Corporate Briefing session

FIRST EQUITY MODARABA

Managed by :

PREMIER FINANCIAL SERVICES (PVT) LTD

MISSION AND VISION

First Equity Modarabais committed to strive for excellence

in all areas of its activities.We view our business objective

of providing distinctive financial productsand services that promote commerce and industry

within the context of our overall objectiveof contributing of the nation’s prosperity

B-1004, 10th Floor Lakson Square Building # 3

Sarwar Shaheed Road Karachi

Room No 503-504, 5Th Floor Karachi Stock Exchange

Building I. I. Chundrigar RoadKarachi

Tel : 021-35672815-18 Tel : 021-32446020-3

Fax : 021-35686116 Fax : 021-32446024

e-mail : info@firstequitymodraba.com.pk

CORPORATE INFORMATIONModaraba Company

Premier Financial Services (Pvt) Ltd

Board of DirectorsMr Qaiser Ahmed Magoon – Independent Director

Mr Zahid Bashir – Non Executive Director

Mr Nadeem Maqbool – Non Executive Director

Mr Adil A Ghaffar – Chief Executive Officer & Director

Registered and Business address

Web Site - www.firstequitymodaraba.com.pk

Key Management personals

Adil A Ghaffar - Chief Executive Officer

Qazi Obaid Ullah - Company Secretary &

Chief Financial Officer

Mr Sultan Nayani - Compliance Officer

Mr Haris Ali - Chief Internal Auditor

Mr Sheraz Lakhani - Equity Trader

Mr Sabir Ansari - Brokerage Back Office Incharge

SHARIAH ADVISOR Mufti Abdul Qadir

AuditorsBakerTelly Mehmood Idres Qamar

Chartered Accountants

RegistrarTHK Associates (Pvt.) Ltd.

General CounselMoshin M. Tayebaly & Co.

LEGAL STATUS AND NATURE OF BUSINESS

First Equity Modaraba (FEM) was formed in 1991 under the Modaraba Companies and Modaraba(Floatation and Control) Ordinance, 1980 and the Rules framed there under.

FEM is managed by Premier Financial Services (Private) Limited (PFSL) (the ModarabaManagement Company) a company incorporated in Pakistan and registered with the RegistrarModaraba, SECP under the Modaraba Ordinance.

PFSL derives its board from the Crescent Group, with direct involvement in more than twentybusiness sectors. This cross-sectoral expertise, enhanced by other linkages, is an invaluable basefor informed decision making. FEM's professional management draws on this unique resource tomake optimal use of its charter.

The FEM is a perpetual, multipurpose modaraba and is able to undertake a variety of fund and feebased activities. These include trading, manufacturing, equity investment, brokerage, agent andtheir financing and facilitation.

The FEM is listed on Pakistan Stock Exchange Ltd

LEGAL STATUS AND NATURE OF BUSINESS

The FEM is holding Trading Right Entitlement Certificates holder (TREC) of the Pakistan Stock

Exchanges Ltd and since 2002 operating its brokerage activities in Karachi and is registered with

SECP under Securities Brokers (Licensing and Operations) Regulations, 2016.

FEM also hold membership of Pakistan Mercantile Exchange Limited formally National

Commodity Exchange Limited.

The FEM wholly owned subsidiary companies are (1) Equity Textiles Limited (a spinning unit with

more than 25,000 spindle located at Nooriabad, Karachi), (2) Capital Financial Services (Private)

Limited (Brokerage House) and (3) Apex Financial Services (Private) Limited (Brokerage House)

FEM initial paid-up capital fund was Rs. 200 have increased to Rs 524 million by stock dividends of

Rs 62 million and issuance of Right certificate of Rs 262 million. The Modaraba has so far

distributed Rs. 62 million in stock dividends and Rs. 518 million in cash dividends.

BUSINESS INFORMATION

Finance /Participation Working capital transactions under

Morabaha, musharaka, term and lease and other Shariah base finance and facilitation

Corporate Brokerage Capital market transactions for

corporate as well as individual clients through stock exchange

Corporate Finance Capital and transaction structuring,

acquisition, privatization, divestitures,underwriting, placement, arrangement

Portfolio Management Equity, non-equity

LIST OF ASSOCIATED AND GROUP COMPANIES

1. Ahsan Associates (Pvt)Ltd.

2. Altern Energy Limited

3. Amin Bashir C.G.P.F & Oil Mills Ltd.

4. Apex Financial Services (Pvt) Limited

5. Capital Financial Services (Pvt) Limited

6. Crescent Bahuman Limited

7. Crescent Cotton Mills Ltd.

8. Crescent Fibres Limited

9. Crescent Powertec Ltd.

10.Crescent Steel & Allied Products Limited

11. Equity Textiles Limite0d

12. Mohammad Amin Mohammad Bashir Inter (Pvt) Ltd.

13 Mohammad Amin Mohammad Bashir Limited

14 Premier Financial Services (Pvt) Limited

15 Premier Insurance Ltd

16 Shakarganj Food Products Limited

17 Shakarganj Limited

18 Shams Textile Mills Limited

19 Suraj Cotton Mills Limited.

20 The Crescent Textile Mills Limited

MAJOR ACHIEVEMENTS AND AWARDS

Listed 16th in the top 25 best companies of Karachi Stock Exchange for the year 2004

Declared second best Modaraba in the sector 2003 and best Modaraba in 2004

PATTERN OF CERTIFICATE HOLDINGAs On June 30, 2019

Particulars No of Folio Balance Share Percentage

DIRECTORS, CEO & CHILDREN 7 671,778 1.281

ASSOCIATED COMPANIES 12 11,835,055 22.569

NIT & ICP 2 1,700 0.003

BANKS, DFI & NBFI 6 116,487 0.222

INSURANCE COMPANIES 4 1,323,409 2.524

MODARABAS & MUTUAL FUNDS 5 364,600 0.695

GENERAL PUBLIC (LOCAL) 3831 30,551,182 58.259

GENERAL PUBLIC(FOREIGN) 1158 1,134,397 2.163

OTHERS 41 6,441,392 12.284

Total 5,066 52,440,000 100.000

FREE FLOAT REPORT

FINANCIAL RESULTS June 30 2019

The (loss) for the year amounted to Rs. (3.304) million as compared to Rs (4.19) million

for the last year translated in a loss per certificate of Rs. (0.06) as compared to Rs. (4.19)

last year. Break-up value per certificate amounted to Rs. 11.33 against Rs. 11.71 last year.

Rupees

Income 18,206,510

ExpensesOperatingExpenses (23,103,654)

Bank Charges (13,724)

(23,117,378)

Operating profit (4,910,868)

Other Income 1,607,096Loss for the year (3,303,772

Earning per Certificate (0.08)

Dividend Distribution

Since the Modaraba sustained

loss during the year,

consequently there would be no

announcement of profit

distribution.

Auditors Qualification

Auditors qualified their opinion based on non-compliance of international accounting

standards relating to adjusting cost to fair value of marketable securities and any profit /

loss should be taken / charge to profit and loss account for the year amounting to Rs 16.8

million (2018: RS 6.40 million).

Our principal stand for not accepting auditors’ qualification was based on the fact that,

firstly, we do not foresee that these impairments are of permanent nature. Secondly, our

Industry was established on the concept to distribute what it earns on yearly basis. Our

regulators made it mandatory that to claim income tax exemption modarabas have to

distribute 90% of profit for the year in the form of cash dividend to certificate holders.

Therefore, adjusting cost to fair value would tantamount to distribution of either unrealized

capital gain or recovery of cost.

FINANCIAL RESULTS December 31 2019

Quarter ended Half year ended

December 31, December 31, December 31, December 31,2019 2018 2019 2018

Rupees Rupees Rupees Rupees

Income 5,265,306 3,322,913 9,657,845 8,836,599 ExpenditureOperating expenses (5,303,493) (3,975,995) (9,434,705) (9,368,671)Financial charges (447) (4,725) (752) (9,556)

(5,303,940) (3,980,720) (9,435,457) (9,378,227)Operating profit / (loss) (38,634) (657,807) 222,388 (541,628)

Other income 10,525 14,164 26,907 26,674

Profit/(loss) before income tax (28,109) (643,643) 249,295 (514,954)

Income tax expense - - - -

Profit / (loss) for the period (28,109) (643,643) 249,295 (514,954)

Earnings / (loss) per certificate (0.001) (0.012) 0.005 (0.010)

Five Year Data

2015 2016 2017 2018 2019

Total Assets 685,603,409 664,444,267 751,138,926 659,895,078 636,455,835

Total Liabilities 54,849,236 38,719,902 94,454,885 45,970,193 42,146,136

Certificate Holders'

Equity

630,754,173 625,724,365 656,684,041 613,924,885 594,309,699

Net Profit After Tax 11,398,836 9,092,541 42,513,195 (4,192,848) (3,303,772)

Earning Per Certificate 0.217 0.173 0.811 (0.08) (0.06)

Total Cash Distribution 8,914,800 6,817,200 31,464,000 - -

Distribution Per

Certificate

0.17

1.70%

0.13

1.30%

0.60

6.00%

- -

Break up value 12.03 11.93 12.52 11.71 11.33

FUTURE PLANNING AND STRATEGIES

Keeping in view of present economic and business circumstances, we have devised our future

business strategy, Outlook & future strategy cautiously and more prudent manner.

Key points of our strategy would be as follows:

• Prudently entering into Mushsrakah Investment agreements with reliable and trustworthy

parties having sound business expertise.

• Restraining and carefully in the capital market transactions. Vigilance on market uncertainty

• Enhancing the performance of brokerage house by taking advantage of new proposed

regime

• Effectively increase the production level of Equity Textile Limited.

• Implementing the risk management, appraisals & evaluation of credit proposals.

• Further strengthen risk assessment and internal controls parameters.

• Further strengthen compliance culture particularly regulatory and AML/CFT compliances.