First Punjab Modaraba Services Pvt Ltd.PSX: FPJM

Transmission of financial statements as on 30.06.2025

Oct 6, 2025 at 5:52 AM UTC · Issued by First Punjab Modaraba Services Pvt Ltd.

‌A Wholly Owned Subsidiary of The Bank of Punjab

FIRST PUNJAB MODARABA

(An Islamic Financial Institution)

HALF YEARLY

ACCOUNTS

30 June 2025

(UN-AUDITED)

‌Content

Corporate Profile 2

Directors' Review 3

Directors' Review (Urdu) 4

Independent Auditors' Review Report 5

Condensed Interim Statement of Financial Position 6

Condensed Interim Statement of Profit or Loss 7

Condensed Interim Statement of Comprehensive Income 8

Condensed Interim Statement of Changes in Equity 9

Condensed Interim Statement of Cash Flows 10

Notes to the Condensed Interim Financial Statements 11-20

‌Board of Directors Board Risk Management Committee

Punjab Modaraba Services (Pvt.) Ltd.

Ijaz ur Rehman Qureshi Umer Iqbal Sheikh Imran Bashir Samina Afsar

Rizwan Hameed Maqsood Ahmad

Chairman Director Director Director Director Director

Rizwan Hameed Umer Iqbal Sheikh Maqsood Ahmed Asim Jahangir Seth

Auditors of the Mobaraba

Crowe Hussain Chaudhury & Co. Chartered Accountants

Chairman Member Member Member

Muhammad Umer Khan Asim Jahangir Seth

Chief Financial Oﬃcer

Director Chief Executive

Auditors of the Management Company

Shinewing Hameed Chaudhry & Co. Chartered Accountants

Zeeshan Ahmed Bankers

The Bank of Punjab

Company Seretary

Muhammad Ilyas

Audit Committee

Imran Bashir Umer Iqbal Sheikh

Muhammad Umer Khan

Chairman Member Member

NRSP Microfinance Bank Limited Bank Islami Pakistan Limited

Registrar

Hameed Majeed Associates (Pvt.) Ltd.

H.M House, 7-Bank Square, The Mall, Lahore

Tel : (+92-42) 3723081-2

Human Resource Committee Registered Oﬃce

Samina Afsar Rizwan Hameed Umer Iqbal Sheikh

Chairperson

Member Member

Oﬃce # 100, 3rd Floor, National Tower, 28-Egerton Road, Lahore.

Postal Code No. 54600 PABX: (+92-42) 3636191

FAX: (+92-42) 36365193

E-mail: info@punjabmodaraba.com.pk URL: https://www.punjabmodaraba.com.pk

‌DIRECTORS' REVIEW

The Board of Directors of Punjab Modaraba Services (Private) Limited, the Management Company of First Punjab Modaraba, is pleased to present the half yearly financial statements (un-audited) of First Punjab Modaraba along with Directors' Review for the period ended June 30, 2025.

During the period under review, the Modaraba recorded gross income of Rupees 131.092 million against total expenses of Rupees 233.149 million. The total assets stood at Rupees 2.29 billion, while total liabilities were reported at Rupees

195.19 million.

During the period under review, in line with commitment to support and strengthen the financial position of Modaraba, the parent institution, The Bank of Punjab (BOP), injected fresh subordinated funds of Rupees 2 billion to enhance the equity base which carried a floating rate mechanism of 3-years VRR Ijarah Sukuk rate plus 50 basis points, reset bi-annually. As a result, the equity base of the Modaraba boosted from Rupees 208 million to Rupees 2.104 billion. This strategic support from BOP is expected to significantly improve the Modaraba's financial flexibility and competitive positioning, particularly in the current economic environment where lending rates are trending downward following recent reductions in the policy rate by the State Bank of Pakistan.

In the first half of 2025, key economic reforms led to lower inflation, a reduced SBP policy rate, and improved investor confidence, with the KSE-100 Index rising. The successful first review of the $7B IMF program in May 2025 and an upgrade in Pakistan's sovereign credit ratings followed improvements in fiscal deficits and debt sustainability. Real GDP grew to 2.7% in FY2025 (up from 2.5% in FY2024), driven by industrial and services sectors. Looking ahead to FY2026, the government targets 4.2% GDP growth and 7.5% inflation, though risks remain from energy tariffs and oil prices. Continued structural reforms and fiscal discipline are essential for sustained growth. Subsequent to reporting date; the Modaraba sought approval from the Commission for repayment of existing subordinated funds of Rupees 500 million that was carried a fixed pricing of 18.61% per annum keeping in mind prevailing financial and economic conditions in Pakistan. This reduction in pricing from 18.61% per annum to 11.14% per annum will significantly ease the financial burden on the Modaraba. The management is actively pursuing secure and income-generating investment opportunities to strengthen the Modaraba's profitability and long-term financial performance.

Subsequent to the June 30, 2025; Mr. Nadeem Amir and Mr. Khawar Shahid Ansari retired from the Board upon election of directors held on August 06, 2025. The Board expresses sincere gratitude for their valuable contributions to the growth and success of Modaraba. The Board warmly welcomes the newly appointed directors Mr. Rizwan Hameed, Mr. Muhammad Umer Khan, and Mr. Maqsood Ahmad and looks forward to their valuable contributions to the Modaraba's future growth.

The board expresses its appreciation and gratitude towards the certificate holders and customers for placing their trust in us. The Board also appreciates team of the Plodaraba for their dedication and hard work for the growth of the Modaraba in all areas of its activities.

For & On behalf of Board,

Asim Jahangir Seth

Chief Executive

Imran Bashir

Director

Lahore September 30, 2025

‌

‌Crowe

Crowe Hussain Chaudhary & Co. 7th Floor, Gul Mohor Trade Centre, 8-F Main Market, Gulberg II, Lahore-54660, Pakistan

Main +92-42-3575 9223-5

https://www.crowe.pk

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE CERTIFICATE

HOLDERS OF FIRST PUNJAB MODARABA ON REVIEW OF INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the accompanying condensed interim statement of financial position of FIRST PUN3AB MODARABA glhe Modaraba'g as at 3une 30, 2025 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the condensed interim financial statement for the six-month period then ended (here-in-after referred to as the"interim financial statements'g. Management is responsible for the preparation and presentation of these 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 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 interim financial statements consists of making inquiries, primarily of persons responsible for the 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 interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter

Pursuant to the requirement of Section 237(1)(b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Modaraba. Accordingly, the figures of the condensed interim statement of profit and loss account and condensed interim statement of comprehensive income for the three months period ended 3une 30, 2025 and 3une, 30 2024 have not been reviewed by us.

The condensed interim financial statements for the half year ended 3une 30, 2024 and the annual financial statement for the year ended December 31, 2024 of the Modaraba were reviewed and audited by another firm of the chartered accountant who expressed an unmodified conclusion and opinion thereon vide their reports dated August 29, 2024 and 3une 30, 2025, respectively.

The engagement partner on the review resulting in this independent auditor's review report is Amin

LAHORE

UDIN: RR2025l005l3d9n4DkRa

Dated: September 30,2025 CROWE HUSSAIN CHAUDHURY & CO.

Chartered Accountants

Crowe Hussain Chaudhury & Co. is a member of Crowe Global, a Swiss Verein.Each member Firm of Crowe Global is a Separate and independent legal entity. Crowe Hussain Chaudhary & Co.and Its affiliates are not responsible or liable For any acts or omission of Crowe global or any other member of Crowe Global. Crowe Global does note render any Professional Services and dot not

have an Ownership or Partnership interest in Crowe Hussain Chaudhury & Co.

Half Yearly Accounts June 2025 [ 05 ]

Director

Chief Executive Officer

‌Chief Financial Officer Director

‌CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE HALF YEAR AND QUARTER ENDED JUNE 30, 2025

	Half Year Ended 3une 30,		Quarter Ended 3une 30,
	2025	2024	2025	20Z4

Note ---------------(Un-audited}---------------

Income from Operations

Rupees

Income from ijarah rentals - net 20

17,770,598

42,351,567

10,346,097

16,233,688

Profit on murabahah financing

8d9,381

6,321,465

76,016

1,097,259

Profit on diminishing musharakah financing

98,971,861

104,237,768

48,400,378

56,547,437

Gain on sale of development properties

778,483

135,319

118,370,323

152,910,800

58,957,810

73,878,38R

Reversal of provision against ijarah rentals

177,721

1,037,693

172,564

950,393

Qher income 21

12,544,466

75,226,929

(270,547)

40,731,187

12,722,187

76,264,622

(97,983)

41,681,580

Total Income

131,092,510

229,175,422

58,859,827

115,559,964

Expenses

Administrative and general expenses 22

R2,978,534

37,66R,741

26,978,700

19,981,745

Finance cost 23

182,749,717

184,283,682

91,649,425

92,159,263

Provision / (reversal) of provision against musharakah

arrangement

7,421,221

1,244,886

(9,306,833)

1,624,798

Provision against murabahah arrangement

3,805,380

Reversal of provision against other receivables

(8,537,468)

233,149,472

214,655,841

113,126,672

105,228,338

Operating (Loss) / Profit before NanagemeM Company's Fee

(102,056,962)

14,519,581

(54,266,845)

10,331,626

Modaraba management company's management fee

(LocsJ / Profit before Le«y and Taxation

(102,056,962)

14,5t9,581

(5R,266,845)

10,331,626

Levy | final taxation

(1,919,694)

(2,107,562)

(1,194,744)

(952,364)

(Lacs} / Profit before Taxation

(103,976,656)

12,412,019

(55,461,589)

9,379,262

Taxation

2,258,504

1R,4dR,193

2,258,504

Net (Loss) / Profit for the Period

(103,976,656)

14,670,523

(R1,017,396)

11,637,766

(LocsJ / Earnings per Certificate - Baaic and Diluted

(3.06) 0.43

(1.2t)

0.34

The annexed notes from 1 to 28 form an integral part of these financial statement.

For Punjab Modaraba Services (Private) Limited

(Modaraba Management Company)

Chief Executive Officer

Director

Chief Financial Officer

‌CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE HALF YEAR AND QUARTER ENDED JUNE 30, 2025

	Half Year Ended 3une 30,		quarter Ended 3une 30,
	2025	2024	2025	2024

---------------(Un-audited)---------------

Rupees Rupees Rupees Rupees

Net (Loss) / Profit for the Period

0///er comprehensive income

Total Comprehensive (Loss) / Income for the Period

(103,976,656) 14,670,523 (41,017,396) 11,637,766

(103,976,656) 14,670,523 (41,017,396) 1t,637,766

The annexed notes from I to 28 form an integral part of these financial statement.

For Punjab I•lodaraba Services (PrivateJ Limited (Modaraba I'4anagement Company)

Chief Executive Officer

Director

Chief Financial Officer

First Punjab Modaraba

Half Yearly Accounts June 2025 [ 09 ]

‌CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE HALF YEAR ENDED JUNE 30, 2025

Subscribed and

Paid up Capital

Reserves

Subordinated

funds

Total

Capital

Revenue

Total Reserves

Slatutory

Reserve

Accumulated

Loss

Balance as at December 31, 2023

Rupees

340,200,000

Rupees

218,176,678

Rupees

(680,257,522)

Rupees

(462,080,H4)

Rupees

500,000,000

Rupees

378,119,156

Net profit for the peñod

Other comprehensive income for the period

14,670,523

Total comprehensive income for the period

14,670,523

Balance aa at3une 30, 2024 (un-audited)

340,200,000

218,176,678

(665,586,999)

(447,410,321)

500,000,000

392,789,679

Balance as at December 31, 2024

340,200,000

218,176,678

(850,373,686)

(632,197,008)

500,000,000

208,002,992

Net loss for the period

Other comprehensive loss for ifie period

(103,976,656)

Total comprehensive loss for the period

(103,976,656)

Subordinated funds received

2,000,000,000

Balance as at 3une 30, 2025 (un-audited)

340,200,000

218,176,678

(954,350,342)

(736,173,664)

2,500,000,000

2,104,026,336

The annexed notes from 1 to 28 ton an integral pan of these financial statements.

For Punjab Modaraba Services (Private) Limited (Piodaraba management Company)

Chief Executive Officer

Director

Chief Financial Officer

6,021,692	67,237,786
4,450,580	(43,008,579)
(21,635,950)	(108,212,928)
(754189)	(141,500)
	22,329
2,229,634	53,711,414
102,251,854	(37,297,905)

‌CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE HALF YEAR ENDED JUNE 30, 2025

		Half Year Ended 3une 30,
		2025	2024
	Note	Rupees	Rupees
Casii Generated from Operations	24	261,530,245	68,402,210
Profit paid on redeemable capital and Subordinated funds	23	(277,281,348)	(185,722,699)
Bank charges paid	23	(16,441)	(85,47t)
Employees retirement benefits paid		(546,996)
Levy / final taxation paid		(1,277,424)	(8,195,678)
		(279,122,209)	(194,003,848)
Net Cash Used in Operatin9 ^ctivities		(17,591,964)	(125,601,638)
CASH FLOWS FRON INVESTING ACTIVITIES
Proceeds from transfer of ijarah assets
Proceeds from security deposit on new jarah facility
Purchase of fixed asseD under ijarah arrangement	6
Purchase of fixed asseD under own use	7
Proceeds from disposal of fixed asseD under own use
Profit received on bank deposit
Short term investments
Net Cash Generated from / (Used in) Investin9 *ctivities		92,563,621	(67,689,383)
CASH FLOWS FRON FINANCING ACTIVITIES
Subordinated funds received	15	2,000,000,000
Redeemable capital paid	t6	(t,485,000,000)
Reversal of unclaimed dividend		t,368
Unclaimed dividend paid		(500)	(59,954)
Net Cash Generated from / (Ueed in) Financing Anivities		515,000,868	59,954)
Net Increase / (Decrease) in Cash and Cash Equivalents		589,972,525	(193,350,975)
Cash and cash equivalents at the beginning of the period		23,080, 100	233,544,957
Cash and Cash Equivalents at the End of the Period		613,052,625	40,193,982
The annexed notes trom 1 to 28 torm an integral part ot these financial statements.

For Punjab t'godaraba Services (Private) Limited

(Nodaraba I'4anagement Company)

Chief Executive Officer

Director

Chief Financial Officer

‌Note 1

NOTES TO AND FORMING PART OF

CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE HALF YEAR ENDED JUNE 30, 2025

The Plodaraba and its Operations

First Punjab Nodaraba ("the Nodaraba") is a multi-purpose, perpetual and multi-dimensional Modaraba domiciled in Pakistan under the Nodaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, and the rules made thereunder having a registered office at Office No. t00, 3rd floor, National Tower, 28-Egerton Road, Lahore. The Nodaraba is managed by Punjab Nodaraba Services (Private) Limited (the "Modaraba Company") which is a wholly owned subsidiary of The Bank of Punjab incorporated in Pakistan under the repealed Companies Act, 2017.

The Nodaraba is lined on Pakistan Stock Exchange and commenced iD operations on December 23, 1992, and is currently engaged in various Islamic mode of financing and operations including Ijarah, Nusharakah and Nurabaha arrangement. Modaraba has also obtained approval of the Securities & Exchange Commission of Pakistan to undertake Building, Construction and Real Estate activity by insertion of a new clause for this purpose in prospectus of the Modaraba on January 13, 2021.

Note 2

Basis of Preparation

Statement of compliance

These condensed interim financial statement of the Nodaraba have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;
Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan;
Provisions of and directives issued under the Companies Act, 2017, Modaraba Companies and Nodarabas (Flotation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981 and I'4odaraba Regulations, 2021 for Modaraba and Prudential Regulations for Nodarabas issued by the Securities and Exchange Commission of Pakistan (hereinafter referred to as the relevant

Wherever, the requirement of the approved accounting standards diPer from the relevant laws, the relevant laws have been

Provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP) under the Modaraba Companies and I'4odaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017.

These condensed interim financial statement are unaudited and are being submitted to the certificate holders as required under section 237 of the Companies Act, 2017. However, these are subject to limited scope review by the external auditors as required by the act and listed companies (code of corporate governance) regulations 2019 (the regulations) and Rule 10 of the Modaraba companies and Modaraba Rules, 1981.
The 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 audited financial statements of the Modaraba as at and for the year ended December 31, 2024.
The comparative statement of financial position presented in these condensed interim financial statements have been extracted from the annual audited financial statements of the Modaraba for the year ended December 31, 2024, whereas the comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity are extracted from the un-audited condensed interim financial statements for the half year ended June 30, 202a.

z.s The figures of the statement of condensed interim profit or loss and the statement of comprehensive income for the quarter ended 3une 30, 2025 and June 30, 2024 have not been reviewed.

Basis of measurement
These condensed interim financial statement have been prepared under the historical cost convention except otherwise stated.
‌Functional and presentation currency

These condensed interim financial statements are presented in Pak Rupees, which is the Modaraba's functional and presentation currency. All the figures have been rounded oP to the nearen Rupees, unless otherwise stated.

Note 3

Material Accounting Policy Information

material accounting policy information adopted in the preparation of these condensed interim financial statement (un-audited) are the same as those applied in the preparation of preceding annual financial statement of the Nodaraba for the year ended December 31, 2024.

Note 4

Uce of Estimates and judgements

The preparation of these condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounD of asseD and liabilities, income and expenses. Actual resulD may differ from these estimates. The significant judgements made by management in applying the I'1odaraba's accounting policies and key sources of estimation are the same as those that were applied to the annual audited financial statements for the year ended December 31, 2024.

Note 5

Seaconality or Cyclicality of Operations

The operations of the I'4odaraba are not subject to any significant seasonality or cyclicality during the interim period.

‌Note 6 Fixed Assets under Ijarah Arrangement		3une 30,	December 31,
		2025	2024
		(Un-audited)	(Audited)
		Rupees	Rupees
Opening written down value		185,227,848	148,068,219
Additions during the period / year		21,635,950	189,275,421
Transfers during the period / year - written down value		(7,904,120)	(102,524,375)
		198,959,678	234,819,265
Depreciation charge for the period / year		(29,606,107)	(49,591,417)
		169,353,571	185,227,848
Note 7
Fixed Assets under Own Use		3une 30,	December 31,
		2025	2024
		(Un-audited)	(Audited)
		Rupees	Rupees
Opening written down value		3,571,658	4,066,485
Additions during the period / year		754,189	854,556
Deletions during the period / year - written down value			(88,361)
		4,325,847	4,832,680
Depreciation charge for the period / year		(686,844)	(1,261,022)
		3,639,003	3,571,658
Note 8
Long-Term Investment Under I'4usharakah Arrangement		3une 30,	December 31,
		2025	2024
	Note	(Un-audited)	(Audited)
		Rupees	Rupees
Secured
Investment under musharakah arrangement		1,067,140,429	1,147,396,206
Less: Expected credit loss against musharakah arrangement	8.1	(76,572,751)	(69,151,530)
Less: Current ponion		(403,235,619)	(387,794,898)
		587,332,059	690,449,778
8.1 Expected credit losses against musharakah arrangement
Opening balance	69,151,530		26,621,425
Charge / (reversal) of provision during the period / year	7,421,221		(13,539,413)
Expected credit allowance on initial application of IFRS 9			56,069,518
Closing balance		76,572,751	69,151,530
Note 9
Long-Term Investment Under Iflurabahah Arrangement		3une 30,	Deoember 31,
		2025	2024
	Note	(Un-audited)	(Audited)
		Rupees	Rupees
Secured
Investment under murabahah arrangement		50,453,468	61,001,309
Add: Unearned murabahah income		4,571,767	4,634,330
		55,025,235	65,635,639
Less: Expected credit loss against murabahah arrangement	91	(16,224,414)	(16,224,414)
Less: Current portion of long term murabahah arrangement		(30,708,712)	(39,467,619)
Less: Current portion of unearned murabahah income		(2,187,685)	(3,016,570)
		5,904,424	6,927,036

9.1 Expected credit losses against murabahah arrangement

Opening balance

Reversal of provision during the period / year

Expected credit allowance on initial application of IFRS 9 Closing balance

16,224,414 8,800,000

(35,419)

- 7,459,833

16,224,414 16,224,414

‌Note 10 Short-Term Investment Under Plurabahah Arrangement		3une 30, 2025	December 31, 2024
	Note	(Un-audited)	(Audited)
Secured		Rupees	Rupees
Short-term investment under murabahah arrangement		338,226,337	349,426,355
Less: Expected credit losses against short term murabahah arrangement	10.1	(213,374,252)	(213,374,252)
		124,852,085	136,052,103
10.1 Expected credit locsee against ehort term murabahah arrangement
Opening balance		2t3,374,252	202,459,373
Reversal of provision during the period / year		-	(4,094,017)
Expected credit allowance on initial application of IFRS 9		-	15,008,896
Closing balance		213,374,252	213,374,252
Note 11
Current Portion of Non-Current Assets		3une 30,	December 31,
		2025	2024
		(Un-audited)	t^udited)
		Rupees	Rupees
I'4usharakah arrangement
Current portion of long term investment		298,883,789	280,838,668
Principal due but not received		104,351,830	106,956,231
		403,235,619	387,794,899
Murabahah arrangement
Current portion of long term investment		7,404,398	6,272,375
Principal due but not received		23,304,314	33,195,244
Current portion of unearned murabahah income		2,187,685	3,016,570
		32,896,397	42,484,189
		436,132,016	430,279,088
Note 12
Ijarah Rentals Receivable		3une 30,	Deoember 31,
		2025	2024
	Note	(Un-audited)	(Audited)
		Rupees	Rupees
Ijarah rentals receivable		139,705,241	157,298,808
Less: Provision againn ijarah rentals receivable	12.1	(80,127,032)	(80,304,753)
		59,578,209	76,994,055
12.1 Provision against ijarah rentals receivable
Opening balance		80,304,753	78,258,490
(Reversal) / provision charged during the period / year Allowance for Expected credit losses on adoption of IFRS 9		(177,721)	1,723,382 322,881
Closing balance		80,127,032	80,304,753
Note 13
Advances, Deposits, Prepayments and Other Receivables		3une 30,	December 31,
		2025	2024
	Note	(Un-audited) Rupees	(Audited) Rupees

Profit receivable against

Nurabahah arrangement
Nusharakah arrangement

Prepayments Advances

Non-banking asseD

Receivable from provident fund Other receivables

13.1

13.2

13.3

7,775,537

19,153,437

19,567,973

Less: Expected credit losses against advances and other receivables

13.4

226,839,494 229,733,639

3,217,968	3,482,490
1,187,766	1,137,766
21,060,000	21,060,000
2,720,329	2,418,150
198,653,431	201,635,233

(89,502,803) (89,502,803)

145,112,228 159,798,809


13.1 Nurabahah arrangement	3une 30,	December 31,
	(Un-audited) Rupees	(Audited)
Profit receivable on murabahah arrangement	16,118,782	14,993,944
Less: Income suspended	(16,118,782)	(14,494,221)
Less: Allowance for Expected credit loses on adoption of IFRS 9	-	(85,187)
	-	414,536
13.2 Nusharakah arrangement
Profit receivable on Nusharakah arrangement	33,489,058	45,591,113
Less: Income suspended	(25,713,521)	(26,437,676)
	7,775,537	19,153,437

‌Rupees

Receivable from Ijarah parties	45,689,075	46,102,952
Receivable from Musharakah parties	62,716,014	60,441,088
Receivable from Murabahah parties	30,608,230	29,996,430
Insurance receivable	301,157	1,970,753
Advancea employees	3,615,391	550,480
Sales tax receivable	451,248	242,726
Others	55,272,316	62,330,804
	198,653,431	201,635,233
13.4 Expected credit losses against advances and other reoeivables
Opening balance	89,502,803	67,316,336
Provision charged for the period / year	-	26,112,216
Allowance for Expected credit losses on adoption of IFRS 9	-	(3,925,749)
Closing balance	89,502,803	89,502,803
Note 14 Cash and Bank Balances	3une 30,	December 3a,
	(Un-audited) Rupees	(AuditedJ Rupees
Cash in hand	250,455	46,569
Cash at banks -Current account	476,569,349	9,146,095
-Saving account	136,232,821	13,887,441
	613,052,625	23,080,100
Note 15 Subordinated Funds

This represent funds extended by The Bank of Punjab - parent company i.e. major sponsor under Musharakah Agreement dated October 27, 2023 and 3une 30, 2025 as a support to improve the equity base of the Nodaraba and classified as equity under the provisions of Modaraba Regulations, 2021. These amounD are unsecured and repayable in three years time i.e. June 30, 2026 and 3une 30, 2028 respectively. Rate of profit range from 11.1496a 18.619' (2024: 18.61%) per annum payable semi-annually.

Note 16

Redeemable Capital	3une 30,	December 31,
Participatory and unsecured	(Un-audited) Rupees	(Audited) Rupees
Opening balance	1,485,000,000	1,485,000,000
Less: Funds paid during the year	(1,485,000,000)
Closing balance		1,485,000,000

16.1 This represents unsecured funds provided by the parent ampany, The Bank of Punjab, to finance the working capital requirement of the Nodaraba. The facility was originally repayable over a period of three years and carried a profit rate of 18.619'o per annum, payable semi-annually. The Nodaraba has fully settled the outstanding balance during the period.

‌Note 17 Long Term Seairity Deposits		3une 30, 2025	December 31, 2024
	Note	(Un-audited) Rupees	(AudiQd) Rupees
Long term security deposit against ijarah arrangements	17.1	50,197,244	50,740,464
Less: Current portion of security deposits		(32,170,417)	(42,193,448)
		18,026,827	8,547,0t6

This represent security deposits adjustable in respect of assets given under Ijarah arrangements (IFAS-2).

Note 18

Current Ponion of Non-Current Liabilities

3une 30, December 31,

2025 2024

	Note	(Un-audited) Rupees	(Audited) Rupees
Current maturity of deferred Nurabahah income		2,187,685	3,016,570
Current maturity of long term security deposit	17	32,170,417	42,193,448
		34,358,102	45,210,018
Note 19 Contingencies and Commitments

Contingencies
As at June 30, 2025, there has been no material change in the status of contingencies as disclosed in the notes to the financial statements of the Modaraba for the year ended December 31, 2024.
In addition, the following new contingency has arised subsequent to the year ended December 31, 2024:
The Deputy Commissioner Inland Revenue issued a show cause notice under section 161(1A) on 3une 05, 2025. This notice pertains for the tax year 2019. Through the notice, the DCIR required reconciliation of withholding tax deducted and deposited by the Nodaraba while making payment to its vendors. The taxpayer duly responded along with complete documentary evidence but DOR has not issued order to date.
Commitments

- There are no commitments during the year (2024: nil)

‌Note 20

Income from Ilarah Rentals - Net

3une 30, 3une 30,

2025 2024

(Un-auditedJ (Un-audited)

	Rupees	Rupees
Income from ijarah rentals	47,376,705	64,367,176
Less: Depreciation on ijarah assets	(29,606,107)	(22,015,609)
	17,770,598	42,351,567
Note 21
Other Income	3une 30,	3une 30,
	2025	2024
	(Un-audited) Rupees	(Un-audited) Rupees
Profit on bank deposits and short-term investments	5,092,587	56,821,294
Gain on transfer of ijarah assets	3,111,371	3,026,059
Processing fee	232,038	740,977
Documentation charges	313,850	743,100
Cheque return charges	972,500	366,000
Gain on settlement of Musharakah arrangements	1,823,465	1,390,248
Gain on settlement of Murabahah arrangements	-	9,000,000
Miscellaneous income	998,655	3,139,251
	12,544,466	75,226,929

Note 22

Administrative and General Expenses

3une 30, 3une 30,

2025 2024

(Un-auditedJ (Un-audited)

Rupees Rupees

Salaries and benefiD	24,865,239	22,571,901
Rent, rates and taxes	3,188,975	2,694,160
Insurance	2,836,002	744,677
Fee & subscription	1,412,570	1,637,179
Selling and marketing expenses	1,318,335	678,946
Repair & maintenance	1,180,307	1,711,814
Power and utilities	1,171,016	1,598,132
Legal and professional	1,001,060	559,057
Printing and stationery	615,868	774,426
Auditor's remuneration	250,000	250,000
Vehicle running and maintenance	672,417	819,216
Entertainment	997,370	809,993
Telephone and postage	643,473	727,841

StaP training

Corporate expenses

Depreciation of fixed asseD under own use	686,844	688,397
Amortization of intangible assets	329,938	331,154
Income tax refundable from the Government wricen off	836,350
Miscellaneous expenses	716,690	518,266
	42,978,534	37,664,741
Note 23
Finance Cost	3une 30,	3une 30,
	2025	2024
	(Un-audited) Rupees	(Un-audited) Rupees
Redeemable capital	135,980,463	137,800,677
Subordinated funds	46,752,813	46,397,534
Bank charges	16,441	85,471
	182,749,717	184,283,682

Traveling and conveyance

225,000

31,080

416,932

132,650

‌Note 24

Cash Generated from Operations

June 30,

CASH FLOWS FROF4 OPERATING ACTIVITIES

Note

(Un-audited)

Rupees

(Un-audited)

Rupees

(Loss) / Profit before levy and taxation

(102,056,962)

14,519,581

Adjustment for:

- Depreciation on fixed assets under ijarah arrangement

29,606,107

22,015,609

- Depreciation on fixed assets under own use

686,844

688,397

Amortization of intangible asseD

329,938

331,154

- Income from ijarah rentals - net

(17,770,598)

(42,351,567)

- Profit on diminishing musharakah financing

(98,971,861)

(104,237,768)

- Profit on murabahah financing

(849,381)

(6,321,465)

Gain on transfer of fixed assets under ijarah arrangement

(3,111,371)

(3,026,059)

- Gain on sale of development properties

(778,483)

- Gain on settlement of investment under musharakah arrangement

(1,823,465)

(1,390,248)

- Gain on settlement of investment under murabahah arrangement

(9,000,000)

Provision of expected credit losses against Nusharakah arrangement

8.1

7,421,221

1,244,886

- Reversal of expected credit losses against Ijarah rental receivables

12.1

(177,721)

(1,037,693)

- Reversal of expected credit losses against other receivables

(8,537,468)

- Employees retirement benefits

1,224,694

445,444

- Profit on bank deposits

(5,092,587)

(56,821,294)

- Bank charges

16,441

85,471

- Income tax refundable from the Government written oP

836,350

Profit on redeemable capital and subordinated funds

182,733,276

184,198,211

94,279404

(23,714,390)

Operating profit before working capital ciian9es

(7,777,558)

(9,194,809)

Decrease / (increase) in current assets:

- Short-term investment under murabahah arrangement

11,200,018

- Long-term investment under murabahah arrangement

11,397,222

12,560,358

- Long-term investment under musharakah arrangement

181,051,103

(10,256,275)

Development properties

10,000,000

(341,668)

- Ijarah rental receivables

35,364,165

100,223,210

- Advances, deposits, prepayments and other receivables

15,114,188

(10,246,375)

Increase / (decrease) in current liabilities:

Trade and other payables

5,181,107

(14,342,231)

269,307,803

77,597,019

Cash generated from operations

261,530,245

68,402,210

‌Note 25

Transactions and Balances with Related Parties

Related parties comprise associated companies, related group companies, companies where directors also hold directorship, retirement benefit fund, directors and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the modaraba, directly or indirectly, including any director (whether executive or otherwise) of that modaraba. The modaraba in the normal course of business carries out transactions with various related parties. Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these financial statement, are as follows:

Transanions during the year

Related party Relationship

Nature of transaction

tune 30,

(Un-audited)

Rupees

3une 30, (Un-audited)

Rupees

The Bank of Punjab Holding company

of I'4odaraba's Management

CONN}ggFly

Redeemable capital paid 1,R85,000,000

Subordinated funds received 2,000,000,000

Profit accrued on Subordinated fund 46,752,813

Profit accrued on redeemable capital 135,980,463

46,397,534

137,800,677

		Profit paid on redeemable capital and subordinated fund	277,281,348	185,722,701
		Profit received on bank account with BOP	1,469,254	1,162,200
		Profit earned on bank account with BOP	1,268,475	1,383,034
Punjab Nodaraba	Management	Rent expense of head office premises	3039500	2,681,910
Services (Pvt)	^°+P^^y	Rent paid of head office premises	4,534,552	2,234,925
Key Management	Key Management	Remuneration of key management personnel	2,843,044	7,245,156
Personnel	Personnel	Facilities against Ijarah / Musharakah accrued	1,006,332	1,344,953
		Facilities against Ijarah / Musharakah paid	1,006,332	1,R52,467
		Advance disbursed this year	3,823,000	1,200,602
		Advance repaid during the year	1,036,000	984,275

First Punjab Associated Nodaraba Employees undertalcing Provident Fund Trust

Provident fund contributions paid Provident fund contributions accrued

1,587,898 r,285,719

1,268,980

2,596,462

Outstanding Balance as at:

3une 30,

2025 2024

(Un-audited) (AuditedJ

Rupees

The Bank of Punjab

Redeemable capital

1,485,000,000

Subordinated funds

2,500,000,000

500,000,000

Profit payable on redeemable capital

95,005,325

Profit payable on subordinate funds

9,175,911

8,718,658

Profit receivable on bank account with BOP

21,419

222,198

Outstanding Nodaraba certificates

47,880

Bank account maintained with BOP

482,673,663

19,026,432

The Bank of Pun"ab

ees Gratui

Outstanding I'4odaraba certificates 50,995,000 50,995,000

Fund

Punjab Nodaraba Services (Pvt.) Limited

OuUtanding I'4odaraba certificates

133,206,940

Prepaid rent of head office premises

1,R95,052

Key Management Personnel

OuUtanding amount against ijarah / Musharakah

Advances to employees

2,956,000

169,000

First Punjab I'4odaraba Employees

Provident Fund Trust

Receivable from provident fund

2,720,329

2,418,150

No remuneration has been paid by the Modaraba to the chief executive officer and directors of I'1odaraba (2024: nil).
The Nodaraba carries out transanions with related parties at commercial terms and conditions as per the Nodaraba's policy.

‌Note 26

Financial Riek Management

The Modaraba's financial risk management objectives and policies are consistent with those disclosed in preceding audited financial statements for the year ended December 31, 2024.

Note 27

Date of Authorization for Issue

These condensed interim financial statements (un-audited) are approved by the Board of Directors of the Modaraba for issuance on September 30, 2025.

Note 28 General

Corresponding figures are rearranged / reclassified for better presentation and comparison. Following re-arrangement / reclassification has been made in these financial statements (un-audited):

Nature

Statement of proFit or loss

From To

Amount

Gain on disposal of asseD Gain on disposal of assets

Other income (Note 21)

3111,371

Chief Executive Officer

Director

Chief Financial Officer

‌A Wholly Owned Subsidiary of The Bank of Punjab

Managed By:

FIRST PUNJAB MODARABA

(An Islamic Financial Institution)

Punjab Modaraba Services (Pvt) Ltd.

PABX : +(92-42)36365191 - 93

Add : Oﬃce No. 100, 3rd Floor, National Tower, 28-Egerton Road, Lahore-Pakistan

Website : https://www.punjabmodaraba.com.pk

Earlier from First Punjab Modaraba Services Pvt

All First Punjab Modaraba Services Pvt news releases