Modarabas: FIRST PUNJAB MODARABA - Nine Months Ended March 31 2004

The Modaraba was incorporated in the province of Punjab with registered office located at 3rd Floor, National Tower, 28 Egerton Road Lahore. It is managed by Punjab Modaraba Services (Pvt) Ltd which is wholly owned subsidiary of The Bank of Punjab.
At present First Punjab Modaraba's 10-rupee certificate is trading at Rs 15.50 carrying 55% premium over the par value. During the last one year the market value of the certificate substantially appreciated from below par value at Rs 7.55 to much above the par value of Rs 18 per certificate.
The directors of the management company rejoice on the upgradation of the Modaraba's credit rating. The credit of the Modaraba has been upgraded from A- (Single A minus) and A2 to A (Single A) and A1 (Single A One) for long-term and short term respectively by Pakistan Credit Rating Agency (PACRA).
According to the management of the Modaraba the period under review continued to be very competitive. They emphasised that even in this business environment the Modaraba performed well. The asset base during the nine months period significantly improved to Rs 925.25 million from Rs 598.76 million registering an increase of 54.53% over the same period last year's (SPLY).
This was mainly due to expansion in the lease portfolio from Rs 221.53 million to Rs 543.21 million making additions in leased assets by 145.21%.
Investments also increased from Rs 57.02 million to Rs 72.01 million. Resultantly the modaraba earned net profit of Rs 39.86 million which is a little short of the SPLY. Even sustaining identical to SPLY profit is commendable in this environment.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                                 March 31      June 30

                                     2004         2003

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Certificate Capital-Paid-up:       340.20       340.20

Reserves & Surplus:                106.20        66.34

Certificate Holders' Equity:       446.40       406.54

Surplus on Revaluation of

Securities:                         14.99            -

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Liabilities

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Musharika Finances:                378.45       104.68

Lease Security Deposits:            60.54        22.60

Accrued & Other Liabilities:        15.59        14.49

Provision For Taxation:              1.75         1.75

Profit Distribution Payable:          -          42.53

Unclaimed Profit Distribution:       7.53         6.17

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Assets

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Cash & Bank Balances:                0.79         0.52

Investments:                        72.01        57.02

Morabaha Finances:                 291.99       308.26

Other Assets:                       17.25        11.43

Fixed Assets:                      543.21       221.53

Total Assets:                      925.25       598.76

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Profit & Loss A/c

 For Nine Months Ended      March 31 2004         2003

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Net Profit From Morabaha Finances:  20.57        28.11

Income From Lease Finance-Net:      26.45        13.67

Appreciation From Value in Investments: 0         1.32

Profit (Expensed) in

 Musharika Finances:                (7.98)      (0.74)

Processing Fee:                      1.08         1.56

Dividend:                            4.09         0.16

Other Income:                        2.81         3.05

Operating (Expenses):               (4.38)      (1.84)

Modaraba Company's

 Management (Fees):                 (4.26)      (4.53)

Profit Before Taxation:             38.38        40.76

Profit After Taxation:              39.86        40.76

Earnings Per Certificate (Rs):       1.17         1.20

Certificate Price (Rs)

 on 01.07.2004:                     15.50            -

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Financial Ratios

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Price/Earning Ratio:                13.25            -

Book Value Per Share (Rs):          13.15        11.95

R.O.E:                               8.92        10.02

R.O.A (%):                           4.30         6.81

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