Equity Modaraba First : Transmision of Quarterly Account December 31 2022

FIRST EQUITY MODARABA

Half Yearly and Six Months

For the period ended

December 31, 2022

Managed by

PREMIER FINANCIAL SERVICES (PVT) LTD

Page 1

FIRST EQUITY MODARABA

CORPORATE INFORMATION

Modaraba Company : Premier Financial Services (Pvt) Ltd

Board of Directors

Mr Nadeem Maqbool	Mr Qaiser Ahmed Magoon
Ms Alizeh Bashir	Mr Adil A Ghaffar - Chief Executive Officer
Audit Committee	Hunam Resourse Committee
Mr Qaiser Ahmed Magoon	Mr Qaiser Ahmed Magoon
Ms Alizeh Bashir	Mr Nadeem Maqbool
Mr Nadeem Maqbool	Mr Adil A Ghaffar

Registerd and Business address

B-1004 Lakson Square Building # 3	Room No 503-504
Sarwar Shaheed Road	Karachi Stock Exchange Building
Karachi	Karachi
Tel : [phone]	Tel : [phone]
Fax : [phone]	Fax : [phone]
e-mail: [e-mail]
website: firstequitymodaraba.com.pk

Contents

Corporate information	1
Report of the Directors	2
Review Report of Auditors	4
Balance sheet	5
Profit and loss account	6
Statement of comprehensive income	7
Cash flow statement	8
Statement of changes in equity	9
Notes to the financial statements	10
Equity Textile Ltd - Balance Sheet	16
Equity Textile Ltd - Profit and Loss Accounts	17

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FIRST EQUITY MODARABA

DIRECTORS REPORT

The Directors of Premier Financial Services (Private) Ltd, the management company of FIRST EQUITY MODARABA, are pleased to present their report together with the auditors review on the financial statements of the Modaraba for the half year ended December 31, 2022.

Financial Results

Loss for the half year ended December 31, 2022 amounted to Rs (8,901) million as compared to profit Rs 9.75 million for the same period last year. The earning per certificate as at December 31, 2022 stood at Rs (0.170) from Rs 0.121 last December. The break up value per modaraba certificate stands at Rs 10.48

During the period under the review, due to economic uncertainties, such as budget implications, IMF program, rupee parity and hike in interest rates etc.. stock market declined and price of most of the liquid securities took a massive hit. Political instability was also observed through out the period.

We anticipate that once the political and economic indecisiveness is settled, the capital market will again show a bullish trend

Karachi	Adil A Ghaffar
February 27 2023	Chied Executive Officer

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FIRST EQUITY MODARABA

AUDITORS' REPORT TO THE CERTIFICATE HOLDERS ON REVIEW OF

UNCONSOLIDATED INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of First Equity Modaraba ("the Modaraba"), as at December 31, 2022 and the related unconsolidated condensed interim profit and loss account and other comprehensive income, unconsolidated condensed interim statement of changes in equity, unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the six-months period then ended (here-in-after referred to as the "interim financial statements"). The Modaraba Management Company is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these 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 interim financial statement 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

Basis for Qualification

Modaraba has charged unrealised gain of Rs. 1.451 million, in respect of investment classified as financial asset held at fair value through profit and loss, in other comprehensive income instead of profit and loss account as required under IFRS 9.

Had the Modaraba charged the unrealize gain to the profit and loss account, its gain for the period would have been increaded by Rs. 1.451 million.

Conclusion

Based on our review, except for the matter referred in the above paragraph, nothing has come to our attention that causes us to believe that the accompanying interim financial information as at and for the half year ended December 31, 2022 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Other Matters

The figures of the unconsolidated condensed interim statement of profit or loss and unconsolidated condensed interim statement of comprehensive income for the three months period ended December 31 , 2022 and December 31 , 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 review resulting in this independent auditor's report is Mr. Imran Sheikh.

Crowe Hussain Chaudhury & Co.	Karachi
Chartered Accountants	Dated: February 28, 2023