First Al Noor Modaraba : Transmission of Half Year Accounts for the period ended 2022-12-31

HALF YEARLY REPORT

December 31, 2022

(Un-audited)

FIRST AL-NOOR MODARABA

(An Islamic Financial Institution)

CONTENTS

Company Information	2
Independent Auditor's Report	3
Directors' Report (English)	4
Directors' Report (Urdu)	6
Condensed Interim Balance Sheet	8
Condensed Interim Profit and Loss Account	9
Condensed Interim Statement of Comprehensive Income	10
Condensed Interim Statement of Changes in Equity	11
Condensed Interim Cash Flow Statement	12
Notes to the Condensed Interim Financial Statements	13

FIRST AL - NOOR MODARABA

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HALF YEARLY REPORT 2022-23

COMPANY INFORMATION

BOARD OF DIRECTORS

Non Executive Directors

Chairman

Mr. Zia I. Zakaria

Directors

Mr. Abdul Aziz Ayoob Mr. Noor Zakaria

Mr. Abdul Rahim Suriya, Independent Mr. Tausif llyas, Independent

Dr. Irum Saba, Independent

Executive Directors

Chief Executive

Mr. Zainuddin Aziz

Chief Financial Officer

Mr. Umair Rafiq

Company Secretary

Mr. Roofi Abdul Razzak

Board Audit Committee - Chairman

Mr. Abdul Rahim Suriya	- Chairman
Mr. Tausif llyas	- Member
Mr. Zia I. Zakaria	- Member
HR & Remuneration Committee
Mr. Tausif llyas	- Chairman
Mr. Zainuddin Aziz	- Member
Mr. A. Aziz Ayoob	- Member

Bankers

AI-Baraka Bank (Pakistan) Limited

Askari Bank Limited, Islamic Banking

Faysal Bank Limited, Barkat Islamic Banking

Habib Bank Limited, Islamic Banking

MIB Bank Limited, Islamic Banking

Meezan Bank Limtied

National Bank of Pakistan

Auditors

Grant Thornton Anjum Rahman

Chartered Accountants

Shariah Advisor

Al Hamd Shariah Advisory Services (Pvt.) Ltd.

Legal Advisor

Mr. Sufyan Zaman

Advocate High Court

Share Registrar (Share Registration Office)

M/s FAMCO Associates (Private) Limited

8-F, Near Hotel Faran, Nursery, Block-6

P.E.C.H.S, Shahra-e-Faisal, Karachi

Tel: [phone]

Fax: [phone]

Registered Office

96-A, Sindhi Muslim Cooperative Housing Society, Karachi

Contact Details

Telephone	:	34558268; 34552943; 34553067
Fax	:	34553137
Webpage	:	www.fanm.co
Email	:	[e-mail]

FIRST AL - NOOR MODARABA

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HALF YEARLY REPORT 2022-23

INDEPENDENT AUDITORS' REVIEW REPORT TO THE CERTIFICATE HOLDERS OF

FIRST AL-NOOR MODARABA

Report on review of Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim balance sheet of First Al-Noor Modaraba ("the Modaraba") as at December 31, 2022 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim cash flow statement and notes to the condensed interim financial statements for the six months period then ended (here- in-after referred to as the "condensed interim financial statements"). Management of the Modaraba Company (Al-Noor Modaraba Management (Private) Limited) is responsible for the preparation and presentation of these condensed interim financial statements in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim 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 condensed interim financial statements consists of making inquiries, primarily of persons responsible for 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 condensed interim financial statements is not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matters

The figures of the condensed interim profit and loss account and the condensed interim statement of comprehensive income for the three months period ended December 31, 2022 and 2021 have not been reviewed, as we are required to review only the cumulative figures for the six months period ended December 31, 2022.

The engagement partner on the audit resulting in this independent auditor's review report is Muhammad Khalid Aziz.

sd/- Chartered Accountants

Date: February 22, 2023

Karachi

UDIN: RR202210154QUY1kSCdv

FIRST AL - NOOR MODARABA

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HALF YEARLY REPORT 2022-23

REPORT OF THE DIRECTORS OF MODARABA COMPANY

For the half year ended December 31, 2022

On behalf of Board of Directors of Al-Noor Modaraba Management (Private) Limited, the "mudarib/management company" of First Al-Noor Modaraba (FAM), we are pleased to present the Reviewed Financial Statements of the Modaraba for the half year ended December 31, 2022:

Financial Results	For the half year ended
	December	December
	31, 2022	31, 2021
	-----Amount in Pak. Rupees-----
Profit / (Loss) before Taxation	5,186,337	(3,883,857)
Profit / (Loss) after Taxation	3,053,425	(4,406,567)
Components of Other comprehensive income/surplus	864	638
Accumulated loss brought forward	(52,413,130)	(53,476,994)
	(49,945,602)	(57,882,923)
Earning per certificate - basic and diluted	0.13	(0.19)
		(Restated)

Performance in first half of the FY 2023 remained under pressure due to several issues on the economic front of Pakistan. Indeed, we have achieved gross revenue of Rs. 22.911 million compared to Rs. 14.167 million in corresponding period last year, an increase of 61% whereas the administrative and operational expenses contracted by nearly 9% compared to the same period last year.

Presently, the economy of Pakistan is passing through difficult phase due to internal and external factors. The fiscal deficit widened to 1.5 percent of GDP in the first four months of FY23 while the primary surplus fell to 0.2 percent of GDP. The FBR taxes grew by 17 percent in H1-FY23, slower than the growth envisaged in the budget. The expectation of further slowdown in economic activity and reduction in imports in H2-FY23 poses downside risks to maintaining growth momentum in tax collection. Recently, Monetary Policy Committee (MPC) of State Bank of Pakistan, has decided to increase policy rate by 100 bps to 17%.

These steps also had direct impact on the Pakistan Stock Exchange and it witnessed a drastic slump by over 2.50% in the first half of current financial year and over 9.00% from beginning of calender year 2022.

We expect that keeping in view the present economic situation, businesses may have slow momentum in next few months. Nevertheless, managements' comprehensive move towards commodity trading business, started yielding positive results despite the highlighted economic pressures.

FIRST AL - NOOR MODARABA

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HALF YEARLY REPORT 2022-23