Unicap Modaraba : Transmission of Quarterly Report for the Quarter Ended September 30, 2023

UNICAP MODARABA

FINANCIAL STATEMENTS

FOR THE PERIOD ENDED

September 30, 2023

www.unicapmodaraba.com

DIRECTOR'S REPORT

DEAR CERTIFICATE HOLDERS,

The Board of Directors of UNICAP Modaraba (UCAPM) take pleasure in presenting the 1st Quarterly Financial Statements (un-audited) of the Modaraba for the Three months ended September 30, 2023.

During the nine months under review the Modaraba has made significant progress towards sustainability by reducing its operations and administrative costs compared to same period last year.

The Modaraba continues its strategy of business growth by booking of fresh assets and development of new products and services in future.

The Board is grateful for the continuous guidance and support of the Sponsors of the company, who are committed for its revival with their own Private Money. The Board also acknowledges the patronage of certificate holders of the Modaraba for their continued trust and support.

The Board also thanks the SECP for their guidance & Support.

The enclosed financial statements depict that the planning and effective strategies of Map Out Management Company (Private) Limited (Managers of UNICAP Modaraba) to revive the Modaraba and to make it an active business concern are going in the right direction.

On Behalf of the Board of Directors

---Sd---

Chief Executive Officer

7 Octobeer, 2023

Lahore

BALANCE SHEET

AS AT SEPTEMBER 30, 2023

	NOTE
ASSETS
Property & Equipment	4
Cash and bank balances	5
Advance tax	6
Investments - Stock In Trade	7

LIABILITIES

September 30

2023 RUPEES

55,065

69,980

88,793

59,655,057

59,868,895

September 30

2022 RUPEES

75,087

38,621

88,792

58,260,727

58,463,227

Accrued and other liabilities	8	1,472,000
Payable to management company	9	4,030,250
Provision for taxation	10	901,489
		6,403,739
NET ASSETS		53,465,156
REPRESENTED BY:
CERTIFICATE CAPITAL
Authorized Modaraba Fund	11.1	240,000,000
Issued, subscribed & paid up certificates
11.2	236,400,000
Discount on issuance of certificates	11.3	(50,000,000)
		186,400,000
Modarba certificate deposit money	12	25,421,593
RESERVES
Statutory reserve	SOCE	8,738,973
Accumulated loss	SOCE	(167,095,410)
		(158,356,437)
CONTINGENCIES AND COMMITMENTS
TOTAL EQUITY		53,465,156

1,303,242

2,150,000

901,489

4,354,731

54,108,496

240,000,000

236,400,000

(50,000,000)

186,400,000

25,421,593

8,738,973

(166,452,070)

(157,713,097)

54,108,496

The annexed notes from (1) to (22) form an integral part of these financial statements.

---Sd---	---Sd---
CHIEF EXECUTIVE	DIRECTOR

PROFIT AND LOSS ACCOUNT

FOR THE QUARTER ENDED SEPTEMBER 30, 2022

Quarter Ended

Note

Ijarah Rental Income

Financial Advisory

Un-realized Gain on Investment

Gain on Sale of Fixed Assets

Reversal of Mark-up

Other income

Expenses

Administrative Expenses Impairment in Value of Investment

(Loss) before Management Fee

Modaraba Company's Management Fee

(Loss) before Taxation

Taxation

(Loss) after Taxation

Earning per Certificate

September 30 2023	September 30 2022
- - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - -
-		-
-		-
-		-
-		-
-		-
-		-
-		-
(462,262)		(441,056)
-		-
(462,262)		(441,056)
(462,262)		(441,056)
-		-
(462,262)		(441,056)
-		-
(462,262)		(441,056)
(0.020)		(0.019)

The annexed notes from (1) to (22) form an integral part of these financial statements.

---Sd---	---Sd---
CHIEF EXECUTIVE	DIRECTOR

STATEMENT OF COMPEREHENSIVE INCOME

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

		Quarter Ended
				September 30
		September 30 2023	2022
	Note - - - - - - - - - - - - - - -	Rupees - - - - - - - - - - - - -
Profit (Loss) after Taxation	(462,262)	(441,056)
Other Comprehensive income /(loss)	-	-
Total Comprehensive (loss)	(462,262)	(441,056)

The annexed notes from (1) to (22) form an integral part of these financial statements.

---Sd---	---Sd---
CHIEF EXECUTIVE	DIRECTOR

STATEMENT OF CASH FLOWS

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

PARTICULARS

NOTE

OPERATING ACTIVITIES

Comprehensive loss of the business

Add: Depreciation

Effect on cash flow due to working capital changes:

Advance Tax

Accrued and other liabilities

Inventory

Net cash provided by Operating Activities

INVESTING ACTIVITIES

FINANCING ACTIVITIES

Payable to Management Company

Net cash provided by Financing Activities

Net changes in cash and cash equivalent for the Quarter Cash and cash equivalent at the beginning of the Quarter

September 30		September 30
2023	2022
- - - - - - - - - - - - Rupees - - - - - - - - - - -
(462,262)		(441,056.00)
3,859		5,409
24		-
(134,189)		12,000
-
(592,568)	(423,647)
-	-
580,250		350,000
580,250	350,000
(12,318)	(73,647)
82,298	112,268

Cash and cash equivalent at the end of the Quarter	69,980	38,621

The annexed notes from (1) to (22) form an integral part of these financial statements.

---Sd---	---Sd---
CHIEF EXECUTIVE	DIRECTOR

STATEMENT OF CHANGES IN EQUITY

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

PARTICULARS

CERTIFICATE

CAPITAL

DISCOUNT ON ISSUANCE OF SHARES

MODARBA CERTIFICATE DEPOSIT MONEY

STATUTORY

RESEVE

ACCUMULATED

(LOSSES)

TOTAL

	RUPEES		RUPEES
Balance as at June 30, 2023
236,400,000	(50,000,000)
Loss for the Period	-	-
Balance as at Sept 30, 2023	236,400,000	(50,000,000)

RUPEES

25,421,593

-

25,421,593

RUPEES

8,738,973

-

8,738,973

RUPEES

(166,633,148)

(462,262)

(167,095,410)

RUPEES

53,927,418

(462,262)

53,465,156

The annexed notes from (1) to (22) form an integral part of these financial statements.

---Sd---

CHIEF EXECUTIVE

---Sd---

DIRECTOR

NOTES TO THE FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

• LEGAL STATUS AND NATURE OF BUSINESS
  Unicap Modaraba (the Modaraba) is a multipurpose, perpetual modaraba floated in Pakistan in the year 1991 under the Modaraba Companies and Modaraba (Floatation
  and Control) Ordinance, 1980 and the Rules framed thereunder. The registered office of the Modaraba is situated at 6-M/2, Block H, Gulberg - II, Lahore. The Modaraba is
  listed on Pakistan Stock Exchange. During the financial year 2014-2015,Al-Zamin Modaraba Management (Private) Limited transferred the management of Modaraba to Mapout Management Company (Private) Limited as on November 27, 2014. Previously, the Modaraba was managed (until May 03, 2000) by Chartered Management Services (Private) Limited and thereafter the management was transferred to Al-Zamin Modaraba Management (Private) Limited as the registration of the former was cancelled by the Securities and Exchange Commission of Pakistan in view of the various irregularities committed.
  The accumulated losses of the Modaraba as at balance sheet date are Rs.167.095 million. Further, the operations of Modaraba have been reduced to minimal level since the year 2000. However, the present Modaraba Management Company has planned to revive the Modaraba and intends to make it an active business concern.
  Mapout Management Company (Private) Limited took over the management of the Modaraba from Al-Zamin Modaraba Management (Private) Limited on November 27, 2014 with negative equity amounting to Rs. 1.359 million and accumulated losses amounting to Rs. 146.498 million. The Management Company did not inherit any Public Money in the Modaraba at the time of take over as the entire equity of the Modaraba was eroded during the period of incumbency of its previous managements. Instead, the Management Company injected private money amounting to Rs. 50 million, net of discount, in the equity of the Modaraba on December 31, 2015 raised from their own private sources.
  The Modaraba is under the process of revival in accordance with SECP Order No. SC/PRDD/M/ UNICAP/2017/102 dated 19.04.2017 and is considered as an ENTITY UNDER REVIVAL. In the light of the SECP Order, the Modaraba is going through a specific time bound revival plan for which stage wise regularization is being carried out. The Management Company has taken all steps required under the Order dated 19.04.2017 and so far ensuring to comply with the Revival Plan.
  On 28 March, 2022 SECP through its Order No. SC/M/MS/Unicap/46/2022/75 under section 23 (I) (ii) (b) of the Modaraba Ordinance ordered that as the accumulated losses of the Modaraba have exceeded more than fifty percent of the total amount subscribed by the modaraba certificate holders, it may be wound up in the public interest by filling an application for winding up before the Modaraba Tribunal Lahore. Modaraba has filed appeal in the High Court Lahore against the order passed by SECP and on 3 August, 2022 Court has suspended the operation of impugned order dated 28 March, 2022 passed by the SECP.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

Hence, as of today, the Modaraba is under revival & regularization as a public limited company solely operated with private money injected by Mapout Management Company (Private) Limited. Due to aforementioned reasons, the Modaraba may be doubtful to continue as a going concern. However, the management is hopeful of its' revival and regularization and thus, these financial statements have been prepared on a going concern basis.

• STATEMENT OF COMPLIANCE
  These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. These standards, as applicable in Pakistan, comprise of International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board as notified under Companies Act, 2017, Islamic Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan, the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Prudential Regulations for Modaraba and directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Islamic Financial Accounting Standards (IFASs), Modaraba

Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Prudential Regulations for Modaraba and directives issued by SECP differ with the requirements of IFRS, the requirements of the Islamic Financial Accounting Standards (IFASs), Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Prudential Regulations for Modaraba, Modaraba Companies and Modaraba Rules, 1981 or the directives issued by SECP shall prevail.

1. BASIS OF PREPARATION
   As stated in note 1 above, the Modaraba may be doubtful to continue as a going concern.However; the management is hopeful of its' revival and have injected new funds into the Modaraba thus, the financial statements have been prepared on a going concern basis without adjustment of all the assets at their realizable values and all liabilities at amounts these are likely to be discharged at.
2. Accounting convention
   These financial statements have been prepared under the historical cost convention except as otherwise stated in the respective policies and notes given hereunder.
3. Functional and presentation currency
   These financial statements are presented in Pak (Rupees), which is the Modaraba's functional and presentation currency.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

1. Critical accounting estimates and judgments
   The preparation of financial statements in conformity with the Approved International Financial Reporting Standards as issued by the Institute of Chartered Accountants of Pakistan requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
   The estimates and underlying assumptions are reviewed oil an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant areas requiring the use of management estimates in these financial statements relate to the useful life of depreciable assets. However, assumptions and judgments made by the management in the application of accounting policies that have significant effect on the financial statements are not expected to result in material adjustment to the carrying amounts of assets and liabilities in the next year.
2. NEW ACCOUNTING PRONOUNCEMENTS
   Amendments to approved accounting standards and interpretations which became effective during the year ended June 30, 2022:
   There are no new and amended standards and interpretations that are mandatory for accounting periods beginning July 01, 2021 (other than those disclosed in note 2) which are considered not to be relevant or do not have any significant effect on the Modaraba's financial statements and are therefore not stated in these financial statements.

• SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied in preparation of these financial statements are set out below. These policies have been consistently applied, unless otherwise stated:

3.1 Property and equipment

Owned:

Property & equipment are stated at cost less accumulated depreciation. Cost comprises of initial consideration paid on acquisition of asset as well as cost incurred to bring the asset to its' useful condition. Subsequent costs are included in assets' carrying amount or recognized as separate assets, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of item can be measured reliably. All other repair and maintenance costs are charged to income during the period in which they are incurred.