YOUR TRUSTED
PARTNER IN
ISLAMIC FINANCE
SOLUTIONS
www.olpmodaraba.com
QUARTERLY REPORT
SEPTEMBER
2024
Contents
Modaraba Information | 02 |
Directors' Review | 03 |
Condensed Interim Statement of Financial Position | 07 |
Condensed Interim Prot and Loss Account and | |
Other Comprehensive Income (Un-audited) | 08 |
Condensed Interim Statement of Cashows (Un-audited) | 09 |
Condensed Interim Statement of Changes in Equity | 10 |
Notes to and Forming Part of the Condensed | |
Interim Financial Statements (Un-audited) | 11 |
Modaraba
Information
www.olpmodaraba.com
01
Modaraba Company
OLP Services Pakistan (Pvt) Limited
Directors of Modaraba Company
Mr. Naveed Kamran Baloch | Chairman | |
Mr. Raheel Qamar Ahmad | Managing Director | |
/ Chief Executive Ocer | ||
Mr. Ramon Alfrey | Director | |
Mr. Nausherwan Adil | Independent Director | |
Mian Faysal Riaz | Director | |
Mr. Nadim D. Khan | Director | |
Ms. Naila Hasan | Female Independent Director | |
Company Secretary | ||
Mr. Muhammad Siddique | ||
Audit Committee | ||
Mr. Nausherwan Adil | Chairman | |
Mr. Ramon Alfrey | Member | |
Mian Faysal Riaz | Member | |
Human Resource and Remuneration (HR&R) | ||
Committee | ||
Ms. Naila Hasan | Chairperson | |
Mr. Ramon Alfrey | Member | |
Mr. Raheel Qamar Ahmad | Member | |
Risk Committee | ||
Mian Faysal Riaz | Chairman | |
Mr. Nausherwan Adil | Member | |
Mr. Raheel Qamar Ahmad | Member | |
Shariah Advisor | ||
Mufti Faisal Ahmed |
Auditors
KPMG Taseer Hadi & Co. Chartered Accountants
(Subject to regulatory approval)
Bankers/ Financial Institutions
Standard Chartered Bank (Pakistan) Limited (Saadiq) Meezan Bank Limited
United Bank Limited (UBL Ameen) Bank Alfalah Limited (Islamic banking) Allied Bank Limited (Islamic banking) Bank Al Habib Limited (Islamic banking) Habib Bank Limited (Islamic banking) Al-Baraka Bank (Pakistan) Limited
Pakistan Mortgage Renance Company Limited
Legal Advisors
Haider Ali Khan
Advocate High Court , Partner,
Fazle Ghani Advocates
Modaraba Company Registered Oce
OLP Building, Plot no. 16, Sector no. 24,
Korangi Industrial Area Karachi.
Modaraba Head Oce:
Oce No. 601, 6th Floor,
Syedna Tahir Saifuddin Memorial Foundation Building, Beaumont Road, Civil Lines, Karachi. Phone: (021) 38341168 Email:askus@olpmodaraba.com
Lahore Branch:
Oce No-08, 1St oor,
Park Lane Tower (Mall Of Lahore)
172-Tufail Road, Lahore Cantt.
Phone: (042) 38017006
Islamabad Branch:
Ground Floor, Phase 1, State Life Building No. 5, Nazimuddin Road, Blue Area, Islamabad.
Registrars & Share Registration Oce:
Famco Share Registration Service (Private) Limited 8-F, Next to Hotel Faran, Nursery,
Block 6, P.E.C.H.S., Shahra-e-Faisal, Karachi. Tel: (92-21)34380101-5
Fax: (92-21) 34380106
Email: info.shares@famco.com.pk
Directors'
Review
For the period ended September 30, 2024
The Board of Directors of OLP Services Pakistan (Private) Limited, the management company of OLP Modaraba is pleased to present the unaudited accounts for the three months period ended September 30, 2024.
1. Economic Outlook
Coupled with favorable weather conditions and easing external conditions, the economy began recovering in FY24. Downside risks however remain high, with the outlook predicated on a new IMF-EFF program being implemented, continued scal restraint, and additional external nancing. Heavy banking sector exposure to the sovereign, domestic policy uncertainty, geopolitical instability and delays in global monetary easing pose signicant risks to the outlook.
The Economy is expected to continue recovering, with real GDP growth reaching 2.8 percent in FY25, as the economy benets from the availability of imported inputs, easing domestic supply chain disruptions and lower ination. Business condence is also expected to improve with credit rating upgrades and easing of scal tightening measures, and the devolvement of constitutionally mandated expenditures to the provinces and higher agricultural income taxes.
The scal decit is projected to increase to 7.6 percent of GDP in FY25 due to higher interest payments but gradually decrease on scal tightening and falling interest payments.
2. Financial Highlights
Financial results are summarized as under:
September 30, | June 30, | |
2024 | 2024 | |
Balance Sheet | (Rupees) | |
Certicate capital | 453,835 | 453,835 |
Total equity | 1,186,012 | 1,243,593 |
Total assets | 8,366,429 | 7,738,335 |
Investment in Ijarah Assets | 1,219,138 | 1,259,654 |
Investments in Diminishing Musharika | 5,539,328 | 5,284,579 |
Redeemable capital | 4,943,535 | 4,287,535 |
Three months ended | Three months ended | |
September 30, | September 30, | |
2024 | 2023 | |
Prot and Loss | (Rupees) | |
Revenue (net of Ijarah assets depreciation) | 428,205 | 386,752 |
Financial charges | (298,942) | (257,254) |
Operating expenses | (68,029) | (70,442) |
Prot before provisions | 61,234 | 58,786 |
(Provision) / reversal of provisions and impairments- net | (8,415) | 6,895 |
Prot before modaraba management company's remuneration | 52,820 | 65,681 |
Prot before taxation | 45,914 | 57,094 |
Net prot | 33,187 | 40,199 |
For the period ended September 30, 2024
02
www.olpmodaraba.com
03
3. Review of Operations
By the Grace of Allah, your Modaraba's performance during the period under review continued to be strong. The Modaraba's gross revenue (net of Ijarah assets depreciation and including other income) increased by 10.72% from PKR 386.75 million to PKR 428.21 million compared to the corresponding period of last year. The main reason behind this was 'better spreads and an increase in disbursements. Financial charges increased by 16.08% from PKR 257.52 million to PKR 298.94 million mainly due to increase in portfolio. Administrative and operating expenses decreased by 3.43% from PKR 70.44 million to PKR. 68.03 million mainly due to revised sta nance related policies eective from November 2023. Prot before provision increased by 4.16% from PKR 58.79 million to PKR. 61.23 million, whereas net prot for the quarter decreased 17.44% from PKR 40.20 million to PKR 33.19 million due to proactive and subjective provisions. During the period there is a net provision of PKR 8.42 million compared to reversal of provision of PKR 6.89 million during corresponding period of last year, which was due to pro-actively and subjectively downgrading of some of stressed customers.
The portfolio of Ijarah nance, short term investments and Diminishing Musharika nances stood at PKR 6,909 million compared to PKR 6,895 million as at June 30, 2024, showing a marginal increase of 0.2% during the three months period, whereas portfolio as at September 30, 2023 was PKR 5,833 million. Similarly total assets increased by 8.12% to PKR 8,366 million compared to PKR 7,738 million as at June 30, 2024. During the period under review, the Modaraba booked fresh disbursements to the tune of PKR 778 million as compared to PKR 568 million during the corresponding period last year.
The business has been driven mainly by deepening relationships with selective clientele and initiating relationships with good names. The asset portfolio has a good mix of multi-nationals, large and medium sized local corporates, selective SME relationships and an excellent housing and consumer portfolio.
OLP Modaraba manages and monitors risk exposure very prudently. The evaluation of borrower's credit prole including repayment ability is made at the time of grant of facility and regular oversight is carried out thereon. Further, there are Portfolio Management and Early Alert committees which are responsible to ensure portfolio monitoring and timely alerts for possible untoward scenarios.
4. Credit Rating
The Pakistan Credit Rating Agency Limited (PACRA) has maintained the ratings of your Modaraba as AA (Double A) and A1+ (A one plus) for long-term and short-term respectively. These ratings indicate low expectation of credit risk and very strong capacity for timely payment of nancial commitments.
5. Acknowledgement
The Board appreciates the support of regulatory authorities, certicate-holders, customers and business partners and looks forward to their support in future.
Karachi: October 23, 2024
Raheel Qamar Ahmad | Ramon Alfrey |
Managing Director/ CEO | Director |
04
For the period ended September 30, 2024
05
www.olpmodaraba.com
Condensed Interim Statement of
Financial Position
As at September 30, 2024 | |||||
September 30, | June 30, | ||||
2024 | 2024 | ||||
(Un-audited) | (Audited) | ||||
ASSETS | Note | (Rupees) | |||
Current assets | |||||
Cash and bank balances | 5 | 898,728,231 | 329,627,579 | ||
Ijarah rentals receivable | 6 | 65,826,704 | 69,821,374 | ||
Advances, deposits, prepayments and other receivables | 451,395,208 | 403,523,986 | |||
Short-term investments | 7 | 150,720,126 | 350,918,237 | ||
Current portion of diminishing musharaka | 8.3 | 1,607,512,605 | 1,476,958,150 | ||
Total current assets | 3,174,182,874 | 2,630,849,326 | |||
Non-current assets | |||||
Long-term portion of diminishing musharaka | 8.3 | 3,931,814,960 | 3,807,621,307 | ||
Ijarah assets | 9 | 1,219,138,253 | 1,259,654,374 | ||
Tangible assets | 10 | 15,047,725 | 14,746,223 | ||
Intangible assets | 11 | 3,962,840 | 3,768,937 | ||
Deferred tax assets | 22,282,664 | 21,695,041 | |||
Total non-current assets | 5,192,246,442 | 5,107,485,882 | |||
TOTAL ASSETS | |||||
8,366,429,316 | 7,738,335,208 | ||||
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Current portion of term nance arrangements | 12 | 543,203,929 | 625,117,384 | ||
Current portion of security deposits | 141,663,608 | 130,535,992 | |||
Creditors, accrued and other liabilities | 404,514,099 | 458,553,890 | |||
Advance Ijarah rentals received | - | 4,645,531 | |||
Current portion of redeemable capital | 4,802,585,000 | 4,145,135,000 | |||
Prot distribution payable | 13 | 148,369,675 | 57,602,615 | ||
Provision for taxation - net | 46,781,742 | 54,254,047 | |||
Total current liabilities | 6,087,118,053 | 5,475,844,459 | |||
Non-current liabilities | |||||
Long-term portion of term nance arrangements | 12 | 687,258,548 | 606,778,716 | ||
Long-term portion of security deposits | 265,090,370 | 269,719,334 | |||
Long-term portion of redeemable capital | 140,950,000 | 142,400,000 | |||
Total non-current liabilities | 1,093,298,918 | 1,018,898,050 | |||
TOTAL LIABILITIES | |||||
7,180,416,971 | 6,494,742,509 | ||||
CERTIFICATE HOLDERS' EQUITY |
Certicate capital
Authorised certicate capital
50,000,000 (June 30, 2024: 50,000,000) certicates of Rs. 10 each amounting to Rs. 500,000,000 (June 30, 2024: Rs. 500,000,000)
For the period ended September 30, 2024
06
Issued, subscribed and paid-up certicate capital
28,500,000 (June 30, 2024: 28,500,000) certicates of Rs. 10 each fully paid in cash
16,883,530 (June 30, 2024: 16,883,530) bonus certicates of Rs. 10 each
Capital reserve
Revenue reserve
TOTAL LIABILITIES AND EQUITY
CONTINGENCIES AND COMMITMENTS | 14 |
285,000,000
168,835,300
453,835,300
578,888,037
153,289,008
1,186,012,345
8,366,429,316
285,000,000
168,835,300
453,835,300
578,888,037
210,869,362
1,243,592,699
7,738,335,208
The annexed notes from 1 to 26 form an integral part of these condensed interim nancial statements.
For OLP Services Pakistan (Private) Limited
(Management Company)
SD | SD | SD | SD | |||
Chief Executive | Director | Director | Chief Financial Ocer |
www.olpmodaraba.com
07
Condensed Interim Statement of Prot and Loss Account and
Other Comprehensive Income (Un-audited)
For The Three Months Period Ended September 30, 2024
Three months | Three months | |||
period ended | period ended | |||
September 30, | September 30, | |||
2024 | 2023 | |||
Note | (Rupees) | |||
Ijarah rentals earned | 175,047,086 | 227,476,889 | ||
Income on Diminishing Musharaka arrangements | 314,301,545 | 272,143,749 | ||
Dividend income | 14,315,257 | 8,945,943 | ||
Prot on bank balances | 22,127,059 | 18,852,681 | ||
525,790,947 | 527,419,262 | |||
Financial and other charges | 15 | (298,941,509) | (257,524,185) | |
Depreciation on Ijarah assets | (108,434,539) | (141,452,618) | ||
Reversal of impairment on assets und er Ijarah arrangements | - | 12,949,261 | ||
118,414,899 | 141,391,720 | |||
Reversal of provision / (provision) against Ijarah rentals receivable - net | 1,173,556 | (8,682,347) | ||
(Provision)/ reversal of provision against Diminishing Musharaka - net | (9,588,387) | 2,627,823 | ||
110,000,068 | 135,337,196 | |||
Other income | 10,848,820 | 785,831 | ||
Administrative and operating expenses | (68,028,870) | (70,441,846) | ||
52,820,018 | 65,681,181 | |||
Management Company's remuneration | 16 | (5,282,002) | (6,568,118) | |
Provision for services sales tax on the Management Company's | ||||
remuneration | 17 | (686,660) | (853,855) | |
Provision for Sindh Workers' Welfare Fund | 18 | (937,027) | (1,165,184) | |
Prot before taxation and levy | 45,914,329 | 57,094,024 | ||
Levy | 19 | (2,147,289) | (1,341,891) | |
Prot before taxation | 43,767,040 | 55,752,133 | ||
Taxation | 19 | (10,580,334) | (15,553,279) | |
Prot for the period after taxation | 33,186,706 | 40,198,854 | ||
Other comprehensive income for the period | - | - | ||
Total comprehensive income for the period | ||||
33,186,706 | 40,198,854 | |||
Earnings per certicate - basic and diluted | 20 | 0.73 | 0.89 |
The annexed notes from 1 to 26 form an integral part of these condensed interim nancial statements.
For OLP Services Pakistan (Private) Limited
(Management Company)
SD | SD | SD | SD | |||
Chief Executive | Director | Director | Chief Financial Ocer |
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