Trust Modaraba : Transmission of Quarterly Report for the Period ended September 30, 2023.

Trust Modaraba

Managed By:

Al-Zãmin Modaraba Management (Private) Limited.

QUARTERLY

REPORT

30th September, 2023

www.trustmodaraba.com

CONTENTS

1. CORPORATE INFORMATION
2. DIRECTOR'S REPORT
3. DIRECTOR'S REPORT (URDU)
4. INTERIM CONDENSED BALANCE SHEET
5. INTERIM CONDENSED PROFIT AND LOSS
6. INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
7. INTERIM CONDENSED CASH FLOW STATEMENT

1. INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY
2. NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

CORPORATE INFORMATION

MODARABA COMPANY

AI-Zamin Modaraba Management (Private) Limited

BOARD OF DIRECTORS
Mr. Mian Sheikh Arshad Farooq	Chairman
Mr. Basheer Ahmed Chowdry	Chief Executive
Mr. Syed Shahnawaz Ahmed Rizvi	Director
Mr. Syed Etrat Hussain Rizvi	Director
Mr. Mohammad Yasin	Director
Mr. Sohail Ansar	Director
Dr. Mrs. Namoos Baquar	Director
MANAGEMENT
Mr. Basheer Ahmed Chowdry	Chief Executive
Ms. Hamida Aqeel	Chief Operating Officer/Company Secretary
Mr. Shiraz Butt	Chief Financial Officer
AUDIT COMMITTEE
Mr. Syed Etrat Hussain Rizvi	Chairman
Mr. Mian Sheikh Arshad Farooq	Member
Mr. Syed Shahnawaz Ahmed Rizvi	Member
Mr. Mohammad Yasin	Member
Ms. Hamida Aqeel	Secretary to the committee
HUMAN RESOURCE COMMITTEE
Mr. Muhammad Yasin	Chaiman
Mr. Syed Etrat Hussain Rizvi	Member
Dr. Mrs. Namoos Baquar	Member
Mr. Basheer Ahmed Chowdry	Member
Ms. Hamida Aqeel	Secretary to the committee
INTERNAL AUDITORS
UHY Hassan Naeem & Co.
Chartered Accountants
AUDITORS OF THE MODARABA
Grant Thornton Anjum Rahman.
Chartered Accountants
BANKER
Meezan Bank Limited
LEGAL ADVISORS
Holscott International
S&B Durrani Law Assoicates

REGISTERED OFFICE/PRINCIPAL PLACE OF BUSINESS 104-106,Kassam Court, BC-9, Block-5,Clifton, Karachi-75600Telephone: [phone]

Fax: [phone] Web: trustmodaraba.com

Email: [e-mail]

REGIONAL OFFICE

320, 3rd Floor, Garden Heights, 8-Aibak Block, New Garden Town, Lahore Telephone: [phone] Fax: [phone]

REGISTRARS

Hameed Majeed Associates (Private) Limited

1st Floor, H.M. House, 7-Bank Square, Lahore Telephone: [phone] Fax: [phone]

3	TRUST MODARABA Quarterly Report September, 30, 2023

DIRECTORS' REPORT

The Board of Directors of Al-Zamin Modaraba Management (Private) Limited, the management company of Trust Modaraba is pleased to present the un-audited financial statements of Trust Modaraba for the quarter ended 30th September, 2023.

ECONOMIC REVIEW

The previous financial year ended with significant pressure on domestic prices, exchange rate, fiscal account and business environment. The challenges along with record high energy and food prices, loss of crops and livestock added further to the woes of the common man. However, since beginning of the current financial year 2023-24, economic situation has shown some signs of recovery due to the measures initiated by the government aimed at improving the near-term economic situation during the current year. The pro-farmer incentives of the government appear to auger well for the agriculture sector as according to initial estimates cotton production is expected to post remarkable growth of almost over 80% over the previous year. During the first quarter of the current financial year, export of services moved positively and depicted increase though marginally by 2%. Pakistan Stock Market (PSX) remained significantly higher than its past six months average of 43,000 points. Strict administrative actions against foreign exchange dealers has also helped in stabilizing the exchange rate.

However, to ensure long term macro-economic stability and growth, careful economic management and deep structural reforms are required to place the Country on a comprehensive and all-inclusive development trajectory. Until then Pakistan economy will remain vulnerable to domestic and external shocks.

PERFORMANCE

It is encouraging to report that even under the challenging circumstances, the operating performance of your Modaraba remained positive and growth oriented during the first quarter of the financial year ended on 30th September, 2023 and the key performance indicators registered impressive increase over the preceding comparable quarter.

Income of Rs.12.662 million was achieved from core business operations comprising of Ijarah, Murabahah and Diminishing Musharakah during the quarter under consideration registering an increase of 50% over the comparable period of the previous financial year. In line with the guidance of the Board of Directors to reduce the level of exposure in the stock market, selected scrips were disposed of at optimum value and the liquidity thus generated was deployed in fresh business transactions to good risk clients at attractive rates. The strategy paid dividends as is evident from increase in the income from main components of the business operations. Disposal of shares during the period resulted in reversal of provisions of held against the respective shares and contributed net gain of Rs.2.943 million after adjusting on sale of shares. In line with the prudent portfolio risk management policy of the Modaraba, provision of Rs.1.18 million was made against the classified accounts. Income of the Modaraba after accounting for provisions and unrealized gain/loss on equity portfolio stood at Rs.15.047 million as against Rs.10.736 million of the previous comparable quarter. Every effort was made by your management to minimize the expenditure and despite significant surge in the inflation across the board, operating expenses decreased by 4% to Rs.9.03 million (Rs.9.37 million July-Sept, 2022). After accounting for all the provisions and expenses, profit before management fee of Rs.6.013 million was achieved as compared to Rs.1.36 million of the previous comparable quarter. After tax profit stood at Rs.3.76 million translating into 3.3 times increase over the previous comparable quarter of Rs.1.08 million.

The quarter (July-Sept 2023) also witnessed surge in disbursements which stood at Rs.50.65 million as compared to Rs.43.66 million for the previous comparable quarter. As a result of major shift in selection of clients towards corporate sector and individuals having sound financial standing and repayment capacity, risk profile of your Modaraba has improved considerably thereby restricting accruals of any fresh NPLs to the portfolio.

Asset base of your Modaraba as at 30th September, 2023 stood at Rs.394.289 million with an equity of Rs.324.546 million after incorporating unrealized loss of Rs.5.725 million on share portfolio.

Your management is vigorously following up cases in litigation and hope to achieve final settlement of cases which are at an advance stage of the legal process.

EARNING PER CERTIFICATE

Earnings per certificate of your Modaraba works out to Rs.0.13 for the period ended 30th September, 2023.

Financial year 2023-24 has commenced on a positive note with regard to the performance of your Modaraba, every effort shall be made to achieve further progress and growth in business operations and profitability.

For and on behalf of Trust Modaraba

30th October, 2023.

DIRECTOR

CHIEF EXECUTIVE

TRUST MODARABA Quarterly Report September, 30, 2023

4

5	TRUST MODARABA Quarterly Report September, 30, 2023

CONDENSED INTERIM BALANCE SHEET (UN-AUDITED)

AS AT SEPTEMBER 30, 2023

(Un-audited)	(Audited)
September 31, 2023	June 30, 2023

ASSETS	Note	------------------Rupees-----------------
Current assets
Cash and bank balances	4	10,754,441		7,403,438
Investments	15,199,361		23,673,280
Advances, deposits, prepayments and other receivables	5	11,959,672		9,252,174
Murabaha finances - secured	6	32,538,031		33,138,031
Ijarah rental receivables - secured		3,675,838		2,797,830
Current portion of long term murabaha finances	7	47,172,909		54,965,658
Musharakah finances (secured - considered good)	8	17,908,426		16,399,135
Current portion of diminishing musharakah finances	9	21,665,728		15,004,620
Income tax refundable		1,142,558		1,840,370
Assets classified as held for sale		162,016,964		164,474,536
	8,625,000	8,625,000
Total current assets		170,641,964		173,099,536
Non-current assets
Murabaha finances		4,251,973		4,078,227
Diminishing musharakah financing	9	81,420,059		62,386,644
Deposits		602,962		602,962
Investments	10	4,477,364		6,271,900
Fixed assets given on lease / ijarah - tangible	11	114,157,131		123,427,562
Fixed assets in own use	12	16,096,939		16,346,263
Intangible asset	13	252,218		155,552
Deferred taxation - net		2,388,431		2,388,431
Total non-current assets		223,647,077		215,657,541
Total assets		394,289,041		388,757,077
EQUITY AND LIABILITIES
LIABILITIES
Current liabilities
Unclaimed profit distributions		12,830,810		12,831,607
Creditors, accrued and other liabilities	14	4,574,596		1,661,255
Current portion of deferred income on murabaha		1,435,836		2,400,180
Current portion of customers' security deposits		13,391,875		8,936,875
Current portion of lease liabilities against right of use assets		944,980		1,083,251
Total current liabilities		33,178,097		26,913,168
Non-current liabilities
Deferred income on murabaha		595,327		1,012,756
Customers' security deposits		34,668,638		39,380,638
Lease liabilities against right of use assets		1,300,123		1,445,518
Total non-current liabilities		36,564,088		41,838,912
Total liabilities		69,742,185	68,752,080
NET ASSETS		324,546,856		320,004,997
REPRESENTED BY
CAPITAL AND RESERVES		298,000,000	298,000,000
Certificate capital
Reserves		32,272,121	28,506,449
Total equity		330,272,121		326,506,449
Unrealized loss on revaluation of investments	15	(5,725,265)		(6,501,452)
		324,546,856	320,004,997
Contingencies and commitments	16

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

For Al-Zamin Modaraba Management (Private) Limited

(Modaraba Management Company)

CHIEF EXECUTIVE

DIRECTOR

DIRECTOR

CHIEF FINANCIAL OFFICER

TRUST MODARABA Quarterly Report September, 30, 2023

6

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2023

		September		September
		2023	2022
	Note	-------------Rupees-------------
Income from ijarah - net	17	3,527,987	4,289,845
Profit on murabaha finances		1,280,441	2,414,508
Profit on musharakah finances		7,853,264	1,787,402
Dividend income on equity investments		230,154	1,701,509
Gain / (Loss) on sale of short-term investments		(5,090,352)	(566,866)
Other income	18	391,616	304,566
		8,193,110		9,930,964
Provision for doubtful receivables		(1,180,395)	-
Unrealized Gain / (loss) on revaluation of held for-sale-trading investment	8,034,226	805,280
		15,046,941		10,736,244
Operating expenses	19	(9,033,604)	(9,371,650)
		6,013,337		1,364,594
Modaraba Management Company's fee		(601,334)	(136,459)
Workers' Welfare Fund		(108,240)	(24,563)
Profit before taxation
	5,303,763	1,203,572
Taxation		(1,538,091)	(118,604)
Profit for the period		3,765,672		1,084,968
Earnings per certificate - basic and diluted	20	0.13	0.04

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

For Al-Zamin Modaraba Management (Private) Limited

(Modaraba Management Company)

CHIEF EXECUTIVE	DIRECTOR	DIRECTOR	CHIEF FINANCIAL OFFICER
	7		TRUST MODARABA Quarterly Report September, 30, 2023

CONDENSED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME (UNAUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

	September	September
	2023	2022
Note	-------------------Rupees	----------------

Profit for the period

3,765,672

Other comprehensive income / (loss) :

- Net change in fair value of investments classified as	776,187
'fair value through other comprehensive income
Other comprehensive income / (loss) for the period
776,187
Total comprehensive income for the period
4,541,859

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

1,084,968

(275,748)

(275,748)

809,220

For Al-Zamin Modaraba Management (Private) Limited

(Modaraba Management Company)

CHIEF EXECUTIVE

DIRECTOR

DIRECTOR

CHIEF FINANCIAL OFFICER

TRUST MODARABA Quarterly Report September, 30, 2023

8

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

(Un-audited)

September 2023 September 2022

CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations

Cash generated from operations

Decrease / (Increase) in non-current assets:

• Long term murabaha finances
• Long term musharakah finances

(Decrease) / Increase in non-current liabilities:

• Deferred income on murabaha
• Customers security deposits

Purchase of ijarah assets

Long term deposits

Proceeds from disposal of ijarah assets

Income tax paid / deducted

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Note ------------------Rupees-----------------

21 13,190,202 23,486,228

7,619,003 10,787,147

(25,485,816) (12,874,956)

(1,381,773) (1,952,048)

220,000 4,229,200

(1,100,000) (20,712,000)

• 398,600
• 888,006
  (3,026,954) (203,275)

(9,965,338) 4,046,902

Purchase of owned assets

Purchase of intengible assets

Proceeds from disposal of owned assets

Disposal / (purchase) of investments - net

Dividends received

Net cash generated from / (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Payment made against lease liability

Loan (repaid) / obtained from a director

Profit distributed to certificate holders

Net cash (used in) / generated from financing activities Net (decrease) / increase 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

(302,732)

(120,000)

-

13,988,516

140,154

13,705,938

(388,800)

-

(797)

(389,597)

3,351,003

7,403,438

10,754,441

(1,162,172)

-

5,040

1,136,465

1,681,943

1,661,276

(100,257)

-

-

(100,257)

5,607,921

7,690,515

13,298,436

The annexed notes from 1 to 25 form an integral part of these financial statements.

For Al-Zamin Modaraba Management (Private) Limited

(Modaraba Management Company)

CHIEF EXECUTIVE

DIRECTOR

DIRECTOR

CHIEF FINANCIAL OFFICER

9	TRUST MODARABA Quarterly Report September, 30, 2023

TRUST MODARABA Quarterly Report September, 30, 2023

10

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

	Certificate		Capital reserves		Revenue reserves	Total		Total
Particulars
capital		Statutory reserve		Accumulated losses	reserves		equity
----------------------------------------------------------					(Rupees) ---------------------------------------------------------			---
Balance as at June 30, 2022	298,000,000	83,785,844	(55,206,290)		28,579,554	326,579,554
Profit for the period
-	-	1,084,967		1,084,967	1,084,967
Other comprehensive income for the year	-	-	-		-	-
Balance as at September 30, 2022
298,000,000		83,785,844		(54,121,323)		29,664,521		327,664,521
Balance as at July 01, 2023	298,000,000	83,785,844	(55,279,395)		28,506,449	326,506,449

Profit for the period

Other comprehensive loss for the period Total comprehensive loss for the period Balance as at September 30, 2023

-	-	3,765,672	3,765,672	3,765,672
-	-	-	-	-
-	-	3,765,672	3,765,672	3,765,672
298,000,000		83,785,844		(51,513,723)		32,272,121		330,272,121

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

For Al-Zamin Modaraba Management (Private) Limited

(Modaraba Management Company)

CHIEF EXECUTIVE

DIRECTOR

DIRECTOR

CHIEF FINANCIAL OFFICER