1,808,094.77 |
|
Injury illness or death of
seaman |
990,140.73 |
1,182,976.31 |
410,997.69 |
530,645.18 |
3,114,759.91 |
|
Cargo damage |
135,970.14 |
1,013,286.20 |
1,071,921.23 |
1,656,684.51 |
3,877,862.08 |
|
Collision |
1,077,547.52 |
813,892.82 |
382,017.02 |
14,629.08 |
2,288,086.44 |
|
Pollution risks |
28,104.72 |
549,039.26 |
- |
- |
577,143.98 |
|
Wreck disposal |
- |
- |
- |
- |
- |
|
Others |
736,290.91 |
1,343,671.57 |
225,452.67 |
286,370.18 |
2,591,785.33 |
|
P&I |
4,188,235.02 |
6,382,545.89 |
3,180,348.03 |
3,011,357.91 |
16,762,486.85 |
|
FDD |
- |
21,513.70 |
- |
- |
21,513.70 |
|
Total claims paid |
4,188,235.02 |
6,404,059.59 |
3,180,348.03 |
3,011,357.91 |
16,784,000.55 |
Note 7-Investment income （see note 2j）
|
|
|
2008/2009 |
2007/2008 |
|
Realised investment income: |
|
|
|
|
Equity capital |
|
5,337,252.43 |
- |
|
|
|
4,607,287.91 |
- |
|
Bonds |
|
- |
- |
|
House Property |
|
67.73 |
20,357.98 |
|
Others |
|
2,184,566.04 |
2,616,561.54 |
|
|
|
12,129,174.11 |
2,636,919.52 |
|
Add: Unrealised investment income |
|
17,956,544.58 |
155,233,000.22 |
|
|
|
30,085,718.69 |
157,869,919.74 |
|
Less: Investment cost |
|
2,406,857.50 |
12,629,593.58 |
|
Net income of investments |
27,678,861.19 |
145,240,326.16 |
|
Note 8-Liabilities Provision & Liabilities Provision Transfer （see note
|
|
|||||
|
Policy year |
|
|
|
||
|
2008 |
|
|
|
|
9,089,001.00 |
|
2007 |
|
|
|
|
5,975,672.00 |
|
2006 |
|
|
|
|
5,777,271.00 |
|
Closed policy years |
|
|
|
|
10,962,036.00 |
|
Total |
|
|
|
|
31,803,980.00 |
|
Liabilities
Provision Transfer |
|||||
|
|
|
Estimated provision of liability |
Provision of liability |
||
|
2008/2009 |
|
9,089,001.00 |
- |
||
|
2007/2008 |
|
5,975,672.00 |
7,786,671.50 |
||
|
2006/2007 |
|
5,777,271.00 |
10,187,046.35 |
||
|
2005/2006 |
|
10,962,036.00 |
13,970,635.42 |
||
|
Total |
|
(A) |
31,803,980.00 |
(B) |
31,944,353.27 |
|
Transfers to liabilities
provision (A)-(B) |
(140,373.27) |
||||
Note 9-Reserves （see note 2n）
|
|
|
|
2008/2009 |
|
2007/2008 |
|
Claims |
|
367,601,186.70 |
|
320,555,258.58 |
|
|
Investments |
|
8,453,526.63 |
|
7,286,473.05 |
|
|
Management |
|
32,254,976.37 |
|
27,833,079.97 |
|
|
Total |
|
408,309,689.70 |
|
355,674,811.60 |
|