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Lahore, At its meeting on June 24, 2024, the Board of Directors of the Management Company approved the annual audited accounts of First Punjab Modaraba for the year ended December 31, 2023. The board did not approve any cash dividends or bonus issues for the period.
The financial statements revealed a challenging year for First Punjab Modaraba, with a significant increase in operating losses and expenses compared to the previous year. The total income for 2023 was Rs. 331,319,350, slightly higher than the income of Rs. 211,508,224 reported in 2022. This was due primarily to a substantial rise in income from diminishing musharikah financing, which more than doubled from the previous year.
However, the expenses for the year climbed steeply to Rs. 438,383,096, mainly due to a surge in finance costs, which jumped from Rs. 220,686,764 in 2022 to Rs. 358,390,896 in 2023. The operating loss before reversal of provisions stood at Rs. 107,063,746, worsening from the previous year’s loss of Rs. 78,774,669.
After accounting for provisions and reversals, the operating loss deepened to Rs. 153,305,002. The total comprehensive loss for the year was recorded at Rs. 109,354,521, with a loss per certificate of Rs. 3.28, compared to Rs. 2.57 in 2022.
According to information available from the Pakistan Stock Exchange (PSX), the annual review meeting of the Modaraba is scheduled to be held on July 19, 2024, via video link or other electronic means, pending approval from the PSX. The annual report will be transmitted through PUCARS at least 21 days before the meeting.
This financial snapshot underscores a tough year for First Punjab Modaraba, marked by increased costs and a downturn in net results, challenging the management’s strategies in the upcoming fiscal period.