Quarterly Accounts September 30, 2012 (Un-Audited) First Prudential Modaraba. Managed by : Prudential Capital Management Ltd

Transcription

1 Quarterly Accounts September 30, (UnAudited) First Prudential Modaraba Managed by : Prudential Capital Management Ltd

2 CORPORATE INFORMATION Board of Directors of Prudential Capital Management Ltd. Mr. Fazal M. Mughal Director Mr. Ataullah Khan Director Dr. Muhammad Hussain Director Mr. Asad Iqbal Siddiqui Director (Since Resigned) Mr. Muhammad Asif Director (Since Resigned) COMPANY SECRETARY Mr. Muhammad Musharraf Khan AUDIT COMMITTEE Mr. Fazal M. Mughal Member Mr. Ataullah Khan Member Mr. Muhammad Asif (Since Resigned) HUMAN RESOURCES AND REMUNERATION COMMITTEE Mr. Fazal M. Mughal Chairman Mr. Ataullah Khan Member Mr. M. Nadeem Ahmed Member SHARI'AH ADVISOR Mufti Muhammad Ibrahim Essa AUDITORS M.Yousuf Adil Saleem & Co. Chartered Accountants LEGAL ADVISORS Mandviwalla & Zafar, Advocates BANKERS HBL Islamic Banking Faysal Bank Barkat Islamic Banking BankIslami Pakistan Limited Al Baraka Bank (Pak.) Ltd. Burj Bank Limited MANAGEMENT COMPANY Prudential Capital Management Limited REGISTERED OFFICE Office No. 54, Ground Floor, Beverly Centre, 56G, Blue Area, Islamabad. Tel: Fax: STOCK EXCHANGE First Prudential Modaraba is managed by Prudential Capital Management Ltd. and is listed on Karachi, Lahore and Islamabad Stock Exchanges. Daily quotation of the company s stock can be obtained from leading newspapers, listed under modarabas. PUBLIC INFORMATION Financial analysts, Stock, broker, interested investors and financial media desiring information about First Prudential Modaraba should contact Syed Imran Ali (Chief Financial Officer) Mehersons Estate, 1st Floor, Block No. 1, Talpur Road, P.O. Box 621, Karachi Tel: PABX Fax: syedimran.ali@firstprudentialmodaraba.com CERTIFICATE HOLDERS INFORMATION Enquiries concerning lost Modaraba certificates, dividend payment, change of address, verification of transfer deeds and certificate transfer should be directed to the Registrar of First Prudential Modaraba i.e. Shares & Corporate Services (Pvt) Ltd. Mehersons Estate, Block E, Talpur Road, Karachi74000 Tel: PABX Fax: info@firstprudentialmodaraba.com KARACHI OFFICE Mehersons Estate, 1st Floor, Block No. 1, Talpur Road, P.O. Box 621, Karachi74000 Tel: PABX Fax: info@firstprudentialmodaraba.com 1

3 DIRECTOR S REPORT The Board of Directors of Prudential Capital Management Limited, the Manager of First Prudential Modaraba are pleased to present the first quarter results of First Prudential Modaraba together with Unaudited accounts for the quarter ended September 30, before the certificate holders. KEY OPERATING / FINANCIAL HIGHLIGHTS ( in millions) Quarter ended September 30, Total Income from Operations Operating Expenses (12.03) ( 7.53) Operating Profit for the period Unrealized gain / (loss) on remeasurement of Investments 1.63 ( 0.22) Provision against doubtful receivables 0.14 Net profit for the period Earning Per Certificate Re. net REVIEW OF OPERATIONS During the quarter ended September 30, the overall operating performance of the Modaraba reflects that gross operating income increases by 20.79% to rupees million from rupees million as compared to last quarter. The net profitability of the Modaraba increases by 12.58% to rupees million from rupees million as compared to the corresponding quarter. The increase in net profitability was mainly due to capital market operations and reversals of provision on doubtful receivables. An earnings per certificate for the quarter is Re Development activities As our strategy, we will continue to concentrate on strong and quality customer base, it is required to provide timely and efficient service. To cater the needs of our clientele and to get correct information, your Modaraba has purchased a new ERP Systems. This has been implemented successfully. At the second phase the Modaraba is planning to hire a team of professionals so that new area for business can be explore. Future outlook Islamic banking industry has experienced significant growth and with the increasing demand of Islamic base finance, your Directors emphasis that Modaraba should take advantage of this opportunity and concentrate on good customers and value. Recoveries of the outstanding amounts will remain a high priority for the management during the current year. With the self sufficient in funds and better liquidity, we are looking forward to explore more profitable avenues for deployment of funds. Acknowledgement The Board of Directors would like to thank for continuous guidance and support extended by the Registrar Modaraba, other officials of Security and Exchange Commission of Pakistan, the Karachi, Lahore and Islamabad Stock Exchanges. The Board is also thankful to its valued customers, Certificate Holders for reposing their confidence in the Management of the Modaraba and appreciates the hard work and dedication of staff of the Modaraba. Karachi. November 23, For & on behalf of the Board of Directors of Prudential Capital Management Limited, Manager First Prudential Modaraba Mr. Fazal Mohammad Mughal Director/Chairman of Meeting 2

4 CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30, (UNAUDITED) ASSETS Note September 30 June 30 Current Assets Cash and bank balances Investments Musharika, morabaha and other finance Ijarah rentals receivable Advances, prepayments and other receivables ,418, ,672,272 25,914,552 4,440,945 44,681,394 90,368, ,828,284 26,314,136 1,490,630 39,826,034 Total Current Assets 460,128, ,827,150 Long term investments Long term deposits Intangible asset Property and equipment owned Property, plant and equipment Ijarah Investment property TOTAL ASSETS 8 4,881,130 3,068,092 22,326,567 1,928, ,756,030 10,500, ,460, ,588,832 6,447,388 3,068,092 22,326, , ,907,387 10,500, ,436, ,263,851 LIABILITIES Current liabilities Current portion of long term ijarah deposits Accrued and other liabilities Unclaimed dividend Total Current Liabilities Noncurrent liabilities Long term ijarah deposits TOTAL LIABILITIES NET ASSETS 15,113,780 7,100,687 17,832,449 40,046,916 31,654,482 71,701, ,887,434 13,380,840 7,544,668 17,832,449 38,757,957 32,898,007 71,655, ,607,887 REPRESENTED BY Certificate Capital 87,217,660 Modaraba Certificates of 10/ each Statutory reserve Accumulated loss Contingencies and commitments 133,492,500 (473,781,666) 531,887, ,492,500 (486,061,213) 519,607,887 The annexed notes from 1 to 8 form an integral part of these condensed interim financial statements. Statement under rule 12 (2) of the Modaraba Companies Rules, 1981: These condensed interim financial statements has been signed by three directors instead of chief executive officer and two directors. The management company has not so far appointed a chief executive officer. Director Director Director 3

5 CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED SEPTEMBER 30, (UNAUDITED) INCOME / (LOSS) Ijarah rentals Return on term deposit receipts and PLS accounts Income on musharika, morabaha and other finance Gain/(loss) on sale of investments Dividend income Other income JULY TO SEPTEMBER 30, 14,617,056 5,781,451 1,321, ,018 46,110 22,540,558 JULY 2011 TO SEPTEMBER 30, ,715,581 9,924, , ,335 2,190, ,412 18,659,168 Unrealized gain/( loss ) on remeasurement of held for trading investments Provision /Reversal against doubtful receivable net EXPENDITURE Depreciation on ijarah assets Administrative expenses Workers welfare fund Bank and other charges Profit/(loss) for the period Modaraba company's management fee Profit/(loss) before taxation Provision for taxation Profit/(loss) after taxation 1,633, ,440 24,310,505 (8,363,873) (3,614,153) (52,932) (12,030,958) (219,067) 18,440,101 (4,435,729) (3,087,433) (9,824) (7,532,986) 10,907,115 10,907,115 10,907,115 Earnings per certificate ( Re ) The annexed notes from 1 to 8 form an intergral part of these condensed interim financial statements. Statement under rule 12 (2) of the Modaraba Companies Rules, 1981: These condensed interim financial statements has been signed by three directors instead of chief executive officer and two directors. The management company has not so far appointed a chief executive officer. Director Director Director 4

6 CONDENSED INTERIM CASH FLOW STATEMENT FOR THE PERIOD ENDED SEPTEMBER 30, (UNAUDITED) A.CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation Adjustments for noncash changes and other items: Dividend income Loss on disposalijarah assets Unrealzied gain on remeasurement of held for trading investments Gain on sale of investments Impairment(loss) & (provision) /reversal against Doubtful receiveable net Depreciationowned Amortization on ijarah assets Cash flows before movements in working capital Decrease / (Increase) in operating assets Musharika, morabaha and other finance Ijarah rentals receivable Advances, prepayments and other receivables Increase/(decrease) in operating liabilities Long term ijarah deposits Accrued and other liabilities Cash generated from operations Income tax paid Net cash generated from operating activities B.CASH FLOWS FROM INVESTING ACTIVITIES Dividend received Investments encashed net Proceeds from disposalijarah assets Purchase of own assets Net cash generated from investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 30 September (774,018) 89,229 (1,633,507) (1,321,923) (136,440) 169,110 8,363,873 4,756,324 17,035, ,024 (2,950,315) (4,712,610) (7,126,901) 489,415 (443,981) 45,434 9,954,404 (34,428) 9,919, ,696 17,677,700 (112,745) 1,910,774 (1,189,000) 15,130,907 25,050,883 90,368, ,418, September ,907,115 (2,190,980) 219,067 (554,335) 47,813 4,435,729 1,957,294 12,864, ,087 (297,188) (3,727,659) (3,690,760) 2,534,450 (3,305,355) (770,905) 8,402,744 (775,344) 7,627, , ,161 (4,791,000) (3,538,812) 4,088, ,763, ,852,151 The annexed notes from 1 to 8 form an intergral part of these condensed interim financial statements. Director Director Director 5

7 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED SEPTEMBER 30, (UNAUDITED) Balance at July 1, 2011 Profit for the year ended June 30, Other comprehensive loss for the year ended June 30, 3 % declared for the year ended June 30, transfer to statutory reserve Balance at June 30, Balance as at July 01, Profit for the Period Balance at SEPTEMBER 30, Certificate capital Capital *Statutory reserve 126,898,620 6,593, ,492, ,492, ,492,500 Unrealized gain/(loss) on available for sale ,517 (192,669) 345, , ,848 Revenue Resrves Accumulated loss (486,617,284) 32,969,401 (26,165,298) (6,593,880) (486,407,061) (486,407,061) (474,127,514) Sub total (486,078,767) 32,969,401 (192,669) (26,165,298) (6,593,880) (486,061,213) (486,061,213) (473,781,666) The Statutory reserves representing profit setaside as required under the SECP Prudential Regulation for Modaraba is transferred annually at year end. The annexed notes from 1 to 8 form an intergral part of these condensed interim financial statements. Director Director Director Total 512,996,453 32,969,401 (192,669) (26,165,298) 519,607, ,607, ,887,434 6

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, (UNAUDITED) 1. LEGAL STATUS AND NATURE OF BUSINESS 1.1 First Prudential Modaraba (the modaraba) is a multipurpose, perpetual Modaraba. The Modaraba is registered under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Modaraba Companies and Modaraba Rules, 1981 and is managed by Prudential Capital Management Limited, a company incorporated in Pakistan under the Companies Ordinance The Modaraba is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The Modaraba is currently engaged in various modes of Islamic fundings and businesses which include ijarah financing, deployment of fund in musharika, morabaha, investment in securities. Registered Office of the modaraba is situated at Beverly Centre, 56G, Blue Area, Islamabad. 1.2 The financial statements is presented in Pak, which is the Modaraba's functional and presentation currency. 2. BASIS OF PREPARATION There condensed interim financial statements are unaudited and being submitted to the certificate holders as required under Rule 10 of Modaraba Companies and Modaraba Rules 1981 and have been prepared in accordance with the requirments of the International Accounting Standard (IFS) 34 " Interim Financial Reporting". 3. ACCOUNTING POLICIES The accounting policies and methods of computation followed for the preparation of these condensed interim financial statements are the same as those applied in the preparing the financial statements for the year ended June 30,. 4. CASH AND BANK BALANCES Unaudited SEPTEMBER 30, Audited JUNE 30, Cash in hand Cash at banks Current accounts Saving accounts ,200 1,488, ,900, ,388, ,418,949 26,963 1,518,191 88,822,912 90,341,103 90,368,066 Effective markup rate in respect of PLS accounts ranges from 4.22 % to 11.5 % (2011 : 5.5% to 11.75%) per annum. 5. INVESTMENTS Held for trading at fair value through profit and loss account Unless stated otherwise, the holdings are in the fully paid ordinary shares/ certificates/ units of Rs 10/ each. 5.1 At fair value through profit or loss in quoted securities 5.2 Loan and receiveables term deposit receipts 77,672, ,000, ,672,272 90,828, ,000, ,828,284 7

9 5.1 Held for trading at fair value through profit or loss account Number of Certificates / Name of investee Shares September 30, June 30, UNAUDITED September 30, AUDITED June 30, 70, , , ,730 25,000 Openend mutual funds Unit Trust of Pakistan (Face value of certificate Rs.100/ each) MCB Islamic Fund Type A National Investment (Unit) Trust 7,797,300 25,472,405 13,227,300 25,205, ,500 4,375 7,500 21,200 19,800 13,500 14,500 17,500 21,200 16,500 26,500 14,500 Oil and gas Pakistan Petroleum Limited Oil & Gas Development Company Limited National Refinery Limited Pakistan State Oil Company Pakistan Refinery Limited Attock Refinery Limited 769,694 1,345,350 4,986,452 4,300, ,650 1,841,790 2,807,700 4,905,468 3,891,360 1,522,425 1,781, ,000 2,500 32,500 80,500 2, , ,000 25, ,830 5, ,000 Chemicals Fauji Fertilizer Bin Qasim Limited Akzo Nobel Pakistan Ltd. Fauji Fertilizer Company Ltd. Engro Corporation Limited ICI Pakistan Limited Lotte Pakistan PTA Limited 10,183, ,300 3,632,525 8,594, ,474 1,164,400 10,817,300 2,831,775 11,796, ,885 1,406,000 5,000 13,500 10,000 Construction and materials D.G. Khan Cement Company Limited Lucky Cement Limited 665, ,630 1,153,900 20,000 TELECOM Pakistan Telecomunication Company Limited 273,800 2,000 1,885 Pharma & Bio Tech Glaxo Smith 137, ,207 1,721 1,721 Household goods Hussain Industries Limited 4,802 5,163 12,000 20,000 34,000 Personal goods Nishat Mills Limited Nishat (Chunian) Limited 679, , ,260 62,500 30,000 95,000 30,000 Electricity Kot Addu Power Company Limited The Hub Power Company Limited 3,019,375 1,406,400 4,275,000 1,256,700 27,000 Financial Services First Habib Modaraba 194,400 1,670, ,000 1,670, ,000 Suspended / Delisted Company Prudential Stock Fund ZealPak Cement Factory Limited 77,672,272 90,828,284 8

10 5.2 INVESTMENTS Loan and receivablesterm deposit receipt considered good considered doubtful Less: Provision for doubtful term deposits Note Unaudited September 30, 185,000,000 10,000, ,000,000 (3,000,000) Audited June 30, 185,000,000 10,000, ,000,000 (3,000,000) 192,000, ,000, These includes term deposit receipts aggregate to amounting to Rs. 70 million invested in Invest Capital Investment Bank Ltd. (ICIBL) on June 28, an agreement has been executed between the Modaraba and ICIBL, according to which parties have agreed to settle the outstanding liability of Rs. 70 million against transfer of immovable properties located in Karachi and Rawalpindi. Subsequent to the quarter end, on October 2, and October 24,, sale deeds of these properties have been executed and are registered with the respective registrar of properties. The fair value of these properties assessed by the independent valuer are approximate to the settlement amount The management of Modaraba is in the process of negotiation to recover the outstanding amount of Rs.10 million. The management is confident for amicable settlement to recover the full amount. However as a matter of prudence the Modaraba has made provision of Rs. 3.0 million against outstanding receivable. 6. MUSHARIKA, MORABAHA AND OTHER FINANCE Musharika and morabaha finance Other financesecured 17,070,246 8,844,306 25,914,552 17,469,830 8,844,306 26,314,136 25,914,552 26,314, IJARAH RENTALS RECEIVABLE Considered good Considered doubtful Less: Provision for doubtful receivables 7.1 4,440,945 24,199,105 28,640,050 (24,199,105) 4,440,945 1,241,727 24,303,208 25,544,935 (24,054,305) 1,490, Movement in provision for doubtful receivables Opening balance Charge for the period Reversal during the period Closing balance 24,054, ,800 24,199,105 24,577, ,575 (1,277,587) 24,054,305 9

11 Unaudited September 30, Audited June 30, 8. LONG TERM INVESTMENTS Unless stated otherwise, the holdings are in the fully paid ordinary shares/ certificates/ units of Rs.10/ each. Investment in associate Available for sale Mutual Fund An unlisted company 1,502,500 3,378,630 4,881,130 4,881,130 3,068,758 3,378,630 6,447,388 6,447,388 Director Director Director 10