Trust Modaraba
Managed By:
Al-Zãmin Modaraba Management (Private) Limited.
QUARTERLY
REPORT
30th September, 2023
www.trustmodaraba.com
CONTENTS
- CORPORATE INFORMATION
- DIRECTOR'S REPORT
- DIRECTOR'S REPORT (URDU)
- INTERIM CONDENSED BALANCE SHEET
- INTERIM CONDENSED PROFIT AND LOSS
- INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
- INTERIM CONDENSED CASH FLOW STATEMENT
- INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY
- NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
CORPORATE INFORMATION
MODARABA COMPANY
AI-Zamin Modaraba Management (Private) Limited
BOARD OF DIRECTORS | |
Mr. Mian Sheikh Arshad Farooq | Chairman |
Mr. Basheer Ahmed Chowdry | Chief Executive |
Mr. Syed Shahnawaz Ahmed Rizvi | Director |
Mr. Syed Etrat Hussain Rizvi | Director |
Mr. Mohammad Yasin | Director |
Mr. Sohail Ansar | Director |
Dr. Mrs. Namoos Baquar | Director |
MANAGEMENT | |
Mr. Basheer Ahmed Chowdry | Chief Executive |
Ms. Hamida Aqeel | Chief Operating Officer/Company Secretary |
Mr. Shiraz Butt | Chief Financial Officer |
AUDIT COMMITTEE | |
Mr. Syed Etrat Hussain Rizvi | Chairman |
Mr. Mian Sheikh Arshad Farooq | Member |
Mr. Syed Shahnawaz Ahmed Rizvi | Member |
Mr. Mohammad Yasin | Member |
Ms. Hamida Aqeel | Secretary to the committee |
HUMAN RESOURCE COMMITTEE | |
Mr. Muhammad Yasin | Chaiman |
Mr. Syed Etrat Hussain Rizvi | Member |
Dr. Mrs. Namoos Baquar | Member |
Mr. Basheer Ahmed Chowdry | Member |
Ms. Hamida Aqeel | Secretary to the committee |
INTERNAL AUDITORS | |
UHY Hassan Naeem & Co. | |
Chartered Accountants | |
AUDITORS OF THE MODARABA | |
Grant Thornton Anjum Rahman. | |
Chartered Accountants | |
BANKER | |
Meezan Bank Limited | |
LEGAL ADVISORS | |
Holscott International | |
S&B Durrani Law Assoicates |
REGISTERED OFFICE/PRINCIPAL PLACE OF BUSINESS 104-106,Kassam Court, BC-9, Block-5,Clifton, Karachi-75600Telephone: 021-35876651,35876652
Fax: 021-35870408 Web: trustmodaraba.com
Email: info@trustmodaraba.com
REGIONAL OFFICE
320, 3rd Floor, Garden Heights, 8-Aibak Block, New Garden Town, Lahore Telephone: 042-35941957-8 Fax: 042 35866513
REGISTRARS
Hameed Majeed Associates (Private) Limited
1st Floor, H.M. House, 7-Bank Square, Lahore Telephone: 042- 37235081-2 Fax: 042-37358817
3 | TRUST MODARABA Quarterly Report September, 30, 2023 |
DIRECTORS' REPORT
The Board of Directors of Al-Zamin Modaraba Management (Private) Limited, the management company of Trust Modaraba is pleased to present the un-audited financial statements of Trust Modaraba for the quarter ended 30th September, 2023.
ECONOMIC REVIEW
The previous financial year ended with significant pressure on domestic prices, exchange rate, fiscal account and business environment. The challenges along with record high energy and food prices, loss of crops and livestock added further to the woes of the common man. However, since beginning of the current financial year 2023-24, economic situation has shown some signs of recovery due to the measures initiated by the government aimed at improving the near-term economic situation during the current year. The pro-farmer incentives of the government appear to auger well for the agriculture sector as according to initial estimates cotton production is expected to post remarkable growth of almost over 80% over the previous year. During the first quarter of the current financial year, export of services moved positively and depicted increase though marginally by 2%. Pakistan Stock Market (PSX) remained significantly higher than its past six months average of 43,000 points. Strict administrative actions against foreign exchange dealers has also helped in stabilizing the exchange rate.
However, to ensure long term macro-economic stability and growth, careful economic management and deep structural reforms are required to place the Country on a comprehensive and all-inclusive development trajectory. Until then Pakistan economy will remain vulnerable to domestic and external shocks.
PERFORMANCE
It is encouraging to report that even under the challenging circumstances, the operating performance of your Modaraba remained positive and growth oriented during the first quarter of the financial year ended on 30th September, 2023 and the key performance indicators registered impressive increase over the preceding comparable quarter.
Income of Rs.12.662 million was achieved from core business operations comprising of Ijarah, Murabahah and Diminishing Musharakah during the quarter under consideration registering an increase of 50% over the comparable period of the previous financial year. In line with the guidance of the Board of Directors to reduce the level of exposure in the stock market, selected scrips were disposed of at optimum value and the liquidity thus generated was deployed in fresh business transactions to good risk clients at attractive rates. The strategy paid dividends as is evident from increase in the income from main components of the business operations. Disposal of shares during the period resulted in reversal of provisions of held against the respective shares and contributed net gain of Rs.2.943 million after adjusting on sale of shares. In line with the prudent portfolio risk management policy of the Modaraba, provision of Rs.1.18 million was made against the classified accounts. Income of the Modaraba after accounting for provisions and unrealized gain/loss on equity portfolio stood at Rs.15.047 million as against Rs.10.736 million of the previous comparable quarter. Every effort was made by your management to minimize the expenditure and despite significant surge in the inflation across the board, operating expenses decreased by 4% to Rs.9.03 million (Rs.9.37 million July-Sept, 2022). After accounting for all the provisions and expenses, profit before management fee of Rs.6.013 million was achieved as compared to Rs.1.36 million of the previous comparable quarter. After tax profit stood at Rs.3.76 million translating into 3.3 times increase over the previous comparable quarter of Rs.1.08 million.
The quarter (July-Sept 2023) also witnessed surge in disbursements which stood at Rs.50.65 million as compared to Rs.43.66 million for the previous comparable quarter. As a result of major shift in selection of clients towards corporate sector and individuals having sound financial standing and repayment capacity, risk profile of your Modaraba has improved considerably thereby restricting accruals of any fresh NPLs to the portfolio.
Asset base of your Modaraba as at 30th September, 2023 stood at Rs.394.289 million with an equity of Rs.324.546 million after incorporating unrealized loss of Rs.5.725 million on share portfolio.
Your management is vigorously following up cases in litigation and hope to achieve final settlement of cases which are at an advance stage of the legal process.
EARNING PER CERTIFICATE
Earnings per certificate of your Modaraba works out to Rs.0.13 for the period ended 30th September, 2023.
Financial year 2023-24 has commenced on a positive note with regard to the performance of your Modaraba, every effort shall be made to achieve further progress and growth in business operations and profitability.
For and on behalf of Trust Modaraba
30th October, 2023. | DIRECTOR | CHIEF EXECUTIVE |
TRUST MODARABA Quarterly Report September, 30, 2023 | 4 |
5 | TRUST MODARABA Quarterly Report September, 30, 2023 |
CONDENSED INTERIM BALANCE SHEET (UN-AUDITED)
AS AT SEPTEMBER 30, 2023
(Un-audited) | (Audited) |
September 31, 2023 | June 30, 2023 |
ASSETS | Note | ------------------Rupees----------------- | |||
Current assets | |||||
Cash and bank balances | 4 | 10,754,441 | 7,403,438 | ||
Investments | 15,199,361 | 23,673,280 | |||
Advances, deposits, prepayments and other receivables | 5 | 11,959,672 | 9,252,174 | ||
Murabaha finances - secured | 6 | 32,538,031 | 33,138,031 | ||
Ijarah rental receivables - secured | 3,675,838 | 2,797,830 | |||
Current portion of long term murabaha finances | 7 | 47,172,909 | 54,965,658 | ||
Musharakah finances (secured - considered good) | 8 | 17,908,426 | 16,399,135 | ||
Current portion of diminishing musharakah finances | 9 | 21,665,728 | 15,004,620 | ||
Income tax refundable | 1,142,558 | 1,840,370 | |||
Assets classified as held for sale | 162,016,964 | 164,474,536 | |||
8,625,000 | 8,625,000 | ||||
Total current assets | 170,641,964 | 173,099,536 | |||
Non-current assets | |||||
Murabaha finances | 4,251,973 | 4,078,227 | |||
Diminishing musharakah financing | 9 | 81,420,059 | 62,386,644 | ||
Deposits | 602,962 | 602,962 | |||
Investments | 10 | 4,477,364 | 6,271,900 | ||
Fixed assets given on lease / ijarah - tangible | 11 | 114,157,131 | 123,427,562 | ||
Fixed assets in own use | 12 | 16,096,939 | 16,346,263 | ||
Intangible asset | 13 | 252,218 | 155,552 | ||
Deferred taxation - net | 2,388,431 | 2,388,431 | |||
Total non-current assets | 223,647,077 | 215,657,541 | |||
Total assets | 394,289,041 | 388,757,077 | |||
EQUITY AND LIABILITIES | |||||
LIABILITIES | |||||
Current liabilities | |||||
Unclaimed profit distributions | 12,830,810 | 12,831,607 | |||
Creditors, accrued and other liabilities | 14 | 4,574,596 | 1,661,255 | ||
Current portion of deferred income on murabaha | 1,435,836 | 2,400,180 | |||
Current portion of customers' security deposits | 13,391,875 | 8,936,875 | |||
Current portion of lease liabilities against right of use assets | 944,980 | 1,083,251 | |||
Total current liabilities | 33,178,097 | 26,913,168 | |||
Non-current liabilities | |||||
Deferred income on murabaha | 595,327 | 1,012,756 | |||
Customers' security deposits | 34,668,638 | 39,380,638 | |||
Lease liabilities against right of use assets | 1,300,123 | 1,445,518 | |||
Total non-current liabilities | 36,564,088 | 41,838,912 | |||
Total liabilities | 69,742,185 | 68,752,080 | |||
NET ASSETS | 324,546,856 | 320,004,997 | |||
REPRESENTED BY | |||||
CAPITAL AND RESERVES | 298,000,000 | 298,000,000 | |||
Certificate capital | |||||
Reserves | 32,272,121 | 28,506,449 | |||
Total equity | 330,272,121 | 326,506,449 | |||
Unrealized loss on revaluation of investments | 15 | (5,725,265) | (6,501,452) | ||
324,546,856 | 320,004,997 | ||||
Contingencies and commitments | 16 | ||||
The annexed notes from 1 to 24 form an integral part of these financial statements.
For Al-Zamin Modaraba Management (Private) Limited
(Modaraba Management Company)
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
TRUST MODARABA Quarterly Report September, 30, 2023 | 6 |
September | September | |||
2023 | 2022 | |||
Note | -------------Rupees------------- | |||
Income from ijarah - net | 17 | 3,527,987 | 4,289,845 | |
Profit on murabaha finances | 1,280,441 | 2,414,508 | ||
Profit on musharakah finances | 7,853,264 | 1,787,402 | ||
Dividend income on equity investments | 230,154 | 1,701,509 | ||
Gain / (Loss) on sale of short-term investments | (5,090,352) | (566,866) | ||
Other income | 18 | 391,616 | 304,566 | |
8,193,110 | 9,930,964 | |||
Provision for doubtful receivables | (1,180,395) | - | ||
Unrealized Gain / (loss) on revaluation of held for-sale-trading investment | 8,034,226 | 805,280 | ||
15,046,941 | 10,736,244 | |||
Operating expenses | 19 | (9,033,604) | (9,371,650) | |
6,013,337 | 1,364,594 | |||
Modaraba Management Company's fee | (601,334) | (136,459) | ||
Workers' Welfare Fund | (108,240) | (24,563) | ||
Profit before taxation | ||||
5,303,763 | 1,203,572 | |||
Taxation | (1,538,091) | (118,604) | ||
Profit for the period | 3,765,672 | 1,084,968 | ||
Earnings per certificate - basic and diluted | 20 | 0.13 | 0.04 | |
The annexed notes from 1 to 24 form an integral part of these financial statements.
For Al-Zamin Modaraba Management (Private) Limited
(Modaraba Management Company)
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
7 | TRUST MODARABA Quarterly Report September, 30, 2023 |
CONDENSED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME (UNAUDITED)
FOR THE QUARTER ENDED SEPTEMBER 30, 2023
September | September | |
2023 | 2022 | |
Note | -------------------Rupees | ---------------- |
Profit for the period | 3,765,672 |
Other comprehensive income / (loss) :
- Net change in fair value of investments classified as | 776,187 |
'fair value through other comprehensive income | |
Other comprehensive income / (loss) for the period | |
776,187 | |
Total comprehensive income for the period | |
4,541,859 | |
The annexed notes from 1 to 24 form an integral part of these financial statements.
1,084,968
(275,748)
(275,748)
809,220
For Al-Zamin Modaraba Management (Private) Limited
(Modaraba Management Company)
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
TRUST MODARABA Quarterly Report September, 30, 2023 | 8 |
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
FOR THE QUARTER ENDED SEPTEMBER 30, 2023
(Un-audited)
September 2023 September 2022
CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations
Cash generated from operations
Decrease / (Increase) in non-current assets:
- Long term murabaha finances
- Long term musharakah finances
(Decrease) / Increase in non-current liabilities:
- Deferred income on murabaha
- Customers security deposits
Purchase of ijarah assets
Long term deposits
Proceeds from disposal of ijarah assets
Income tax paid / deducted
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Note ------------------Rupees-----------------
21 13,190,202 23,486,228
7,619,003 10,787,147
(25,485,816) (12,874,956)
(1,381,773) (1,952,048)
220,000 4,229,200
(1,100,000) (20,712,000)
- 398,600
-
888,006
(3,026,954) (203,275)
(9,965,338) 4,046,902
Purchase of owned assets
Purchase of intengible assets
Proceeds from disposal of owned assets
Disposal / (purchase) of investments - net
Dividends received
Net cash generated from / (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payment made against lease liability
Loan (repaid) / obtained from a director
Profit distributed to certificate holders
Net cash (used in) / generated from financing activities Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
(302,732)
(120,000)
-
13,988,516
140,154
13,705,938
(388,800)
-
(797)
(389,597)
3,351,003
7,403,438
10,754,441
(1,162,172)
-
5,040
1,136,465
1,681,943
1,661,276
(100,257)
-
-
(100,257)
5,607,921
7,690,515
13,298,436
The annexed notes from 1 to 25 form an integral part of these financial statements.
For Al-Zamin Modaraba Management (Private) Limited
(Modaraba Management Company)
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
9 | TRUST MODARABA Quarterly Report September, 30, 2023 |
TRUST MODARABA Quarterly Report September, 30, 2023
10
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED
FOR THE QUARTER ENDED SEPTEMBER 30, 2023
Certificate | Capital reserves | Revenue reserves | Total | Total | |||||
Particulars | |||||||||
capital | Statutory reserve | Accumulated losses | reserves | equity | |||||
---------------------------------------------------------- | (Rupees) --------------------------------------------------------- | --- | |||||||
Balance as at June 30, 2022 | 298,000,000 | 83,785,844 | (55,206,290) | 28,579,554 | 326,579,554 | ||||
Profit for the period | |||||||||
- | - | 1,084,967 | 1,084,967 | 1,084,967 | |||||
Other comprehensive income for the year | - | - | - | - | - | ||||
Balance as at September 30, 2022 | |||||||||
298,000,000 | 83,785,844 | (54,121,323) | 29,664,521 | 327,664,521 | |||||
Balance as at July 01, 2023 | 298,000,000 | 83,785,844 | (55,279,395) | 28,506,449 | 326,506,449 |
Profit for the period
Other comprehensive loss for the period Total comprehensive loss for the period Balance as at September 30, 2023
- | - | 3,765,672 | 3,765,672 | 3,765,672 | ||||
- | - | - | - | - | ||||
- | - | 3,765,672 | 3,765,672 | 3,765,672 | ||||
298,000,000 | 83,785,844 | (51,513,723) | 32,272,121 | 330,272,121 |
The annexed notes from 1 to 24 form an integral part of these financial statements.
For Al-Zamin Modaraba Management (Private) Limited
(Modaraba Management Company)
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
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Trust Modaraba published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 08:30:44 UTC.