Modaraba Information

Directors’ Report

Condensed Interim Balance Sheet (Unaudited)

Condensed Interim Pro�t & Loss Account (Unaudited)

Condensed Interim Statement of Comprehensive Income (Unaudited)

Condensed Interim Cash Flow Statement (Unaudited)

Condensed Interim Statement of Changes in Equity (Unaudited)

Notes to and forming part of Condensed Interim Financial Statement (Unaudited)

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Contents

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On Behalf of the Board

Murtaza Ahmed AliChief Executive

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Net (decrease) /

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Notes to and forming part of Condensed Interim Financial Statement (Unaudited)For the three months period ended September 30, 2015

1. LEGAL STATUS AND NATURE OF BUSINESS

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2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation

2.1.1 Statement of compliance

2.1.2 Accounting convention

2.1.3 Functional and presentation currency

3. SIGNIFICANT ACCOUNTING POLICIES

4. ESTIMATES

5. FINANCIAL RISK MANAGEMENT

The preparation of condensed interim financial information requires management to make judgments, estimates andassumption that affect the application of accounting policies and the reported amounts of assets and liabilities, incomeand expenses. Actual results may differ from these estimates.

In preparing these condensed interim financial information, the significant judgments made by management inapplying the accounting policies and the key sources of estimation uncertainty were the same as those that applied tothe financial statements as at and for the year ended June 30, 2015.

The Modaraba's financial risk management objectives and polices are consistent with that disclosed in the financialstatements as at and for the year ended June 30, 2015.

These financial statements are presented in Pakistani Rupees which is the functional and presentational currency ofthe Modaraba. All information presented has been rounded off to the nearest Rupee.

The accounting policies adopted by the Modaraba in the preparation of these interim financial statements areconsistent with those applied for the preparation of preceding audited published financial statements for the yearended June 30, 2015.

These financial statements have been prepared under the historical cost convention except that certain staffretirement benefits are carried at present value of defined benefit obligation.

Allied Rental Modaraba was formed under the Modaraba Companies and Modaraba (Floatation and Control)Ordinance, 1980 and the Rules framed thereunder and is managed by the Allied Engineering Management Company(Private) Limited (the 'Modaraba Management Company'), which is a wholly owned subsidiary of Allied Engineeringand Services (Private) Limited. The Modaraba Management Company is incorporated in Pakistan under theCompanies Ordinance, 1984 and is registered with the Registrar of Modaraba Companies and Modarabas under theModaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980.

The Securities and Exchange Commission of Pakistan (the 'SECP'), vide its certificate No. SC/M/RW/ARM/2006-166dated May 10, 2006, authorised Allied Engineering Management Company (Private) Limited to float Allied RentalModaraba (the Modaraba).

The Modaraba is a perpetual Modaraba and is primarily engaged in rental / Ijarah / leasing and operation andmaintenance of Caterpillar and other equipment (i.e. generators, forklifts, compactors etc.). The registered office of theModaraba is located at 21/3, Sector 22, Korangi Industrial Area, Karachi. The Modaraba is listed on the Karachi StockExchange. The Modaraba commenced its operations on January 10, 2007.

Effective from January 10, 2007, the Modaraba took over the rental business transactions and the related equipmentsof Allied Rental Services (Private) Limited (ARSL - an associated undertaking). The assets and liabilities acquired bythe Modaraba comprise of certain fixed assets, the related lease liabilities. These were taken over under a prospectusfloated by the Modaraba and approved by the SECP.

These financial statements have been prepared in accordance with the approved accounting standards as applicablein Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS)issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, IslamicFinancial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan, the requirementsof the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies andModaraba Rules, 1981 and directives issued by the SECP. Wherever the requirements of the Modaraba Companiesand Modaraba (Floatation and Control) Ordinance, 1980, IFAS, Modaraba Companies and Modaraba Rules, 1981 anddirectives issued by the SECP differ with the requirements of the IFRS, the requirements of the Modaraba Companiesand Modaraba (Floatation and Control) Ordinance, 1980, IFAS, Modaraba Companies and Modaraba Rules, 1981 orthe directives issued by the SECP prevail.

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