First IBL ModarabaHALF YEARLY REPORT DECEMBER 31, 2017
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Table of Contents
1- Corporate Information
2- Directors’ Report (English & Urdu)
3- Shari’ah Adviser Report
4- Auditor’s Report
5- Balance Sheet
6- Profit & Loss Account
7- Statement of Comprehensive Income
8- Cash Flow Statement
9- Statement of Changes in Equity
10- Notes to the Accounts
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CORPORATE INFORMATION
Modaraba Management Company IBL Modaraba Management (Pvt.) Limited
Board of Directors Dr. Hasan Sohaib Murad Chairman/ CEOShaheen Rashid DirectorArslan Khan Khakwani Director
Naveed Amin
Director
Chief Operating Officer
Shiraz Butt
Company Secretary
Hassan Fareed
Chief Financial Officer
Zeeshan Ahmed
Internal Auditor
Hasnain Shafqat
Audit Committee
Naveed Amin
Chairman
Shaheen Rashid
Member Arslan Khan Khakwani Member
Muhammed Ilyas Secretary
Sharia’ah Advisor
Dr. Salman Ahmed Khan
Legal Advisor
M/s. Holscott International [Legal Services]
Auditors to Modaraba
M/s. Horwath Hussain Chaudhry & Co.
Charted Accountants
Bankers
Habib Bank Limited –
Islamic Banking
Meezan Bank Limited
MCB Islamic Bank Limited
Registrar
Corp Tec Associates (Pvt.) Limited503 E, Johar Town, Lahore.
Registered Office Room #1, 87 Aurangzeb BlockNew Garden Town, Lahore.
Principal Office 87 Aurangzeb Block, New Garden Town, Lahore.
1
The Board of Directors of M/s IBL Moadaraba Management (Private) Limited [IBLMM], the Management Company of First IBL Modaraba [FIBLM], is pleased to present the half yearly reviewed (un audited) results of First IBL Modaraba for the period ended December 31, 2017 along with Directors’ Report to its certificate holders.
During the reporting period modaraba showed tremendous progress. There is an increase of 173% in net profit for the period ended December 31, 2017 which shows the heartily efforts of management for showing better profits for its certificate holders.
Major source of income and their contribution are Ijarah (63%), musharikah (18.27%), murabaha (0.14%) and investment property (17.89%).
Despite of inflationary effect and day by day increasing cost of operations there was meagre increase of 1.20% in total expenses. Total expenses were stood at Rs. 18.586 million as compare to Rs. 18.632 million in the preceding period.
In order to enhance business FIBLM invested Rs. 5.874 million in ijarah segments, Rs. 35.6 million in Musharikah segments and Rs. 1 million in Murabaha segments. The managementforesee further improvement in this in near future.
To enhance equity base, FIBLM during the period under review has started the process of further issue of certificates other than rights, amount of Rs. 15 million has already received in this regards and reported under the head of short term borrowing.
FIBLM team is putting its best efforts to recover the un verifiable receivables and it is probable that we will get positive response from our debtors in near future.
For sustainability and to increase profitability of modaraba, the management is putting its best efforts and the result is evident from the current period financial results. Further the management is working on different business plans and implementing new
improved business methodologies and approaches to get better results.
Acknowledgement:
The board would like to express its gratitude to the Securities & Exchange Commission of Pakistan, Registrar Modarabas, State Bank of Pakistan and NBFI & Modaraba Association of Pakistan for providing us their usual support and guidance.
The board appreciates and pays gratitude to its certificate holders and customers for entrusting their confidence on us and assure them maintenance of adequate internal controls, personalize services and also to maintain an ideal environment of good corporate governance in all areas of the activities.
The Board also appreciates
team of the Modaraba for their dedication and hard work for the growth of the Modaraba in all areas of its activities.
for & On behalf ofThe Board of Directors of IBL Modaraba Management (Pvt.) Limited:
Dr. Hasan Sohaib MuradChairmanFebruary 20, 2018
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18.586
4
February 20, 2018
5
February 20, 2018
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CHIEF EXECUTIVE DIRECTOR DIRECTOR
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CHIEF EXECUTIVE DIRECTOR DIRECTOR
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Items that may be reclassified subsequently to profit & loss
Other comprehensive income
CHIEF EXECUTIVE DIRECTOR DIRECTOR
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Half Year Ended Half Year Ended
December 31, December 31,2017 2016
2,358,900 863,078
322,086
244,872
2,500,014
2,500,014
6,056,217
6,311,461
-
41,664
-
(492,561)
-
(1,746,548)
-
(763,089)
(59,219)
(1,279,899)
-
(103,659)
8,819,098
4,712,255
11,177,998
5,575,333
18,730
2,164,384
(3,275,681)
492,007
(1,038,626)
(2,224,413)
(730,768) 18,340,882
1,834,740 2,344,205 (667,295) (678,523)
(3,858,900)
20,438,542
7,319,098
26,013,875
(47,654)
(109,681)
59,219
1,279,899
7,330,663
27,184,093
(5,874,500)
(7,082,100)
(141,990)
(246,550)
-
6,882,582
345,258
(38,000,000)
90,000
-
-
103,659
(5,581,232)
(38,342,409)
-
(2,500,000)
-
5,000,000
(6,089,046)
(5,695,762)
(6,089,046)
(3,195,762)
(4,339,615) (14,354,078)
13,917,457 20,702,418
9,577,842 6,348,340
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments for:- Depreciation of fixed assets under own use- Depreciation of investment properties- Depreciation of fixed assets under ijarah arrangements- Amortization of intangible asset- Provision in respect of profit on musharaka facilities- Reversal of provision in respect of musharaka facilities- Revaluation (gain) on investment at fair value through profit or loss- Profit on bank deposits- Dividend income
Operating profit before working capital changes
(Increase) / Decrease in operating assets and liabilities
Advances, prepayments and other receivables
Ijarah rentals receivable
Musharaka receivables
Long term murabaha receivable
Long term security deposits - ijarah
Creditors, accrued and other liabilities
Net cash (used in) / generated from changes in working capital
Cash Generated from Operations
Income taxes paid
Profit received on bank deposits
Net Cash Generated from Operating Activities
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets under ijarah arrangements
Purchase of fixed assets under own use
Proceeds from disposal of assets on termination / completion of ijarahs
Short term investments - net
Long term loans and deposits
Dividend income received
Net Cash Used in Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Musharaka finances repaid
Short term borrowing
Dividends paid
Net Cash used in Financing Activities
Net Decrease in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the period
Cash and Cash Equivalents at the end of the Period
The annexed notes form an integral part of this condensed
interim financial information (un-audited).
CHIEF EXECUTIVE DIRECTOR DIRECTOR
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CHIEF EXECUTIVE DIRECTOR DIRECTOR
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Note 1
General Information
Note 2
Basis of Preparation
2.1
2.2
2.3
2.4
2.5
Note 3
Accounting Policies
Note 4
Taxation
First IBL Modaraba ("the Modaraba") is a multi purpose, perpetual and multi dimensional Modaraba formed under the
Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and rules framed thereunder, having its
registered office at Room # 1, 87 Aurangzeb Block, New Garden Town, Lahore. The Modaraba is managed by IBL
Modaraba Management (Private) Limited (Modaraba Management Company) incorporated in Pakistan under the
Companies Ordinance, 1984 and registered with the Registrar of Modaraba Companies. The Modaraba is domiciledin
Pakistan and its certificates are listed on Pakistan Stock Exchange Limited (PSX). The Modaraba commenced its
operations on October 19, 1989 and is currently engaged in various Islamic modes of financing and operations
including Ijarah, Musharaka and Murabaha arrangements.
This condensed interim financial information has been prepared in accordance with the directives issued by the
Securities & Exchange Commission of Pakistan (SECP) and is in compliance with the International Accounting
Standard - 34 (Interim Financial Reporting) and being submitted to certificate holders as required under law.
This financial information should be read in conjunction with annual audited financial statements for the year
ended June 30, 2017. Comparative balance sheet is extracted from annual audited financial statements for the
year ended June 30, 2017; whereas, comparative profit and loss account, statement of comprehensive income,
cash flows statement and statement of changes in equity are extracted from unaudited interim financial
information for the half year ended on December 31, 2017.
This financial information has been prepared under the historical cost convention, except for short term
investments that are measured at fair value in accordance with the requirements of International Accounting
Standard - 39 (Financial Instruments: Recognition and Measurement).
This condensed interim financial information is unaudited. However, a limited scope review of this interim
financial information has been performed by the external auditors of the Modaraba in accordance with the
requirements of the Code of Corporate Governance and they have issued their review report thereon.
This condensed interim financial information is presented in Pak Rupees, which is the Modaraba's functional
and presentational currency. All the figures have been rounded off to the nearest Pak Rupees unless stated
otherwise.
The accounting policies adopted for the preparation of this condensed interim financial information are consistent with
those applied in the preparation of annual audited financial statements of Modaraba for the year ended June 30, 2017.
Under the current tax law, the income of non-trading modarabas is exempt from tax provided that they distribute
ninety (90) percent of their profits as cash dividend to the certificate holders out of current period's total profit after
appropriating statutory reserves. Where such profits are not distributed, provision for tax is made on taxable income at
the current tax rates applicable to Modaraba after taking into account the available tax exemptions and tax credits, if
any. As the management is intending to follow the aforesaid policy for profit distribution for the current year, no
provision with respect to current and deferred taxation has been made in these condensed interim financial
statements.
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102.769
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9.1 Written down value at the beginning of the period / year 333,646
780,032
Additions at cost 2,374,990 246,550
Less: Written down value of assets disposed off - (1,545,510) 2,708,636 (518,928)
Less: Depreciation charged during the period / year (322,086) 852,574 2,386,550
333,646
3,546,725 3,546,725 35,467,250 35,467,250
Note 9
Fixed Assets Under Own Use
Operating fixed assets 9.1 2,386,550 333,646 Capital work in progress - Advance for purchase of vehicle -
2,233,000
2,386,550
2,566,646
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CHIEF EXECUTIVE DIRECTOR DIRECTOR
Murabaha receivable and profit on murabaha receivable
Engineering 754,300 - - -
Musharaka receivable and profit on musharaka receivable
Media advertising 33,020,304
45.0
37,736,695
52.8
Construction 23,350,814
32.0
27,811,734
39.0
Individual 17,075,948
23.0
5,863,086
8.2
73,447,066
100.00
71,411,515
100.00
Ijarah receivable
Medical and pharmaceuticals - - 67,483 17.9
Media advertising 2,903,550 79.5 4,200 1.1 Individuals 695,949 19.1 138,750 36.9 Others 52,545
1.4
165,930
44.1 3,652,044
100.00
376,363
100.00
Investment in ijarah under (IFAS-2)
Individuals 19,052,589
45.30
21,118,131
49.9
Medical and pharmaceuticals 1,439,752
3.40
1,484,196
3.5
Media advertising 11,536,312
27.40
13,827,979
32.7
Leasing 283,906
0.70
283,906
0.7
Hotel 120,000
0.30
120,000
0.3
Engineering 60,000 0.10 60,000 0.1
Others 9,612,809 22.80 5,392,873 12.842,105,368 100.00 42,287,085 100.00
February 20, 2018.
Book Post
To:
M. FARAZ TRADERS
®
0322 80014070322 3333356
Web: www.firstibl.com
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