Half Yearly Report
December 31, 2024
Inside this Report
Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Directors' Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Independent Auditor's Review Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Condensed interim Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Condensed Interim Statement of Profit & Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Condensed Interim Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . 9
Condensed Interim Statement of Changes In Equity . . . . . . . . . . . . . . . . . . . . . . . . . 10
Condensed Interim Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Notes To The Condensed Interim Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . 12
Corporate Information
MODARABA MANAGEMENT COMPANY
Habib Metropolitan Modaraba Management Company (Private) Limited
BOARD OF DIRECTORS | AUDIT COMMITTEE | ||
Mohammad Shams Izhar | - Chairman | Mr. Saeed Uddin Khan | - Chairman |
Non-Executive Director | Syed Rasheed Akhtar | - Member | |
Mr. Muhammad Shoaib Ibrahim | - Chief Executive Officer | Mr. Mohammad Shams Izhar | - Member |
Mr. Muhammad Babar | - Secretary | ||
Syed Rasheed Akhtar | - Non-Executive | ||
Independent Director | HUMAN RESOURCE COMMITTEE | ||
Mr. Saeed Uddin Khan | - Non-Executive | ||
Mr. Saeed Uddin Khan | - Chairman | ||
Independent Director | |||
Syed Rasheed Akhtar | - Member | ||
Mr. Usman Nurul Abedin | - Non-Executive Director | ||
Mr. Mohammad Shams Izhar | - Member | ||
Dr. Irum Saba | - Non-Executive Director | Mr. Danish Zahid | - Secretary |
LEGAL ADVISOR
Mohsin Tayebaly & Company
Ahmed & Qazi Advocates & Legal Consultants
SHARES REGISTRAR
CDC Share Registrar Services Limited
Share Registrar Department
CDC House, 99-B, Block "B",
S.M.C.H.S
Main Shahrah-e-Faisal,
Karachi,
Pakistan. Tel: 111-111-500
AUDITORS
BDO Ebrahim & Co.
Chartered Accountants
COMPANY SECRETARY
Mr. Tehsin Abbas
SHARIAH ADVISOR
Mufti Faisal Ahmed
REGISTERED OFFICE
6th Floor, HBZ Plaza (Hirani Centre) I.I. Chundrigar Road, Karachi.
Tel : 021-32635949-51
UAN : 111-346-346
Web : www.habibmodaraba.com
Email: fhm@habibmodaraba.com
GEOGRAPHICAL PRESENCE - BRANCH OFFICES
Karachi Branch:
3rd Floor, Al-Manzoor Building, Dr. Ziauddin Ahmed Road. Karachi. Tel : 021-32635949-51
Lahore Branch:
1st Floor, 5-Z Block, Phase III, Defence Housing
Authority, Lahore.
Tel : 042-35693074-76
Islamabad Branch:
Office No. 513, 5th Floor, ISE Towers, Jinnah Avenue Blue Area, Islamabad.
Tel : 051-28994571-73
Multan Branch:
BANKERS
Mezzanine Floor, Abdali Tower,
Al Baraka Bank
Abdali Road, Multan.
Dubai Islamic Bank
Tel : 061-4500121-3
Faysal Bank Limited
Habib Bank Limited - (Islamic Banking)
Habib Metropolitan Bank - (Islamic Banking)
MCB Islamic Bank
Meezan Bank Limited
Soneri Bank - (Islamic Banking)
HabibMetro
Modaraba Management | 3 |
Directors' Report
On behalf of the Board of Directors, it is our great pleasure to present the un-audited Financial Statements of First Habib Modaraba (FHM) for the six months ended 31st December, 2024.
Business Performance
Alhamdulillah, performance of first half of current financial year remained satisfactory. Due to better credit demand, disbursement of financing assets has shown good growth during first half of current financial year. The Balance sheet size also increased to Rs.30.501 billion from Rs.26.410 billion of last year reflecting growth of around 15%. Satisfactory increase in profitability has also made despite of downward trend of lending rates due to decreased in policy rates of State Bank of Pakistan.
Economic Outlook
Pakistan's economy has shown good recovery with improvements in both economic and financial conditions. Despite of ongoing fiscal challenges, the country has made steady progress particularly after securing a IMF bailout package loan in Q1. This agreement has instilled confidence in the economy and enhance financial stability. Other key economic indicators such as drastic reduction in policy rates, favorable current account balance, declining trend of inflation and stable position of PKR versus USD were the key factors for building investors' confidence.
Pakistan's economy demonstrated a continued improvement in building upon the stabilization achieved in FY2024. Due to better economic management, positive trend in all macro indicators were well reflected. In January, 2025, the country recorded inflation rate of 2.40% which the lowest in last several years. SBP has also aggressively cut its policy rate to 12% from 22%. This marks the sixth consecutive reduction since June 2024, due to downward trend of inflation.
Worker's remittance and exports have shown excellent growth during first half which supported well to maintain current account balance. Pakistan Stock Exchange has also shown unprecedented bullish performance in first half and continue to set new records in current calendar year as well. Generally, all economic indicators are showing positive trend, however, in order to achieve long term sustainable economic growth, it is essential to focus on structural reforms, improve ease of doing business and make available conducive environment to local and foreign investors. By addressing these key issues, Pakistan's economy can move towards a more stable and prosperous economic future.
Conclusion
Our business performance of first half remained satisfactory. The satisfactory results of six months are due to better credit demand and good efforts of our business development teams. As reported earlier, we have also in financing of solar equipment in order to promote green financing and support our cause for ESG initiatives. Keeping in view of better performance in first half, we are confident that we will be able to maintained our growth momentum and achieve our business targets of 2024-25, however, due to declining policy rates, we expect pressures on our profitability in 2nd half of current financial year.
Acknowledgment
We would like to express our sincere thanks and gratitude for the continued support and guidance provided by Securities & Exchange Commission of Pakistan and Registrar Modaraba, customers of the Modaraba for their patronage and Certificate holders, investors who have remained committed to FHM. I also appreciate dedication, high level of professionalism and hard work of employees of FHM for smooth operations and achieving satisfactory results in extremely difficult business environment.
For and on behalf of Board of Directors
Muhammad Shoaib Ibrahim | Muhammad Shams Izhar |
Chief Executive Officer | Chairman |
Karachi: 25th February, 2025 |
4 | First Habib Modaraba HALF YEARLY REPORT 2024 |
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2025 ىروþ 25 : ا$ | |
HabibMetro |
Modaraba Management | 5 |
Tel: +92 21 3568 3030 | 2nd Floor, Block-C |
Fax: +92 21 3568 4239 | Lakson Square, Building No.1 |
www.bdo.com.pk | Sarwar Shaheed Road |
Karachi-74200 | |
Pakistan |
Independent Auditor's Review Report
on Review of Condensed Interim Financial Statements
to the Certificate Holders of First Habib Modaraba
Introduction
We have reviewed the accompanying condensed interim statement of financial position of FIRST HABIB MODARABA ("the Modaraba") as at December 31, 2024 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity and notes to the condensed interim financial statements for the half year then ended (here-in-after referred as the "condensed interim financial statements"). The Modaraba Management Company (Habib Metropolitan Modaraba Management Company (Private) Limited) is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements as at and for the half year ended December 31, 2024 are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Other Matter
The figures for the quarter ended December 31, 2024 and December 31, 2023 in the condensed interim statement of profit or loss and condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion on them.
The engagement partner on the review resulting in this independent auditor's report is Tariq Feroz Khan.
KARACHI | |
DATED: February 27, 2025 | BDO EBRAHIM & Co. |
CHARTERED ACCOUNTANTS | |
UDIN: RR202410166rwD85LHU |
6 | First Habib Modaraba HALF YEARLY REPORT 2024 |
Condensed Interim Statement of Financial Position
AS AT DECEMBER 31, 2024
Note |
ASSETS |
NON-CURRENT ASSETS |
(Un-audited) | (Audited) |
December 31, | June 30, |
2024 | 2024 |
--------------------- (Rupees) | --------------------- |
Fixed assets in own use | 4 |
Intangible assets | |
Diminishing musharaka financing | 5 |
Long term deposits | |
Long term investments | 6 |
Deferred tax assets - net | |
CURRENT ASSETS | |
Short term investments | 6 |
Current portion of diminishing musharaka financing | 5 |
Diminishing Musharaka financing installments receivable | |
Advances and prepayments | 7 |
Other receivables | |
Cash and bank balances | 8 |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
CAPITAL AND RESERVES | |
Authorized certificate capital 140,000,000 | |
(June 30, 2024: 140,000,000) certificates of Rs.10/- each | |
Issued, subscribed and paid-up certificate capital | |
Reserves | |
SURPLUS ON REVALUATION OF INVESTMENTS | |
NON-CURRENT LIABILITIES | |
Liability against right of use assets | 9 |
CURRENT LIABILITIES | |
Certificates of investment (musharaka) | 10 |
Running musharaka | |
Current maturity of liability against right of use assets | 9 |
Unearned diminishing musharaka installments | |
Advance diminishing musharaka installments | |
Trade and other payables | |
Profit payable on certificates of investment (musharaka) | |
Unclaimed dividend | |
Dividend payable | |
Taxation - net | |
TOTAL EQUITY AND LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 11 |
92,737,704
8,064,288
17,458,297,356
1,465,300
463,031,988
303,658,671
18,327,255,307
204,277,297
9,103,678,135
327,250
1,669,789,402
8,362,673
1,142,560,520
12,128,995,277
30,456,250,584
1,400,000,000
1,108,305,000
4,201,905,637
5,310,210,637
44,610,122
13,568,819
16,922,552,347
6,291,111,170
11,460,576
30,425,224
19,219,402
936,154,632
361,161,396
40,630,446
15,503,714
459,642,099
25,087,861,006
30,456,250,584
85,056,329
9,626,317
15,862,875,979
1,465,300
436,890,160
221,253,543
16,617,167,628
149,213,636
7,806,471,555
5,207,720
1,460,347,585
21,993,461
349,523,608
9,792,757,565
26,409,925,193
1,400,000,000
1,108,305,000
3,966,122,330
5,074,427,330
34,503,367
16,124,116
16,188,522,739
3,164,386,488
7,969,360
24,961,381
25,020,110
953,087,947
488,241,779
40,776,180
12,359,769
379,544,627
21,284,870,380
26,409,925,193
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
For Habib Metropolitan Modaraba Management Company (Private) Limited
(Modaraba Management Company) | |||
Chief Executive Officer | Chief Financial Officer | Director | Director |
HabibMetro
Modaraba Management | 7 |
Condensed Interim Statement of Profit or Loss
FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2024 (UN-AUDITED)
Half-year ended | Quarter ended | ||||
December 31, | December 31, | December 31, | December 31, | ||
Note | 2024 | 2023 | 2024 | 2023 | |
------------------------------------- | (Rupees) ------------------------------------- | ||||
Income from diminishing musharaka financing | 2,719,057,254 | 2,473,113,272 | 1,292,415,531 | 1,277,918,063 | |
Provision in respect of diminishing musharaka financing | (96,374,707) | (191,936,417) | (38,880,161) | (105,496,231) | |
Administrative expenses | (125,703,866) | (122,610,928) | (63,622,506) | (59,732,764) | |
2,496,978,681 | 2,158,565,927 | 1,189,912,864 | 1,112,689,068 | ||
Other income | 12 | 118,839,014 | 134,196,212 | 57,015,032 | 64,952,874 |
2,615,817,695 | 2,292,762,139 | 1,246,927,896 | 1,177,641,942 | ||
Financial charges | 13 | (1,846,318,550) | (1,617,339,671) | (833,599,030) | (813,252,631) |
Modaraba Management Company's remuneration | 14 | (76,949,915) | (67,542,247) | (41,332,887) | (36,438,931) |
Sales tax on Modaraba Management Company's remuneration | 14 | (11,542,487) | (8,780,492) | (6,912,273) | (4,737,061) |
Provision for Workers' Welfare Fund | (13,620,135) | (11,981,995) | (7,301,674) | (6,464,267) | |
Pro t before taxation | 667,386,608 | 587,117,734 | 357,782,032 | 316,749,052 | |
Taxation | 15 | (198,859,251) | (113,350,015) | (79,512,865) | (30,561,905) |
Pro t after taxation | 468,527,357 | 473,767,719 | 278,269,167 | 286,187,147 | |
Restated | Restated | ||||
Earnings per certiScate - basic and diluted | 16 | 4.23 | 4.28 | 2.51 | 2.58 |
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
For Habib Metropolitan Modaraba Management Company (Private) Limited
(Modaraba Management Company) | ||||
Chief Executive Officer | Chief Financial Officer | Director | Director | |
8 | First Habib Modaraba HALF YEARLY REPORT 2024 |
Condensed Interim Statement of Comprehensive Income
FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2024 (UN-AUDITED)
Half-year ended | Quarter ended | |||
December 31, | December 31, | December 31, | December 31, | |
2024 | 2023 | 2024 | 2023 | |
------------------------------------- | (Rupees) ------------------------------------- | |||
Pro t after taxation | 468,527,357 | 473,767,719 | 278,269,167 | 286,187,147 |
Other comprehensive income | ||||
Items that will not be reclassi ed subsequently to | ||||
statement of pro t or loss | ||||
Surplus on revaluation of investments classified as at | ||||
'fair value through other comprehensive income'- net of tax | 10,106,755 | 14,850,000 | 1,565,595 | 18,155,000 |
Total comprehensive income for the period | 478,634,112 | 488,617,719 | 279,834,762 | 304,342,147 |
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
For Habib Metropolitan Modaraba Management Company (Private) Limited
(Modaraba Management Company) | |||
Chief Executive Officer | Chief Financial Officer | Director | Director |
HabibMetro
Modaraba Management | 9 |
Condensed Interim Statement of Changes in Equity
FOR THE HALF YEAR ENDED DECEMBER 31, 2024 (UN-AUDITED)
Capital reserves | Revenue reserves | ||||||
Certi cate | Certi cate | Amalgamation | Statutory | General | Unappropriated | ||
capital | premium | Reserve | reserves | reserves | pro t | Total equity | |
--------------------------------------------------------------------------- | Rupees ---------------------------------------------------------------------------- | ||||||
Balance as at July 01, 2023 | 1,108,305,000 | 378,000,000 | 233,003,899 | 1,284,362,639 | 1,340,000,000 | 264,204,662 | 4,607,876,200 |
Profit for the period | - | - | - | - | - | 473,767,719 | 473,767,719 |
Profit distribution for the year ended | |||||||
June 30, 2023 @ Rs.1.00/- per certificate | - | - | - | - | - | (221,661,000) | (221,661,000) |
Balance as at December 31, 2023 (Unaudited) | 1,108,305,000 | 378,000,000 | 233,003,899 | 1,284,362,639 | 1,340,000,000 | 516,311,381 | 4,859,982,919 |
Balance as at July 01, 2024 | 1,108,305,000 | 378,000,000 | 233,003,899 | 1,284,362,639 | 1,830,000,000 | 240,755,792 | 5,074,427,330 |
Profit for the period | - | - | - | - | - | 468,527,357 | 468,527,357 |
Profit distribution for the year ended | |||||||
June 30, 2024 @ Rs.2.10/- per certificate | - | - | - | - | - | (232,744,050) | (232,744,050) |
Balance as at December 31, 2024 (Unaudited) | 1,108,305,000 | 378,000,000 | 233,003,899 | 1,284,362,639 | 1,830,000,000 | 476,539,099 | 5,310,210,637 |
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
For Habib Metropolitan Modaraba Management Company (Private) Limited
(Modaraba Management Company) | ||||
Chief Executive Officer | Chief Financial Officer | Director | Director | |
10 | First Habib Modaraba HALF YEARLY REPORT 2024 |
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