Transmission of Annual Report for the Year Ended 30 06 2024

C O N T E N T S

VISION STATEMENT

To develop into a leading small venture Islamic Financial Institution that will actively participate in the management of projects in addition to the conventional mode of Modaraba activities.

MISSION STATEMENT

Engage in activities that will maximize return on investment through Shariah mode of financing for Certificate holders of the Modaraba.

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CHAIRMAN'S REVIEW REPORT

Dear Modaraba Certificate Holders,

As required under the code of corporate Governance, an annual evaluation of the Board of Directors of Crescent Modaraba Management Company Limited Manager of First Elite Capital Modaraba has been carried out. The objective of this evaluation is to measure the Board's overall performance and effectiveness.

For the Financial year ended June 30, 2024, the Board's overall performance and effectiveness have been assessed as satisfactory. Improvements are an ongoing process leading to an action plan.

The Board of Directors received agendas and supporting papers in a timely manner for its meeting and decisions. All directors fully participated in and made contributions to the decision making process of the Board. The Board has in place policies for all relevant areas of the company's operations.

I would like to thank all the Board members for the cooperation and support.

On behalf of the Board, I take this opportunity to thank Registrar of Modaraba, Securities and Exchange Commission of Pakistan and other relevant regulatory bodies for their continued guidance and support.

Muneeb Ahmed Dar

Chairman

September 27, 2024

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DIRECTORS' REPORT TO THE CERTIFICATE HOLDERS

Valued Certificate Holders

The Board of Directors of Crescent Modaraba Management Company Limited, manager of First Elite Capital Modaraba presents the 33rd annual audited accounts of the Modaraba for the year ended June 30, 2024.

Financial Results

Financial results for the year ended June 30, 2024 are summarized as below:

Keeping in view the accumulated losses, the Board of Directors of Management Company of the Modaraba did not recommend any dividend this year.

Review of Operations

During the period under review, the Modaraba has posted after tax profit of Rs.23,641,709/= as compared to loss of Rs.7,061,026/= in the corresponding period of preceding year. Earnings per certificate remained at Rs.2.08 as compared to loss of Re.0.62 per certificate in the last year. The profit during the year is mainly due to fair value gain on investment properties. Despite the tough business conditions, your Modaraba generated a gross revenue of Rs.69,320,517/= which was mainly derived from fair value gain on Investment Properties, Ijraha/Lease and profit on Investment in Mutual Funds.

The portfolio of Ijarah remained at Rs.98,004,925/= as on June 30, 2024. The Certificate holders equity of Modaraba stand at Rs.122,030,330/= and the breakup value of certificate comes to Rs.10.76 per certificate.

Economy

During the financial year 2023-2024, the economy of the country remained depressed due to substantial Federal Budget deficits, rising prices of essential commodities, political instability after the General Elections and monetary tightening policy. These factors collectively slowed the country's economic growth.

Although, the Government is trying to stabilize the Pakistan's economy by taking decisions including restricting non-essential imports, reducing the interest rates, and to control the inflation but it is still under pressure.

Future outlook

The Management of the Modaraba is optimistic about the future business prospects and intends to concentrate on small ticket Ijrah financing besides exploring new avenues of profitable business to improve the performance of the Modaraba with the hope that the Government would formulate long term and consistent policies to gain the confidence of business community and to boost the economic activities.

Corporate and Financial Reporting Framework

•The Financial statements, prepared by the management of the Modaraba, present fairly its true state of affairs, the result of its operations, cash flows and changes in equity.

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•Proper books of accounts of the Modaraba have been maintained.

•Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment.

•International financial reporting standards, as applicable to Modaraba in Pakistan, have been followed in preparation of financial statements and any departures therefrom has been adequately disclosed and explained.

•The system of internal control is sound in design and has been effectively implemented and monitored.

•There are no significant doubts upon the Modaraba's ability to continue as a going concern.

•The Directors, CEO, CFO, Company Secretary and their spouses and minor children do not hold any interest in the certificates of Modaraba, other than that disclosed in the pattern of certificate holding.

•During the year under review five meetings of the Board of Directors were held. Attendance by each Director is as follows:-

*Dr. Sardar Ahmad Khan, Director died on October 30, 2023.

**Miss Jehanara Javed Amin, Director elected on November 13, 2023 and resigned on May 31, 2024.

***Sheikh Muhammad Ali Asif co-opted as Independent Director on May 31, 2024 against casual vacancy created due to resignation of Miss Jehanara Javed Amin.

•During the year under review four meetings of the Audit Committee were held. Attendance by each member is as follows:-

•Mr. Muhammad Javed Amin co-opted as member of Audit Committee in place of Mrs. Shahana Javed Amin on November 27, 2023 and Sheikh Muhammad Ali Asif co-opted as member/chairman of Audit Committee in place of Mr. Muhammad Javed Amin and Mr. Ghazanfar Farrokh respectively on June 28, 2024.

•During the year under review one meeting of the Human Resource and Remuneration Committee was held. Mr. Muneeb Ahmed Dar, Chairman Mr. Ghazanfar Farrokh, Member and Mr. Aamir Iftikhar Khan, Member attended the meeting.

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Pattern of Certificate Holding

A statement reflecting the pattern of holding of the certificates as on June 30, 2024 is annexed to this Report.

Key Operating & Financial Data

A statement summarizing key operating and financial data for the last six years is attached to the Annual Report.

The Board of Directors

The total number of directors are 7 as per the following

Through the Articles of the company, the Board of Directors is authorized to fix remuneration of Non-Executive and independent Directors from time to time. In this regard the board of Directors has developed a Remuneration Policy for Non-Executive and independent Directors of the Company.

Auditors

The board has approved the appointment of M/s Ilyas Saeed & Co. Chartered Accountants for the year 2024-2025 subject to the approval of the Registrar of Modaraba Companies & Modarabas.

Acknowledgement

The Board thanks the regulatory authorities for their continuous guidance and co-operation and places on record its appreciation of the services rendered by the staff members for their hard work, dedication and commitment in discharge of their responsibilities in a difficult situation.

On behalf of the Board

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