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GUYAAA CO-OPERATIVE IA/URA ACE /ERVICE st ANNUAL -REPORT �ND ACCOUNTS FOR THE PERIOD ENDED 31st DECEMBER, 1976 �------ ---�- CONTENTS Page Directors and General Management 3 Chbirman's Statement 5 Income/Expenditure Charts 6 Report of the Directors 7 Revenue Account Balance Sheet 8 9 Notes to the Accounts 10 Report of the Auditors 13 Statement of Source and of Funds application 15 Accounting Policies 16 1st Annual Report and Accounts of the GUYAnA CO·OPERATIVE lnJURAnCE /ERVICE for the Period ended 31st December 1976 '-----------1D.i1C..1•S�-----------' 1 GUYANA CO-OPERATIVE INSURANCE SERVICE <( a: w " z :, " z .. 0 a: w z 0 .
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:; :; " w :,; I- i .. .. I-" w > i= :, " w >< w C z <( " a: I-" w a: c .. 0 0 C a: <( 0 w I- cc•s 2 GUYANA CO-OPERATIVE INSURANCE SERVICE DIRECTORS ANO GENERAL MANAGEMENT Chairman HAROLD E. WILKINSON Deputy Chairman CLAUDE BONE -M.S.

Directors YESU PERSAUD -F.C.C.A., F.R.S.A.

RONALD STEWART -B.Sc.

SHAMIR ALLY - A.S.C.A.

, A.M.B.1.M., M.1.5.M.'

BASIL BLAIR WI LF RED CARR - A.B.S.

General Manager RUDYARD FIELD-RIDLEY - B.Sc.

{Econ), A.LB.

Manager Non-Life PATRY REJENDRA -B.Sc.


Accountant ASUM RAHAMAN - A.C.1.5., A.M.B.1.M.

Company Secretary DONALD D. COLE - B. Soc.

Sc.

Dip.

(Stats).

Agencies Controller BRIAN PATOIR Auditors AUDITOR GENERAL -Government of Guyana Solicitors CLARKE & MARTIN Bankers GUYANA NATIONAL CO-OPERATIVE BANK Branch Office 8 Strand, Berbice, New Amsterdam, Guyana.

ac•s 3 GUYANA CO-OPERATIVE INSURANCE SERVICE .


.. · 1.ll1 IHII HIJ' � � " ,_ "' � � 0 � C " "' :,: 0 .. ::, cc " " 0 �---------- ,C ... Culi::5:a-----------' 4 GUYANA CO-OPERATIVE INSURANCE SERVICE CHAIRMAN'S STATEMENT The Guyana Co-operative of Finance Insurance under Section was established by an Order 15 of the Co-operative Service Financial made by the Minister Institutions to transact capital being contributed of G$10 million business.

capital and a paid-up share of Guyana.


wholly by the Government Act, 1976.


The Service is a registered both life and non-life insurance authorised It has an authorised share Insurance Company of G$1.5 million, the latter The establishment of the Service represented a significant milestone of Guyana, in that for the first in the of insurance history time a Co-operative the participation ownership the eventual in the Co-operative Insurance of co-operative and control societies Republic also provided and trade unions, but by these bodies.
of the institution Company was formed which permitted not only for The Service commenced its non-life on 1st July, 1976 and it will operations which follows that it has had a success· be seen from the Report of the Directors ful period of operations.

During the period under review, the Service was concerned mainly Together, up of its motor and fire insurance portfolios.
for some 99.95% of the total premium income earned with the these two classes in non-life insurance of the Liverpool, building of business accounted during the period.

Despite service Agencies Royal Exchange was able to write all classes transacting Service expands insurance such business its direct business.

this, the Service was primarily because London & Globe Insurance Company and able to provide it managed to secure Group.
Through these Agencies, the Service a comprehensive the principal the Guardian from its inception gained in when the of business except life.

The experience should prove invaluable in coming years to cover a wider range of general underwriting activities It is envisaged the assistance that with the Service Technical operations would be able to offer a complete should be in a position Assistance, early in 1977.
By the end of that year, insurance of the Commonwealth Fund to commence for its life that the Service it is.expected service to the people of Guyana.

staff for their On behalf manage· contribution ment and staff has proved to be of great value during the period under review.

of the Board, I would like to thank all members of The mutual confidence to the Service's progress.
between '------------1G1.a.1CL.1•1:S:1---- ------.....I 5 GUYANA CO-OPERATIVE INSURANCE SERVICE INCOME AND EXPENDITURE CHARTS PREMIUM INCOME FIRE 82.32% MOTOR 17.63% EXPENDITURE TAXATION 53.66% PENSION 29% MANAGEMENT EXPENSES 36.08% '------------C1-aaC1...1•i::S:::1------------' 6 GUYANA CO-OPERATIVE INSURANCE SERVICE DIRECTORS' REPORT The Directors have pleasure for the period i_n submitting first their ended 31st December, Annual Report 1976. with the Accounts together INSURANCES IN FORCE period During the insuring $3, 1A 1,659 respectively.
under review, a total of $681 Million issued together $672,801 and 951 motor policies and yielding and 238 fire policies annual premiums were of CLAIMS Total claims paid and provided for amounted to $47,334.

No sums were recoverable retention limits.

from Reinsurers as individual claims were well within the Service's EARNINGS Net income before $470,356 the Net Profit taxation was $796,575 after tax was $326,219.
taxes of and after deducting INVESTMENTS A high degree of liquidity was maintained At 31st December, folios.

Government securities 1976, bank deposits $1,570,698.

totalled in the Service's port­ and investments in short term investment STAFF The average number of persons employed during the period was 55.

DIRECTORS The names of persons who served as Directors during the period appear.on page 3 of this Report.
AUDITORS In accordance with the provisions of Section Financial Service by the Co-operativ Act, the Auditor e Financial General ion.
Administrat Institutions 48 (2) of tbe Co-operative Auditor was appointed of the By Order of the Board DONALD D. COLE, Secretary oc•s 7 GUYANA CO-OPERATIVE INSURANCE SERVICE REVENUE AND EXl'ENDITURE for the Period Ended 31st December, 1976 ACCOUNT REVENUE Notes Premiums (net) 1 G$ 654,883 Income from Investments 2 Other Income 3 25,091 522,745 G$, 1,202,719 Deduct EXPENDITURE Claims (net) 4 G$ 47,334 Commissions Management Expenses 5 Pension Fund Contributions 40,041 316,247 2,522 Total Expenditure G$ 4 06,144 Net Profit Before Taxation Less: Taxation 796,575 470,356 Net Profit after Taxation G$ 32,6,219 nc•s 8 GUYANA CO-OPERATIVE INSURANCE SERVICE BALANCE SHEET as at 31st December, 1976 FIXED ASSETS DEPOSITS Notes 7 8 G$227,690 301,230 NET CURRENT ASSETS 9 2,269,835 G$2, 798,755 Financed By AUTHORISED SHARE CAPITA 100,000 Shares at $100 each G$10,000,000 ISSUED SHARE CAPITAL 15,000 shares at $100 Reserves 10 1,500,000 1,298,755 G$2,798,7 55 H.E.
WILKINSON Chairman R.D.

FIELD RIDLEY General Manager/Director cc•s 9 GUYANA CO-OPERATIVE INSURANCE SERVICE NOTES TO THE ACCOUNTS 1.

PREMIUMS Fire, Motor and Miscellaneous Written Insurance G$ 2,240,288 Less Net Cost of Reinsurance 2.INVESTMENT INCOME 1,585,405 G$ 654,883 Guyana National Co-operative Bank (Fixed Deposit) G$ 15,466 Bank of Guyana (Treasury Bills) Other 3.

OTHER INCOME Agency's Commissions Brokerage Fees Miscellaneous 4.
CLAIMS Paid and provided (Fire, for Motor, Miscellaneous) 9,498 127 G$ 25,091 G$ 185,994 116,509 220,242 G$ 522,745 ---- - G$ 47,335 5.

EXPENSES OF MANAGEMENT Administration Expenses G$310,147 Directors' Fees Audit Fees 3,100 3,000 G$316 247 cc•s 10 GUYANA CO-OPERATIVE INSURANCE SERVICE NOTES TO THE ACCOUNTS 6.

TAXATION Income Tax 20% Corporation Tax 35% Property Tax G$162,996 285,244 22,116 G$470,356 7.

FIXEO ASSETS (At cost less amounts written off) Cost Oep.
Net -- -- Furniture/fixtures Equipment G$181,400 G$5,485 G$175,915 Motor Vehicles 56,369 4,594 51,775 G$237,769 G$10,079 G$227,690 G$227,690 8.

SECURITIES Face Value Market Ledger Valuation Value GOVERNMENT OF GUYANA Deposited Authorities with Insurance G$300,000 G$300,000 G$300,000 Other 1,230 1,230 1,230 G$301,230 G$301,230 G$301,230 oc•s 11 GUYANA CO-OPERATIVE INSURANCE SERVICE NOTES TO THE ACCOUNTS 9.
CURRENT ASSETS Interest Accrued G$ 14,310 Accounts Receivable 3,728,433 Fixed Deposits 1,275,000 Guyana Government Treasury Bills Preliminary Expenses 295,698 90,302 Cash on Hand and at Bank 453,756 G$ 5,857,499 Deduct CURRENT LIABILITIES Provision for Claims G$ 34,000 Provision for Taxation 406,996 Accounts - Payable Re-Insurers 1,536,316 Others 10.RESERVES 1,610,352 G$ 3.587,664 Unexpired Risks G$ 972,536 General Reserve 326,219 cc•s G$ 1,298,755 12 GUYANA CO-OPERATIVE INSURANCE SERVICE REPORT OF THE A UDITOR GENERAL ON THE ACCOUNTS OF THE ENDED GUYANA CO-OPERATIVE 31ST DECEMBER, 1976.
SERVICE FOR THE PERIOD INSURANCE I have examined set out which are in agreement with the books of the Service and have obtained all the information which I have required.

and explanations on the attached the Accounts pages 8 to 12 2.In my opinion these accounts which have been prepared on the historical cost basis of accounting state of affairs operations accounting for the period then ended in accordance principles.
a true and correct view of the of its 1976 and of the results accepted with generally of the Service at 31st December, give on this basis, R.P.

FARNUM, Auditor Guyana.

General, of the Auditor General Office 121 Parade Street, Kingston, Guyana.

Georgetown, Dated 13th October, 1977.
L----------- ,C�Cu•i:S:::1-----------' 13 GUYANA CO-OPERATIVE INSURANCE SERVICE MOTOR UNDERWRITING SECTION REGISTRY ANO TYPING POOL nc•s 14 GUYANA CO-OPERATIVE INSURANCE SERVICE STATEMENT for the Period Ended 31st December, 1976 OF SOURCE AND APPLICATION OF FUNDS SOURCE OF FUNDS Profit and Loss Account Balance G$ 326,219 Depreciation Increase in Insurance Fund 10,079 972,536 Generated from operations G$ 1,308,834 FUNDS FROM OTHER SOURCES Shares issued 1,500,000 G$ 2,808,834 APPLICATION OF FUNDS Deposits G$ 301,230 Fixed Assets 227,690 Increase in Net Current Assets 2,279,914 G$2,808,834 nc•s 15 GUYANA CO-OPERATIVE INSURANCE S ERVICE ACCOUNTING POLICIES INVESTMENT INCOME Income on fixed returns security on variable investment return securities.
is recognised as it is earned.

There were no DEPRECIATION of fixed assets Depreciation down the cost of the assets The rates used are 10% for office is on the reducing to the residual furniture useful over their expected values and 25% for motor vehicles.

balance basis calculated to write lives.

PRELIMINARY EXPENSES Preliminary off over a period expenses of three years.
incurred in the formation of the Service would be written ACCOUNTING FOR INFLATION These accounts made to adopt replacement which would have been prepared overcome the distorting effects cost accounting or current of inflation.

on a historical cost basis, no attempt hai; been cost accounting procedures • .f 'l \' ""l'i I.'"'

A SECTION OF THE ACCOUNTS DEPARTMENT '-----------GLi.CL.Jla:5:a---------___.

16