Quarterly Report September 30, 2015 FIRST IBL MODARABA

Transcription

1 Quarterly Report September 30, 2015 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 Other Comprehensive Income 5 6- Cash Flow Statement 6 7- Statement of Changes in Equity 7 8- Notes to the Accounts 8

4 Amin Amin 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 million. Investment in Ijarah during the reporting quarter stood at Rs million and in Musharikah at Rs. 25 million. Total Income generated augmented to Rs million as compare to Rs million in the corresponding quarter. Total expenses booked during the reporting quarter reduced to Rs million as compared to Rs million in the corresponding quarter. During the reporting quarter, our focus was mainly on risk management, efficient internal controls and to make maximum recovery from classified portfolio, in order to increase the operating income of the Modaraba. These efforts resulted in increase of 68% in Ijarah, 218% in Musharikah income. Further, we also recovered Rs. 10 million from the classified portfolio and Rs. 2 million against missing scripts. The effects of all above noted efforts were that the net profit of Rs million was generated as compared to loss of Rs million in the corresponding quarter. By the grace of Almighty Allah, the Modaraba is on its way to progress which is evident from the quarter ended September 30, 2015 and financials for the period ended June 30, 2015 in which Modaraba has declared cash dividend of 2% to its certificate holders. 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/ CEO October 28,

6 CONDENSED INTERIM BALANCE SHEET (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2015 ASSETS Current Assets Bank balances Ijarah rentals receivable Advances, prepayments and other receivables Short term investments Musharaka receivables Current portion of murabaha receivable Non-Current Assets Long term advances and deposits Investment property Fixed assets under ijarah arrangements Fixed assets under own use Intangible asset Total Assets September 30, June 30, Note 30,024,584 24,576,852 1,365, , ,622,607 13,635, ,452,267 11,872,195 25,385,578 16,499,625 21,002,312 22,207, ,852,359 89,316,704 2,709,260 2,709,260 85,833,729 87,083,736 30,044,124 31,887,819 1,147,182 1,276, , , ,880, ,124, ,732, ,440,773 LIABILITIES Current Liabilities Creditors, accrued and other liabilities Musharaka profit payable Musharaka finances Current portion of non-current liabilities Unpresented profit warrants 5 3,937,684 3,610,027 1,430,192 1,430,192 7,700,000 8,200,000 3,731,148 4,414,136 12,448,295 8,410,795 Non-Current Liabilities Long term security deposits 29,247,319 26,065,150 10,390,985 10,250,985 Total Liabilities NET ASSETS REPRESENTED BY: Certificate capital Reserves Accumulated loss Contingencies and commitments The annexed notes form an integral part of these financial statements. 10,390,985 10,250,985 39,638,304 36,316, ,094, ,124, ,875, ,875,000 48,397,607 47,813,043 (68,178,423) (73,563,405) ,094, ,124,638 CHIEF EXECUTIVE DIRECTOR DIRECTOR 3

7 CONDENSED INTERIM PROFIT & LOSS ACCOUNT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2015 September 30, 2015 Septemebr 30, 2014 INCOME FROM OPERATIONS Income from ijarah Profit on murabaha investment Profit on musharaka investments Income from investment property Profit on term deposit receipts and bank deposits Income from short term investments 3,304, ,988 1,272,573 1,873, ,387 1,961, , ,131 1,873,860 69,155-65,518 7,294,416 5,343,550 OTHER INCOME Reversal of provision against non-performing musharaka receivables - net Other income TOTAL INCOME 10,000,000-27,015 35,344 10,027,015 35,344 17,321,431 5,378,894 EXPENSES Operating expenses Depreciation on assets under ijarah Provision against non performing musharikah receivables-net Musharikah profit held in suspense account Other operating expenses (5,308,664) (4,948,757) (2,565,690) (1,562,358) - (58,194) - (16,652,648) (24,595) (17,100) (7,898,949) (23,239,057) Net Profit for the period Earnings per Modaraba Certificate 9,422,482 (17,860,163) 0.47 (0.88) The annexed notes form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR DIRECTOR 4

8 CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2015 September 30, 2015 Septemebr 30, 2014 Net Profit for the period 9,422,482 (17,860,163) Other comprehensive income Items that may be reclassified subsequently to profit and loss Unrealized gain in value of available for sale investments 584, ,230 Other comprehensive income for the period 584, ,230 Total Comprehensive Income / (loss) for the period 10,007,046 (17,490,933) The annexed notes form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR DIRECTOR 5

9 CONDENSED CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2015 Profit for the period Adjustment for: - Depreciation on fixed assets under own use - Depreciation on investment property - Depreciation on fixed assets under ijarah arrangements - Amortization on intangible asset - Provision / (Reversal) of provision against non-performing musharaka receivables - net - Provision/ (Reversal) of musharaka profit held in suspense account - Ijarah rental held in suspense account - Revaluation gain on investment at fair value through profit or loss - Profit on term deposit receipts and bank deposits - Dividend income September 30, 2015 Septemebr 30, ,422,482 (17,860,163) 129, ,566 1,250,007 1,256,788 2,565,690 1,562,358 20,833 88,763 (10,000,000) 58,194-16,652, ,464 4,495 (65,518) (145,749) (69,155) - (6,175,319) 19,958,108 Operating profit before working capital changes Decrease / (Increase) in operating assets: - Advances, prepayments and other receivables - Ijarah rentals receivable - Musharaka receivables - Long term murabaha receivable Increase/ (Decrease) in operating liabilities: - Long term security deposits - Creditors, accrued and other liabilities Net changes in working capital Cash generated from operations 3,247,163 2,097,945 31,842 (233,754) (839,996) (399,363) 1,114,047 (2,171,169) 521,821 (220,888) - 140, ,657 (1,083,199) 1,295,371 (4,108,373) 4,542,535 (2,010,428) CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Income taxes paid Profit on term deposit receipts and bank deposits Net Cash generated from Operating Activities 4,542,535 (2,010,428) (18,552) (2,902,744) 145,749 69,155 4,669,732 (4,844,017) CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets under ijarah arrangements Purchase of intangible asset Purchase of short term investments Proceeds from encashment of short term investments Long term loans and deposits Net Cash (used in) / generated from Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Musharaka finances Dividend paid Net Cash used in Financing Activities Net (Decrease) / Increase 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 these financial statements. (722,000) (4,971,150) - (250,000) (37,000,000) (10,000,000) 39,000,000-1,623,745 1,278,000 (13,597,405) (500,000) (1,250,000) - (862) (500,000) (1,250,862) 5,447,732 (19,692,284) 24,576,852 30,354,509 30,024,584 10,662,225 CHIEF EXECUTIVE DIRECTOR DIRECTOR 6

10 CONDENSED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, income CHIEF EXECUTIVE DIRECTOR DIRECTOR 7

11 CONDENSED NOTES TO THE ACCOUNT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2015 Note 1 The accounting policies adopted for the preparation of these financial statements are consistent with those applied for the preparation of preceding annual published 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 September 30, 2015 "" June 30, 2015 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: - Others 779, , , , , , ,174 1,764,625 2,320,796 13,971,868 13,536,414 (13,502,100) (13,502,100) 469,768 34, , ,309 14,383 1,764 10,539,713 10,549,713 10,539,713 10,549,713 13,622,607 13,635,896 Note 4 Short Term Investments Note Investments in listed securities are classified as: - Available for sale - At fair value through profit or loss Investments in term deposit receipts - Held to Maturity 4.1 4,874,069 6,289, , , ,000,000 5,000,000 10,452,267 11,872, Available for sale September 2015 June 2015 Name of entity No. of shares/ Certificates Holdings are in ordinary certificates / shares of 10 each. 7,341 7,341 The Searle Company Limited 121, ,266 Pakcem Limited 128, ,607 2,938,749 2,354,185 1,935,320 3,935,320 4,874,069 6,289, At fair value through profit or loss Attock Refinery Limited 100, ,000 First Punjab Modaraba 100, ,200 38,198 45, , , , , 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 Contribution to provident fund payable Payable to the Modaraba Management Company Other liabilities 262, ,500 2,182,846 2,063, , , , ,483 3,937,684 3,610,027 8

12 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 period Related party Relationship Nature of Transaction September 30, 2015 June 30, 2015 IBL Modaraba Management (Private) Limited Management Company Management fee paid during the year - 1,029,666 University of Management and Technology Holds 15.2% of the paid up certificates of Modaraba Recovery against Musharaka Rent of Library Building received - 16,652,909 1,873,860 7,495,440 Outstanding Balance at the quarter end Payable to the Modaraba Management Company 592, ,036 Transactions with related parties, except the management fee payable to the management company, are carried arm s length in the normal course of business. at an Note 7 Date of authorization for issue The financial statement were authorized for issue on October 28, 2015 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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