Quarterly Report. September 30, 2016 FIRST IBL MODARABA

Transcription

1 Quarterly Report September 30, 2016 FIRST IBL MODARABA

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3 Table of Contents 1- Corporate Information 1 2- Directors Report 2 3- Balance Sheet 3 4- Profit & Loss Account 4 5- Statement of Comprehensive Income 5 6- Cash Flow Statement 6 7- Statement of Changes in Equity 7 8- Notes to the Accounts 8-9

4 Naveed Amin Naveed Amin Corp Tec Associates (Pvt.) Ltd. 503-E Johar Town Lahore. 1

5 Directors Report On behalf of Board of Directors of IBL Modaraba Management (Pvt.) Ltd, the management company of First IBL Modaraba (FBLM), I am pleased to present Quarterly report with un-audited financial statements of FIBLM for the 1 st quarter ended September 30, During the 1 st quarter under review, Modaraba s total assets were maintained at Rs million with total liabilities at Rs million. Investment in Ijarah during the reporting quarter stood at Rs million and in Musharikah at Rs million. Total Income generated augmented to Rs million as compare to Rs million in the corresponding quarter. In the preceding quarter major part of income was consisted on reversal of provision against Musharikah receivables i.e. Rs. 10 million. Whereas total expenses booked during the reporting quarter is Rs million as compared to Rs million in the corresponding quarter. The increase in operating expenses is mainly due to increase in amortization expense subject to Ijarah assets. Murabaha receivable has also been settled with an aggregate amount of Rs million, resulting increase in the bank balances. During the reporting quarter, concrete steps were taken to increase efficiency of internal control system and to search new opportunities and business segments to increase profitability of Modaraba. Further, Modaraba is putting its best efforts to recover its un verifiable receivables and it is probable to have a positive progress in near future. In future, we plan to enhance the paid up capital of FIBLM by injection of fresh equity for which we are in close liaison with certain high profile individuals as well as reputable business groups. I would like to express my 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 the certificate holders and customers for entrusting their confidence on us and we assure them maintenance of adequate internal controls, providing personalize services and also to maintain an ideal environment of good corporate governance in all areas of the activities. Finally the board appreciates the dedication and hard work put in by the team of First IBL Modaraba. for & on behalf of the Board, Dr. Hasan Sohaib Murad Chairman October 28,

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7 CONDENSED INTERIM BALANCE SHEET (UN - AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 September 30, June 30, Note Rupees Rupees ASSETS Current Assets Bank balances 40,857,938 20,702,418 Ijarah rentals receivable 1,657, ,822 Advances, prepayments and other receivables 3 12,739,360 12,338,171 Short term investments 4 41,755,896 36,183,629 Musharaka receivables 8,893,750 14,410,895 Current portion of murabaha receivable - 18,340,882 Non-Current Assets 105,904, ,964,817 Long term advances and deposits 2,709,260 2,709,260 Investment property 80,833,706 82,083,713 Fixed assets under ijarah arrangements 34,398,065 35,643,826 Fixed assets under own use 692, ,032 Intangible asset 62,506 83, ,696, ,300,169 Total Assets 224,600, ,264,986 LIABILITIES Current Liabilities Creditors, accrued and other liabilities 5 4,736,093 5,195,330 Short term borrowing 10,000,000 10,000,000 Musharaka profit payable 1,430,192 1,430,192 Musharaka finances 4,200,000 4,200,000 Current portion of non-current liabilities 5,078,443 5,078,443 Unpresented profit warrants 9,481,831 9,481,834 Non-Current Liabilities 34,926,559 35,385,799 Long term security deposits 10,292,035 10,047,035 Deferred murabaha income ,292,035 10,047,035 Total Liabilities 45,218,594 45,432,834 NET ASSETS 179,381, ,832,152 REPRESENTED BY: Certificate capital 201,875, ,875,000 Reserves 47,078,335 46,686,272 Accumulated loss (69,571,347) (69,729,120) Contingencies and commitments ,381, ,832,152 The annexed notes form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR DIRECTOR 3

8 CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN - AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 September 30, 2016 Rupees September 30, 2015 Rupees INCOME FROM OPERATION Income from ijarah 4,100,002 3,304,608 Profit on murabaha investment - 682,988 Profit on musharaka investments 546,290 1,272,573 Income from investment property 1,873,860 1,873,860 Profit on modaraba certificate, term deposit receipts and bank deposits 481, ,387 Income from short term investments 180,204 - OTHER INCOME 7,181,807 7,294,416 Reversal of provision against non-performing musharaka receivables - net - 10,000,000 Other income 1,436,473 27,015 1,436,473 10,027,015 TOTAL INCOME 8,618,280 17,321,431 EXPENSES Operating expenses (5,043,045) (5,308,664) Depreciation on assets under ijarah (3,409,362) (2,565,690) Other operating expenses (8,100) (24,595) (8,460,507) (7,898,949) Profit before Modaraba Company's management fee 157,773 9,422,482 Modaraba Company's management fee - - Net Profit for the period 157,773 9,422,482 Earnings per Modaraba Certificate The annexed notes form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR DIRECTOR 4

9 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN - AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 September 30, 2016 Rupees September 30, 2015 Rupees Net Profit for the period 157,773 9,422,482 Other comprehensive income Items that may be reclassified subsequently to profit and loss Unrealized gain in value of available for sale investments 392, ,564 Other comprehensive income for the period 392, ,564 Total Comprehensive Income for the period 549,836 10,007,046 The annexed notes form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR DIRECTOR 5

10 CONDENSED INTERIM CASH FLOW STATEMENT (UN - AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 September 30, 2016 September 30, 2015 Note Rupees Rupees Profit for the Year 157,773 9,422,482 Adjustment for: - Depreciation on fixed assets under own use 117, ,405 - Depreciation on investment property 1,250,007 1,250,007 - Depreciation on fixed assets under ijarah arrangements 3,409,362 2,565,690 - Amortization on intangible asset 20,832 20,833 - Provision/ (Reversal) of musharaka profit held in suspense account - (10,000,000) - Revaluation gain on investment at fair value through profit or loss (180,204) 4,495 - Gain on termination of ijarah arrangements (33,251) - - Profit on term deposit receipts and bank deposits (481,451) (145,749) 4,102,818 (6,175,319) Operating profit before working capital changes 4,260,591 3,247,163 Decrease / (Increase) in operating assets: - Advances, prepayments and other receivables (395,965) 31,842 - Ijarah rentals receivable (668,770) (839,996) - Musharaka receivables 5,517,145 1,114,047 - Long term murabaha receivable 18,340, ,821 Increase/ (Decrease) in operating liabilities: - Long term security deposits 245, ,000 - Creditors, accrued and other liabilities (459,237) 327,657 Net changes in working capital 22,579,055 1,295,371 Cash generated from operations 26,839,646 4,542,534 CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations 26,839,646 4,542,534 Income taxes paid (5,224) (18,552) Profit on term deposit receipts and bank deposits 481, ,749 Net Cash generated from Operating Activities 27,315,873 4,669,731 CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets under ijarah arrangements (2,675,000) (722,000) Purchase of fixed assets under own use (30,000) - Proceeds from disposal of assets on terminating ijarahs 544,646 - Short term investments - net (5,000,000) 2,000,000 Net Cash (used in) / generated from Investing Activities (7,160,354) 1,278,000 CASH FLOW FROM FINANCING ACTIVITIES Musharaka finances - (500,000) Net Cash used in Financing Activities - (500,000) Net (Decrease) / Increase in Cash and Cash Equivalents 20,155,519 5,447,731 Cash and cash equivalents at the beginning of the period 20,702,418 24,576,852 Cash and Cash Equivalents at the End of the period 40,857,938 30,024,584 The annexed notes form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR DIRECTOR 6

11 CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN - AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 Reserves Capital Revenue Particulars Certificate Capital Statutory reserve Unrealized gain on revaluation of Accumulated loss available for sale Total Total Equity investments Rupees Balance as at June 30, ,875,000 39,090,402 8,722,641 (73,563,405) (25,750,362) 176,124,638 Comprehensive income for the year Net profit for the year ,839,731 9,839,731 9,839,731 Other comprehensive income for the year - - (3,094,717) - (3,094,717) (3,094,717) Total comprehensive income for the year - - (3,094,717) 9,839,731 6,745,014 6,745,014 Transferred to statutory reserve - 1,967,946 - (1,967,946) - - Transactions with owners Profit distributed for the year ended June 30, (4,037,500) (4,037,500) (4,037,500) Balance as at June 30, ,875,000 41,058,348 5,627,924 (69,729,120) (23,042,848) 178,832,152 Comprehensive income for the period Net profit for the period , , ,773 Other comprehensive loss for the period , , ,063 Total comprehensive income for the period , , , ,836 Balance as at September 30, ,875,000 41,058,348 6,019,987 (69,571,347) (22,493,012) 179,381,988 The annexed notes form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR DIRECTOR 7

12 CONDENSED INTERIM NOTES TO THE ACCOUNT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 Note 1 The accounting policies adopted for the preparation of these financial statements are consistent with those applied for the preparation of preceding annual publishing accounts. Note 2 These unaudited financial statements have been prepared and circulated under the directives of Securities and Exchange Commission of Pakistan. Note 3 Advances, Prepayments and Other Receivables Advance income tax Advance to employees (Unsecured - Considered good) Advance for ijarah Prepayments Accrued profit: - Profit receivable on musharaka receivables - Less: Profit held in suspense account Accrued profit on murabaha receivable Accrued profit on term deposit receipts Other receivables: - Balance with broker Note September 30, 2016 June 30, "Rupees" , , , ,175 1,819, , ,554 4,107,613 2,281,312 13,525,107 13,663,968 (13,502,100) (13,502,100) 23, ,868-1,295, , , Others 8,470,692 8,480,692 8,470,692 8,480,692 12,739,360 12,338,171 Note 4 Short Term Investments Investments in listed equity securities are classified as: - Available for sale 4.1 6,020,029 5,627,966 - At fair value through profit or loss , ,663 Investments in term deposit receipts - Held to Maturity ,000,000 30,000, Available for sale 41,755,896 36,183,629 September 2016 June 2016 Name of entity No. of shares/ Certificates Holdings are in ordinary certificates / shares of Rupees 10 each. 10,497 10,497 The Searle Company Limited 6,020,029 5,627,966 10,497 10,497 6,020,029 5,627, At fair value through profit or loss Holdings are in ordinary certificates / shares of Rupees 10 each Attock Refinery Limited 65,176 56, IBL Healtcare Limited 28,691 27, , ,000 First Punjab Modaraba 642, , , , , , This represent investment in term deposit receipts and carried profit at the average profit rate of 5% to 6% per annum. Note 5 Creditors, accrued and other liabilities Accrued Expenses 275, ,364 Contribution to provident fund payable 2,788,378 2,583,304 Payable to the Modaraba Management Company 593,303 1,093,303 Other liabilities 1,078,814 1,086,359 4,736,093 5,195,330 8

13 Note 6 Reated Party Transactions 6.1 Related parties comprise Management Company, major certificate holders of the Modaraba and their close family members, directors of the management company and their close family members, key management personnel of the management company and their close family members and entities with common directors or under common management. 6.2 Details of transactions with related parties and balances outstanding with them at the quarter ended are as follows: Transactions during the year Related party Relationship Nature of Transaction IBL Modaraba Management (Private) Management Company Management fee paid during the year September 30, June 30, "Rupees" , ,036 University of Management and Technology Holds 15.2% of the paid up certificates of Modaraba Rent of Library Building received 18,738,660 7,495,440 Dr. Hasan Sohaib Murad Director Short term borrowing obtained - 10,000,000 Outstanding Balance at the quarter end Payable to the Modaraba Management Company Dr. Hasan Sohaib Murad 593,303 1,093,303 10,000,000 10,000,000 Transactions with related parties, except the management fee payable to the management company, are carried at an arm's length in the normal course of business. Note 7 Date of authorization for issue The financial statement were authorized for issue on October 28, 2016 by the Board of Directors of IBL Modaraba Management (Pvt.) Limited. Note 8 General Corresponding figures have been rearranged and reclassified wherever necessary for the purpose of comparison. CHIEF EXECUTIVE DIRECTOR DIRECTOR 9

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