KASB MODARABA

QUARTERLY REPORT
SEPTEMBER 30, 2022

MANAGED BY
AWWAL MODARABA MANAGEMENT LIMITED
 Vision
Awwal Modaraba Management
Limited (AMML) will play a role in the
economic process and development
of Pakistan by providing a range
of advisory services and financial
support, through Sharia compliant
modes; to viable projects in high
growth, capital starved sectors
of the economy.

Awwal Modaraba Management

Limited (AMML) aims to be
at the vanguard of innovation
in modaraba management
services, offering the best
Mission

solutions to our customers,

value to our certificate holders
and modaraba investors,
complemented with a
challenging, equal opportunity
to our employees.
 KASB MODARABA
CORPORATE INFORMATION

BOARD OF DIRECTORS
Mr. Khalid Aziz Mirza Chairman Independent Director
Mr. Shahid Ghaffar Independent Director
Ms. Ayesha Aziz Non-Executive Director
Mr. Abdul Jaleel Shaikh Non-Executive Director
Mr. Saiyid Najam Rizvi Non-Executive Director
Mr. Karim Hatim Chief Executive Officer

Audit Committee
Mr. Shahid Ghaffar Chairman
Mr. Khalid Aziz Mirza Member
Mr. Abdul Jaleel Shaikh Member
Mr. Saiyid Najam Rizvi Member

Human Resource and

Remuneration Committee

Mr. Khalid Aziz Mirza Chairman

Ms. Ayesha Aziz Member
Mr. Karim Hatim Member

Company Secretary
Ms. Misbah Asjad

Chief Financial Officer

Mr. Aftab Afroz Mahmoodi

Auditor
Grant Thornton Anjum Rehman, Chartered Accountants
Bankers Certificate Registrar
Dubai Islamic Bank C&K Management Associates (Pvt.) Limited
Soneri Bank 404, Trade Tower, Abdullah Haroon Road,
Near Metropole Hotel, Karachi – 75530
Phone: 021-35687839 & 021-35685930

Legal Advisor
Ahmed & Qazi
S & B Durrani Law Associates

Shariah Advisor
Al-Hilal Shariah Advisors (Private) Limited

Registered & Head Office

3rd Floor, Horizon Vista, Plot No: Commercial 10,
Block-4, Clifton, Karachi
Phone : 021- 35361215-9,Fax: 021-35374275
Directors’ Report
For the three months period ended 30 September 2022

On behalf of the Board of Directors of Awwal Modaraba Management Limited, the management
company of KASB Modaraba, we are pleased to present Directors’ Report together with the unaudited
financial results of KASB Modaraba for the three months period ended 30 September 2022.

Economy
The State Bank of Pakistan has kept the policy rate unchanged since the last hike in July 2022 when the
rate was increased to 15%. Monetary Policy Statement cited various reasons in support of the decision
including fall in headline inflation to 23.2% in Sep 2022 from 27.3% in Aug 2022 driven by a reduction in
electricity prices. Desired moderation in economic activity has become more visible though core
inflation continued to drift upwards in both rural and urban areas fueled by supply side shocks. The
current account and trade deficits narrowed significantly in Aug-Sep, and the Rupee has recouped some
of its losses following the recent depreciation. In Sep 2022, Pakistan's trade deficit reduced by 20% YoY
to USD2.8bn led by a sharp decline in imports. Moody’s downgraded Pakistan’s local and foreign debt
ratings to Caa1 from B3 along with decline in the deposit rating of five commercial banks. The
downgrade was due to increased government liquidity requirements, external vulnerability risks and
higher debt sustainability risks, in the aftermath of devastating floods.

The Asian Development Bank’s (“ADB”) expectation for GDP growth in FY2023 is 3.5% from approx. 6%
in FY2022. Inflation rate in Pakistan is likely to decline in the coming months while interest rate scenario
is expected to remain stable with expectations of downward trend next year to stimulate economy. Pak
Rupee is expected to stabilize with foreign inflows and reduction in trade deficit.

The most significant recent development is that Financial Action Task Force (“FATF”) on 21st October
excluded Pakistan from the grey list of the global watchdog on terror financing and money laundering
after four long years. It had become increasingly difficult for the country to negotiate financial aid with
the IMF, the World Bank, the ADB, and the European Union. One of the structural benchmarks laid down
by IMF for Pakistan stated ‘Adoption of measures to strengthen the effectiveness of the AML/CFT
framework to support the country’s efforts to exit the FATF list of jurisdictions with serious deficiencies.’

Financial Performance
The portfolio size stood at PKR 155.03 million as on September 30, 2022 (June 30, 2022: PKR 172.36
million). During the first three months of the current financial year, overall revenues increased to PKR
10.75 million compared to PKR 7.35 million in corresponding period last year. Total expenses for the
period were contained at PKR 3.51 million. Profit before tax was PKR 4.16 million compared to Rs.3.83
million and Profit after tax of 3.30 million compared to Rs.3.74 in the corresponding period last year due
to tax impact.

The process for merger of First Pak Modaraba and KASB Modaraba into First Prudential Modaraba is
underway and expected to materialize soon under the approved Scheme of Arrangement.
Governance

There has been no change in the Board of Directors of Awwal Modaraba Management Limited during
the period under review.

Acknowledgement

The Board would like to acknowledge and appreciate Securities and Exchange Commission of Pakistan
and Registrar Modaraba for their continuous guidance and support. We would like to avail this
opportunity to thank its customers and investors for placing their trust in the Modaraba.

On behalf of the Board

Karim Hatim Abdul Jaleel Shaikh

Chief Executive Director

Date: 28th October 2022

 September 30.
2022 June 30, 2022
(Un-audited) (Audited)
Note ---------- Rupees ----------
ASSETS
Current assets
Cash and bank balances 6 4,429,722 10,336,507
Short term investment 7 4,514,043 4,440,102
Modaraba finance 8 - -
Musharaka finance 9 - -
Murabaha finance 10 - -
Current portion of long term diminishing musharaka finance 11 52,528,981 53,122,595
Receivable against sale of agricultural produce 12 - -
Ijarah rentals receivable 13 1,050,721 367,476
Advances, prepayments and other receivables 14 18,854,310 9,988,668
81,377,777 78,255,348
Non-current assets
Long-term diminishing musharaka finance 11 102,501,485 119,236,835
Ijarah assets 15 68,713,056 35,797,940
Fixed assets - owned 16 - -
171,214,541 155,034,775
TOTAL ASSETS 252,592,318 233,290,123
LIABILITIES
Current liabilities
Redeemable capital - participatory and unsecured 17 1,315,000 1,315,000
Short term finance 18 50,000,000 50,000,000
Ijarah deposit 3,579,900 3,579,900
Creditors, accrued and other liabilities 19 17,814,331 12,754,063
Provision for taxation 1,918,355 1,216,308
Unclaimed profit distribution 3,493,568 3,493,568
78,121,153 72,358,839
Non-current liabilities
Long term portion of ijarah deposit 18,100,749 8,100,749
Deferred liabilities - staff gratuity 1,392,966 1,307,550
Deferred taxation 20 542,575 387,022
20,036,290 9,795,321
TOTAL LIABILITIES 98,157,444 82,154,160
NET ASSETS 154,434,875 151,135,963
REPRESENTED BY
CAPITAL AND RESERVES
Authorized certificate capital
50,000,000 (2021 : 50,000,000) certificates of Rs. 10/- each 500,000,000 500,000,000

Issued, subscribed and paid-up capital 21 480,664,800 480,664,800

Revenue reserve (318,507,712) (321,146,841)
Capital reserve (7,722,214) (8,381,996)
Certificate holder's equity 154,434,875 151,135,963
TOTAL CERTIFICATE HOLDERS' EQUITY 154,434,875 151,135,963
CONTINGENCIES AND COMMITMENTS 23
The annexed notes from 1 to 30 form an integral part of these special purpose financial statements
For Awwal Modaraba Management Limited
(Modaraba Management Company)

Chief Financial Officer Chief Executive Officer Director Director

 Quarter ended Quarter ended
September 30, September 30,
2022 2021
Note ----------------- Rupees ------------------
Income from:

Deposit with Banks 659,625 2,141,211

Investment in sukuk - 469,294
Term deposit - 472,685
Diminishing musharaka finance 7,622,493 1,563,120
Ijarah finance 2,465,746 -
Realized gain on sale of shares - 2,704,301
10,747,864 7,350,611
Financial charges (2,117,086) (1,322,443)
Depreciation on assets under ijarah arrangements 15.1 (1,390,440) -
(3,507,526) (1,322,443)
7,240,338 6,028,168
Other income 292,982 117,156
Unrealized (loss) / gain on investment - at FVTPL 73,941 (566,993)
Reversal of provison against murabaha finance 140,000 125,000
Reversal of provison / suspension against ijarah - 3,377,832
Administrative and operating expenses (3,507,618) (5,169,783)
4,239,644 3,911,380
Management Company's remuneration 24 - -
Sales tax on Management Company's remuneration - -
Sindh Worker's Welfare Fund 25 (83,133) (76,694)
(83,133) (76,694)
Profit before taxation 4,156,511 3,834,686
Taxation 22 (857,599) (96,238)
Net Profit for the period 3,298,912 3,738,448

Earning per certificate - basic and diluted 26 0.07 0.08

The annexed notes from 1 to 30 form an integral part of these special purpose financial statements

For Awwal Modaraba Management Limited

(Modaraba Management Company)

Chief Financial Officer Chief Executive Officer Director Director

KASB MODARABA

Quarter ended Quarter ended

September 30, September 30,
2022 2021
Note -------------- Rupees------------

Net Profit for the period 3,298,912 3,738,448

Other comprehensive income for the period - -

Items that will be subsequently reclassified to profit and loss account

Unrealized loss on remeasurement of sukuk certificates - (13,200)
Total comprehensive income for the period 3,298,912 3,725,248

The annexed notes from 1 to 30 form an integral part of these special purpose financial statements

For Awwal Modaraba Management Limited

(Modaraba Management Company)

Chief Financial Officer Chief Executive Officer Director Director

KASB MODARABA

Quarter ended Quarter ended

September 30, September 30,
2022 2021
Note -------------- Rupees------------
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 4,156,511 3,834,686
Adjustments for non-cash charges and other items:
Depreciation for the period - own asset - 9,725
Depreciation for the period - ijarah 1,390,440 -
Unrealized gain /(loss) on investment - at FVTPL (73,941) 566,993
Gain on sale of fixed assets - (47,459)
Gain on sale of investments - (2,704,301)
Financial charges - 1,322,443
Provision for worker's welfare fund 83,133 -
Provision against gratuity 85,416 85,416
5,641,557 3,067,503
Decrease / (increase) in assets
Diminishing musharaka finance 17,328,964 (15,263,142)
Ijarah rentals receivable (683,245) -
Advances, prepayments and other receivables (8,768,245) (957,651)
7,877,474 (16,220,793)
Increase / (decrease) in liabilities
Creditors, accrued and other liabilities 4,977,135 (1,309,995)
Ijarah deposit 10,000,000 -
14,977,135 (1,309,995)

Financial charges paid - (4,322)

Tax paid (97,394) (307,829)
(97,394) (312,151)
Net cash (used in) / generated from operating activities 28,398,771 (14,775,436)

CASH FLOW FROM INVESTING ACTIVITIES

Sales proceeds from disposal of fixed assets - 141,400
Sale proceeds from investments - 4,307,265
Purchase of ijarah assets 15 (34,305,556) -
Net cash generated from/(used in) investing activities (34,305,556) 4,448,665

Net (decrease)/ increase in cash and cash equivalents (5,906,785) (10,326,771)

Cash and cash equivalents at the beginning of the period 10,336,507 147,114,654
Cash and cash equivalents at the end of the period 6 4,429,722 136,787,884

The annexed notes from 1 to 30 form an integral part of these special purpose financial statements

For Awwal Modaraba Management Limited

(Modaraba Management Company)

Chief Financial Officer Chief Executive Officer Director Director

KASB MODARABA

Discount on
Certificate Statutory Accumulated Certificate
Issuance of
capital reserve losses holder's equity
certificates
--------------------------------------------------- Rupees --------------------------------------------------

Balance as at July 01, 2021 (Audited) 480,664,800 (98,960,400) 89,345,743 (303,005,573) 168,044,570

Net profit for the period - - - 3,738,448 3,738,448

Profit distribution @ Re.0.48 per certificate for the - - - (23,071,910) (23,071,910)

year ended June 30, 2021
Transfer to statutory reserve - - 747,690 (747,690) -

Balance as at September 30, 2021 (un-audited) 480,664,800 (98,960,400) 90,093,433 (323,086,725) 148,711,108

Balance as at July 1, 2022 (Audited) 480,664,800 (98,960,400) 90,578,404 (321,146,841) 151,135,963

Net Profit for the period - - - 3,298,912 3,298,912

Transfer to statutory reserve (20%) - - 659,782 (659,782) -

Balance as at September 30, 2022 (Un-audited) 480,664,800 (98,960,400) 91,238,186 (318,507,712) 154,434,875

The annexed notes from 1 to 30 form an integral part of these special purpose financial statements

For Awwal Modaraba Management Limited

(Modaraba Management Company)

Chief Financial Officer Chief Executive Officer Director Director

KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022
1. LEGAL STATUS AND NATURE OF BUSINESS
KASB Modaraba (the Modaraba) was formed under the Modaraba Companies and Modaraba (Floatation and
Control) Ordinance, 1980 and the rules framed thereunder and was managed by KASB Invest (Private) Limited
(the Management Company) - KIPL, a company incorporated in Pakistan.
The Registrar (Modarabas), with the approval of the Securities & Exchange Commission of Pakistan, vide order
dated April 03, 2019 appointed Administrator for the Modaraba to take over and manage the affair of the
Modaraba in place of KIPL (Management Company). As per terms of the order, all the powers and duties of
the Modaraba Management Company as well as those of its Board of Directors assumed by the Administrator.
The term of the Administrator, for holding the modaraba office, was initially for the period of six months
which was gradually enhanced till February 03, 2020 as directed by the SECP.

The Registrar (Modarabas), with the approval of the Securities & Exchange Commission of Pakistan, vide order
dated January 31, 2020 appointed Awwal Modaraba Management Limited (AMML) to take over and manage
the affair of the Modaraba. AMML has taken over the management and administrative control of KASB
Modaraba effective from February 03, 2020.

The registered office of KASB Modaraba is situated at 3rd floor, Horizon Vista, Plot No. Commercial 10, Block
No. 4, Scheme No. 5, Clifton, Karachi. The Modaraba is a multipurpose perpetual modaraba and is primarily
engaged in ijarah financing, musharaka financing, murabaha financing, modaraba financing, diminishing
musharaka and investing in sukuk bonds, mutual funds and listed securities. The Modaraba is listed on the
Pakistan Stock Exchange.

1.1 The Board of Directors of the Modaraba Management Company in their meeting held on March 11, 2022 have
approved the draft scheme of arrangement for merger of KASB Modaraba with and into First Prudential
Modaraba subject to completion of necessary Corporate/ Regulatory formalities, approvals from the
Stakeholders/ Regulators and the sanction of scheme by the Honorable High Court along with fulfilment of all
legal formalities.

After obtaining NOC from SECP, Petition for merger has been filed in the High Court of Sindh. The
Honorable Court vide order dated July 05, 2022 directed to hold meeting of the certificate holders for approval
of the merger scheme and submit the report thereon. Accordingly, the meeting of the certificate holders
convened on August 12, 2022, wherein the certificate holders have extended the desired approval. The
compliance report on the proceeding of the said meeting has been submitted with the Honorable High Court.

2. STATEMENT OF COMPLIANCE

2.1 These condensed interim financial statements have been prepared in accordance with the requirements of the
International Accounting Standard - 34 “Interim Financial Reporting” the requirements of 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). In case
where requirements differ, the requirements of Modaraba Companies and Modaraba (Floatation and Control)
Ordinance 1980, Modaraba Companies and Modaraba Rules, 1981 or the directives issued by SECP prevail.

2.2 These condensed interim financial statements do not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with the financial statements of the Modaraba for
the year ended June 30, 2022.

2.3 These comparative condensed balance sheet, presented in this condensed interim financial statements, as at June
30, 2022 has been extracted from the annual audited financial statements of the Modaraba for the year ended
June 30, 2022 whereas the comparative condensed interim profit and loss account, condensed interim statement
of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes
in equity for the period ended September 30, 2021 have been extracted from the condensed interim financial
statements for the period ended September 30, 2021.
KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022
3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these condensed interim financial statements are the same
as those applied in preparation of annual statements of the Modaraba for the year ended June 30, 2022.

4 ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of the condensed interim financial statements in conformity with approved accounting
standards require management to make estimates, assumptions and use judgments that affect the application of
policies and reported amounts of assets and liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including
reasonable expectations of future events. Revisions to accounting estimates are recognized prospectively
commencing from the period of revision.

In preparing the condensed interim financial statements, the significant judgments made by management in
applying the Modaraba’s accounting policies and the key sources of estimation uncertainty were the same as
those that applied to the preceding published annual financial statements of the Modaraba as at and for the year
ended June 30, 2022.

5. BASIS OF PREPARATION

These condensed interim financial statements have been prepared under the historicl cost convention, except as
stated otherwise in these financial statements.
KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022

6. CASH AND BANK BALANCES Note ---------- Rupees ----------

Cash at bank in :
Current accounts 3,593,479 3,593,479
Saving accounts 6.1 835,906 6,743,028
4,429,385 10,336,507
Cash in hand 337 -
4,429,722 10,336,507

6.1 Effective profit rates on these accounts range between 3.75% and 12% (June 30, 2022: 3.74% and 12%) per annum.

7. SHORT TERM INVESTMENT Note ---------- Rupees ----------

Fair value through profit or loss (FVTPL) - quoted securities 7.1 4,514,043 4,440,102
4,514,043 4,440,102

7.1 Fair value through profit or loss (FVTPL) - quoted securities

Number of fully paid ordinary

shares of Rs.10 each.

Automobile Parts & Accessories

16,468 16,468 Thal Limited 4,514,043 4,440,102

16,468 16,468 4,514,043 4,440,102

KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022

Note
8. MODARABA FINANCE
Modaraba Finance 37,791,201 37,791,201
Less: provision for non-performing Modaraba arrangements 8.1 (37,791,201) (37,791,201)
- -

8.1 The Modaraba had provided funds under modaraba arrangements on profit and loss sharing basis to various entities outstanding
since long. Based on the guidelines of the Modaraba Regulations 2021, receivables against these finances have been fully provided.

Note

9. MUSHARAKA FINANCE
Musharaka finance 14,702,297 14,702,297
Less: provision for non-performing musharaka arrangement 9.1 (14,702,297) (14,702,297)
- -
9.1 This represents waiver given to a client Z.H. Piprani & Co. under settlement agreement dated December 24, 2016.

Note
10. MURABAHA FINANCE
Murabaha finance 97,053,365 97,784,311
Less: provision for non-performing murabaha arrangements 10.1 (97,053,365) (97,784,311)
- -
10.1 Movement of provision
Opening balance 97,193,365 97,784,311
Reversal of provision during the year (140,000) (590,946)
Write-off of during the year - -
Closing balance 97,053,365 97,193,365

The Modaraba had provided funds under morabaha arrangements on profit and loss sharing basis to various entities outstanding
since long. Based on the guidelines of the Modaraba Regulations 2021, receivables against these finances have been fully provided.

Note

11. DIMINISHING MUSHARKA FINANCE

Diminishing musharaka finance - considered good 11.1 201,236,920 222,409,691
Diminishing musharaka finance - doubtful 666,134 666,134
Unearned Income (46,206,454) (50,050,261)
155,696,600 173,025,564
Less: provision for non-performing diminishing musharaka (666,134) (666,134)
155,030,466 172,359,430
Diminishing musharaka due after one year (102,501,485) (119,236,835)
Current portion of diminishing musharaka 52,528,981 53,122,595
KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022

11.1 The profit rates on these diminishing musharaka arrangements range between 11.66% and 19.00% (June 2022: 11.66% and
19.00%). All diminishing musharaka arrangements are secured against hypothecation of assets, personal guarantees and promissory
notes.

12. RECEIVABLE AGAINST SALE OF AGRICULTURE

During financial year 2016 KASB Modaraba (KASBM) & First Prudential Modaraba (FPrM) entered into a joint project for
crushing of banola seed and sale of oil cake (Khal) in the market. M/s Pakistan Phutti International Limited (PPIL) was engaged as
seller & service provider responsible for sale of agriculture produce. Subsequently, natural cyclical shortage in productivity of
cotton crop affected the availability of the banola seed and therefore the project was prudently discontinued by the Management
Company to safeguard the interest of the Modaraba. As per settlement agreement dated April 27, 2016, with PPIL advance for
purchase of banola seed was converted into ijarah finance (secured) leaving a balance of Rs. 18.20 million receivable against sale of
agirculture produce. Receivable amount is secured against Registered Mortgage on Property of service provider. After continuous
default of payment the Management Company of Modaraba has filed recovery suits in the Banking Courts which is pending
adjudication. The Management Company and the legal counsel are optimistic on favourable outcome of the case. The details of
receivables are as under:

Description KASBM FPRM Total

Initial Investment 51,000,000 81,000,000 132,000,000
Add: Gain on sale of Agriculture Produce 1,060,000 1,590,000 2,650,000
Less: Receipt against sale of agriculture produce (14,353,590) (14,473,432) (28,827,022)
Less: converted to Ijarah Financing (19,311,320) (40,000,000) (59,311,320)
Less: Consultancy Charges (194,950) (305,050) (500,000)
18,200,140 27,811,518 46,011,658
Provision for doubtful receivable against sale of
(18,200,140) (27,811,518) (46,011,658)
agriculture produce
- - -

---------- Rupees ----------

13. IJARAH RENTALS RECEIVABLE

Ijarah rental receivable 24,940,885 24,257,640

Less: provision for doubtful receivable (23,890,164) (23,890,164)
1,050,721 367,476

14. ADVANCES, PREPAYMENTS AND OTHER RECEIVABLES

Advances to other employees - unsecured 387,365 433,385

Advances for purchase of assets- considered good 6,999,000 -
Prepayments 224,650 365,240
Short term security deposits 223,300 223,300
Advance tax 5,110,640 5,013,246
Accrued profit on bank deposit 530,170 240,526
Receivable from associated entities-considered good 5,093,482 3,390,973
Others 285,702 321,997
18,854,310 9,988,668
KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022

---------- Rupees ----------

15. IJARAH ASSETS

Plant and machinery 37,885,456 3,579,900

Vehicles 30,827,600 32,218,040
15.1 68,713,056 35,797,940

15.1 Assets held under Ijarah arrangement

Plant and
Description Vehicle Total
machinery
------------------- Rupees -------------------
For the period ended Sep 30, 2022

Opening - NBV * 32,218,040 3,579,900 * 35,797,940

Addition / deletion - 35,000,000 35,000,000
Depreciation charge (1,390,440) (694,444) (2,084,884)
Closing - NBV 30,827,600 37,885,456 68,713,056

Cost 32,218,040 68,848,819 101,066,859

Accumulated depreciation and impairment (1,390,440) (30,963,363) (32,353,803)
Closing - NBV 30,827,600 37,885,456 68,713,056

Year ended June 30, 2021

Net carrying value basis
Opening - NBV - 3,579,900 3,579,900
Addition / deletion 34,693,000 34,693,000
Depreciation charge (2,474,960) - (2,474,960)
Closing - NBV 32,218,040 3,579,900 35,797,940
Gross carrying value basis
Cost 34,693,000 33,848,819 68,541,819
Accumulated depreciation and impairment (2,474,960) (30,268,919) (32,743,879)
Closing NBV 32,218,040 3,579,900 * 35,797,940
Depreciation rate % per annum 20 to 66 14 to 33

* This amount is the residual value of the asset hence remained undepreciated.
KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022

Note ---------- Rupees ----------

17 REDEEMABLE CAPITAL - PARTICIPATORY AND UNSECURED

Certificate of musharaka 1,315,000 1,315,000
17.1 This represents matured and unclaimed amount against certificate of musharaka.

18 SHORT TERM FINANCE 18.1 50,000,000 50,000,000

18.1 The Modaraba has availed finance facility of Rs. 50 million under Wakala Agreement dated December 30, 2021 from Pak Brunei
Investment Company Ltd (PBIC). As per terms of the agreement, PBIC acts as Muwakkil (the principal) and Modaraba is the
Wakil (the agent) to execute the Shariah Compliant transactions through and as a part of the Wakil’s pool of assets for deployment
of funds under the extended facility.

The facility shall be matured on December 31, 2022 and may thereafter be extended by a further period or periods of one year
each if approved by both parties. Return to the Muwakkil on investment is expected at 3 Month KIBOR+2% per annum.

The facility is secured by way of First Hypothecation charge on all present and future assets of the Modaraba equivalent to PKR.
66, 666,667/- with 25% margin.

Note ---------- Rupees ----------

19. CREDITORS, ACCRUED AND OTHER LIABILITIES

Management Company's remuneration 19.1. 1,257,265 1,257,265
SWWF Payable 25 1,741,762 1,658,629
Sundry creditors 5,632,673 5,632,673
Receipts for premature termination 5,124,683 -
Payable to associated entities 1,238,271 980,810
Accrued expenses 1,194,734 1,159,674
Charity payable 19.2. 232,763 232,474
Insurance premium received in advance 923,167 923,167
Other liabilities 469,013 909,371
17,814,331 12,754,063
19.1 The Sindh Revenue Board (SRB) has imposed Sindh Sales Tax (SST) on the Modaraba Management Company's remuneration
with effect from November 01, 2011. However, certain modaraba management companies have approached the Honourable
Sindh High Court (the Court) and Appellate Tribunal of SRB, challenging the levy of SST on management company's
remuneration. The Modaraba Management Company has not received any demand notice from SRB for payment of SST on
Management Company's remuneration and accordingly, based on legal advisor's opinion obtained by one of the Modaraba under
common management can neither file any petition challenging the levy of SST on Management Company's remuneration nor can
join the proceedings of pending petition in the Court. As a matter of abundant caution the management is accruing SST on
Management Company's remuneration and will discharge the liability on direction of the Court based on outcome of the petition
filed by other modaraba management companies.

Note ---------- Rupees ----------

19.2 Movement of charity payable

Opening balance 232,474 1,483,194

Add: Amount credited during the year 289 262,474
232,763 1,745,668
Less: Amount paid during the year - (1,513,194)
232,763 232,474
KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022

27. TRANSACTIONS AND BALANCE WITH RELATED PARTIES

The related parties of the Modaraba comprise of the Management Company and its Holding Company, Modarabas under
common management (Awwal Modaraba, First Prudential Modaraba and First Pak Modaraba) other associated companies,
staff retirement funds, Directors and Key Management Personnel. Transactions with related parties are carried out at agreed
rates.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the Company. The Modaraba considers its Chief Financial Officer and Business Heads to be its key management
personnel. There are no transactions with key management personnel other than their terms of employment / entitlement.
Details of certificate holding of Holding Company, Management Company, Directors, Key Management Personnel and their
family members are disclosed in pattern of certificate holding included in the annual report of the Modaraba.
Transactions and balances with related parties during the year other than those disclosed elsewhere in the financial statements
are given below.

Relationship with Modaraba Nature of Transactions

Balances
g withprelated
y parties g
Company
Management Company
Pak Brunei Investment Company Limited
Short term finance (50,000,000) (50,000,000)
Accrued shared service cost (224,766) (242,936)
Modaraba Management Company
Awwal Modaraba Management Management Company's remuneration (1,257,265) (1,257,265)
Limited
Modarabas under common
management
Awwal Modaraba
Receivable / Payable against sharing of common 141,569 (16,415)
expenses
First Prudential Modaraba Receivable against sharing of common expenses 1,387,241 972,680

First Pak Modaraba Receivable against sharing of common expenses

207,279 138,186

Expense / (income) for the period Nature of Transactions

Holding Company of the

Management Company
Pak Brunei Investment Return on modaraba term deposit - (472,685)
Company Limited Return on musharaka finance - (1,318,121)
Return on short term finance 2,114,741 -
Shared services cost 728,808 728,808

Modarabas under common management

Awwal Modaraba Staff cost of deputed employee - 1,363,478
Reimbursement of expenses (125,154) (243,049)
First Prudential Modaraba Reimbursement of expenses (414,561) (276,561)
First Pak Modaraba Reimbursement of expenses (69,093) (69,093)
KASB MODARABA
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2022

Payments / (Receipts) made during the period

Holding Company of the

Management Company
Pak Brunei Investment
Company Limited

Return on short term finance 2,114,741 -

Modaraba term deposit - -
Return on modaraba term deposit - (477,938)
Shared service cost 746,978 728,808

Modarabas under common management

Awwal Modaraba Staff cost of deputed employee - 659,542

Sharing of common expenses - 64,095
First Prudential Modaraba Sharing of common expenses - (386,792)
First Pak Modaraba Sharing of common expenses - (184,286)

28. CORRESPONDING FIGURES

Corresponding figures have been rearranged and reclassified, wherever necessary for the purposes of comparison and better
presentation. However, no significant rearrangements or reclassification have been made in these financial statements during
the year.

29. GENERAL
Figures in these financial statements have been rounded off to the nearest Rupee.

30. DATE OF AUTHORISATION

These financial statements have been authorized for issue on __________________ by the Board of Directors of Awwal
Modaraba Management Limited.
For Awwal Modaraba Management Limited
(Modaraba Management Company)

Chief Financial Officer Chief Executive Officer Director Director

 KASB
MODARABA

QUARTERLY
KASB MODARABA REPORT
3rd Floor, Horizon Vista, Plot No:
Commercial 10, Block-4, Clifton, SEPTEMBER 30,
Karachi
Phone : 021- 35374273-74, 2022
Fax: 021-35374275