Quarterly Financial Information March 31, 2026 (Un-Audited) Managed By:
Popular Islamic Modaraba Management Company (Private) Limited
TABLE OF CONTENTS | ||
• | Corporate Information | 1 |
• | Director's Report - English | 2 |
• | Director's Report - Urdu | 3 |
• | Condensed Interim Balance Sheet (Un-Audited) | 4 |
• | Condensed Interim Profit or Loss Comprehensive Income (Un-Audited) | 5 |
• | Condensed Interim Cash Flow Statement (Un-Audited) | 6 |
• | Condensed Interim Statement Of Changes In Equity (Un-Audited) | 7 |
• | Notes to the Interim Financial Statements (Un-Audited) | 8 |
CORPORATE INFORMATION
BOARD OF DIRECTORS | Mr. Imamuddin Shouqeen Mr. Shahbaz Ali Malik Mr. Khurram Abdullah Mr. Abdul Jaleel Shaikh Mr. Malik Junaid Emam Mr. Kamran Hussain Mughal Ms. Aisha Mughal |
|
AUDIT COMMITTEE | Mr. Khurram Abdullah Mr. Shahbaz Ali Malik Mr. Malik Junaid Emam |
|
HR COMMITTEE | Mr. Khurram Abdullah Mr. Malik Junaid Emam Mr. Kamran Hussain Mughal |
|
SHARIAH ADVISOR Al-Hamd Shariah Advisory Services (Pvt.) Limited
COMPANY SECRETARY Ms. Aisha Mughal
CHIEF FINANCIAL OFFICER Mr. Ghulam Mustafa
BANKERS Albaraka Bank (Pakistan) Limited
AUDITORS BKR International Muniff Ziauddin & Co.
Chartered Accountant
LEGAL ADVISOR Syed Sikandar Ali Shah - Advocate M/s. Shah Associates
MANAGEMENT COMPANY Popular Islamic Modaraba Management Company (Pvt.) Ltd REGISTERED OFFICE 406-410, 4th Floor, Hasrat Mohani Road, Off. I.I.Chundrigar Road, Karachi. SHARE REGISTRAR Central Depository Company of Pakistan
CDC House, 99-B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal, Karachi
DIRECTORS' REPORT
The Board of Directors of the Popular Islamic Modaraba Management Company (Pvt.) Limited, the Management Company of Popular Islamic Modaraba (the Modaraba) is pleased to present the Directors' Report of the Modaraba together with Condensed Interim Financial Information for the Nine Months and Three Months period ended March 31, 2026.
Review of Operations:
During the quarter under review, Popular Islamic Modaraba delivered a strong financial performance, marked by substantial growth in income and profitability. A summary of the nine months financial highlights is as follows:
Mar-26 Mar-25
Income | 22,278,269 | 32,921,892 | |
Operating expenses | (5,401,030) | (5,996,890) | |
Depreciation of Ijarah Assets | (1,829,034) | (3,476,739) | |
Operating Profit | 15,048,205 | 23,448,263 | |
Other Income | 753,738 | 2,013,316 | |
Profit before Management Fee | 15,801,942 | 25,461,579 | |
Management fee | (790,097) | (1,273,079) | |
Sales tax on Management fee | (118,515) | (165,500) | |
Profit before taxation | 14,893,331 | 24,023,000 | |
Taxation | (4,649,498) | (6,966,670) | |
Profit after taxation | 10,243,833 | 17,056,330 | |
Earning per certificate - basic & diluted | 0.51 | 1.00 |
(Rupees)
Review of Operations:
The total income decreased by 32.33% compared to the corresponding quarter of the previous year, reflecting an decrease in income is mainly due to decrease in KIBOR. Operating expenses decreased marginally by 9.94`%, despite inflationary pressures, demonstrating effective cost control measures. Depreciation on Ijarah assets stood at Rs. 1.829 million, lower than the Rs. 3.476 million in the corresponding period of last year, optimized management of the asset portfolio.
Profit before taxation decreased by 38.00% to Rs. 14.893 million, as compared to Rs. 24.023 million in the same period last year. After accounting for taxation of Rs. 4.649 million, the total comprehensive income for the quarter amounted to Rs. 10.243 million. Earnings per certificate (basic and diluted) rose to Rs. 0.51 from Rs.1.00.
Future Outlook:
The Board remains confident in the Modaraba's ability to sustain its growth trajectory, supported by a stable economic
environment, prudent risk management, and continued focus on Shariah-compliant investments. Strategic initiatives are underway to further diversify the asset base and enhance operational efficiencies. The management continues to explore new avenues of Islamic financing and DM opportunities to strengthen the asset portfolio while maintaining strict compliance with Shariah principles.
Acknowledgement:
The Modaraba has enjoyed the valuable guidance and support of Registrar Modarabas, Securities and Exchange Commission of Pakistan, NBFI and Mondaraba Association of Pakistan during the period under review, and wishes to enjoy the same in future as well.
For and on behalf of the Board
Kamran Hussain Mughal Chief Executive Officer
Dated: April 24, 2026 Karachi.
CONDENSED INTERIM BALANCE SHEET (UN-AUDITED) AS AT MARCH 31, 2026
Un-Audited Audited
Mar-26 Jun-25
(RUPEES)
ASSETS NON CURRENT ASSETS | |||
Property and equipment - owned | 11,808 | 15,902 | |
Property and equipment - ijarah | 3,754,325 | 6,475,296 | |
Diminishing Musharaka Financing | 114,709,871 | 112,433,767 | |
Deferred tax asset-net | 5,065,331 | 5,395,763 | |
123,541,335 | 124,320,728 | ||
CURRENT ASSETS | |||
Murabahah finance | 14,494,590 | 31,228,831 | |
Current portion of Diminishing Musharakah | 55,239,893 | 56,502,625 | |
Advances and other receivables | 29,579,594 | 22,097,507 | |
Cash and bank balances | 41,406,608 | 3,933,087 | |
140,720,685 | 113,762,050 | ||
TOTAL ASSETS | 264,262,020 | 238,082,778 | |
EQUITY AND LIABILITIES | |||
Authorized certificate capital 20,000,000 (2024: 14,000,000) modaraba certificates of Rs. 10 each | 200,000,000 | 200,000,000 | |
Certificate holders' equity | |||
Certificate capital | 200,000,000 | 200,000,000 | |
Statutory reserve | 28,982,350 | 28,982,350 | |
Accumulated (loss)/profit | (19,398,092) | (9,641,924) | |
209,584,258 | 219,340,425 | ||
NON-CURRENT LIABILITIES | |||
Security deposits against Ijarah | 968,279 | 1,299,279 | |
Deferred liability | 2,830,002 | 2,830,002 | |
3,798,281 | 4,129,281 | ||
CURRENT LIABILITIES | |||
Accrued and other liabilities | 4,617,789 | 1,367,724 | |
Current portion of security deposits against Ijarah | 1,005,220 | 1,095,620 | |
Charity payable | - | - | |
Advance rentals received | 1,037,768 | 2,024,116 | |
Provision for taxation | 7,235,523 | 5,151,656 | |
Unclaimed profit distribution | 4,074,569 | 3,205,011 | |
Loan from management company | 32,000,000 | - | |
Management fee payable - net | 790,097 | 1,538,213 | |
Sales tax on management fee | 118,515 | 230,732 | |
TOTAL LIABILITIES | 50,879,481 | 14,613,072 | |
CONTINGENCIES & COMMITMENTS | - | - | |
264,262,020 | 238,082,778 | ||
For Popular Islamic Modaraba Management Company (Private) Limited (Management Company)
CONDENSED INTERIM PROFIT OR LOSS COMPREHENSIVE INCOME (UN-AUDITED) FOR THE NINE MONTHS PERIOD AND THREE MONTHS ENDED MARCH 31, 2026
Nine months ended Three months ended
Mar-26 | Mar-25 | Mar-26 | Mar-25 | |||||
(Rupees) | (Rupees) | (Rupees) | (Rupees) | |||||
` | ||||||||
Income | 22,278,269 | 32,921,892 | 5,954,071 | 8,412,357 | ||||
Operating expenses | (5,401,030) | (5,996,890) | (2,147,194) | (2,087,200) | ||||
Depreciation of Ijarah Assets | (1,829,034) | (3,476,739) | (533,514) | (680,479) | ||||
Operating profit | 15,048,205 | 23,448,263 | 3,273,363 | 5,644,678 | ||||
Other Income | 753,738 | 2,013,316 | 478,850 | 253,746 | ||||
Profit before management fee | 15,801,942 - | 25,461,579 - | 3,752,212 - | 5,898,424 - | ||||
Management fee | (790,097) | (1,273,079) | (187,611) | (294,921) | ||||
Sales tax on management fee | (118,515) | (165,500) | (28,142) | (38,340) | ||||
(908,612) | (1,438,579) | (215,752) | (333,261) | |||||
Profit before taxation | 14,893,331 | 24,023,000 | 3,536,460 | 5,565,163 | ||||
Taxation | (4,649,498) | (6,966,670) | (1,025,573) | (1,613,897) | ||||
Profit after taxation | 10,243,833 | 17,056,330 | 2,510,887 | 3,951,266 | ||||
Other comprehensive income | - | - | - | - | ||||
Total comprehensive income | 10,243,833 | 17,056,330 | 2,510,887 | 3,951,266 | ||||
Earnings per certificate - basic & diluted | 0.51 | 1.00 | 0.13 | 0.23 |
For Popular Islamic Modaraba Management Company (Private) Limited (Management Company)
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2026
Un-Audited Un-Audited Mar-26 Mar-25 (RUPEES)
CASH FLOW FROM OPERATING ACTIVITIES | |||
Profit before taxation | 14,893,331 | 24,023,000 | |
Adjustments for: | |||
Depreciation expense | 4,094 | 15,191 | |
Depreciation of assets leased out under ijarah | 1,623,518 | 3,476,738 | |
1,627,612 3,491,929 | |||
Operating profit before working capital changes | 16,520,943 | 27,514,929 | |
Decrease / (Increase) in current assets | |||
Current portion of morabaha finance | 16,734,241 | 2,887,318 | |
Current portion of long term investment D.M | 1,262,732 | (29,027,038) | |
Advances and other receivabls | (7,482,087) | 5,422,268 | |
Increase/(decrease) in current liabilities | 10,514,886 | (20,717,452) | |
Accrued and other liabilities | 3,247,024 | 3,513,656 | |
Management fee payable | (748,116) | 1,273,079 | |
Sales tax on management fee | (112,217) | 165,500 | |
2,386,690 4,952,235 | |||
Cash generated from operations | 29,422,519 | 11,749,712 | |
Gratuity paid | - | (220,617) | |
Net Cash generated from operations | 29,422,518 | 11,529,095 | |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Ijarah assets transfer-net | (3,825,500) | (3,609,630) | |
Security deposit from ijarah | (421,400) | (1,825,800) | |
Investment in murabaha finance | 1,704,448 | 2,887,318 | |
Investment in diminishing musharakah | (2,276,104) | (31,562,873) | |
Net cash (used in) investing activities | (4,818,556) | (34,110,985) | |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Loan from management company | 32,000,000 | 10,500,000 | |
Dividend Paid | (19,130,442) | (19,115,656) | |
Net cash (used in) / generated from financing activities | 12,869,558 | (8,615,656) | |
Net increase in cash & cash equivalent | 37,473,520 | (31,197,544) | |
Cash and cash equivalents at the beginning of the year | 3,933,088 | 54,080,582 | |
Cash and cash equivalents at the end of the year | 41,406,608 | 22,883,037 | |
For Popular Islamic Modaraba Management Company (Private) Limited (Management Company)
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2026
Certificate Capital
Statutory Reserve
Accumulated Profit
Advance agaisnt Equity
Total
--------------------------- (Rupees) -----------------------------
Balance as at June 30, 2024 | 140,000,000 | 29,225,542 | (15,593,849) | 60,000,000 | 213,631,693 | |||
Profit for the Year Additional in paidup capital Dividend on profit | - - | - (243,192) | 25,708,733 -(19,756,808) | 25,708,733 -(20,000,000) | ||||
Transferred to statutory reserve Further issue of shares | - 60,000,000 | - | - - | (60,000,000) | - - | |||
Balance as at June 30, 2025 | 200,000,000 | 28,982,350 | (9,641,924) | - | 219,340,425 | |||
Profit for the Period Further issue of shares Dividend of profit | - - | - - | 10,243,833 -(20,000,000) | - - - | 10,243,833 -(20,000,000) | |||
Balance as at March 31, 2026 | 200,000,000 28,982,350 (19,398,092) | - 209,584,258 | ||||||
For Popular Islamic Modaraba Management Company (Private) Limited (Management Company)
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE DIRECTOR DIRECTOR
NOTES TO THE INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2026
LEGAL STATUS AND NATURE OF BUSINESS
Popular Islamic Modaraba is a multipurpose, perpetual Modaraba formed under the Modaraba and Modaraba (floatation and control) Ordinance, 1980 and the rules framed there under and is managed by the Popular Islamic Modaraba Management Company (Private) Limited (formerly by Islamic Investment Bank Limited - under liquidation), a company incorporated in Pakistan under the Companies Ordinance, 1984 and registered with Registrar of Modaraba Companies. The registered office of the modaraba is situated at 406-410,4th Floor, Chapal Plaza, Hasrat Mohani Road, Off I.I.Chundrigar Road, Karachi. The Modaraba is listed on the Pakistan Stock Exchange.
The Modaraba is engaged in various Islamic modes of financing and business including Ijarah, Musharaka, Murabaha and Diminishing Musharakah arrangements, Further, trading in listed securities and commodities are also under consultation of management. In addition to this the management is also scrolling venture to enter in Housing Finance.
STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984. The requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance,1980. Modaraba Companies and Modaraba Rules, 1981 and directives issued by the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, the Modaraba Rules 1981 and directives issued by the SECP differ with the requirements of IFRS, the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, the Modaraba Rules 1981 or directives issued by the SECP prevail.
BASIS OF MEASUREMENT
These financial statements have been prepared under the historical cost convention except for certain financial assets which are stated at fair
These Condensed interim financial statements are unaudited and being submitted to Certificate Holders as required under Rule 10 of Modaraba Companies and Modaraba Rules 1981.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted by the Modaraba in the preparation of theses condensed interim financial information are the same as those applied in preparation of the preceding published financial statements of the Modaraba for the year ended June 30, 2025.
Unaudited March 31, 2026
Audited June 30,2025
(Rupees)
PROPERTY & EQUIPMENTS - (OWNED)
Book value at the beginning of the period/year 15,902 89,151 Depreciation charged (4,094) (73,249)
Book value at the end of the period/year 11,808 15,902
PROPERTY & EQUIPMENTS - (IJARAH)
Book value at the beginning of the period/year 6,475,296 31,066,500
Deletion - net (826,418) (8,356,119)
Depreciation charged (1,894,553) (16,235,085)
Book value at the end of the period/year 3,754,325 6,475,296
CONTINGENCIES & COMMITMENTS
Contingencies and commitments are those as disclosed in the audited financial statements for the year ended June 30,2025.
RELATED PARTY TRANSACTIONS
The related parties comprise of associated undertakings, directors of the Modaraba Management Company. The Modaraba, in the normal course of business carries out transactions with these related parties. Significant transactions with related parties are as follows;
Nature of Transaction
Relationship with the Company
Management fee
Management company
790,097
1,538,213
790,097
1,538,213
General
Figures have been rounded off to the nearest Rupee.
The annexed notes from 1 to 09 form an integral part of theses condensed interim financial information.
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE DIRECTOR DIRECTOR