First Habib ModarabaPSX: FHAM

Transmission of Annual Report for the Year Ended 2022-06-30

· Issued by First Habib Modaraba

A Successive Partnership

Based on True Sharing and Equality

Our long term success is built on a firm foundation of commitment, good

governance, performance and prudent risk management. Effective corporate governance is an

important foundation for success of our Modaraba.

At FHM we believe that to be successful in the long term we must continually reassess our competencies, business strategies and risk management approaches in order to cope up with day to day business challenges.

The Relationships that exceed beyond normal business this is how we have acquired the standing we possess today as most progressive and leading Modaraba within the Modaraba sector of Pakistan.

Our achievements are evidence to the solid business fundamentals and consistent financial management policies practiced across the Modaraba. Our focused business strategy keeps us firmly on path of sustainable growth and profitability.

Islamic finance is a financial system operates in accordance with Islamic principle of finance. This system encourages economic activities and proper distribution of wealth which ultimately lead to promote social justice which is the key theory of Islamic economic financial system.

Consistency in distribution of dividends among the certificate holders along with increase in certificate holders' equity has made FHM a sound and well performing Modaraba within the sector. By the grace of Allah (SWT), FHM has been maintaining its history of continuous payment of profits to its Certificate Holders and never skipped the same in any single year.

Modaraba concept is based on Shirkat. It is a kind of partnership wherein one party provides financing to other for the purpose of carrying business and sharing profits earned through mixture of investment and expertise which is truly based on sharing and equality.

First Habib Modaraba

A n I s l a m i c F i n a n c i a l I n s t i t u t i o n

  • Credit Rating
  • Corporate Information
  • About First Habib Modaraba
    12 Awards & Recognition
    14 Fhm Awards Calendar
    16 Financial Highlights for the Year 2021-22

Contents

  1. The Initiatives Taken by the Company in Promoting and Enabling Innovation
  2. Modaraba's Level of Risk Tolerance by Establishing Risk Management Policies.
  1. Robust Assessment of the Principal Risks Facing by the Modaraba
  2. Strategy to Overcome Liquidity Problem

Organizational Overview

  1. Product Detail
  1. Core Values
  2. Geographical Presence
  3. Vision and Mission
  1. Code of Business Conduct and Ethics
  2. Strategic Corporate Objectives
  1. Corporate Culture
  2. Group Structure
  3. Organizational Structure
  4. Key Elements of Business Model
  1. Significant Factors Affecting External Environment and the Management's Response
  2. The Legitimate Needs, Interests of Key Stakeholders and Industry Trends
  3. Swot Analysis
  4. Competitive Landscape and Market Positioning
  5. Legislative and Regulatory Environment in Which the Organization Operates
  6. The Political Environment where the Organization Operates
  7. Major Event During the Year

Strategy and Resource Allocation

  1. Strategy & Resource Allocation
  1. Strategies in Place
  2. Resource Allocation Plan
  3. Key Resources and Capabilities of the Company
  4. Value Created by the Business, Using These Resources and Capabilities
  1. Strategy to Maintain and Monitor the Culture of Organization
  2. Key Performance Indicators
  1. Significant Plan and Rationale of major capital expenditure
  2. Management Objectives, Strategies and Significant Changes

Risks & Opportunities

  1. Key Risk and Opportunity Report
  1. Risk Management Framework

Sustainability & Corporate Social

Responsibility

58 Statement on Sustainability and Corporate Social Responsibility (CSR)

  1. Compliance of the Corporate Social Responsibility (voluntary) Guidelines, 2013
  2. Certifications Acquired and International Standards Adopted for Best Sustainability and CSR Practices

Governance

  1. Chairman's Message
  1. Directors' Report
  2. Economic Review
  3. Business Review of FHM
  4. Business Outlook & Future Strategy
  1. Directors' Report (Urdu)
  2. Independent Director
  3. Performance Evaluation
  1. Directors' Profile
  2. How the Board Operates
  1. Decisions Taken by the Management
  1. Board's Performance Evaluation by External Consultant
  1. External Oversight of Various Functions
  1. Related Parties Policy
  2. Internal Control
  3. Human Resource Management
  4. Social and Environmental Responsibility
  5. Whistle Blowing Policy
  6. Policy for Safety Records of the Company
  7. Investors' Grievance Policy
  8. Business Continuity Plan (BCP)
  1. Disaster Recovery Plan (DRP)
  2. Disclosure of Beneficial Ownership
  3. Statement of Compliance
  1. Review Report to the Certificate Holders
  2. Role of Chairman and Chief Executive Officer
  3. Categories of Certificate Holders
  4. Pattern of Certificate Holding
  5. Notice of Annual Review Meeting
  6. Certificate Holders Information
  • ANNUAL REPORT 2022

HabibMetro

Modaraba Management

  1. TOR Audit Committee
  1. TOR HR Committee
  2. Report of the Audit Committee
  3. Actual and Perceived Conflicts of Interest
  4. Proceedings of Annual Review Meeting
  5. Enterprise Resource Planning (ERP)
  6. Use of External Search Consultancy
  1. Governance Practices Beyond Statutory Obligations
  2. Analysis of the Financial and Non-financial Performance

Performance & Position

  1. Key Financial Data for Six Years
  1. Horizontal Analysis
  2. Vertical Analysis
  3. Free Cash Flows to Equity
  1. Summary of Cash Flows
  2. Graphical Presentation of Financial Summary
  3. Balance Sheet Composition
  4. Explaination of Negative Change From Prior Year
  5. Graphical Presentation
  1. Significant Change in Accounting Policies Judgements, Estimates & Assumptions
  2. Statement of Cash Flows - Direct Method
  3. Segment-wiseReview
  4. Share Price Sensitivity Analysis
  5. Analysis of Variation in Quarterly Results

126 Dividend and Overdue Payments

  1. CEO Presentation Video on the FHM's Website
  2. Dupont Analysis

It Governance & Cybersecurity

  1. It Governance Policy
  2. It Governance & Cybersecurity

Outlook

134 Forward Looking Statement

  1. Sources of Information and Assumptions
  2. FHM's Response to the Critical Challenges and Uncertainties

Stakeholders Relationship &

Engagement

  1. Stakeholders' Engagement
  2. Steps to Encourage Minority Certificate Holders to Attend the ARM
  1. Investors' Relations Section on Corporate Website
  1. Corporate Briefing Session

141 Redressal of Investor Complaints

  1. Business Strategy and Its Implementation Status
  2. Statement of Value Added

144 Business Model

Striving for Excellence in Corporate Reporting

  1. BCR Criteria Cross Reference
  1. Disclosures Beyond BCR Criteria

155 Specific Disclosures of the Financial Statements

  1. Specific Disclosures for Shariah Compliant Companies
  2. Shariah Advisor's Profile
  3. Shariah Advisor's Review Report

Financial Statements

  1. Auditors' Report to the Certificate Holders
  2. Balance Sheet
  3. Profit & Loss Account
  4. Statement of Comprehensive Income
  5. Cash Flow Statement
  6. Statement of Changes in Equity
  7. Notes to the Financial Statements

212 Glossary

ANNUAL REPORT 2022 5

This is an excerpt of the original content. To continue reading it, access the original document here.