Popular Islamic Modaraba : Transmission of Half Yearly Report for the Half Year Ended December 31, 2022

INTERIM FINANCIAL STATEMENTS

HALF YEAR ENDED

December 31, 2022

Managed By:

Popular Islamic Modaraba

Management Company (Pvt.) Limited

TABLE OF CONTENTS

•	Corporate Information	1
•	Director's Report - English	2
•	Director's Report - Urdu	4
•	Independent Auditors' Review Report	6
•	Condensed Interim Balance Sheet (Un-Audited)	7
•	Condensed Interim Profit Or Loss And Other Comprehensive Income	8
(Un-Audited)
•	Condensed Interim Cash Flow Statement (Un-Audited)	9
•	Condensed Interim Statement of Changes in Equity (Un-Audited)	10
•	Notes to the Interim Financial Statements (Un-Audited)	11

CORPORATE INFORMATION

BOARD OF DIRECTORS	Mr. Imamuddin Shouqeen	- Chairman
	Mr. Shahbaz Ali Malik	- Managing Director
	Mr. Khurram Abdullah	- Independent Director
	Mr. Malik Junaid Emam	- Director
	Mr. Kamran Hussain Mughal	- Director & Chief Executive
	Ms. Aisha Mughal	- Director & Company Secretary
AUDIT COMMITTEE	Mr. Khurram Abdullah	- Chairman
	Mr. Shahbaz Ali Malik	- Member
	Mr. Malik Junaid Emam	- Member
HR COMMITTEE	Mr. Khurram Abdullah	- Chairman
	Mr. Malik Junaid Emam	- Member
	Mr. Kamran Hussain Mughal	- Member
SHARIAH ADVISOR	Al-Hamd Shariah Advisory Services (Pvt.) Limited
COMPANY SECRETARY	Ms. Aisha Mughal
CHIEF FINANCIAL OFFICER	Mr. Shoaib Shaikh
BANKERS	Albaraka Bank (Pakistan) Limited
	Meezan Bank Limited
AUDITORS	BKR International Muniff Ziauddin & Co.
	Chartered Accountant
LEGAL ADVISOR	Syed Sikandar Ali Shah - Advocate
	M/s. Shah Associates
MANAGEMENT COMPANY	Popular Islamic Modaraba Management Company (Pvt.) Ltd
REGISTERED OFFICE	15th Floor, Hasrat Mohani Road, Off. I.I.Chundrigar Road, Karachi.
SHARE REGISTRAR	Central Depository Company of Pakistan
	CDC House, 99-B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal, Karachi

[1]

Directors' Report

The Board of Directors of Popular Islamic Modaraba Management Company (Pvt.) Limited, the Management Company of Popular Islamic Modaraba (the Modaraba) is pleased to present the Directors' Report of the Modaraba, together with Condensed Interim Financial Information for the Half Year ended December 31, 2022 alongwith Auditors' Report to the Certificate Holders on Review of Condensed Interim Financial Information.

The summarized financial results for the half year ended December 31, 2022 are as under:

	December	December
	31, 2022	31, 2021
	------------Rupees------------
Income	13,906,006	10,137,254
Operating expenses	(4,095,095)	(3,420,614)
Depreciation of Ijarah assets	(4,639,266)	(3,844,656)
	(8,734,361)	(7,265,270)
Other income	609,342	327,762
Profit before management fee	5,780,987	3,199,746
Management fee	(289,049)	(159,987)
Sales tax on management fee	(37,576)	(20,798)
Profit before taxation	5,454,361	3,018,960
Taxation	(927,241)	-
Profit after taxation	4,527,120	3,018,960
Total comprehensive income	4,527,120	3,018,960
Earnings per certificate - basic & diluted	0.32	0.24

Review of Operations & Economy:

Despite the most challenging economic condition, high inflation, low forex reserves and economic uncertainty, the Modaraba has performed reasonably well. Indeed, we have achieved gross revenue of Rs. 13.906 million compared to Rs. 10.137 million in corresponding period last year, an increase of 37%, whereas the depreciation and operational expenses contracted by nearly 20% compared to the same period last year. The Income of Modaraba increased almost 50% from Rs.3.018 million to Rs.4.527 million from previous year. The EPC stood at Re.0.32. The asset portfolio developed is a well-balanced combination of corporates, high net worth individuals and SMEs with a very satisfactory performance of repayments.

Pakistan is going through a period of extreme economic and political instability due to internal and external factors. Any political shake up can disturb the economy's entire momentum of progress, slowing down the pace of economic activities, creating a sense of insecurity in the financial sector and diverting the nation's progress towards economic and financial security.

[2]

Considering the current economic situation, businesses may have a slow momentum in the next few months. Nevertheless, the management is confident that the performance will improve in the future as well and yield positive results despite the highlighted economic challenges.

Future outlook:

Modaraba is focusing on fresh financing business specifically to SMEs to improve profitability. Our endeavor to optimize the utilization of our own resources as well as controlled leveraging of the balance sheet to book and gradually build good quality assets portfolio continues. The Management of the Modaraba is proactively studying available options which would best protect and preserve certificate holders' interest in the future. We are fully committed to maintain this upward trend and Insha Allah foresee to achieve better results, and to pay progressive return to the certificate holders of the Modaraba.

Acknowledgments:

The Board would like to take this opportunity to express gratitude and thanks to our valuable customers for their patronage and support, the Securities and Exchange Commission of Pakistan, the Pakistan Exchange Limited and Modaraba Association of Pakistan for their continuous support and guidance.

Special thanks to our certificate holders for the trust and confidence reposed in us.

for and on behalf of the Board.

Kamran Hussain Mughal

Chief Executive Officer

Dated: February 24, 2023

Karachi.

[3]