Islamic Financial Institution
ANNUAL
REPORT
2024
Table of Contents
Vision & Mission Statements | 01 |
Corporate Information | 02 |
Credit Rating | 03 |
Sindh Modaraba Products | 04 |
Board of Directors | 06 |
Management Team | 07 |
Picture Profile | 08 |
CEO's Message | 09 |
Directors' Report | 10 |
Directors' Report (Urdu) | 17 |
Key Operating & Financial Data | 25 |
Statement of Compliance with the Listed Companies (Code of Corporate Governance) | 26 |
Regulations, 2019 & Public Sector Companies (Corporate Governance) Rules, 2013 | |
Shari'ah Advisor's Report | 32 |
Auditors' Review Report to the Members on Statement of Compliance | 34 |
Auditors' Report to the Certificate Holders | 35 |
Statement of Financial Position | 39 |
Statement of Profit And Loss And Other Comprehensive Income | 40 |
Statement of Cash Flows | 41 |
Statement of Changes in Equity | 42 |
Notes to the Financial Statements | 43 |
Pattern of Certificate Holding | 75 |
Notice of Annual Review Meeting | 77 |
Notice of Annual Review Meeting (Urdu) | 78 |
Our vision is to be one of the leading Islamic Financial Institution within Modaraba sector by offering Shari'ah compliant solutions for an optimal satisfaction of customers.
Mission Statement
The basic aim of Sindh Modaraba is to seek Allah's blessing for transformation of our business dealings in accordance with the principles enshrined in the Islamic Shari'ah. And to develop an Islamic Institution by implementing Allah's will in the line with the practices of His Prophet (P.B.U.H.) by meeting its stated objectives built on Trust, Integrity, Innovation and good governance for meeting expectation of its stakeholders."
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Corporate Information
Board of Directors | |||
Mr. Waseem Mehdi Syed | -Chairman | -Independent Director | |
Mr. Fayaz Ahmed Jatoi | -Secretary Finance (GoS) | -Non-Executive Director | |
Mr. Sami ul Haq Khilji | -Non-Executive Director | ||
Mr. Ejaz Akhtar Ansari | -Independent Director | ||
Mr. Kamal Ahmed | -Non-Executive Director | ||
Ms. Naila Asad Shaikh | -Non-Executive Director | ||
Mr. Abdul Rauf Chandio | -Chief Executive | -Executive Director | |
CFO & Company Secretary | |||
Muhammad Adnan Shakeel | |||
Audit Committee | Shariah Advisor | ||
Mr. Ejaz Akhtar Ansari | -Chairman | Mufti Zeeshan Abdul Aziz | |
Mr. Sami ul Haq Khilji | -Member | ||
Mr. Kamal Ahmed | -Member | ||
Human Resource Committee | Legal Advisor | ||
Mr. Waseem Mehdi Syed | -Chairman | Mohsin Tayebaly & Co. | |
Mr. Sami ul Haq Khilji | -Member | ||
Mr. Abdul Rauf Chandio | -Member | ||
Nomination Committee | Share Registrar | ||
Mr. Waseem Mehdi Syed | -Chairman | F.D. Registrar Services Pvt. Ltd. | |
Mr. Kamal Ahmed | -Member | Office # 1705, 17th Floor, Saima | |
Mr. Fayaz Ahmed Jatoi | -Member | Trade Tower-A, I.I. Chundrigarh | |
Procurement Committee | Road, Karachi | ||
Mr. Fayaz Ahmed Jatoi | -Chairman | ||
Mr. Ejaz Akhtar Ansari | -Member | ||
Ms. Naila Asad Shaikh | -Member | ||
Risk Management Committee | Registered/Head Office | ||
Mr. Waseem Mehdi Syed | -Chairman | 1st Floor, Imperial Court Building, | |
Mr. Abdul Rauf Chandio | -Member | Dr. Ziauddin Ahmed Road | |
Ms. Naila Asad Shaikh | -Member | Karachi | |
Tel: (92-21)35640708-9 | |||
Bankers | Lahore Branch | ||
Sindh Bank Limited (Islamic Banking) | 30-30A, Commercial Building | ||
Meezan Bank Limited | The Mall | ||
NRSP Microfinance Bank Limited | Lahore | ||
Soneri Bank Limited (Islamic Banking) | |||
AL-Baraka Bank Pakistan Limited | Auditors | ||
Habib Metropolitan Bank (Islamic Banking) | Baker Tilly Mehmood Idrees Qamar, | ||
MCB Islamic Bank | Chartered Accountants |
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Credit Rating
A+
" Long Term "
A-1
" Short Term"
Sindh Modaraba has been maintaining
- Long Term A+ & Short Term A-1" Credit Rating since 2015
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Sindh Modaraba Products
DIMINISHING MUSHARIKA
DM arrangements allow equity participation and sharing of profits on a pro-rata basis. Under this product, possession of the asset is with the client. The financing is made by SM and the client jointly in accordance with an agreed share. The share of the Modaraba in an asset reduces with every periodical payment, ultimately transferring ownership of the asset to the client.
The client also pays rent for the use of Modaraba's share in the asset. The clients may approach SM for the acquisition of plant & machinery, commercial & saloon Vehicles, computer Equipment and medical equipment using DM financing. The asset remains under the charge of SM until settlement
MURABAHA FINANCE
Murabaha is selling a commodity as per the purchasing price with an agreed profit to the customers. Murabaha refers to the state of commodity on predefined price and profit Murabaha is completed in two stages. In the first stage the SM purchases a commodity that the client is desirous of acquiring. In the second stage the client agrees to a payment schedule for repurchasing the goods.
HOUSE MORTGAGE DIMINISHING MUSHARAKAH
HMDM is based on the concept of mortgage. The clients can avail HMDM facility for the acquisition, construction and renovation of property of their choice. Under this product, ownership and possession of the property is with the client. The financing is done by SM and the client jointly in accor- dance with an agreed percentage. The property remains mortgaged in favor of SM and original property documents is held by us till the contract is matured or terminated and settled currently.
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Sindh Modaraba Products
SALAM
Salam or Bai-Al Salam, is a contract of sale where the Seller undertakes to supply some specific commodity to the Buyer at a future date in exchange for a price fully paid in advance. Hence, the price is paid in cash whereas delivery of the purchased Goods is deferred.
Clients may approach SM for this product to manage its working capital requirements. This may include both core expenses pertaining to business operations of our esteemed clients
ISTISNA
The word Istisna is a derivative from the root word 'Sa na'a, which means to manufacture or to construct something. Istisna is a contract of sale of specified items to be
manufactured or constructed with an obligation on the part of the seller to deliver them to the purchaser upon completion. A client who intends to purchase certain assets to be manufactured or constructed may approach the
Modaraba. At this point Modaraba acting as a seller and the client as purchaser would execute an Istisna contract. Once the asset is complete and in useable condition, the Modaraba would deliver the as-
sets to the client on agreed delivery schedule. The Client would make the payment to the Modaraba pursuant to the terms agreed upon in the Istisna contract or as the case may beat the delivery of the asset.
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BOARD OF DIRECTORS
Waseem Mehdi Syed
Chairman / Independent Director
Mr. Fayaz Ahmed Jatoi | Mr. Sami ul Haq Khilji |
Secretary Finance, GoS | Non-ExecutiveDirector |
Non-ExecutiveDirector |
Mr. Kamal Ahmed | Mr. Ejaz Akhtar Ansari |
Non-ExecutiveDirector | Independent Director |
Naila Asad Shaikh | Mr. Abdul Rauf Chandio |
Non-ExecutiveDirector | Executive Director & CEO |
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MANAGEMENT TEAM
Mr. Abdul Rauf Chandio | Mr. Ishfaque Ahmed |
Executive Director & CEO | Head of Corporate Affairs, |
Legal & SAM
Mr. Adnan Shakeel | Mr. Mujahid Ali Mirza |
CFO & Co. Secretary | Head of Risk Management |
Mr. Faraz-uz-Zafar | Ms. Kiran Hassan |
Head of Compliance | Chief Internal Auditor |
Mr. Imtiaz Rashid Ansari | Ms. Bushra Zaib |
Head of Administration | Manager HR |
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