Half Yearly Report - First IBL ModarabaProfit on murabaha investment 2,013 2,013 1,007 1,007 Profit...
Transcript of Half Yearly Report - First IBL ModarabaProfit on murabaha investment 2,013 2,013 1,007 1,007 Profit...
BB
TRADING COMPANY
0322 333 3356
Suite # 105, 1st Floor, Fortune Center. 45-A,Block # 6, P.E.C.H.S., Shahrah-e-Faisal, Karachi.Tel: +92 21 3432 8610Fax: +92 21 3432 8611Web: www.firstibl.com
Half Yearly Report December 31, 2013
1
1-
2- Directors’ Report
3- Shari’ah Advisor’s Report
4-Review Report to the Certificate Holders
5- Balance Sheet
6- Profit & Loss Account
7- Statement of Other Comprehensive Income
8- Cash Flow Statement
9- Statement of Changes in Equity
10- Notes to the Accounts
Corporate Information 1
2
3
4-5
6
7
8
9
10
11-15
Table of Contents
Corporate Information
Naveed Amin Director
32
4 5
16.596
February 18, 2014
76
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2013
December 31, 2012 December 31, 2012
Income Rupees '000' Rupees '000' Rupees '000' Rupees '000'
Income from ijarah 2,183 2,021 1,063 1,081
Profit on murabaha investment 2,013
2,013
1,007
1,007
Profit on musharakah investments 196
2
128
-
Income from investment property 3,748
-
1,874
-
Profit on deposits 466
-
119
-
Dividend income 9
4
9
4
Gain on disposal of fixed assets under ijarah 299
-
299
-
Other income 3,225
1,055
3,197
624
12,139
5,095
7,696
2,716
EXPENDITURES
Operating expenses (10,424)
(5,601)
(6,163)
(2,746)
Depreciation on assets under ijarah (2,065)
(2,296)
(656)
(900)
Unrealized (loss) / gain on re-measurement of investments
at fair value through profit or loss (31)
169
13
172
Finance cost (1)
(5)
(1)
(4)
Provision against non-performing Musharaka receivables (790)
-
(790)
-
Other operating expenses (125)
-
(125)
-
(13,436)
(7,733)
(7,722)
(3,478)
Loss before Modaraba Company's management fee (1,297)
(2,638)
(26)
(762)
Modaraba Company's management fee -
-
-
-
Loss before Tax (1,297)
(2,638)
(26)
(762)
Taxation -
-
-
-
Net Loss for the Period (1,297)
(2,638)
(26)
(762)
Loss per Modaraba Certificate - Basic and Diluted (0.064)
(0.131)
(0.001)
(0.038)
The annexed notes form an integral part of these condensed interim financial information (un-audited).
December 31, 2013 December 31, 2013
(Un-audited)
Half Year Ended Quarter Ended
CHIEF EXECUTIVE DIRECTOR DIRECTOR
CHIEF EXECUTIVE DIRECTOR DIRECTOR
(Un-audited) (Audited)
December 31, June 30,
2013 2013
Note Rupees '000' Rupees '000'
ASSETS
Current Assets
Cash and bank balances 5,704
3,520
Ijarah rentals receivable 5 299
317
Advances, prepayments and other receivables 35,907
36,939
Short term investment 6 14,288
22,005
Musharakah receivables 11,271
19,375
Current portion of murabaha investment 23,000
23,000
90,469
105,156
Non-Current Assets
Long term deposits 3,205
3,205
Investment properties 7 94,562
97,083
Fixed assets under ijarah arrangements 8 20,657
11,681
Fixed assets in own use 9 1,999
2,436
Intangible assets 258
423
120,681
114,828
Total Assets 211,150
219,984
LIABILITIES
Current Liabilities
Creditors, accrued and other liabilities 8,438
13,508
Musharakah finances 12,142
12,142
Current portion of security deposits 7,886
7,869
Provision of taxation 3,191
3,191
Unpresented profit warrants 9,863
7,654
41,520
44,364
Non-Current Liabilities
Long term security deposits 3,698
1,941
Total Liabilities 45,218
46,305
NET ASSETS 165,932
173,679
REPRESENTED BY:
Capital and Reserves
Issued, subscribed and paid up certificate capital 10 201,875
201,875
Reserves 43,912 43,599
Accumulated loss (79,855) (71,795)
Contingencies and commitments 11 - -
165,932 173,679
The annexed notes form an integral part of these condensed interim financial information (un-audited).
- -
CONDENSED INTERIM BALANCE SHEET (UN-AUDITED)
AS AT DECEMBER 31, 2013
8 9
Half Year Ended Half Year Ended
December 31, 2013 December 31, 2012
(Un-audited) (Un-audited)
Rupees '000' Rupees '000'
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax (1,297)
(2,638)
Adjustments for:- Depreciation on fixed assets under own use 460
272
- Depreciation on investment properties 2,521
-
- Depreciation on fixed assets under ijarah arrangements 2,065
2,296
- Amortization on intangible assets 165
165
- Provision in respect of profit on Musharaka facilities 790
-
- Revaluation loss / (gain) on investment at fair value through profit or loss 31
(169)
- Gain on disposal of fixed assets under own use -
(431)
- Balances written back - net (1,835)
-
- Gain on termination of ijarah arrangements (299)
-
- Finance cost 1
5
- Profit on bank deposits (466)
-
- Dividend income (9)
(4)
3,424
2,134
Operating profit / (loss) before working capital changes2,127
(504)
(Increase) / Decrease in operating assets
Advances, prepayments and other receivables 328
3,064
Ijarah rentals receivable 18
36
Short term musharakah investment 7,314
18,442
Long term security deposits - ijarah 1,774
(310)
Creditors, accrued and other liabilities (2,525)
(1,071)
Net changes in working capital 6,909 20,161
Cash generated from operations 9,036 19,657
Finance cost paid (1)
(5) Income taxes paid (7)
(1)
Dividend income received 9
4
Profit received on bank deposits 466
-
Net Cash from Operating Activities 9,503
19,655
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets under ijarah arrangements (11,979)
-
Purchase of fixed assets under own use (23)
-
Proceeds from disposal of ijarah assets 1,237
476
Proceeds from sale of short term investments 8,000
-
Long term loans and deposits -
200
Net Cash (used in) / generated from Investing Activities (2,765)
676
CASH FLOW FROM FINANCING ACTIVITIES
Musharaka finances -
(2,500)
Short term finance -
(8)
Dividends paid (4,554)
(36)
Net Cash used in Financing Activities (4,554)
(2,544)
Net Increase in Cash and Cash Equivalents 2,184
17,787
Cash and cash equivalents at the beginning of the period 3,520
46
Cash and Cash Equivalents at the end of the Period 5,704 17,833
The annexed notes form an integral part of these condensed interim financial information (un-audited).
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2013
CHIEF EXECUTIVE DIRECTOR DIRECTOR
December 31, 2012 December 31, 2012
Rupees '000' Rupees '000' Rupees '000' Rupees '000'
Net Loss for the Period (1,297)
(2,638)
(26)
(762)
Other comprehensive income
Items that may be reclassified subsequently to profit and loss
Net unrealized gain / (loss) in value of available for sale investments 313
288
835
(315)
Total Comprehensive (Loss) / Income for the Period (984)
(2,350)
809
(1,077)
The annexed notes form an integral part of these condensed interim financial information (un-audited).
(Un-audited)
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2013
Half Year Ended Quarter Ended
December 31, 2013 December 31, 2013
CHIEF EXECUTIVE DIRECTOR DIRECTOR
10 11
Note 1
General Information
Note 2
Basis of Preparation
2.1
2.2
2.3
2.4
2.5
Note 3
Accounting Policies
Note 4
Taxation
NOTES TO THE CONDENSED INTERIM
FINANCIAL INFORMATION (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2013
This condensed interim financial information has been prepared in accordance with the directives issued by
the Securities & Exchange Commission of Pakistan (SECP) and is in compliance with the International
Accounting Standard - 34 (Interim Financial Reporting) and being submitted to certificate holders as required
by Section 245 of the Companies Ordinance, 1984.
First IBL Modaraba ("the Modaraba") is a multi purpose, perpetual and multi dimensional Modaraba formed under
the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and Rules framed thereunder,
having its registered office at Suite # 105, 1st Floor, Fortune center, 45-A, Block-6, PECHS, Shahrah-e-Faisal,
Karachi. The Modaraba is managed by IBL Modaraba Management (Private) Limited (Modaraba Management
Company) incorporated in Pakistan under the Companies Ordinance, 1984 and registered with the Registrar of
Modaraba Companies. The Modaraba is listed on Karachi, Lahore and Islamabad stock exchanges. The Modaraba
commenced its operations on October 19, 1989 and is currently engaged in various Islamic modes of financing and
operations including Ijarah, Musharaka and Murabaha arrangements.
This financial information should be read in conjunction with annual audited financial statements for the year
ended June 30, 2013. Comparative balance sheet is extracted from annual audited financial statements for
the year ended June 30, 2013; whereas, comparative profit and loss account, statement of changes in equity
and cash flows statement are stated from unaudited interim financial information for the half year ended on
December 31, 2012.
This financial information has been prepared under the historical cost convention, except for short term
investments that are measured at fair value in accordance with the requirements of International Accounting
Standard - 39 (Financial Instruments: Recognition and Measurement).
This condensed interim financial information is unaudited. However, a limited scope review of this interim
financial information has been performed by the external auditors of the Modaraba in accordance with the
requirements of the Code of Corporate Governance and they have issued their review report thereon.
This condensed interim financial information is presented in Pak Rupees, which is the Modaraba's functional
and presentational currency. All the figures have been rounded off to the nearest Pak Rupees in thousand
unless stated otherwise.
The accounting policies adopted for the preparation of this condensed interim financial information are consistent
with those applied in the preparation of published financial statements of Modaraba for the year ended June 30,
2013.
Under the current tax law, the income of non-trading modarabas is exempt from tax provided that they distribute
ninety (90) percent of their profits as cash dividend to the certificate holders out of current period's total profit after
appropriating statutory reserves. Where such profits are not distributed, provision for tax is made on taxable
income at the current tax rates applicable to Modaraba after taking into account the available tax exemptions and
tax credits, if any. Owing to loss for the period, no provision for tax has been made in condensed interim financial
information of the tax liability for six months ended December 31, 2013.
Balance as at June 30, 2012 201,875 34,314 5,679 39,993 (79,226) 162,642
Total comprehensive income for the six months
period ended December 31, 2012 - - 288 288 (2,638) (2,350)
Balance as at December 31, 2012 201,875 34,314 5,967 40,281 (81,864) 160,292
Balance as at June 30, 2013 201,875 36,171 7,428 43,599 (71,795) 173,679
Total comprehensive income for the six months
period ended December 31, 2013 - - 313 313 (1,297) (984)
Profit distributed for the year ended
June 30, 2013 - - - - (6,763) (6,763)
Balance as at December 31, 2013 201,875 36,171 7,741 43,912 (79,855) 165,932
The annexed notes form an integral part of these condensed interim financial information (un-audited).
Statutory
reserve
Rupees '000'
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2013
Particulars
Certificate
Capital
Unrealized gain
on revaluation of
available for sale
investments
Sub-total
Reserves
Accumulated
LossTotal Equity
CHIEF EXECUTIVE DIRECTOR DIRECTOR
12
13
Note 7 (Un-audited) (Audited)Investment Properties December 31, June 30,
2013 2013
Note Rupees '000' Rupees '000'
Cost
Balance as at July 01, 2013 100,000 - Additions - 100,000 Balance as at December 31, 2013 100,000 100,000
Depreciation
Balance as at July 01, 2013 (2,917) - Charged during the period / year 7.1 (2,521) (2,917)Balance as at December 31, 2013 (5,438) (2,917)
94,562 97,083
7.1 The Modaraba depreciates investment properties on straight line basis @ 5% per annum.
7.2
Note 8
Fixed Assets Under Ijarah Arrangements
Written down value at the beginning of the period / year 11,681
9,461
Additions at cost 11,979 7,680
Less: Written down value of assets disposed off (938) (1,489) 22,722 15,652
Less: Depreciation charged during the period / year (2,065) (3,971) 20,657
11,681
Note 9
Fixed Assets in Own Use
Written down value at the beginning of the period / year 2,436
1,146
Additions at cost 23
1,954
2,459
3,100
Less: Depreciation charged during the period / year (460)
(664)
1,999
2,436
Note 10
Certificate Capital
Authorized:
50,000,000 Modaraba Certificates of Rs. 10 each 500,000 500,000
Issued, subscribed and paid-up:
18,500,000 18,500,000 Modaraba Certificates of Rs. 10 each
issued as fully paid in cash 185,000 185,000
1,687,500 1,687,500 Modaraba Certificates of Rs. 10 each
The fair value of the investment property as at June 30, 2013 as per valuation report of independent valuer
M/s Maricon Consultants (Private) Limited is Rs 109.5 million with forced sale value of Rs. 98.0 million.
50,000,000
issued as fully paid bonus 16,875 16,875
20,187,500 20,187,500 201,875 201,875
Note 5 (Un-audited) (Audited)Ijarah Rentals Receivable December 31, June 30,
2013 2013
Note Rupees '000' Rupees '000'
Considered good 299
317
Considered doubtful
5.1
5.2 7,164
6,696
7,463
7,013
Accumulated Impairment (7,164)
(6,696)
299
317
5.1
5.2
As at the beginning of the period / year 6,696
5,351
Recognized during the period / year 521
2,277
Reversed during the period / year (53)
(932)
As at end of the period / year 7,164
6,696
Note 6
Short Term Investments
Available for sale 6.1 4,056
3,742
At fair value through profit or loss 6.2 232 263
Investments in Term Deposit Receipts- Held to Maturity 6.3 10,000 18,000 14,288 22,005
6.1 Available for sale
(Un-audited) (Audited)
December 31, June 30, Name of entity
2013 2013
No. of shares/ Certificates
Holdings are in ordinary certificates / shares of Rupees 10 each.
5,244
3,600
The Searle Company Limited 648
284
392,500
392,500
Lafarge Pakistan Cement Limited 3,281
3,332
5,700
5,700
Arif Habib Corporation Limited 127
126
403,444
401,800
4,056
3,742
6.2 At fair value through profit or loss
(Un-audited) (Audited)
December 31, June 30, Name of entity
2013 2012
No. of shares/ Certificates
Holdings are in ordinary certificates / shares of Rupees 10 each.
2,241
2,241
Invest Capital Investment Bank Limited 3
3
200 200 Attock Refinery Limited 42 35100,000 100,000 First Punjab Modaraba 187 225102,441 102,441 232 263
6.3
These represent rentals receivable against assets leased out under Ijarah arrangements.
Movement in accumulated impairment is as follows:
This represents investment in term deposit receipts of Habib Bank Limited and carries profit @ 8%
effectively.
14 15
Outstanding Balance at the year end
Receivable from / (payable to) Modaraba management company -
11,550
Receivable from University of Management and Technology 16,653
33,403
Receivable from Institute of Leadership & Management 8,390 14,464
Investment in Subsidiary - 57,306
Receivable from Khoja's Capital Management (Private) Limited 4,276 4,776
Transactions with related parties are carried out at arm's length in the normal course of business. The method used
for computation of consideration is comparable uncontrolled price method except for the Modaraba Company's
management fee as mentioned above.
Note 13
Date of Authorization for Issue
Note 14
General
This condensed interim financial information (un-audited) has been approved by the Board of Directors of IBL
Modaraba Management (Private) Limited and authorized for issue on February 18, 2014
No significant re-arrangements have been made in comparative condensed interim financial information (un-
audited).
CHIEF EXECUTIVE DIRECTOR DIRECTOR
10.1
10.2
10.3
IBL Modaraba Management (Private) Limited (the Management Company) hold 2,030,905 (June 30, 2013:
2,030,905) certificates of Rs 10 each.
University of Management and Technology (associated undertaking) hold 3,070,900 (June 30, 2013:
3,070,900) certificates of Rs 10 each.
One of the Director of the Management Company hold 1,515,820 (June 30, 2013: 1,515,820) certificates of
Rs 10 each.
Note 11
Contingencies and Commitments
There were no known contingencies as at December 31, 2013 (June 30, 2013: Rs. 47,957,651)
Note 12
Balances and Transactions with Related Parties
12.1
12.2
12.3 Details of transactions with related parties and balances with them at the period end are as follows:
(Un-audited) (Un-audited)
December 31, December 31,
Transaction during the period 2013 2012
Rupees '000' Rupees '000'
Related party Nature of Transaction
Expenses paid on behalf of the Management CompanyRecovery from Management Company
Management fee paid during the period
Reimbursement of expenses paid by theManagement Company
Recovery against Musharaka
Musharaka mark up received
Rent of Library Building received
Recovery against Musharaka
Musharaka mark up received / adjusted
Ijarah rental received
Recovery against receivable
-
-
1,032
789
4,750
-
3,748
5,000
-
-
500
57
1,900
-
-
15,750
250
-
2,658
342
813
-
In accordance with Section 18 of the Modaraba Companies and Modaraba (Floatation and Control)
Ordinance, 1980, management fee @ 10% of annual profits is paid to the Modaraba Management Company.
Owing to the loss during the period, the Modaraba Management Company's fee is not provided for during the
period.
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, the Provident Fund and entities with
common directors or under common management.
IBL Modaraba
Management
(Private) Limited
University of
Management and
Technology
Relationship
Common
Management
Common
Management
Management
Company
Holds 15.2%
of the paid up
certificates of
Institute of
Leadership &
Management
Khoja's Capital
Management
(Private) Limited
Commitments-The Modaraba has not made any capital commitments as at December 31, 2013 (June 30, 2013 : Nil)