First Al-Noor Modaraba (FAM) was incorporated in the province of Sindh. It was listed at Karachi Stock Exchange in 1992. On 14th October, 2004, the price of the 10-rupee certificate's closing quotation was recorded at Rs 8.95.
During last month in September 2004, the price of FAM certificates ranged between Rs 7.95 and Rs 8.90 per certificate at the turnover of 238 thousand certificates. During the last one year the highest price of the FAM certificate touched Rs 9.45 coming very close to the par value.
Despite rising trend in the stock market index, the certificate price of most of the members of Modaraba Sector remained much below par value.
In this case it appears that there was modest transaction in the scrip which is evident from the September 2004 transactions. One of the reasons for turnover in the certificate is FAM's regular payout of dividend.
During the last two years the annual payout rate was @10% which is more attractive payout than mark-upon bank deposits or profit on fixed income securities.
Considering the last year's average certificate price of Rs 7.75 (based on high/low price of the year at 9.45/5.50).
The 10% payout infact works out to even higher yield of Rs 1.29 per certificate instead of Rs 1 per certificate.
The other significant point about/investment in such Modaraba Certificate is that the certification carries low investment amount which is accessible to small investors and also those who prefer Sharia based investment.
During the nine months under review Al-Noor Modaraba gross revenue at Rs 38.79 million exceeded the figure of Rs 32.37 million in the same period last year (SPLY).
The highest profit centre was Musharika Investments which generated Rs 17.64 million as against Rs 16.29 million posted in the (SPLY). This works out to 45.5% of the Gross Revenue.
On the scale of income, lease rental income comes second and income on other investments comes third. In terms of asset, the Musharika investment amounted to Rs 202.59 million on March 31, 2004, the closing date of the Q3 2004 Balance Sheet.
This works out to 63% of total assets. Theoretically this business segment needs to be improved further in terms of profitability. But one has to compromise with the market to remain competitive.
However FAM made significant improvement in net profit which amounted to Rs 23.21 million (SPLY: Rs 18.81 million).
======================================================
Performance Statistics (Million Rupees)
======================================================
Balance sheet -As At-
======================================================
March 31 June 30
2004 2003
======================================================
Certificate Capital-Paid-up: 210.00 210.00
Reserves & Profit: 67.29 42.90
Certificate Holders Equity: 277.29 252.90
Deferred Liability: 0.67 0.55
L.T. Security Deposits: 4.58 2.83
Current Liabilities: 38.16 40.00
Fixed Assets: 32.52 21.82
Investment Listed Securities: 25.40 3.72
Current Assets: 262.78 270.74
Total Assets: 320.70 296.28
------------------------------------------------------
Profit & Loss A/c For
The Nine Months Ended March 31 2004 2003
------------------------------------------------------
Profit From Trading Operations: 1.80 2.59
Income on Musharika Investments: 17.64 16.29
Income on Morabaha Investments: 2.17 0.87
Income on Other Investments: 6.34 1.69
Lease Rental Income: 8.82 8.48
Other Income: 1.52 2.27
Unrealized (Loss)/Gain: 0.50 0.18
Gross Revenue: 38.79 32.37
Total (Expenditure): (12.80) (11.37)
Modaraba Company's Management Fee: (2.60) (2.10)
Profit Before Taxation: 23.39 18.90
Profit After Taxation: 23.21 18.81
Earnings Per Certificate (Rs): 1.11 0.90
Certificate Price (Rs): 8.95 -
Price/Earning Ratio: 1.14 -
Book Value Per Share (Rs): 13.20 12.0
Current Ratio: 6.89 6.78
Net Profit/Total Income (%): 59.83 48.49
R.O.A. (%): 10.04 6.35
======================================================
COMPANY INFORMATION: Modaraba Company: Al-Noor Modaraba Management (Pvt) Ltd; Chief Executive: Azam Sakrani; Directors: Names Not Reported; Company Secretary: Name Not Reported; Registered Office: Address Not Reported; Web Address: Not Reported.
Comments
Comments are closed.