First National Bank Modaraba : Transmission of Quarterly Report for the Period Ended Sep 30,2023

QUARTERLY REPORT

SEPTEMBER 30,

2023

First National Bank Modaraba

First National Bank Modaraba

September 30, 2023

01

Quarterly Report-September 30, 2023

Corporate Information	4
Directors' Review Report	5
Condensed Interim Balance Sheet	6
Condensed Interim Profit and Loss Account	7
Condensed Interim Statement of Comprehensive Income	8
Condensed Interim Cash Flow Statement	9
Condensed Interim Statement of Changes in Equity	10
Notes to the Condensed Interim un-audited Financial Statements	11

02

First National Bank Modaraba

CORPORATE INFORMATION

Board of Directors	Mr. Muhammad Imran Malik	Chairman
	Mr. Hakim Ali Leghari	Director
	Khawaja Waheed Raza	Director
	Syed Zubair Ahmad Shah	Director
	Mr. Saad Salman Dar	Director
Audit Committee	Syed Zubair Ahmad Shah	Chairman
	Mr. Hakim Ali Leghari	Member
	Khawaja Waheed Raza	Member
HR & Remuneration
Committee	Khawaja Waheed Raza	Chairman
	Mr. Muhammad Imran Malik	Member
	Mr. Hakim Ali Leghari	Member
Shari'ah Advisor	Mufti Ehsan Waquar Ahmed
Chief Financial Officer/
Company Secretary	Farah Aslam
Auditors	Rahman Sarfaraz Rahim Iqbal Rafiq
	Chartered Accountants
Bankers	National Bank of Pakistan
	Bank Alfalah Limited
	Al Baraka Islamic Bank
	Habib Bank Limited
	MCB Bank Limited
	Bank Islami Pakistan Limited
Legal Advisor	Muhammad Aqeel Malik
	Advocates Supreme Court
	Aqeel & Associates, Advocate/Legal Consultants
	Office No. 12, 1st Floor, Khawaja Arcade
	Wahdat Road, Lahore
	Tel.: [phone]
Shares Registrar	Hameed Majeed Associates (Pvt.) Limited
	H. M. House, 7 - Bank Square, Lahore
	Tel: [phone], Fax: [phone]
Registered Office	Ground Floor, NBP-RHQ Building,
	26 - McLagon Road, Lahore

Tel: [phone], Fax: [phone]

URL: http://www.nbmodaraba.com

E-mail: [e-mail]

03

Quarterly Report-September 30, 2023

Directors' Quarterly Review Report

On behalf of Directors of National Bank Modaraba Management Company Limited (NBMMCL) the Management Company of First National Bank Modaraba(FNBM), quarterly report is being presented, together with un-audited financial statements of FNBM for the quarter ended Sep 30,2023.

During the period under review the focus of management remained on recovery, particularly from the classified portfolio. Various settlement arrangements were made with some defaulter customers and an amount of Rs 3.6 million was realized from defaulted customers during the period.

On the operations side the total income figured to Rs 9.998 million for the period under review as compared to Rs 4.895 Million for corresponding period last year. Financial cost figured at Rs 12.633 Million compared to Rs 4.069 Million in the corresponding period. The operating expenses, due to prevailing inflation, slightly increased to Rs 3.488 Million compared to Rs 3.082 Million in the corresponding period. The profit/(loss) per certificate stood at Rs ( 0.20) against profit/(loss) per certificate of Rs 0.08 in the corresponding period.

The Board would like to take this opportunity to thank its valued certificate holders and clients for their patronage and consistent patience. Besides, the board extends its sincere gratitude to Registrar Modarabas, SECP and NBFI & Modaraba Association of Pakistan for their continued guidance and support.

For and on behalf of the Board

		-
Lahore: October 25, 2023	Director	Director

04

First National Bank Modaraba

-

202325

05

Quarterly Report-September 30, 2023

BALANCE SHEET

AS AT SEPTEMBER 30, 2023

NOTE

ASSETS

CURRENT ASSETS

Cash and bank balances

Short term murabaha investments - secured

Accrued profit

Short term investments

Ijarah rentals receivable

Prepayments and other receivables

Income tax recoverable/ adjustable

Current portion of non-current assets

NON-CURRENT ASSETS

Sep 30,2023

Rupees

8,077,997

1,772,953

5,963,411

204,074,491

24,911,437

1,528,581

10,869,994

16,096,392

273,295,256

Jun 30,2023

Rupees

10,298,604

1,772,953

5,856,727

194,074,491

25,560,916

1,830,087

9,600,084

16,396,392

265,390,254

Net investment in ijarah finance

Diminishing musharaka financing - secured

Long term murabaha investments - secured

Long term deposit

Intangible asset

Fixed assets under ijarah arrangements

Fixed assets under own use

TOTAL ASSETS

LIABILITIES

CURRENT LIABILITIES

Accrued profit on short term financing

Short term finances - secured

Creditors, accrued and other liabilities

Unclaimed dividend

Security deposits against ijarah assets

Deferred murabaha income

Provision for taxation

TOTAL LIABILITIES

NET LIABILITIES

FINANCED BY:

Certificate capital

Statutory reserve

Accumulated loss

Unrealised loss on revaluation of sukuks

TOTAL EQUITY AND RESERVES

CONTINGENCIES AND COMMITMENTS

The annexed notes 1 to 24 form an integral part of these financial statements.

-

-

6,400,000

39,500

-

32,959,576

242,646

39,641,722

312,936,978

119,877,417

217,063,388

3,116,622

425,218

33,006,276

-

-

(373,488,921)

(60,551,943)

250,000,000

45,519,244

(354,315,791)

(58,796,547)

(1,755,396)

(60,551,943)

-

-

-

7,300,000

39,500

-

32,959,576

262,226

40,561,302

305,951,556

107,243,673

217,063,388

2,951,915

425,218

33,006,276

-

839,869

(361,530,339)

(55,578,783)

250,000,000

45,519,244

(349,342,631)

(53,823,387)

(1,755,396)

(55,578,783)

-

-

	Director	Director	Director	Chief Financial Officer
	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba
Lahore: October 25, 2023	Management Company Limited	Management Company Limited	Management Company Limited	Management Company Limited

06

First National Bank Modaraba

CONDENSED QUARTER PROFIT AND LOSS ACCOUNT

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

NOTE

INCOME FROM OPERATIONS

Sep 30,2023		Sep 30,2022
Rupees		Rupees

Profit on bank deposits

Profit on short term investments

OTHER INCOME

Reversal of provision charged for doubtful receivables Suspension reversed during the year

Gain on termination of ijarah assets

Excess liabilities written back

Other income

TOTAL INCOME

EXPENSES

100,997

9,897,729

9,998,726

-

900,000

-

-

250,000

1,150,000

11,148,726

73,631

4,821,803

4,895,434

4,478,562

-

-

-

-

4,478,562

9,373,996

Operating expenses

Finance cost

Receivables adjusted

TOTAL EXPENSES

OPERATING PROFIT / (LOSS) BEFORE PROVISIONS AND TAXATION

Provision charged for doubtful receivables

PROFIT / (LOSS) BEFORE MANAGEMENT COMPANY'S FEE

Modaraba Company's management fee

Provision for Worker's Welfare Fund

PROFIT / (LOSS) BEFORE TAXATION

Taxation

PROFIT / (LOSS) AFTER TAXATION

EARNINGS PER MODARABA CERTIFICATE - BASIC AND DILUTED

The annexed notes 1 to 24 form an integral part of these financial statements.

(3,488,101)

(12,633,785)

-

(16,121,886)

(4,973,160)

-

(4,973,160)

-

-

(4,973,160)

-

(4,973,160)

(0.20)

(3,082,894)

(4,069,939)

-

(7,152,833)

2,221,163

-

2,221,163

(222,116)

(39,981)

1,959,066

-

1,959,066

0.08

-

	Director	Director	Director	Chief Financial Officer
	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba
Lahore: October 25, 2023	Management Company Limited	Management Company Limited	Management Company Limited	Management Company Limited

07

Quarterly Report-September 30, 2023

CONDENSED QUARTER STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

Sep 30,2023

Rupees

Sep 30,2022

Rupees

PROFIT/LOSS AFTER TAXATION	(4,973,160)	1,959,066
OTHER COMPREHENSIVE LOSS/ INCOME

Items that will not be reclassified to profit and loss account

Items that may be reclassified subsequently to profit and loss account

-

-

Unrealised (loss)/ gain on revaluation of sukuks

-

-

Other comprehensive (loss)/ income for the year	-	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	(4,973,160)	1,959,066
The annexed notes 1 to 24 form an integral part of these financial statements.

-

	Director	Director	Director	Chief Financial Officer
	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba
Lahore: October 25, 2023	Management Company Limited	Management Company Limited	Management Company Limited	Management Company Limited

08

First National Bank Modaraba

CONDENSED QUARTER CASH FLOW STATEMENT

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

CASH FLOWS FORM OPERATING ACTIVITIES

Profit/Loss for the year before taxation

Adjustments for:

• Depreciation on fixed assets under own use
• Gain on termination of ijarah assets
• Gain on disposal of fixed assets under own use
• Profit on short term investments
• Charge of provision against doubtful ijarah rentals receivable - net
• Charge of provision against doubtful net investment in ijarah finance
• Charge of provision against doubtful dimnishing musharaka financing
• Balances written off
• Liabilities written back
• Reversal of provision ijarah rentals receivable - net
• Reversal of provision long term murabaha investments - net
• Suspension reversed during the year
• Finance cost
• Provision for Worker's Welfare Fund
• Modaraba Company's management fee
• Profit on term deposit receipts and bank deposits

Operating Profit/loss before working capital changes

Changes in working capital:

Decrease/ (increase) in current assets:

• Accrued profit
• Ijarah rentals receivable
• Advances, prepayments and other receivables
• Short term murabaha investments - secured
• Diminishing musharaka financing
• Income tax recoverable/ adjustable
• Long term murabaha investments - secured
• Net investment in ijara financing

Decrease in current liabilities:

- Creditors, accrued and other liabilities

Net changes in working capital

Finance cost paid

Income taxes paid

Profit received on bank deposits

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Sep 30,2023

Rupees

(4,973,160)

19,580

-

-

(9,897,729)

-

-

-

-

-

-

-

(900,000)

12,633,785

-

-

(100,997)

1,754,639

(3,218,521)

9,791,045

1,549,479

301,506

-

-

(1,269,910)

1,200,000

-

164,707

11,736,827

8,518,306

(41)

(839,869)

100,997

7,779,393

Sep 30,2022

Rupees

1,959,066

-

-

-

(4,821,803)

-

-

-

-

-

-

(1,476,153)

-

4,069,939

-

-

(73,631)

(2,301,648)

(342,582)

4,062,114

3,002,408

(145,000)

1,747,420

(226,488)

-

-

276,153

935,493

9,652,100

9,309,518

(1,065)

(54,887)

73,631

9,327,197

Investment made in fixed assets - under own use

Proceeds from disposal of fixed assets - under own use

Short term investments - net

Proceeds from disposal of ijarah assets

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Net increase/ (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

The annexed notes 1 to 24 form an integral part of these financial statements.

-

-

(10,000,000)

-

(10,000,000)

-

(2,220,607)

10,298,604

8,077,997

-

5,000

(1,333,333)

-

(1,328,333)

-

7,998,864

1,455,894

9,454,758

-

	Director	Director	Director	Chief Financial Officer
	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba	National Bank Modaraba
Lahore: October 25, 2023	Management Company Limited	Management Company Limited	Management Company Limited	Management Company Limited

09