FPRM | First Paramount Modaraba Transmission of Quarterly Report for the Period Ended 31 March 2025

(An Islamic Financial Institution) Managed by: Paramount Investments Limited

For Long Term 'BBB', For Short Term A-3 Out Look - Stable

VIS Credit Rating Company

(An Islamic Financial Institution)

CONTENTS

Mission & Vision

Corporate Information

Directors Report

Financial Statements (UNCONSOLIDATED)

Financial Statements (CONSOLIDATED)

CORPORATE INFORMATION FIRST PARAMOUNT MODARABA

MANAGED BY: PARAMOUNT INVESTMENTS LIMITED

BOARD OF DIRECTORS

Mr. Tanveer Ahmed Magoon Mr. Syed Wajih Hasan

Mr. Nadeem Iqbal Mr. Abrar Ahmed

Mrs. Shahida Tanweer

Mr. Humayun Mazhar Qureshi Mr. Habib Ahmed Navaid

AUDIT COMMITTEE

Mr. Habib Ahmed Navaid Mr. Nadeem Iqbal

Mr. Abrar Ahmed

HUMAN RESOURCE COMMITTEE

Mr. Humayun Mazhar Qureshi Mr. Tanveer Ahmed Magoon Mr. Nadeem Iqbal

Mr. Syed Wajih Hasan

Chairman

Chief Executive Officer Director

Director Director

Independent Director Independent Director

Chairman Member Member

Chairman Member Member Member

CHIEF FINANCIAL OFFICER / COMPANY SECRETARY

Mr. Syed Mudassir Ali

SHARIAH ADVISOR

Mufti Muhammad Farhan Farooq

SHARIAH CONSULTANT

Mufti Muhammad Najeeb Khan

CREDIT RATING

Long term BBB Short Term A-3 Outlook Stable

By VIS Credit Rating Company

AUDITORS OF THE MODARABA

Mls Crowe Hussain Chaudhury & Co. Chartered Accountants

AUDITORS OF THE MODARABA MANAGEMENT COMPANY

Mls. Hafizullah & Co. Chartered Accountants

LEGAL ADVISOR

Mls Raja Qasit Nawaz, Advocates

Meezan Bank Limited

Bank Islami Pakistan Limited

AI Baraka Bank (Pakistan) Limited

Habib Metropolitan Bank Limited -Islamic Banking Habib Bank Limited

Faysal Bank Limited

Suit # 107, 108, 1st Floor, P.E.C.H.S. Community Office Complex, Block-2 PECHS, Shahrah-e-Quaiden, Karachi.

Phone: 34381037-38-52 & 34381101. Fax: 34534410

E-mail: info@fpm.com.pk Web: https://www.fpm.com.pk

THK ASSOCIATES (PVT) LTD.

C, Jami Commercial Street 2,

D.H.A Phase VII, Karachi 75500

Pakistan

UAN : +92 (021) 111-000-322

Tel : +92 (021) 35310191-6

Web: https://www.thk.com.pk Email: sfc@thk.com.pk

DIRECTORS' REPORT TO THE CERTIFICATE•HOLDERS OF FIRST PARAMOUNT MODARABA

The Directors of Paramount Investment Limited, Management Company of First Paramount Modaraba, are pleased to present the unconsolidated and consolidated financial statements for the third quarter ended 31 March 2025.

The economic landscape in the country remains complex, with high cost of living, macroeconomic instability, and ongoing tariff conflicts. Additionally, political instability and law & order situation continue to exert pressure on critical sectors of economy. Now, on top of everything, tension between Pakistan & India is at its peak. Based on India's reaction situation can be escalated to a full scale war. This would be a disaster for Pakistan which is already facing Economic, Political and Administrative crisis. Even this current tension among the two countries has shaken the confidence of investors. However, the Modaraba remains committed to maintaining financial discipline and operational efficiency.

During this nine-month period, the Modaraba posted a pre-tax profit of Rs. 21,400,918 compared to Rs. 33,719,681 for the same period last year, reflecting a decrease of Rs. 12,318,763 (37%) from the corresponding period last year. The after-tax profit stood at Rs. 15,194,652 showing a decrease of Rs. 9,173,863 (38%) over the corresponding period last year. Earnings per certificate for the period is Rs. 1.10 while it was at Rs. 1.77 per certificate in the same period last year.

FPM Petro Services, an in-house division of the Modaraba, continued to play an important role in earning revenues the Modaraba. Its perfomance remains subdued in the first Mo months of the quarter (which is reflected in the results). But now it is performing well and expected to yield good results in the last quarter. Focused efforts on expanding the product range and introducing new offerings have laid the groundwork for future growth.

FPM AML-CHECK, another division of the Modaraba, continued to advance in providing screening solutions aligned with local regulatory requirements. Although the division has yet to achieve breakeven and reach profitability, it has recorded a significant increase in its customer base, including reputable clients, and has experienced steady revenue growth. While profitability remains a goal for the future, the growth in customer base and revenue generation has established a solid foundation for future financial contributions. With a continued focus on enhancing service offerings and expanding its market reach, FPM AML-CHECK is expected to become an increasingly important contributor to the Modaraba's overall performance in the next reporting periods.

Paramount Compliance (Private) Limited (PCPL), a wholly owned subsidiary of the Modaraba, was established to develop and expand the Modaraba's AML I CFT services. Its foreign arm based in the United Kingdom (Complytech Global Limited) is exploring opportunities to introduce AML / CFT compliance solutions in selected international markets, including South Asia, Southeast Asia, Africa, and the Middle East. Financial results from these efforts are anticipated to materialize gradually. As market conditions evolve, the Modaraba remains optimistic about future expansion and the potential for an increased global presence.

DigiEstate, another project of the Modaraba currently under "Regulatory Sandbox" testing phase of the SECP with its Partners, demonstrating the Modaraba's commitment to invest in technology-driven ventures. Through this project, the Modaraba has initiated to develop a Shariah compliant "Asset Fractionalization" Platform with its partners, aimed at offering innovative investment solutions. The Modaraba remains cautiously optimistic that, upon successful completion of the testing phase, this project will contribute significantly to its future growth.

As per revised Modaraba Regulations issued on 15 August 2022 by SECP, all deposit taking Modarabas are required to maintain a minimum equity of Rs. 500 million and a minimum credit rating of "A-", within three years. Additionally, the regulations restricted the issuance of dividends to Modaraba's certificate-holders until these conditions are met. The Board of Directors and Management of the Modaraba are fully committed to ensuring compliance with these regulations and meeting the stipulated criteria within the prescribed timelines.

The Management of the Modaraba and the Board of Directors recognizes the continued patronage and cooperation of the regulators, especially of the offices of Registrar Modaraba, Securities and Exchange Commission of Pakistan. The Board also appreciates hard work and dedication of the staff members of the Modaraba.

For and on behalf of the Board of Directors of Paramount Investments Limited

Managers of First Paramount Modaraba

Mr. Syed Wajih Hassan Chief Executive Officer

Karachi

Date: April 23, 2025

Mr. Nadeem Iqbal Director

ASSETS

NON-CURRENT ASSETS

Fixed assets

Long Term Investments Murabaha financing Musharaka financing Loan to employees Long-term deposits

CURRENT ASSETS

Stores and spares Trade debtors

Advances, prepayments and other receivables Short-term murabaha financing

Current portion of murabaha financing Current ponion of musharaka financing Current portion of loans to employees Short-term deposit

Accrued profit

Tax refunds due from Government Short Term Investment

Cash and bank balances

EQUITY AND LIABILITIES CERTIFICATE CAPITAL AND RESERVES

Authorised cenificate capital

40,000,000 certificates of Rupees 10 each

Issued, subscribed and paid-up certificate capital Capital reserves

Revenue reserves

non-cueREnz LzAezLzTzes Deferred income

Cenificates of musharaka

cueeenz czxezLzzzes

Creditors, Accrued & Other Liabilities Current portion of deferred income

Current portion of certificates of musharaka COM matured panies

Accrued profit on cenificates of musharaka Unclaimed profit distributions

Liabilities associated with assets classified as held for sale TOTAL LIAeILITIES

CONTINGENCIES AND COI'dI'gITI'dENTS

Note

4

5

5

Un-audited

Rupees

9,980

29,595,L1L

12,000,000

29,718,402

11,979,169

424,771,605 491,253,894

400,000,000

4,323,L78

80,600,000

20,718,623

18,620,559

141,141,216

3une 30,

Rupees

13,308,344

9,980

31,982,963

12,000,000

385,503

26R,500 57,951,290

24,102,663

175,32R,983

17,212,171

43,479,090

13,949,OSR

210,000

2,707,194

1,532,576

70,020,921

21,308,669

47,115,806

416,963,077

416,963,077 474,914,367

250,000,000

137,88R,193

89,718,187

22,392,468

2R9,99R,8R8

7,962,634

121,150,000 i29,I12,634

16,373,672

7,139,248

47,250,000

2,800,000

3,514,280

18,729,685

95,806,885

224,919,519

TO AL EQUITY AND LIABILITIES 491,253,894

The annexed notes from 01 to 08 form an integral part of these financial statements.

For Paramount Investments Limited (Management Company)

474,914,367

cnier financial Officer

Chief Executive Officer

Director

The annexed notes from 01 to 08 form an integral part of these financial statements.

For Paramount Investments Limited

Chief Financial officer

Director

Director

FIRST PARANOUNT NODARABA

UNC0N50LID1TED CONDENSED 1NTERTN STATEMENT OF COMPREHENSIVE INCONE (UN-AUDITED) FOR THE NINE NONTHS PERIOD ENDED 31 NARCH 2025

Nine months period ended Three months period ended July-#larch July-March Jan-#larch Jan-March 2025 2024 2025 2024

N194,6& 24,368,M5 2,WZ547 9,631637

OTHEIT CONPITEHENSIVEINCONE

Items that will not be reclassified to profit and loss at ount

Items tfiat may ie eclassifed subsequen0y to pofit and loss at ount Otter compehensive in0ome for the Period

Total comprehensive income for the Period 15,194,652 24,368,515 2,043,547 9,631,637

The annexed notes from 01 to 08 brm an integral pait of these financial statement.

For Paramount Investment Limited

(MJnDgemenComgny)

Chief Financial Officer

thief Executive Officer

Director Director

FIRST PARAMOUNT I'4ODARABA

UNCONSOLIDATED CONDENSED INTERII'4 CASH FLOW STATEf'4ENT (Un-AuDrrED) FOR THE NINE I'4ONTH5 PERZOD ENDED 31 I'4ARCH 2025

The annexed notes from 01 to 08 form an integral part of these financial statements.

For Paramount Investments Limited

(Management Company)

Cttief Financial Officer

Chief Executive Officer

Director

Director

FIRST PARAMOUNT NODARABA

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OE CHANGES IN EQUITY (UN-AUDITED)

FOR THE NINE NONTHS PERIOD ENDED 31 NARCH 2025

10

The annexed notes from 01 to 08 form an integral part of these financial statement.

For Paramount Investment Limited (Management Company)

Chief Financial Officer Chief Executive Officer DIFOCtOF Director

FIRST PARAMOUNT NODARABA

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIN FINANCIAL STATEPIENT5 FOR THE NINE NONTHS PERIOD ENDED PIARCH 31, 2025

1. LEGAL STATUS AND OPERATIONS

   First Paramount Nodaraba (the Modaraba) is a multi purpose, perpetual and multidimensional Nodaraba floated under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the rules framed thereunder and is managed by Paramount Investment Limited (the Management Company), a company incorporated in Pakistan under the Companies Ordinance, t984 (now Companies Act, 20t7) on 3une 26, t994.

   The Modaraba is listed on the Pakistan Stock Exchange Limited. The registered office of the Nodaraba is situated at Suite #107-109, 1st Floor, P.E.C.H.S. Community Office Complex, Block-2. P.E.C.H.S. Shahrah-e-§uaideen, Karachi.

   Modaraba's principal activities include deployment of funds on murabaha, modaraba and musharaka arrangement and its in-house ventures are (a) Electrical maintenance and troubleshooting services' under the name of "FPM Solutions" (b) Chemical business under the name of "FPN Petro Services" (c) Anti-money laundering screening services under the name FPN ANL -

2. BASIS OF PREPARATION

   1. Statement of compliance

      These unconsolidated condensed interim financial statement of the Modaraba for the nine months period ended 31 March 2025 are unaudited and being submitted to the certificate holders as required under Modaraba Companies and Modaraba Rules, 1981 and have been prepared in accordance with the requirements of the International Accounting Standard 34 -"Interim Financial Reposing", Companies Act 2017, Modaraba Companies and Modarabas (Floatation and Control) Ordinance, 1980, Nodaraba Companies and Modaraba Rules, 1981, Nodaraba Regulation 2021 and directives isued by the Securities Exchange Commission of Pakistan (hereinafter referred to as the relevant laws).

      The unconsolidated condensed interim financial statements do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the annual financial statements of the Modaraba as at and for the year ended 3une 30, 2024.

      1. Functional and presentation currency

      These unconsolidated condensed interim financial statement are presented in Pakistani Rupees, which is the Nodaraba's functional currency. All financial information presented in Pakistani Rupees has been rounded to the nearest rupees, except otherwise stated.

      2.3 Significant accounting policies, estimates and Judgments

      The accounting policies and methods of computation followed for the preparation of these unconsolidated condensed interim financial statements are same as those applied in preparing the financial statement for the year ended June 30, 2024.

      The preparation of unconsolidated condensed interim financial statements requires management to make judgements, estimates and asumptions that affect the application of accounting policies and the reported amounD of aseD and liabilities, income and expenses. Actual resulD may differ from these estimates. The significant judgements made by management in applying the Nodaraba's accounting policies and key sources of estimation of uncertainty are the same as those that were applied to the financial statements for the year ended 3une 30, 2024.

      
      
      

3. FIXED ASSETS

Tangible fixed assets Intangible assets

Following additions and disposals, at cost, were made during the period :

March 31, 3une 30,

2025 2024

CUnauditedJ (Audited) (RupeesJ

13,102,420

205,92R

13,308,344

Additions Disposals March 31, 3une 30, March 31, 3une 30,

2025 2024 2025 2024

{Un-auditedJ (Audited) (Un-auditedJ (Audited) Rupees

Computers

Office and other equipment

Furniture and fixtures

710,298 738,730

22,000 437,053

140,000 130,000

116,200

Vehicles

13,786,813 2,328,644 1,958,000 886,900

14,659,111 3,634,427 1,958,OOO 1,003,100

Nine months ended

(Unaudited)

Quarter ended

f"Iarch 31, March 31,

2025 2024

f"Iarch 31, March 31,

2025 2024

(Rupees)

1. OPERATING REVENUE / INCOIHE

   Profit on murabaha financing	10,979,335		10,615,202		2,947,860	2,418,946
   Profit on diminishing musharaka financing			151,920			144,855
   Profit on musharaka financing	1,350,000		1,660,592		450,000	600,000
   Income from FPM Petro services project	384,114,342		405,767,102		97,939,405	163,586,726
   Income from FPM solution project			3,974,177			833,551
   	396,443,677		422,168,993		101,337,265	167,584,078

2. DATE OF AUTHORISATION FOR ISSUE

   These financial statements were authorised for issue on 23 April 2025 by the Board of Directors of the Modaraba Management Company.

3. GENERAL

Corresponding figures have been reclassified / re-arranged, wherever necessary, to facilitate comparison in the presentation in the current period.

Figures have been rounded off to the nearest rupee.

For Paramount Investments Limited (Iflanagement Company)

Chief Financial Officer Chief Executive Director Director

FIRST PARAMOUNT I'4ODARABA

coHsoLzoazeo coHoenseo zHzeezus svaveuseraz oe ezraaraczau noszvzora fun-auozveoJ AS AT 31 I'4ARCH 2025

AsSETs

raon-cuReeraz Assets

Fixed assets

Note

3

Un-audited

Audited

3une 30,

13,308,344

The annexed notes from 01 to 08 form an integral part of these financial statements.

For Paramount Investments Limited (Management Company}

Chief Financial Officer

Chief Executive Officer

Director

Ninemonthspeñodeuded TWeemouhsperiodended July-Maroh JulyMarch Jeu-Merch Jan-March

BOte 2025 2024 2025 2024

................ ........ ...(pupil,)............. ........ ....

Operating income Operating cost

(Provision)/Reversal for doubtful recoveries

Other income

Modaraba Company's management fee

Earnings per certificate - basic and diluted

(36O,14d,713)

34,584,652

6,242,604

24,228,Z81

ta4zs,4osj

21,801,873

21,365,120

15,158,8S4

422,168,993

608,931

(379,408,118)

47,760,875

5,968,076

(15,576,905)

38,152,046

(3,823,093)

34328,953

(688157)

33,640,796

(9,351,166)

24,289,630

1.76

1O1,3J7,265

1,8 '6,828

(5,035,167)

3,234,325

‹aza,4aaj

Z,g1O,892

fss,zcsj

Z,O17,986

0.dS

167,521,078

(149,00d,482]

(149,004,482)

18,516,596

2,691,878 (S,906,754) 15,301,720

(1,538,061)

13,763,659

(276,851)

13,486,808

(3,934,056)

9,552,752

0.69

The annexed notes from 01 to 08 form an inte9ral part of these financial statements.

Director

consoLzoxtzo conoenszo znzeazn wxtznEnt or conPxenensxve znconz (un-auozzeoJ

row TnE nznE nowns PEluoo EnoEo 31 nxncn zozs

Profit after taxation

OTHER CONPREHENS1VE 1NC0I'gE

Items that may be reclassified subsequently to profit and loss account Qher comprehensive income fer the Period

Total comprehensive income for the I'eriod

Ninemontñsperiodended Juy4Ma,h Juy4Ma,h

2025 2054

l5,l58,8§4 24,289,630

15,158,854 24,Z89,63O

Three months period ended Jan-March Can-March

2025 2024

zo17,sas s,ssz,7sz

zo17,sas s,ssz,7sz

The annexed notes from 01 to 08 form an integral part of these financial statement.

ror Paramount Investments Limited

Chief Executive officer oirector

Director

FIRST PARAMOUNT MODARABA

CONSOLIDATED CONDENSED INTERIM CASH FLOW STATEI'4ENT (UN-AUDITED) FOR THE NINE F4ONTHS PERIOD ENDED 31 f'IARCH 2025

20,199,300 17,169,837

Operating profit before working capital changes

(IncreaseJ / decrease in current assets Murabaha financing - net

Diminishing Musharaka financing - net Musharaka financing - net

Nodaraba financing - net Loans to employees Stores and spares

Trade debtors - net

Advances, prepayments and other receivables Receivable from Al-burq associates

Short Term Investment Accrued profit

(Decrease) / increase in current liabilities Deferred income

41,564,420

5,451,094

172,000

(3.2,985,893)

(1,712,602)

3,975

(3,639,456)

50,810,633

47,718,475

265,988

3,000,000

1,717,579

117,998

7,664,194

(119,822,965)

9,986,758

1,221,554

1,029,341

(6,534,419)

Creditors, accrued and other liabilities 4,448,063 9,857,379

Net cash generated from operations

Financial charges paid

03,786,488

(9,392)

7,032,515

(52,3t3)

Tax (paid) / refunded - net (25,812,848) (t6,078,285)

Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of fixed assets Long term investments

Sale proceed on disposals of fixed assets Net cash (used in)

CASH FLOWS FROI'4 FINANCING ACTIVITIES

Certificate of I'flusharaka - issuance Certificate of I'flusharaka - redemptions

Profit paid to certificates of Mushraka (COM) holder Profit distributed to Certificate holders

Net cash used in financing anivities

Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year

Cash and cash equivalents at end of the Period

The annexed notes from 01 to 08 form an integral part of these financial statements.

For Paramount Investments Limited (Management Company)

27,964,248

(12,504,111)

(3.6,3.50,203)

(690,066)

47,3.23,633

46,433,567

(9,098,083)

(t,937,472)

(17,900,490)

(28,936,045) 46,4t3,056

17,477,0t I