QUARTERLY

REPORT 2023FOR THE PERIOD ENDED MARCH 31

CONTENTS

Company Profile

02

Directors' Report

03

Directors' Report (Urdu)

04

UNCONSOLIDATED CONDENSED

INTERIM FINANCIAL STATEMENTS

Interim Balance Sheet

06

Interim Statement of Profit or Loss

07

Interim Statement of Comprehensive Income

08

Interim Statement of Changes in Equity

09

Interim Statement of Cash Flows

10

Selected Notes to the Interim Financial Infomation

11

CONSOLIDATED CONDENSED

INTERIM FINANCIAL STATEMENTS

Condensed Interim Balance Sheet

24

Condensed Interim Statement of Profit or Loss

25

Condensed Interim Statement of Comprehensive Income

26

Condensed Interim Statement of Changes in Equity

27

Condensed Interim Statement of Cash Flows

28

Selected Notes to the Condensed Interim Financial Information

29

FIRST QUARTERLY REPORT

01

CORPORATE PROFILE

Board of Directors

Board Risk Management Committee

Punjab Modaraba Services (Pvt.) Ltd.

Ijaz ur Rehman Qureshi

Chairman

Nadeem Amir

Chairman

Umer Iqbal Sheikh

Member

Aamir Malik

Chief Executive

Aamir Malik

Member

Ijaz ur Rehman Qureshi

Director

Umer Iqbal Sheikh

Director

Auditors of the Management Company

Imran Bashir

Director

Samina Afsar

Director

Shinewing Hameed Chaudhry & Co.

Khawar Shahid Ansari

Director

Chartered Accountants

Chief Financial Officer / Company Secretary

Bankers

Mudassar Kaiser Pal

Audit Committee

The Bank of Punjab

NRSP Microfinance Bank Limited

Registrar

Imran Bashir

Chairman

Ijaz ur Rehman Qureshi

Member

Hameed Majeed Associates (Pvt.) Ltd.

Samina Afsar

Member

H.M House, 7-Bank Square,

The Mall, Lahore

Human Resource Committee

Tel : (+92-42)37235081-2

Samina Afsar

Chairperson

Registered Office & Mills

Ijaz ur Rehman Qureshi

Member

Umer Iqbal Sheikh

Member

Office 100, 3rd Floor, National Tower,

Aamir Malik

Member

Egerton Road, Lahore.

Postal Code No. 54600

Auditors of the Modaraba

PABX : (+92-42) 36365191

FAX : (+92-42) 36365193

A.F. Ferguson & Co. Chartered Accountants

E-mail : info@punjabmodaraba.com.pk

URL : www.punjabmodraba.com.pk

02

FOR PUNJAB MODARABA SERVICES (PRIVATE) LIMITED (MODARABA MANAGEMENT COMPANY)

DIRECTORS' REPORT

We, the Board of Directors of Punjab Modaraba Services (Pvt.) Limited, serving as the Management Company of First Punjab Modaraba (the Modaraba), are pleased to present the comprehensive quarterly results of the Modaraba, along with our Directors' report, for the period ended on March 31, 2023.

The economic landscape of Pakistan has experienced cycles of growth and challenges. The Current Account posted a deficit of $ 3.9 billion for Jul-Feb FY2023 as against a deficit of $ 12.1 billion last year, mainly due to contraction in imports. The average CPI in the first eight months of the current fiscal year remained 26.2 percent compared to 10.5 percent during the same period of last year. The fiscal deficit during first seven month of current fiscal year has been contained to 2.3 percent of GDP (Rs.1974 billion) against 2.8 percent of GDP (Rs 1898 billion) last year. While the Policy rate increased by 300 basis points to 20 percent in last Monetary Policy decision held on 02nd March, 2023.

Factors such as political instability, high international fuel and commodity prices, global effects of Ukraine and Russia war and a substantial trade deficit put significant pressure on foreign exchange reserves, leading to a notable depreciation of the PKR against the USD and contributing to high inflation. Due to the lagged of floods, the production losses especially of major agriculture crops has not yet been fully recovered. Looking ahead, Pakistan's economy confronts several severe challenges. Inflation remains high, and the outlook for future growth in potential output is challenging. The fiscal deficit has reached a level where financing is becoming increasingly difficult. Additionally, the high trade deficit has resulted in external imbalances, exerting extra pressure on foreign reserves and the exchange rate. Economic growth is projected to slow down in the upcoming year, and market confidence is constrained by high uncertainties.

During the reporting period, the Modaraba achieved a revenue increase of 35% compared to the corresponding period. However, expenses also rose by 54%. Among these expenses, financial cost saw 83% surge due to the upward trend in inter-bank rates. The reversal of provision amid recoveries of non-performing assets help record net profit of Rs.1.10 million.

In the pursuit of business expansion, the Modaraba will focus on acquiring fresh assets, while placing equal priority on efforts to recover from non-performing assets as part of our business strategy. It is important to note that the recent significant increase in policy rate poses a constant threat to profitability in the coming periods. The Management is actively working on diversifying the business model and revenue streams, with expected results to materialize over time. Our wholly-owned subsidiary, Punjab Capital Securities (Pvt) Limited, which subsequent to period end, has been sold to parent bank i.e. The Bank of Punjab, incurred loss of 0.431 million during the reporting period.

The Board expresses its gratitude for the ongoing guidance and support provided by the Registrar Modaraba and the Securities & Exchange Commission of Pakistan, and we hope for their continued support in the future. We also extend our appreciation to the valued certificate holders for their generous support.

On behalf of the Board of Directors

(Aamir Malik)

(Imran Bashir)

Chief Executive Officer

Director

Lahore

July 30, 2023

FIRST QUARTERLY REPORT

03

04

FOR PUNJAB MODARABA SERVICES (PRIVATE) LIMITED (MODARABA MANAGEMENT COMPANY)

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First Punjab Modaraba published this content on 04 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2023 04:18:09 UTC.