First Al-Noor Modaraba

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ANNUAL REPORT 2025

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(An Islamic Financial Institution)

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FIRST AL-NOOR MODARABA

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Company Information 2
Vision and Mission Statement 3
Vertical Analysis 4
Horizontal Analysis 5
Key Financial Data 6
Chairman's Review (English) 7
Chairman's Review (Urdu) 8
Directors' Report to the Members (English) 9
Directors' Report to the Members (Urdu) 20
Shariah Advisor's Report (English) 21
Shariah Advisor's Report (Urdu) 22
Independent Assurance Report on Compliance with Shariah Governance Regulations 2023 23
Gender Pay Gap Statement 25
Terms of Reference of Audit Committee 26
The Terms of Reference of Human Resource & Remuneration Committee 27
The Terms of Reference of Modaraba Management Committee 27
Statement of Compliance with the Code of Corporate Governance 28
Independent Auditors' Review Report to the Certificate Holders 31
Independent Auditors' Report on the Audit of the Financial Statements 33
Statement of Financial Position 37
Statement of Profit or Loss Account 38
Statement of Comprehensive Income 39
Statement of Changes in Equity 40
Cash Flow Statement 41
Notes to the Financial Statements 42
Pattern of Certificate Holding 77
Notice of Annual Review Meeting (English) 79
Notice of Annual Review Meeting (Urdu) 83
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ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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BOARD OF DIRECTORS

Non Executive Directors

Chairman

Mr. Zia Zakaria

Directors

Mr. Noor Muhammad Zakaria Mr. Asad Ahmed Mohiuddin Mr. Tausif Ilyas Barrister Naheed Shiraz Merchant Mr. Kausar Ali Fecto

Executive Directors

Bankers

AI-Baraka Bank (Pakistan) Limited Askari Bank Limited, Islamic Banking Faysal Bank Limited, Barkat Islamic Banking Habib Bank Limited, Islamic Banking MIB Bank Limited, Islamic Banking Meezan Bank Limtied National Bank of Pakistan United Bank Limited - Islamic Banking NRSP Microfinance Bank Limited

Auditors

Russell Bedford Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants

Chief Executive

Mr. Zainuddin Aziz

Shariah Advisor

Al Hamd Shariah Advisory Services (Pvt.) Ltd.

Chief Financial Officer

Mr. Umair Rafiq

Company Secretary

Legal Advisor

Mr. Sufyan Zaman Advocate High Court

Mr. Roofi Abdul Razzak

Share Registrar (Share Registration Office)

Board Audit Committee - Chairman

Board Audit Committee - Chairman
Mr. Noor Muhammad Zakaria Mr. Zia Zakaria Mr. Asad Zakaria HR & Remuneration Committee	- Chairman - Member - Member
Mr. Tausif Ilyas Mr. Zainuddin Aziz Mr. Noor Muhammad Zakaria Modaraba Management Committee	- Chairman - Member - Member
Mr. Zainuddin Aziz	- Chairman
Mr. Zia Zakaria	- Member
Barrister Naheed Shiraz Merchant	- Member
Mr. Asad Ahmed Mohiuddin	- Member

M/s FAMCO Associates (Private) Limited 8-F, Near Hotel Faran, Nursery, Block-6 P.E.C.H.S, Shahra-e-Faisal, Karachi Tel: +92 21 3438 0103-5, 3438 4621-3 Fax: 3438 0106

Registered Office

96-A, Sindhi Muslim Cooperative Housing Society, Karachi

Contact Details

Telephone Fax	: :	34558268; 34552943; 34553067 34553137
Webpage	:	www.fanm.co
Email	:	[email protected]

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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OUR VISION

To become sustainable, growth oriented and efficient Modaraba, and to offer vide range of product and services catering to the need of the customers.

The Modaraba management should consider the interest of all the stake holders before making any business decision and to do that they should do concrete efforts to achieve their objectives.

OUR MISSION

To inculcate the most efficient, ethical and time tested business practices in our management.
To uphold our reputation for acting with responsibility and integrity, respecting the laws and regulations, traditions and cultures of the country within which we operate.
To accomplish excellent results through increased earnings which can benefit all the stakeholders.
To work as a team and put the interest of the Modaraba before that of the individuals.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

VERTICAL ANALYSIS

VERTICAL ANALYSIS
BALANCE SHEET ITEMS (in %age)
ASSETS	2025	2024	2023	2022	2021	2020	2019
NON-CURRENT ASSETS
Fixed Assets - tangible
Long term deposits	1.40	1.43	1.45	1.42	1.42	1.43	1.33
Long Term Portion of diminshing musharakah ( syndicate) 0.05		0.40	2.64	13.29	27.82	14.39	14.82
Long Term Investments	5.67	13.49	18.36	6.81	7.52	10.28	10.69
Ijarah Assets	-	-	-	-	0.37	2.30	15.07
Fixed Assets in own use	0.46	0.40	0.65	0.81	0.98	1.35	1.59
Deferred tax asset	0.72	0.38	0.48	1.24	-	-	-
Intangible assets (owned)	0.05	-	-	-	-	-	-
CURRENT ASSETS
Cash & Bank Balances	48.69	34.45	8.73	35.24	21.75	3.41	11.71
Short Term investments	15.40	14.42	10.74	19.55	10.80	45.22	4.18
Musawamah receivables - secured	-	-	-	-	-	-	-
Ijarah rental receivable	-	-	-	-	0.03	0.22	0.61
Receivable from diminishing musharka	-	0.28	0.40	0.61	0.80	-	-
Trade debts	-	-	-	-	-		1.28
Stock in trade	24.82	29.23	41.99	-	-	-	18.68
Advances, Deposits, Prepayments & Other Receivables	2.13	2.11	1.14	1.15	8.97	3.48	5.94
Current portion of investment in Sukuk Certificates	-	-	-	-	0.13	0.27	0.25
Current portion of investment in diminishing musharakah	0.44	2.32	11.60	18.61	17.22	15.28	11.80
Income tax refundable/paid in advance	-	0.26	1.33	1.00	1.89	2.15	1.63
Profit Receivable	0.17	0.84	0.49	0.34	0.29	0.24	0.39
TOTAL ASSETS	100.00	100.00	100.00	100.08	100.00	100.00	100.00
EQUITY & LIABILITIES
CAPITAL & RESERVES
Issued, subscribed and paid up capital	84.27	85.84	87.08	77.88	77.41	77.98	72.67
Reserves	28.40	28.75	29.13	36.41	36.33	36.24	33.86
Accumulated loss	(18.18)	(19.18)	(19.73)	(19.34)	(20.18)	(20.09)	(19.31)
TOTAL CAPITAL AND RESERVES	94.49	95.40	96.49	94.94	93.56	94.13	87.23
Unrealised appreciation on remeasurement of investment
classified as available for Sales-net	(0.27)	(0.30)	(0.84)	(1.50)	(0.85)	(1.99)	(2.56)
NON-CURRENT LIABILITIES
Security Deposits	-	-	-	-	-	0.16	0.78
Deferred liability - staff gratuity	2.73	2.43	1.86	3.40	2.77	2.77	3.40
CURRENT LIABILITIES
Current maturity of security deposits	-	-	-	-	0.21	1.01	6.05
Creditors, accrued and other liabilities	1.03	0.42	0.41	1.12	2.04	1.88	3.20
Provision for custom duty/surcharge	1.60	1.63	1.66	1.63	1.62	1.63	1.52
Unclaimed profit distributions	0.40	0.41	0.42	0.41	0.41	0.41	0.38
TOTAL EQUITIES & LIABILITIES	100.00	100.00	100.00	100.00	99.75	100.00	100.00
PROFIT & LOSS ACCOUNT ITEMS
Profit on trading operations	35.70	(19.38)	7.93	35.33	-	6.98	7.55
Income on Diminshing Musharakah ( Syndicate)	-	-	-	-	-	6.54	15.21
Income on musawamah receivables	-	-	-	-	-	-	-
Income on Diminshing Musharakah	4.96	20.03	38.39	43.87	44.69	36.29	22.70
Income from Ijarah	-	-	-	2.29	6.03	23.50	42.82
Reversal of provision against Musawamah Facility	1.44	3.96	8.49	-	-	-	-
Income from investments	57.89	95.40	45.18	18.52	49.28	26.69	11.71
Gross Revenue	100.00	100.00	100.00	100.00	100.00	100.00	100.00
Operating Expenses	(82.39)	(94.57)	(78.04)	(71.49)	(107.38)	(100.23)	(111.09)
Impairment loss on trade debtors and other receivables	-	-	-	-	-	(10.45)	(15.45)
Financial and other charges	(0.04)	(0.08)	(0.04)	(0.09)	(0.06)	(0.08)	(0.11)
Other Income	4.50	3.84	4.27	2.79	14.70	19.95	6.37
Unrealized loss on remeasurement of investments
classified at fair value through profit & loss	(10.30)	(1.57)	(15.36)	(24.30)	(10.24)	(13.33)	(30.55)
Share of (loss)/ profit from associates	0.35	4.04	(0.43)	2.25	9.28	3.49	(4.36)
Modaraba Company's management fee	-	-	-	-	-	-	-
Provision for workers welfare fund	(0.24)	(0.23)	(0.21)	(0.09)	(0.13)	-	-
Taxation	(6.43)	(10.31)	(8.69)	(2.95)	(3.72)	-	-
Profit for the year (in %age)	5.45	1.12	1.51	6.13	2.44	(0.65)	(55.18)

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

HORIZONTAL ANALYSIS

HORIZONTAL ANALYSIS
BALANCE SHEET (%)
ASSETS	2025	2024	2023	2022	2021	2020	2019
NON-CURRENT ASSETS
Long term deposits	-	-	-	0.00	-	(0.00)	-
Long Term Portion of diminshing musharakah	(88.21)	(84.73)	(80.44)	(52.50)	94.76	(9.54)	5.74
Long Term Investments	(57.09)	(25.43)	165.29	(10.05)	(26.28)	(10.41)	(8.99)
Ijarah Assets	-	-	-	(100.00)	(83.73)	(85.81)	(55.38)
Fixed Assets in own use	18.32	(38.40)	(20.32)	(18.28)	(26.74)	(21.14)	(22.36)
Deferred tax asset	95.17	(20.45)	100.00	-	-	-	-
Intangible assets (owned)	100.00	-	-	-	-	-	-
CURRENT ASSETS
Bank Balances	44.44	300.48	(75.64)	61.08	543.07	(72.89)	39.40
Short Term investments	9.17	36.18	(45.96)	79.93	(75.94)	908.84	(53.01)
Musawamah receivables - secured	-	-	-	-	-	-	-
Ijarah rental receivable	-	-	-	(100.00)	(87.06)	(66.01)	(32.11)
Receivable from diminishing musharka and trade debts	-	-	(34.92)	(24.98)	100.00	-	-
Trade Receivables	-	-	-	-	-	(100.00)	(71.37)
Stock in trade	(13.23)	(29.37)	100.00	-	-	(100.00)	100.00
Advances, Deposits, Prepayments & Other Receivables	3.02	87.62	(2.48)	(87.23)	160.06	(45.49)	78.77
Current portion of investment in Sukuk Certificates	-	-	-	(100.00)	(50.00)	0.00	-
Current portion of investment in diminishing musharakah (80.56)		(79.71)	(38.68)	7.42	13.49	20.68	53.20
Income tax refundable/paid in advance	(100.00)	(80.27)	30.47	(47.28)	(11.23)	0.23	0.11
Profit Receivable	(79.45)	75.20	39.31	18.81	21.14	(42.92)	11.22
TOTAL ASSETS	2.19	1.45	(1.63)	(0.59)	0.73	(6.80)	(8.67)
EQUITY & LIABILITIES
CAPITAL & RESERVES
Issued, subscribed and paid up capital	-	-	10.00	-	-	-	-
Reserves	0.62	0.10	(21.28)	0.95	(0.34)	(0.26)	-
Accumulated loss	(3.48)	(1.37)	0.35	(1.14)	(2.45)	(3.04)	36.95
TOTAL CAPITAL AND RESERVES	(2.85)	(1.27)	(10.94)	(0.19)	(2.79)	(3.29)	36.95
Deficit on revaluation of investment	(9.55)	(63.60)	(45.34)	74.93	(56.87)	(27.51)	175.69
NON-CURRENT LIABILITIES
Security Deposits	-	-	-	-	(100.00)	(80.30)	(89.38)
Deferred liability - staff gratuity	14.45	32.53	(46.23)	22.20	0.55	(24.03)	29.91
CURRENT LIABILITIES
Islamic export refinance
Musharikah Finance - Secured
Murabaha Finance - secured
Current maturity of security deposits	-	-	-	(100.00)	(79.44)	(84.48)	92.96
Creditors, accrued and other liabilities	148.51	3.82	(63.51)	(45.47)	9.23	(45.42)	7.40
Provision for custom duty/surcharge	0.33	-	-	-	-	-	-
Unclaimed profit distributions	-	-	-	-	-	-	-
TOTAL EQUITIES & LIABILITIES	2.19	1.45	(1.63)	(0.59)	0.73	(6.80)	(8.67)
PROFIT & LOSS ACCOUNT (%)	2025	2024	2023	2022	2021	2020	2019
Profit on trading operations	(334.07)	(341.31)	(78.95)	100.00	(100.00)	9.89	73.76
Income on diminshing musharakah ( Syndicate)	-	-	-	-	(100.00)	(48.83)	(8.20)
Income on Diminshing Musharakah	(68.53)	(48.51)	(17.90)	37.96	8.41	90.14	1,029.94
Income from Ijarah	-	-	(100.00)	(46.76)	(77.40)	(34.72)	(24.45)
Reversal of provision against Musawamah Facility	(53.62)	(54.00)	100.00	-	-	-	-
Income from investments	(22.88)	108.41	128.84	(47.18)	62.55	171.03	(33.15)
Operating Expenses	10.72	19.62	2.40	(6.43)	(5.68)	7.32	(3.37)
Impairment loss on trade debtors and other receivables	-	-	-	-	(100.00)	-	-
Financial and other charges	(27.36)	100.79	(58.81)	101.75	(36.35)	(5.54)	(14.36)
Other Income	48.62	(11.17)	43.62	(73.32)	(35.15)	272.72	(5,273.49)
Unrealized loss on remeasurement of investments
classified at fair value through profit & loss	732.95	(89.90)	(40.71)	233.42	(32.37)	(48.09)	(5.48)
Share of profit / (loss) from associates	88.97	1,038.01	(117.72)	(65.90)	133.91	195.18	(86.50)
Modaraba Company's management fee	-	-	-	-	-	-	(100.00)
Provision for workers welfare fund	32.00	10.61	110.09	3.80	100.00	-	-
Taxation and levies	(20.79)	17.16	176.49	11.21	100.00	-	-
Profit / (Loss) for the year	518.57	(27.02)	(76.82)	252.43	432.90	(98.61)	(43.56)

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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KEY FINANCIAL DATA SEVEN YEARS AT A GLANCE

KEY FINANCIAL DATA
Total Assets
Fixed Assets (owned)
Fixed Assets (ijarah)
Other Non Current Assets
Current Assets
Total Liabilities
Current Liabilities
Non Current Liabilities
Total Equity and deficit on revaluation of investments
Reserves
Certificate Holders' Equity
Accumulated losses
Deficit on revaluation of investments
Revenue
Net Revenue
Earning (loss) per Certificate
Cash dividend (%)
STAKEHOLDER INFORMATION
Profit after tax ratio (%)
Return on assets (%)
Return on equity / capital employed
Return on capital employed (%)
Assets Turnover Ratio (%)
Current ratio
Market Value per certificate (year end)
High
Low
Closing
Earning / (loss) per Certificate
Net assets / breakup value per certificate
Earning asset to total assets ratio (%)
Price earning ratio
Dividend Yield Ratio (%)
Cash Dividend per certificate (in Rs.)

2025
2024
2023
2022
2021
2020
2019
Figures in Million
274.86
269.12
265.26
269.65
271.27
269.31
288.96
1.26
1.07
1.73
2.17
2.66
3.63
4.60
-
-
-
-
1.01
6.18
43.56
21.53
42.24
60.83
61.17
99.72
70.27
77.58
252.07
225.81
202.71
206.31
167.89
189.23
163.22
15.82
13.18
11.54
17.69
19.09
21.18
44.32
8.34
6.65
6.61
8.52
11.59
13.27
32.24
7.48
6.54
4.93
9.17
7.51
7.91
12.08
258.29
255.93
253.73
251.96
252.17
248.12
244.64
77.85
77.36
77.28
98.18
97.26
97.59
97.84
231.00
231.00
231.00
210.00
210.00
210.00
210.00
(49.83)
(51.62)
(52.34)
(52.16)
(52.77)
(54.09)
(55.79)
(0.73)
(0.81)
(2.22)
(4.05)
(2.32)
(5.37)
(7.41)
46.29
36.20
36.83
38.70
30.73
36.50
27.21
2.41
0.39
0.53
2.31
1.65
(0.20)
(14.12)
Restated
Restated
Restated
Restated
0.10
0.02
0.02
0.10
0.03
(0.01)
(0.61)
-
-
-
-
-
-
-
2025
2024
2023
2022
2021
2020
2019
5.45
1.12
1.51
6.13
2.44
(0.65)
(55.18)
0.01
0.00
0.00
0.01
0.00
(0.00)
(0.06)
0.16
0.13
0.13
0.14
0.10
0.11
0.08
30.22
33.97
30.68
24.22
14.49
14.26
5.06
4.60
3.50
3.30
3.62
3.20
3.00
3.10
4.25
3.50
2.85
3.40
3.20
3.00
3.10
4.59
3.50
3.08
3.51
3.20
3.00
3.10
Restated
Restated
Restated
Restated
0.10
0.02
0.02
0.10
0.03
(0.01)
(0.61)
11.21
11.11
11.08
12.19
12.12
12.07
12.00
0.52
0.17
0.53
0.55
0.08
(2.56)
(6.46)
33.51
207.25
133.10
35.16
112.97
(352.56)
(5.07)
-
-
-
-
-
-
-
-
-
-
-
-
-
-

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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CHAIRMAN'S REVIEW REPORT

Dear Certificate Holders,

I am pleased to present to the certificate holders of First Al-Noor Modaraba, review of the financial performance of the Company along with the audited Financial Statements for the year ended June 30, 2025.

Pakistan's GDP grew by 2.68 percent, supported by stabilization across all major macroeconomic indicators. The industrial sector posted a growth of 4.77 percent. Manufacturing growth was also positive despite a slow recovery in large-scale manufacturing, supported by gains in small-scale manufacturing. The services sector (58.4% of GDP) emerged as the main growth driver, expanding by 2.91 percent, while the agriculture sector recorded a growth of 0.56 percent due to a decline in major crops.

The Modaraba compared to preceding financial year, attained a respectable revenue growth of nearly 28%. We are constantly focusing on consistent growth focusing on our core activities as well as secondary market operations in order to obtain sustainable growth.

On behalf of the Board of Directors, I would like to acknowledge the contribution of all the team for their hard work in trying to manage the crises and pray to Allah SWT for the success and growth of the Modaraba.

Sd/-

Zia Zakaria Chairman

September 11, 2025

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

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ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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THIRTY THIRD REPORT OF THE DIRECTORS OF MODARABA COMPANY FOR THE YEAR ENDED JUNE 30, 2025

On behalf of Board of Directors of Al-Noor Modaraba Management (Private) Limited, the "mudarib/management company" of First Al-Noor Modaraba (FAM), we are pleased to present the Thirty Third Annual Report together with the Audited Financial Statements of the Modaraba for the year ended June 30, 2025:

Economic Review and Review of Operations Profit before taxation Levies – Final Tax Taxation Profit after Taxation Components of Other comprehensive (loss)/income Surplus/(Deficit) transferred to accumulated losses Transfer to Statutory Reserve Accumulated losses brought forward Accumulated losses carried forward DISTRIBUTION Profit distribution @ 0.00% (2024 @ 0.00%) Bonus Certificates @ 0.00% (2024 @ 00.00%) General Reserve Financial Results	5,232,880 3,985,244 (2,778,630) (2,791,940) (114,269) (803,200) 2,339,981 390,104 (1,926,006) (736,937) 1,791,350 1,143,968 (482,614) (78,021) (51,874,116) (52,593,230) (50,078,316) (51,874,116) - - - - - - June 30, 2025 For the year ended ------- Amount in Pak. Rupees ------- June 30, 2024	5,232,880 3,985,244 (2,778,630) (2,791,940) (114,269) (803,200) 2,339,981 390,104 (1,926,006) (736,937) 1,791,350 1,143,968 (482,614) (78,021) (51,874,116) (52,593,230) (50,078,316) (51,874,116) - - - - - - June 30, 2025 For the year ended ------- Amount in Pak. Rupees ------- June 30, 2024
		- - -

The real, fiscal, financial, and external sectors continued to demonstrate resilience and steady improvement in FY 2025. Pakistan's GDP grew by 2.68 percent, supported by stabilization across all major macroeconomic indicators. The industrial sector posted a growth of 4.77 percent. Manufacturing growth was also positive despite a slow recovery in large-scale manufacturing, supported by gains in small-scale manufacturing. The services sector (58.4% of GDP) emerged as the main growth driver, expanding by 2.91 percent, while the agriculture sector recorded a growth of 0.56 percent due to a decline in major crops.

The investment-to-GDP ratio improved to 13.8 percent, compared to 13.1 percent in FY 2024, supported by stronger public and private capital formation. Gross Fixed Capital Formation (GFCF) stood at Rs 13,814.7 billion, marking a 15.0 percent increase over FY 2024. Private investment grew by 9.9 percent, while public investment, including general government development spending, rose sharply by 34.2 percent. National saving also improved, recorded at 14.1 percent of GDP, reflecting stronger domestic resource mobilization.

Pakistan's capital markets, specifically the equity market, exhibited superior performance compared to major global stock markets in FY 2025. The KSE-100 index demonstrated significant growth of 50.2 percent during July-March FY 2025. This increase can be attributed to strong corporate earnings, a decline in both the policy rate and inflation, the successful first review of the IMF-EFF program, and subsequent tranche disbursements, all of which contributed to a stable macroeconomic environment that bolstered investor confidence.

In 2024, the global economy entered a stabilization phase following unprecedented shocks in recent years. Inflation has decreased from multidecade highs and is gradually aligning with the targets set by central banks, although this progress remains uneven across different regions. Looking ahead, global economic growth, which is estimated at 3.3 percent in 2024, projected to moderate to 2.8 percent in 2025, before recovering slightly to 3.0 percent in 2026.

Modaraba faced challenges in the commodity trading sector in first half of FY2025, however, in second half of the financial year, the stabilizing factors of Pakistan Economy, the commodity market gained the consistent growth trajectory which yield positive results by the year end. This was supported by the secondary market operations to achieve high annualized yield. From a broader perspective, the Modaraba demonstrated a positive momentum with consistent growth in its business.

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Future Outlook

The macroeconomic outlook is contingent on how the global economic and political environment shapes up. In this context, there are three prominent risks. First, the recent shift towards a more protectionist trade policies has already begun to take effect. These tariffs are impacting geopolitical contenders and key trading partners. Rising tariffs could disrupt trade and economic activity, having implications for EMDEs' exports and remittances, and international commodity prices. Second, the possible spillovers of ongoing geopolitical conflicts to global economy, in general and commodity prices, in particular. Third is concerning the resurgence of inflation globally due to tariffs and potential supply-chain constraints, and their implications for global financial conditions, which may adversely impact emerging economies.

Modaraba is positioning itself well for growth by focusing on increasing its revenues and expanding its range of commodities considering the numerous economic factors. By remaining adaptable and diversifying its offerings, it could capitalize on various economic opportunities and strengthen its market position.

Sustainability - related Risk

We remain steadfast in addressing risks that may impact our operations and stakeholders. Key focus areas include maintaining the highest standards of business ethics, ensuring robust governance, and promoting transparency

Shariah Perspective

At First Al-Noor Modaraba, Shariah governance forms the cornerstone of our business. All operations and financial practices are aligned with Shariah principles, ensuring that our products and services offer a distinct risk-return profile rooted in ethical and responsible finance.

Under the guidance of our esteemed Shariah Advisor, we continuously strengthen our compliance culture and refine our processes to achieve perfection and reliability. Shariah governance is not just an obligation-it is our utmost responsibility and a reflection of our commitment to stakeholders.

Our sustainability framework is built on a strong ethical foundation and revolves around three key pillars:

People - investing in our workforce and communities.
Organization - ensuring transparency, accountability, and governance.
Planet - promoting responsible, sustainable practices.

This is further reinforced by a robust Shariah compliance and audit mechanism , which safeguards the integrity of our operations and builds long-term trust.

A complete Shariah Advisor Report and Shariah Audit Report for the year ended June 30, 2025 is attached with annual report.

The Board of Directors

During the year, the term of the Board of Directors of Al-Noor Modaraba Management (Private) Limited, the management Company of First Al-Noor Modaraba ended and an election of the Board of Directors commenced. The brief detail of the retiring Directors and elected directors as of June 30, 2025 is enumerated below:

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S.No. Name Designation Status
1. Mr. Abdul Aziz Ayoob Director (Non Executive) Retired
2. Mr. Noor Muhammad Zakaria Director (Non Executive) Re-elected
3. Mr. Zia Zakaria Director (Non Executive) Re-elected
4. Mr. Zainuddin Aziz Executive Director Re-elected
5. Mr. Asad Ahmed Mohiuddin Director (Non Executive) Elected
6. Mr. Tausif Ilyas Director (Independent) Re-elected
7. Mr. Abdul Rahim Suriya Director (Independent) Retired
8. Barrister Naheed Shiraz Merchant Director (Independent) Re-elected
9. Mr. Kausar Ali Fector Director (Independent) Elected
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Directors Training & Orientation

The Majority directors are compliant with necessary requirements of Directors Training Certificate with few trained at respective Institutions.

Pattern of Certificate Holders

A Statement showing pattern of Certificate Holding of the Modaraba and additional information as at June 30, 2025 is included in this report.

Corporate and Financial Reporting Framework

The Directors are pleased to confirm compliance with Corporate and Financial Reporting Framework of the Securities & Exchange Commission Pakistan (SECP) and the Code of Corporate Governance for the following:

The financial statements, prepared by the management of the modaraba, present fairly its state of affairs, the result of its operations, cash flows and changes in equity.
Proper books of accounts of the modaraba have been maintained.
Appropriate accounting policies have been consistently applied in preparation of financial statements. Accounting estimates used are based on reasonable and prudent judgment.
International Financial Reporting Standards (IFRS), as applicable to Modarabas in Pakistan, have been followed in preparation of financial statements and any departures there from have been adequately disclosed. Further, the management of the Modaraba appreciates the unreserved compliance of IFRS to the possible extent in order to promote the fair financial reporting.
The system of internal control is in place and has been effectively implemented. It is being continuously reviewed by internal audit and other such procedures.
Board is satisfied with the Modaraba's ability to continue as a going concern.
There has been no material departure from the best practices of corporate governance, as detailed in the Listed Companies (Code of Corporate Governance) Regulations, 2019, except those mentioned in the statement of compliance with code of corporate governance.
Key operating and financial data for the last six years in summarized form is included in this annual report.
There are no statutory payments on account of taxes, duties and charges which are outstanding as on June 30, 2025 except for those disclosed in the financial statements.

Composition of the Board

The composition of the Board of Directors of the Company as on June 30, 2025 is as follows:

The total number of Directors are Seven (7) as per the following: Male : 6 Female : 1
The number of Directors during the year under respective categories are as follows:

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Category Names
Independent Directors 1) Mr. Tausif Ilyas
2) Barrister Naheed Shiraz Merchant
3) Mr. Kausar Ali Fecto
Executive Director 1) Mr. Zainuddin Aziz
Non-Executive Directors 1) Mr. Noor Muhammad Zakaria
2) Mr. Zia Zakaria
3) Mr. Asad Ahmed Mohiuddin
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Directors' attendance

During the year, four (4) Board meetings were held. Attendance by each Director was as follows:

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Number of
Name of Director 21-Sept-24 24-Oct-24 21-Feb-25 26-Apr-25
Meetings attended
Mr. A. Aziz Ayoob 0/4    
Mr. Zia I. Zakaria 4/4    
Mr. Noor Muhammad Zakaria 4/4    
Mr. Zainuddin Ayoob 4/4    
Mr. Abdul Rahim Suriya 4/4    
Mr. Tausif Ilyas 3/4    
Dr. Irum Saba 0/0 - - - -
Barrister Naheed Shiraz Merchant 3/3   
Mr. Kauser Ali Fecto 0/4 - - - -
Mr. Asad Ahmed Mohiuddin 0/4 - - - -
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* Resigned on June 6, 2024

** Elected on June 30, 2025

Remuneration policy for Non Executive / Independent Directors

The meeting attendance fee for Non-Executive including independent directors for attending the Board and Committee meetings of the Company is determined from time to time.

Auditors

The Board, on the recommendation of the Boards Audit Committee, has appointed M/s Rahman Sarfaraz Rahim Iqbal Rafiq & Company, Russel Bedford, Chartered Accountants, who offer themselves for appointment as Auditors for the financial year ending June 30, 2026, subject to the approval of Registrar Modaraba SECP.

Acknowledgement

The Board would like to express its sincere thanks and gratitude for the continued support and guidance provided by Securities & Exchange Commission of Pakistan, Registrar Modaraba Companies and clients of the Modaraba for their patronage and business, Certificate holders who have remained committed to First Al-Noor Modaraba.

In the end Board appreciates dedication, high level of professionalism and hard work of employees of your Modaraba for achieving the objectives.

On behalf of the Board

Sd/- Zainuddin Aziz Chief Executive/Director

Dated : September 11, 2025 Place : Karachi

ANNUAL REPORT 2025

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Independent Assurance Report on Compliance with the Shariah Governance Regulations, 2023 To the Modaraba Management Company of First Al-Noor Modaraba

Introduction

We have undertaken a reasonable assurance engagement that the Securities and Exchange Commission of Pakistan (SECP) has required in terms of its Shariah Governance Regulations, 2023 (the Regulations) - External Shariah Audit of First Al Noor Modaraba (the Modaraba) for assessing compliance of the Modaraba's financial arrangements, contracts, and transactions having Shariah implications with Shariah principles for the year ended June 30, 2025. This engagement was conducted by a multidisciplinary team including assurance practitioners and independent Shariah scholar.

Applicable Criteria

The criteria for the assurance engagement, against which the underlying subject matter (financial arrangements, contracts, and transactions having Shariah implications for the year ended June 30, 2025) is assessed, comprise of the Shariah principles and rules, as defined in the Regulations and reproduced as under:

(i) Legal and regulatory framework administered by the Commission;
(ii) Shariah standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), as notified by Commission;
(iii) Islamic Financial Accounting Standards, developed by the Institute of Chartered Accountants of Pakistan, as notified by the Commission;
(iv) Guidance and recommendations of the Shariah advisory committee, as notified by Commission; and
(v) Approvals, rulings or pronouncements of the Shariah supervisory board or the Shariah advisor of the Islamic financial institution, in line with (i) to (iv) above.

The above criteria were evaluated for their implications on the financial statements of the Modaraba for the year ended June 30, 2025, which are annexed.

Management's Responsibility for Shariah Compliance

Management is responsible to ensure that the financial arrangements, contracts and transactions having Shariah implications, entered into by the Modaraba with its customers, other financial institutions, stakeholder and related policies and procedures are, in substance and in their legal form, in compliance with the requirements of Shariah rules and principles. The management is also responsible for design, implementation and maintenance of appropriate internal control procedures with respect to such compliance and maintenance of relevant accounting records.

Our Independence and Quality Control

We have complied with the independence and other ethical requirements of the Code of Ethics for Chartered Accountants issued by the Institute of Chartered Accountants of Pakistan, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. Our Independence and Quality Control (continued)

The firm applies International Standard on Quality Management 1 "Quality Management for firms that perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements" which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

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Our Responsibility and Summary of the Work Performed

Our responsibility in connection with this engagement is to express an opinion on compliance of the Modaraba's financial arrangements, contracts, and transactions having Shariah implications with Shariah principles, in all material respects, for the year ended June 30, 2025 based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with International Standard on Assurance Engagements 3000 (Revised), 'Assurance Engagements Other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board (IAASB). That standard requires that we plan and perform this engagement to obtain reasonable assurance about the compliance of the Modaraba's financial arrangements, contracts, and transactions having Shariah implications with Shariah principles (criteria specified in paragraph 2 above).

The procedures selected by us for the engagement depended on our judgement, including the assessment of the risks of material non-compliance with the Shariah principles. In making those risk assessments, we considered and tested the internal control relevant to the Modaraba's compliance with the Shariah principles in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Modaraba's internal control. We have designed and performed necessary verification procedures on various financial arrangements, contracts and transactions having Shariah implications and related policies and procedures based on judgmental and systematic samples with regard to the compliance of Shariah principles (criteria specified in paragraph 2 above).

We believe that the evidences we have obtained through performing our procedures were sufficient and appropriate to provide a basis for our opinion.

Conclusion

Based on our reasonable assurance engagement, we report that in our opinion, the Modaraba's financial arrangements, contracts and transactions for the year ended June 30, 2025 are in compliance with the Shariah principles (criteria specified in the paragraph 2 above) in all material respects.

The engagement partner on the audit resulting in this independent auditor's report is Mr. Muhammad Rafiq Dosani.

RAHMAN SARFARAZ RAHIM IQBAL RAFIQ Chartered Accountants

Karachi Date: September 26, 2025

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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GENDER PAY GAP STATEMENT

FIRST AL-NOOR MODARABA

Gender Pay Gap statement under Securities and Exchange Commission of Pakistan (SECP) Circular 10 of 2025.

Following is gender pay gap calculated for the year ended June 30, 2024:

(i) Mean Gender Pay Gap: 53.72%
(ii) Median Gender Pay Gap: 4.64%
(iii) Any other data / details as deemed relevant: N/A/

For and on behalf of the Board of Directors

Sd/- Zainuddin Chief Executive

Date: September 11, 2025

ANNUAL REPORT 2025

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THE TERMS OF REFERENCE OF THE AUDIT COMMITTEE

The Board has constituted a functional Audit Committee. The features of the terms of reference of the Committee in accordance with the Code of Corporate Governance are as follows:

(a) Determination of appropriate measures to safeguard the listed company's assets.
(b) To monitor the integrity of the financial statements of the company, and any formal announcements relating to the company's financial performance, reviewing significant financial reporting judgments contained in them. In particular to review the half-year and annual financial statements and associated report before submission to the Board focusing on:
Any changes in accounting policies and practices
Major judgmental and risk areas
Significant adjustments resulting from the audit
The going concern assumption
Compliance with accounting standards
Compliance with International Financial Accounting Standards.
Compliance with listing regulations and other statutory and regulatory requirements
(c) Facilitating the external audit and discussion with external auditors of major observations arising from interim and final audits and any matter that the auditors may wish to highlight (in absence of management, where necessary);
(d)
Review of management letter issued by external auditors and management's response thereto.
(e) To make recommendations to the Board, for approval in respect of matters relating to: · the appointment or · reappointment or · removal of the external auditor;
(f) Ensuring coordination between the internal and external auditors of the company.
(g) Review of the scope and extent of internal audit and ensuring that the internal audit function has adequate resources and is appropriately placed within the company.
(h) Consideration of major finding of internal investigation and management's response thereto.
(i) Ascertaining that the internal control system including financial and operational controls, accounting system and reporting structure are adequate and effective.
(j) Review the company's statement of internal control system prior to endorsement by the board of directors.
(k) Determination of compliance with relevant statutory requirements.
(l) Monitoring compliance with the best practices of corporate governance and identification of any significant violations thereof and
(m) Consideration of any other issue or matter as may be assigned by the board of directors.

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THE TERMS OF REFERENCE OF HUMAN RESOURCE & REMUNERATION COMMITTEE (HR&R)

The Board adopted the responsibilities contained in clause (XXV) of the Code of Corporate Governance 2019 from (i) to (iv) as the Terms of Reference (TOR) of the HR&R Committee. The Committee shall be responsible for:

(i) Recommending human resource management policies to the board;
(ii) Recommending to the board the selection, evaluation, compensation (including retirement benefits) and succession planning of the CEO.
(iii) Consideration and approval on recommendations for CEO on such matters for key management positions who report directly to CEO

THE TERMS OF REFERENCE OF MODARABA MANAGEMENT COMMITTEE

Terms of Reference

The committee advises the board on the company's overall risk appetite and strategy based on the current and prospective macroeconomic and financial environment with the following responsibilities:

Monitor the organisation's risk profile;
About risk assessment:
Review and approve the risk management infrastructure and the critical risk management policies adopted by the Company.
Review regularly and approve the parameters used in these measures and the methodology adopted.
Set a standard for accurate and timely monitoring of large exposures and certain risk types of critical importance.
Review and assess the effectiveness of the Company's Enterprise Risk Management processes and recommend improvements.

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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STATEMENT OF COMPLIANCE WITH LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE) REGULATION, 2019 FIRST AL-NOOR MODARABA YEAR ENDED JUNE 30, 2025

The company has complied with the requirements of the Regulations, in the following manner:

The total number of directors during the year are 7 (seven) as per the following: a. Male 6 b. Female 1
The composition of board is as follows :

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The directors have confirmed that none of them is serving as a director on more than seven listed companies including this Modaraba;
The company has prepared a code of conduct and has ensured that appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures;
The board has developed a vision/mission statement, overall corporate strategy and significant policies of the company. The board has ensured that complete record of particulars of significant policies along with their dates of approval or updating is maintained by the company;
All the powers of the board have been duly exercised and decisions on relevant matters have been taken by board as empowered by the relevant provisions of the Act and these Regulations;
The meetings of the board were presided over by the Chairman and, in his absence, by a director elected by the board for this purpose. The board has complied with the requirements of Act and the Regulations with respect to frequency, recording and circulating minutes of meeting of the board;
The board of directors have a formal policy and transparent procedures for remuneration of directors in accordance with the Act and these Regulations;
All the Directors of the Company have completed / are exempted from the requirement of Directors' Training program except one new elected Director, Mr. Kausar Ali Fecto who will obtained training within one year from the date of his appointment;

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The board has approved appointment of Chief Financial Officer, Company Secretary and Head of Internal Audit, including their remuneration and terms and conditions of employment and complied with relevant requirements of the Regulations;
Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before approval of the board;
The board has formed committees comprising of members given below:
a) Audit Committee

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S.No. Name Designation
1. Mr. Zia Zakaria Chairman
2. Mr. Noor Muhammad Zakaria Member
3. Mr. Asad Ahmed Mohiuddin Member
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b) HR and Remuneration Committee

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S.No. Name Designation
1. Mr. Tausif Ilyas Chairman
2. Mr. Noor Muhammad Zakaria Member
3. Mr. Zainuddin Aziz Member
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The frequency of meetings of the committee were as per following:
a) Audit Committee - Quarterly
b) HR and Remuneration Committee - Yearly
The board has set up an effective internal audit function.
The statutory auditors of the company have confirmed that they have been given a satisfactory rating under the quality control review program of the ICAP and registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan and that they and the partners of the firm involved in the audit are not a close relative (spouse, parent, dependent and non-dependent children) of the Chief Executive Officer, Chief Financial Officer, Head of Internal Audit, Company Secretary or Director of the company;
The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the Act, these regulations or any other regulatory requirement and the auditors have confirmed that they have observed IFAC guidelines in this regard; and
Explanation for non-compliance with requirements during the year, other than regulations 3, 6, 7, 8, 27, 32, 33 and 36 are below:

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S.No. Non-Mandatory Requirement Regulation Explanation
Number
a. The Board is responsible for 10A (1) The Board will ensure that the Modaraba has
governance and oversight of (3) (4) addressed sustainability-related risks and
sustainability risks and opportunities opportunities. Also, it will ensure that
and tasks appropriate measures to Modaraba's sustainability and DE&I related
address it. Further, the Board strategies are periodically reviewed and
ensures that the Company's monitored in future.
sustainability and DE&I related
strategies are periodically reviewed
and monitored.
b. The Board may establish a dedicated 10A (5) Currently, the Board has not constituted a
sustainability committee or assign separate Sustainability Committee and the
additional responsibilities to an functions will be performed by the Board Audit
existing Board committee. Committee.
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for and on behalf of the Board

Sd/Sd/Noor Zakaria Zainuddin Aziz Director Chief Executive

Dated: September 11, 2025

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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INDEPENDENT AUDITOR'S REVIEW REPORT To the certificate holders of M/s. First Al Noor Modaraba

REVIEW REPORT ON THE STATEMENT OF COMPLIANCE CONTAINED IN LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE) REGULATIONS, 2019

We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors of Al-Noor Modaraba Management (Private.) Limited, the Modaraba Management Company of First Al-Noor Modaraba (the Modaraba) for the year ended June 30, 2025 in accordance with the requirements of regulation 36 of the Regulations.

The responsibility for compliance with the Regulations is that of the Board of Directors of the Modaraba Management Company. Our responsibility is to review whether the Statement of Compliance reflects the status of the Modaraba's compliance with the provisions of the Regulations and report if it does not and to highlight any non-compliance with the requirements of the Regulations. A review is limited primarily to inquiries of the Modaraba's personnel and review of various documents prepared by the Modaraba Management Company to comply with the Regulations.

As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors' statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Modaraba Management Company's corporate governance procedures and risks.

The Regulations require the Modaraba Management Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of Directors for their review and approval, its related party transactions. We are only required and have ensured compliance of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Modaraba Management Company's compliance, in all material respects, with the requirements contained in the Regulations as applicable to the Modaraba for the year ended June 30, 2025.

Further, we highlight below the instances where the Modaraba has made non-compliance with certain non-mandatory requirements of the Code, as disclosed in paragraph 19 of the Statement of Compliance:

S.No. Nature of the Requirement Paragraph No. Description of the Non-Compliance As per the Regulation 19, it is encouraged that all directors serving on the Board obtain the prescribed certification under a Directors' Training Program offered by institutions, whether local or foreign, that meet the criteria specified and approved by the Commission. A newly appointed director may obtain the certification within one year from the date (1) Explanation for nonof appointment to the Board. 9 compliance is required As stated in paragraph 9, all Directors of the Company have either completed or are exempt from the Directors' Training Program requirement, except the newly elected Director, Mr. Kausar Ali Fecto, who will complete the training within one year of his appointment.

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S.No. Nature of the Requirement Paragraph No. Description of the Non-Compliance
As per the Regulation 10A, the Board is responsible for
governance and oversight of sustainability risks and
opportunities and, for this purpose, is required / encouraged
to take a number of measures including, in particular,
implementation of policies to promote diversity, equity and
inclusion (DE&I); taking steps to proactively understand
and address the principal as well as emerging sustainability
risks and opportunities; ensuring that the Company's
sustainability and DE&I related strategies, priorities and
targets as well as performance against these targets are
(2) Explanation for non-
19 periodically reviewed and monitored; and establishment of
compliance is required
dedicated sustainability committee having at least one
female director, or assignment of additional responsibilities
to an existing board committee.
In accordance with Regulation 10A, the process of
compliance is currently underway, and the matter remains
under consideration by the Board. Upon finalization, the
Board will assume and discharge all responsibilities
prescribed under Regulation 10A until it deems it appropriate
to establish a dedicated Sustainability Committee.
As per the Regulation no. 10(3)(v) a formal and effective
mechanism is put in place for an annual evaluation of the
Board's own performance, members of the Board and of
its committees 3 [and it is encouraged to have regular
independent evaluation of the board's performance at least
every three years by an external body].
As stated in paragraph 19 the Board recognizes the need
for a formal mechanism to evaluate its performance,
(3) Explanation for non-
19 members, and committees as required under Regulation
compliance is required
10(3)(v). While informal reviews and feedback occur, no
formal documented evaluations have yet been conducted.
To address this, management has developed an updated
framework with structured evaluation forms to be circulated
annually to directors. Consolidated results will be reviewed
and discussed by the Board from the next financial year to
ensure systematic, transparent, and ongoing governance
improvement in compliance with the Regulations.
As per the Regulation no. 29 of the Regulations, the Board
may constitute a separate committee, designated as the
Nomination Committee, of such number and class of
directors, as it may deem appropriate in the circumstances.
As stated in paragraph 19, the Company has not yet
(4) Explanation for non-
19 established a separate Nomination Committee. Nevertheless,
compliance is required
the Board currently includes members possessing the
expertise required under Regulation 29(2) of the Code of
Corporate Governance. The creation of a dedicated
Nomination Committee is under review and is expected to
be approved at the forthcoming Board meeting.
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Sd/-

Karachi

Date: September 26, 2025 UDIN: CR202510210bi1JZHfPj

Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

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ANNUAL REPORT 2025

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ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

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ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

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ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2025

Note ASSETS Current assets Cash and bank balances 4 Short term investments 5 Musawamah facility 6 Profit receivable 7 Stock in trade 8 Receivable from diminishing musharaka Loans, advances, prepayments and other receivables 9 Current portion of diminishing musharaka financing Taxation and levies - net 10 Non-current assets Long term deposits 11 Long term investments - net 12 Diminishing musharakah financing 13 Deferred tax asset 14 Fixed assets in own use 15 Intangible assets for own use 16 Total assets EQUITY AND LIABILITIES Certificate holders' equity Authorised certificate capital 40,000,000 (2024: 40,000,000) certificates of Rs. 10 each 17.1 Issued, subscribed, and paid - up certificate capital 17.2 Capital reserves 18 Revenue reserves Deficit on revaluation of investments 19 Non - current liabilities Deferred liability - staff gratuity 20 Current liabilities Creditors, accrued and other liabilities 21 Charity payable 22 Provision for custom duty & surcharge 23 Taxation and levies - net 10 Unclaimed profit distributions Total Liabilities Contingencies and commitments 24 Total equity and liabilities	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 133,917,532 92,712,516 42,357,431 38,799,648 - - 464,770 2,261,619 68,258,142 78,661,336 - 751,570 5,859,081 5,687,216 1,213,687 6,243,797 - 696,045 252,070,643 225,813,747 3,840,147 3,838,407 15,581,257 36,311,359 126,215 1,070,502 1,985,267 1,017,198 1,260,847 1,065,606 150,787 - 22,944,520 43,303,072 275,015,163 269,116,819 400,000,000 400,000,000 231,000,000 231,000,000 77,845,276 77,362,662 (494,828,316) (51,624,116) 259,016,960 256,738,546 (729,254) (806,226) 7,480,736 6,536,176 2,883,894 1,140,335 - - 4,398,842 4,398,842 904,839 - 1,109,146 1,109,146 9,246,721 6,648,323 16,727,457 13,184,499 - - 275,015,163 269,116,819	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 133,917,532 92,712,516 42,357,431 38,799,648 - - 464,770 2,261,619 68,258,142 78,661,336 - 751,570 5,859,081 5,687,216 1,213,687 6,243,797 - 696,045 252,070,643 225,813,747 3,840,147 3,838,407 15,581,257 36,311,359 126,215 1,070,502 1,985,267 1,017,198 1,260,847 1,065,606 150,787 - 22,944,520 43,303,072 275,015,163 269,116,819 400,000,000 400,000,000 231,000,000 231,000,000 77,845,276 77,362,662 (494,828,316) (51,624,116) 259,016,960 256,738,546 (729,254) (806,226) 7,480,736 6,536,176 2,883,894 1,140,335 - - 4,398,842 4,398,842 904,839 - 1,109,146 1,109,146 9,246,721 6,648,323 16,727,457 13,184,499 - - 275,015,163 269,116,819
		92,712,516 38,799,648 - 2,261,619 78,661,336 751,570 5,687,216 6,243,797 696,045
		225,813,747
		3,838,407 36,311,359 1,070,502 1,017,198 1,065,606 -
		43,303,072 269,116,819 400,000,000
		231,000,000 77,362,662 (51,624,116)
		256,738,546 (806,226) 6,536,176
		1,140,335 - 4,398,842 - 1,109,146
		6,648,323 13,184,499 - 269,116,819

The annexed notes from 1 to 40 form an integral part of these financial statements.

	For Al-Noor Modaraba Management (Private)	Limited
	(Management Company)
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Chief Executive Officer	Chief Financial Officer	Director	Director

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 30, 2025

Revenue - net Income from trading operations - net 25 Profit on Diminishing Musharakah Facility 26 Income from investments 27 Administrative and operating expenses 28 Other income 29 Financial and other charges Unrealised loss on re-measurement of investments at fair value through profit or loss 5.4 Share of profit of associate - Shariah Compliant Profit before charging Management Company's remuneration Management Company's remuneration including sales tax 31 Profit before levies and taxation Levies 32 & 40.1 Profit before taxation Taxation 33 Profit after taxation Earnings per certificate - basic and diluted 34 Note	15,817,650 (6,757,524) 2,196,949 6,981,569 25,647,882 33,255,672 43,662,481 33,479,717 (36,500,978) (32,967,392) 2,631,994 2,720,312 9,793,497 3,232,637 (19,652) (27,055) (4,561,172) (547,590) 155,307 1,408,584 5,367,980 4,066,576 - - 5,367,980 4,066,576 (2,781,332) (2,873,272) 2,454,250 1,193,304 (173,578) (803,200) 2,413,070 390,104 0.10 0.02 June 30, 2025 Restated June 30, 2024 -------------- Rupees --------------	15,817,650 (6,757,524) 2,196,949 6,981,569 25,647,882 33,255,672 43,662,481 33,479,717 (36,500,978) (32,967,392) 2,631,994 2,720,312 9,793,497 3,232,637 (19,652) (27,055) (4,561,172) (547,590) 155,307 1,408,584 5,367,980 4,066,576 - - 5,367,980 4,066,576 (2,781,332) (2,873,272) 2,454,250 1,193,304 (173,578) (803,200) 2,413,070 390,104 0.10 0.02 June 30, 2025 Restated June 30, 2024 -------------- Rupees --------------
		(6,757,524) 6,981,569 33,255,672
		33,479,717 (32,967,392) 2,720,312 3,232,637 (27,055) (547,590) 1,408,584 4,066,576 - 4,066,576 (2,873,272) 1,193,304 (803,200) 390,104 0.02

The annexed notes from 1 to 40 form an integral part of these financial statements.

For Al-Noor Modaraba Management (Private) Limited (Management Company)

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Chief Executive Officer	Chief Financial Officer	Director	Director

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2025

Profit after taxation Other comprehensive loss Items that will not be subsequently reclassified to profit or loss Remeasurement loss of net defined benefit liability Share of other comprehensive (loss) / income of associate Impact of deferred tax Other comprehensive loss Total comprehensive income / (loss) for the year transferred to equity- net of tax Components of other comprehensive income / (loss) reflected below equity net of tax Surplus on re-measurement of investments classified as at fair value through other comprehensive income - net of deferred tax Total comprehensive income for the year The annexed notes from 1 to 40 form an integral part of these financial statements.	2,413,070 390,104 (1,429,161) (601,947) (584,523) 21,697 87,678 (156,687) (1,926,006) (736,937) 487,064 (346,833) 1,868,322 2,552,784 2,355,386 2,205,951 June 30, 2025 June 30, 2024 -------------- Rupees --------------	2,413,070 390,104 (1,429,161) (601,947) (584,523) 21,697 87,678 (156,687) (1,926,006) (736,937) 487,064 (346,833) 1,868,322 2,552,784 2,355,386 2,205,951 June 30, 2025 June 30, 2024 -------------- Rupees --------------
		(601,947) 21,697 (156,687)
		(736,937)
		(346,833) 2,552,784 2,205,951

For Al-Noor Modaraba Management (Private) Limited (Management Company)

Sd/-	Sd/-	Sd/-	Sd/-
Chief Executive Officer	Chief Financial Officer	Director	Director

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2025

Balance as at July 01, 2023 231,000,000 Total comprehensive loss for the year ended June 30, 2024 - Profit after taxation - - Other comprehensive loss - - Surplus transferred to accumulated losses - Transfer to statutory reserve - Balance as at June 30, 2024 231,000,000 Total comprehensive income for the year ended June 30, 2025 - Profit for the year - - Other comprehensive loss - - Surplus transferred to accumulated losses - Transfer to statutory reserve - Balance as at June 30, 2025 231,000,000 Issued, subscribed, and paid-up certificate capital ---------------------------	77,284,641 - - - - 78,021 77,362,662 - - - - 467,996 77,830,658 Statutory reserve (refer note 20) ------------------------------ Capital reserves	250,000 (52,593,230) - 390,104 - (736,937) - (346,833) - 1,143,968 - (78,021) 250,000 (51,874,116) - 2,413,070 - (1,926,006) 487,064 - 1,791,350 - (482,614) 250,000 (50,078,316) General reserve Accumulated losses Revenue reserves -------- Rupees --------------------------------------	255,941,411 Total ---------------------------
			390,104 (736,937)
			(346,833) 1,143,968 - 256,738,546
			2,339,981 (1,926,006)
			413,975 1,791,350 - 258,943,871

The annexed notes from 1 to 40 form an integral part of these financial statements.

For Al-Noor Modaraba Management (Private) Limited (Management Company)

Sd/-	Sd/-	Sd/-	Sd/-
Chief Executive Officer	Chief Financial Officer	Director	Director

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2025

CASH FLOWS FROM OPERATING ACTIVITIES Profit before levies and taxation Adjustments for non-cash charges and other items: Depreciation on fixed assets Ammortization on intangibles Gain on sale of securities - net Profit on bank deposits Unrealised loss on re-measurement of investments at fair value through profit or loss Share of gain of associate Financial and other charges Advance tax written off Provision for gratuity Operating (loss) / profit before working capital changes Working capital changes Decrease / (increase) in current assets - Diminishing musharakah financing - Profit receivable - Stock in trade - Receivable form diminishing mushuarika - Investments- net - Loans, advances, prepayments and other receivables Increase / (Decrease) in current liabilities - Creditors, accrued and other liabilities - Charity Payable Cash flow from operating activities Long term deposits Income taxes and levies paid Financial charges paid Gratuity paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets in own use Profit received on bank deposits Net cash generated from investing activities Net increase in cash and cash equivalents Cash and cash equivalents as at beginning of the year Cash and cash equivalents as at the end of year	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 5,367,980 4,066,576 553,317 765,686 12,226 - (15,420,212) - (1,991,994) (1,340,312) 4,561,172 547,590 (155,307) (1,408,584) 19,652 27,055 - 4,343,312 1,455,399 1,311,762 (10,965,747) 4,246,509	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 5,367,980 4,066,576 553,317 765,686 12,226 - (15,420,212) - (1,991,994) (1,340,312) 4,561,172 547,590 (155,307) (1,408,584) 19,652 27,055 - 4,343,312 1,455,399 1,311,762 (10,965,747) 4,246,509
		765,686 - - (1,340,312) 547,590 (1,408,584) 27,055 4,343,312 1,311,762
		4,246,509
	(5,597,767) 5,974,397 1,796,849 10,403,194 751,570 29,476,706 (171,865) 1,586,198 - 49,817,049 (1,740) (2,133,298) (19,652) (1,940,000) (4,094,690) 40,124,592 (911,571) 1,991,994 1,080,424 41,205,016 92,712,516 133,917,532	8,313,085
		30,470,654 (1,038,022) 32,716,108 313,952 5,268,151 (2,655,909) (39,424) -
		65,035,510
		4,504 (4,760,941) (27,055) (309,500)
		(5,092,992) 68,255,603
		(101,336) 1,407,623
		1,306,287 69,561,890 23,150,626 92,712,516

The annexed notes from 1 to 40 form an integral part of these financial statements.

For Al-Noor Modaraba Management (Private) Limited (Management Company)

Sd/-	Sd/-	Sd/-	Sd/-
Chief Executive Officer	Chief Financial Officer	Director	Director

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2025

1 STATUS AND NATURE OF BUSINESS

First Al-Noor Modaraba (the Modaraba) was formed under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the rules framed thereunder and is managed by Al-Noor Modaraba Management (Private) Limited, a company incorporated in Pakistan. The address of its registered office is 96-A, Sindhi Muslim Housing Society. The Modaraba was floated on October 19, 1992 and commenced its business on November 02, 1992 and listed on the Karachi and Lahore Stock Exchanges. The Modaraba is listed on the Pakistan Stock Exchange (PSX).

The Modaraba is a perpetual, multi purpose and multi dimensional Modaraba and is primarily engaged in trading, providing Ijarah financing, Musharakah, Diminishing Musharakah, Musawamah, equity investment and other Shariah compliant trading activities.

2 BASIS OF PREPARATION

2.1 Statement of compliance with the applicable accounting and reporting standards

2.1.1 These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards as applicable in Pakistan comprise of:
International Financial Reporting Standards, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;
Islamic Financial Standards (IFAS) issued by the Institute of Chartered Accountant of Pakistan as are notified under Companies Act, 2017,
Requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981 and Modaraba Regulations 2021; and
Provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP) under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017.

Wherever the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Modaraba Regulations 2021, IFAS, the Companies Act, 2017 and provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP) under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017 differ from IFRS, the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Modaraba Regulations 2021, IFAS and provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP) under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017 have been followed.

2.2 Basis of measurement

These financial statements have been prepared on the historical cost basis except for the measurement at fair value of:

Long term investments
Short term investments

in accordance with the requirements of IFRS 9 'Financial Instrument', wherever applicable.

2.3 Functional and presentation currency

Items included in these financial statements are measured using the currency of the primary economic environment in which the Modaraba operates. These financial statements are presented in Pak Rupees which is the Modaraba’s functional and presentation currency.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

2.4 Use of estimates and judgments

The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Modaraba’s accounting policies. Estimates and judgments are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future period effected. In the process of applying the Modaraba’s accounting policies, management has made the following estimates and judgments which are significant to the financial statements:

Estimate of residual values, useful lives and depreciation methods of fixed assets in own use and ijarah assets (note 3.2 and 3.3 respectively);

Estimate of residual values, useful lives and amortization methods of intangible assets for own use (note 3.4);

Impairment of financial assets (note 3.8.3);

Impairment of non financial assets (note no 3.5);

Taxation (note no 3.18);

Provisions and contingent assets and liabilities (note no 3.10); and

Staff retirement benefits (note no 3.17).

2.5 New accounting pronouncements

2.5.1 Amendments to existing standards that became effective during the year

The following new or amended standards and interpretations became effective for the financial year and are considered relevant to the Modaraba’s financial statements:

IAS 1 – Classification of Liabilities as Current or Non-current (Amendments issued January 2020 and October 2022, effective January 1, 2024):

Under the previous requirements of IAS 1, a liability was classified as current if the Company did not have an unconditional right to defer settlement for at least twelve months after the reporting date. Following the amendments, the requirement for the right to be “unconditional” has been removed. Instead, the amendments specify that the right to defer settlement must be substantive and must exist as of the reporting date. Such a right may depend on the Company’s compliance with conditions (covenants) set out in a loan agreement.

In October 2022, the IASB clarified that only covenants that the Company is required to comply with on or before the reporting date affect whether a liability is classified as current or non-current. Covenants that are tested after the reporting date (i.e., future covenants) do not impact classification at that date. However, if non-current liabilities are subject to future covenants, the Company must provide additional disclosures to enable users to understand the risk that such liabilities could become repayable within twelve months after the reporting date.

IFRS 16 – Lease Liability in a Sale and Leaseback (Amendments issued September 2022, effective January 1, 2024):

The amendments affect how a seller-lessee accounts for variable lease payments arising from a sale-andleaseback transaction. At the time of initial recognition, the seller-lessee is required to include variable lease payments when measuring the lease liability. Subsequently, the seller-lessee applies the general requirements for lease liability accounting in a way that ensures no gain or loss is recognised in relation to the right-of-use asset it retains. These amendments introduce a new accounting model for variable lease payments and may require seller-lessees to reassess and, in some cases, restate previously recognised sale-and-leaseback transactions.

The above standards, amendments to approved accounting standards and interpretations have not been early adopted by the Company and are do not have any material impact on the Company's financial statements.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

2.5.2 Standards, interpretations and amendments to published approved accounting standards that are not yet effective

The following standards and amendments have been issued but are not effective for the financial year beginning July 1, 2024 and have not been early adopted by the Modaraba:

IAS 21 – The Effects of Changes in Foreign Exchange Rates (Amendments: Lack of Exchangeability, effective January 1, 2025):

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates address circumstances where a currency is not exchangeable, often due to government restrictions. In such cases, entities are required to estimate the spot exchange rate that would apply in an orderly transaction at the measurement date. The amendments permit flexibility by allowing the use of observable exchange rates without adjustment or other estimation methods, provided these meet the overall estimation objective. When assessing this, entities should consider factors such as the existence of multiple exchange rates, their intended use, nature, and frequency of updates. The amendments also introduce new disclosure requirements, including details of the non-exchangeability, its financial impact, the spot rate applied, the estimation approach used, and related risks.

Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments (effective January 1, 2026):

Amendments to IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments – Classification and Measurement provide clarifications and updates in several areas. They refine the requirements around the timing of recognition and derecognition of certain financial assets and liabilities, introducing a new exception for financial liabilities settled via electronic cash transfer systems. The amendments also clarify and expand the guidance on assessing whether a financial asset meets the “solely payments of principal and interest” (SPPI) criterion. In addition, new disclosure requirements are introduced for instruments with contractual terms that can alter cash flows, such as those linked to environmental, social, and governance (ESG) targets. Further updates are also made to the disclosure requirements for equity instruments designated at fair value through other comprehensive income (FVOCI).

IFRS 17 – Insurance Contracts (effective January 1, 2026 in Pakistan, as directed by SECP vide SRO 1715(I)/2023):

IFRS 17 Insurance Contracts establishes the principles for the recognition, measurement, presentation and disclosure of Insurance contracts within the scope of the Standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity’s financial position, financial performance and cash flows. SECP vide its SRO 1715(I)/2023 dated November 21, 2023 has directed that IFRS 17 shall be followed for the period commencing January 1, 2026 by companies engaged in insurance / takaful and re-insurance / re-takaful business.

Annual Improvements – Volume Eleven (effective January 1, 2026):

Hedge Accounting by a First-time Adopter (Amendments to IFRS 1) - The amendments are intended to address potential confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge accounting in IFRS 9.
Gain or Loss on Derecognition (Amendments to IFRS 7) - To update the language on unobservable inputs and to include a cross reference to paragraphs 72 and 73 of IFRS 13 Fair Value Measurement.
Introduction (Amendments to Guidance on implementing IFRS 7) - To clarify that the guidance does not necessarily illustrate all the requirements in the referenced paragraphs of IFRS 7, nor does it create additional requirements.
Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Guidance on implementing IFRS 7) - Paragraph IG14 of the Guidance on implementing IFRS 7 has been amended mainly to make the wording consistent with the requirements in paragraph 28 of IFRS 7 and with the concepts and terminology used in IFRS 9 and IFRS 13.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

Credit Risk Disclosures (Amendments to Guidance on implementing IFRS 7) - Paragraph IG20B of the Guidance on implementing IFRS 7 has been amended to simplify the explanation of which aspects of the IFRS requirements are not illustrated in the example.
Transaction Price (Amendments to IFRS 9) - Paragraph 5.1.3 of IFRS 9 has been amended to replace the reference to 'transaction price as defined by IFRS 15 Revenue from Contracts with Customers' with 'the amount determined by applying IFRS 15'. The use of the term "transaction price' in relation to IFRS 15 was potentially confusing and so it has been removed. The term was also deleted from Appendix A of IFRS 9.
Determination of a 'De Facto Agent' (Amendments to IFRS 10) - The amendment is intended to remove the inconsistency with the requirement in paragraph B73 for an entity to use judgement to determine whether other parties are acting as de facto agents.
Cost Method (Amendments to IAS 7) - Paragraph 37 of IAS 7 has been amended to replace the term 'cost method' with 'at cost', following the prior deletion of the definition of 'cost method".

The above standards, amendments to approved accounting standards and interpretations have not been early adopted by the Company and are not likely to have any material impact on the Company's financial statements.

Other than the aforesaid standards, interpretations and amendments, IASB has also issued the following standards and interpretation, which have not been notified locally or declared exempt by the SECP as at June 30, 2025:

IFRS 18 – Presentation and Disclosure in Financial Statements

The new standard on presentation and disclosure in financial statements, IFRS 18, focuses on updates to the statement of profit or loss. It introduces key concepts such as the structure of the statement of profit or loss, required disclosures for certain profit or loss performance measures reported outside the financial statements (managementdefined performance measures), and enhanced principles on aggregation and disaggregation applicable to the primary financial statements and notes.

Major Impact on Companies’ Financial Statements:

IFRS 18 will require the Company to restructure their statement of profit or loss into operating, investing, and financing categories, which may alter familiar subtotals such as operating profit. This standard focuses on disaggregation will expand disclosures, requiring more detailed breakdowns of income, expenses, and significant transactions, rather than broad groupings. Adoption will also demand updates to reporting systems and processes, increasing compliance effort, but ultimately enhancing transparency, comparability, and investor confidence.

-

IFRS 19 – Subsidiaries without Public Accountability: Disclosures

IFRS 19 – Subsidiaries without Public Accountability: Disclosures introduces reduced disclosure requirements for eligible subsidiaries that apply IFRS Accounting Standards. It applies to subsidiaries without public accountability whose parent prepares publicly available consolidated IFRS financial statements. Recognition and measurement remain fully aligned with IFRS, while disclosures are significantly simplified. The standard aims to ease the reporting burden without compromising the usefulness of information, and adoption is voluntary.

3. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The material accounting policies adopted in the preparation of these financial statements are set out below. The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

3.1 Investment in associates

The Modaraba considers its associate to be such in which the Modaraba have ownership of not less than twenty percent of the voting power and / or has significant influence through common directorship, but not control.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

The Modaraba accounts for its investment in associate using the equity method. Under this method investment in initially recognized at cost, being the fair value of consideration given includes acquisition charges associated with such investments. Subsequently the investors’ share in profit / loss of the Investee is recognized in statement of profit and loss. Distributions received from the investee reduce the carrying amount of the investment. Adjustment to the carrying amount will also be made for changes in the investor’s proportionate interest in the investee arising from changes in the investee’s over comprehensive income.

Where Modaraba’s share of loss of an associates equal or exceeds its interest in the associates, the Modaraba discontinue to recognize its shares of further losses except to the extent that Modaraba has incurred legal or constructive obligation or made payment on behalf of the associates. If the associates subsequently reports profits, the Modaraba resumes recognizing its share of those profit only after its share of the profit equals the share of losses not recognized.

3.2 Fixed Assets in own use

These are stated at cost less accumulated depreciation and accumulated impairment losses, if any except free hold land are stated at cost less any accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the assets' carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Modaraba and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit and loss as and when incurred.

Depreciation on all fixed assets is charged to statement of profit and loss applying the straight-line method over the useful life of the asset as disclosed in note 15.1 to the financial statements and after taking into account residual value, if significant. The residual values, useful lives and depreciation method are reviewed and adjusted, if appropriate, at each reporting date. Depreciation is charged on additions from the month the asset is available for use and on disposals upto the month preceding the month of disposal.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the statement of profit and loss, in the period in which they arise.

Repairs and maintenance are charged to statement of profit and loss as and when incurred.

3.3 Intangible assets

Intangible assets having a finite useful life are stated at cost less accumulated amortization and accumulated impairment losses, if any. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only where it is probable that the future economic benefits associated with the asset will flow to the Modaraba and the cost of item can be measured reliably. Amortization is charged to income using the straight line method in accordance with the rates specified in note 16 to these financial statements after taking into account residual value, if any. The residual values, useful lives and amortization method are reviewed adjusted, as appropriate, at each reporting date. Amortization is charged from the month the asset is available for use while in the case of assets disposed of, it is charged till the month preceding the month of disposal.

Intangible assets having an indefinite useful life are stated at cost less accumulated impairment losses, if any. These assets are not amortized as they are expected to have an indefinite life and are marketable.

Gain and loss on disposal of intangible assets, if any, are taken to the statement of profit and loss.

3.4 Impairment of non-financial assets

The Modaraba assesses at each reporting date whether there is any indication that non financial assets excluding stock in trade may be impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amounts. Where the carrying value exceeds the recoverable amount, assets are written down to the recoverable amount and the difference is charged to the statement of profit and loss. The recoverable amount is the higher of an assets' fair value less cost to sale and value in use.

Where impairment loss for asset subsequently reverses, the carrying amount of the asset is increased to the revised recoverable amount but limited to the extent of initial cost of the asset. Reversal of impairment loss is recognised as loss.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

3.5 Stock in trade

Stock of raw material, work in process and finished goods are measured at the lower of cost and net realizable value. Cost is determined on first in first out basis. Cost of raw materials and trading stock comprises the invoice values and other charges paid thereon. Cost of work in process and finished goods include prime cost and appropriate portion of manufacturing overheads. Items in transit are stated at invoice value plus other incidental charges paid thereon up to the reporting date.

Net realizable value signifies the estimated selling price in the ordinary course of business less costs necessary to be incurred in order to make a sale. If the net realizable value is lower than the carrying amount, a write-down is recognized for the amount by which the carrying amount exceeds its net realizable value. Provision is made in the financial statements for obsolete and slow moving stock in trade based on management estimate.

The Modaraba reviews the net realizable value of items of stock in trade to assess any possible impairment on annual basis. Net realizable value is estimated with reference to the estimated selling price in the ordinary course of business less the estimated cost necessary to make the sale. Any change in the estimates in the future might affect the carrying amount of respective stock in trade with corresponding effects on the provision for impairment, if any.

3.6 Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash in hand and balances with banks.

3.7 Financial Instruments- Initial recognition and subsequent measurement

3.7.1 Initial recognition

All financial assets and liabilities are initially measured at cost which is the fair value of consideration given or received. These are subsequently measured at fair value, amortized cost of cost as the case may be.

3.7.1.1 Classification of financial assets

IFRS 9 has the following categories for classification of financial assets:

Debt instruments at amortized cost.
Debt instruments at fair value through other comprehensive income (FVOCI), with recycling of gains or losses to statement of profit and loss account on derecognition.
Equity instruments at FVOCI, with no recycling of gains or losses to statement of profit and loss on derecognition.
Financial assets at fair value through profit or loss (FVTPL).

The classification is based on true criteria which is the entity's business model for managing the assets; and b) whether the instruments contractual cashflows represent 'solely payments of principal and profit' on the principal amount outstanding.

3.7.1.2 Classification of financial liabilities

The Modaraba classified its financial liabilities in the following categories:

at fair value through profit or loss (FVTPL); or
at amortized cost.

Financial liabilities are measured at amortized cost, unless they are required to measured at FVTPL (such as instruments held for trading or derivatives) or the Modaraba has opted to measure them at FVTPL.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

3.7.2 Subsequent measurement

Financial assets at FVTOCI

Elected investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently, they are measured at fair value, with gains or losses arising from changes in fair value recognized in other comprehensive income.

Financial assets and liabilties at amortised cost

Financial assets and liabilities at amortized cost are initially recognized at fair value and subsequently carried at amortized cost, and in the case of financial assets, less any impairment.

Financial assets and liabilties at FVTPL

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the profit and loss account. Realised and unrealised gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the statement of profit and loss in the period in which they arise.

3.7.3 Impairment of financial assets

The Modaraba assesses on a forward-looking basis the Expected Credit Losses (ECL) associated with its debt instruments carried at amortized cost and FVOCI. The Modaraba recognises a loss allowance for such losses at each reporting date. The measurement of ECL reflects:

An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
The time value of money; and
Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they fall due.

The Modaraba applies the IFRS 9 general approach to measure Expected Credit Losses (ECL) for ijarah finance and diminishing musharakah. A lifetime ECL is recorded on Ijarah finance and diminishing musharakah in which there has been Significant Increase in Credit Risk (SICR) from the date of initial recognition and which are credit impaired as on the reporting date. A 12 months ECL is recorded for ijarah finance and diminishing musharakah which do not meet the criteria for SICR or "credit impaired" as at the reporting date. To assess whether there is a significant increase in credit risk the Modaraba compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Modaraba also considers reasonable and supportive forwardinglooking information in determination of ECL. The allowance is increased by provisions charged to statement of profit and loss and other comprehensive income and is decreased by charge-offs, net of recoveries.

In evaluating the adequacy of ECL, the management considers various factors, including the nature and characteristics of the obligor, current economic conditions, credit concentrations or deterioration in collateral, historical loss experience and delinquencies.

The Modaraba Regulations, 2021 specifies a criteria for classification and provisioning of impaired assets. The Modaraba while recognising provision for impaired assets has considered the amount which is higher of (on a customer basis):

the provision required under the Modaraba Regulations, 2021; and
the provision required under IFRS 9 using the Expected Credit Loss (ECL) model.

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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3.7.4 Derecognition

3.7.4.1 Financial assets

The Modaraba derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire or when it transfers the financial assets and substantially all the associated risk and rewards of ownership to another entity. On derecognition of a financial asset measured at amortized cost, the difference between the asset's carrying value and the sum of the consideration received or receivables is recognized as gain/ (loss). In addition, on derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit and loss account. In contrast, on derecognition of an investment in equity instrument which the Modaraba has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to statement of profit and loss, but transferred to statement of changes in equity.

3.7.4.2 Financial liabilities

The Modaraba derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non- cash assets transferred or liabilities assumed, is recognized in the statement of profit and loss.

3.7.5 Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to set-off the recognized amounts and the Modaraba intends to either settle on a net basis, or to recognize the asset and settle the liability simultaneously.

3.8 Regular way contracts

All purchases and sales of securities that require delivery within the time frame established by regulation or market convention such as 'T+2' purchases and sales are recognised at the trade date. Trade date is the date on which the Modaraba commits to purchase or sell the assets.

3.9 Receivable from terminated / matured contracts

These are stated net of impairment loss. Impairment loss is recognised for doubtful receivables on the basis of Prudential Regulations for Modarabas issued by the SECP or based on the judgment of management, whichever is higher. Bad debts are written off when identified.

3.10 Diminishing musharakah, Ijarah rentals and Musawamah finance

These are stated net of provision and suspense income. Provision is recognized in accordance with the Modaraba Regulations, 2021 for Modarabas. Bad debts are written-off when identified.

3.11 Creditors, accrued and other liabilities

These are carried at amortized cost, which is the fair value of the consideration to be paid in the future for goods and services.

3.12 Provisions and contingent liabilities

Provisions

Provisions are recognised when the Modaraba has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimates.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

Contingent assets are not recognized and are disclosed unless an inflow of economic benefits is virtually certain. Contingent liabilities are not recognized and are disclosed unless the probability of an outflow of resources embodying economic benefits are removed.

3.13 Commitments

Commitments are disclosed in the financial statements at committed amounts.

3.14 Revenue

Trading operations

Sales from trading operations is recognized when the Modaraba satisfies performance obligations by transferring goods to customer. Goods are transferred when the customer obtains their control, i.e. on dispatch of goods to customers. Sales is measured at fair value of the consideration received or receivable. Revenue from trading operation is recorded net of discount and taxes.

Ijarah

Ijarah rental is recognised on an accrual basis, as and when rentals become due on a systematic basis over the lease and Ijarah period.

Documentation charges, front end fee and other Ijarah income are taken to the statement of profit and loss when these are realised.

Gain / losses on termination on ijarah contracts are recognised as income as the difference between the proceeds realised from the customer on sale of ijarah assets and the net book value at which such assets are carried at the time of termination.

Income in respect of non-performing ijarah finance is held in suspense account, where necessary, in accordance with the requirements of Prudential Regulations for Modarabas issued by the SECP.

Musharakah Finance

Profit on musharakah finance is recognised on the basis of pre-agreed profit / loss sharing ratio when actual gain / loss on transaction is computed upon termination / completion of transaction.

Musawamah Finance

Profit on musawamah finance is recognized on an accrual basis, whereas unrealized musawamah income is excluded from profit.

Dividend Income

Dividend income is recognised when the Modaraba's right to receive the dividend is established.

Gain and loss on sale of investment

Gain and losses on sale of investments are accounted for when the commitment (trade debt) for sale of security is made.

Return on deposit with bank

Return on deposit with bank is recognized on an accrual basis.

Income from Shariah non-compliant revenue

Income from Shariah non-compliant revenue is not recognised in the statement of profit and loss and is classified as charity payable.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

3.15 Segment reporting

As per IFRS 8, 'Operating Segments', segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker. The Chief Executive Officer of the Management Company has been identified as the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

The Chief Executive Officer is responsible for the Modaraba’s entire product portfolio and considers the business to have a single operating segment. The Modaraba’s asset allocation decisions are based on a single integrated investment strategy and the Modaraba’s performance is evaluated on an overall basis.

Based on internal management reporting structure, services provided and products produced and sold, the Modaraba is organised into the following four operating segments:

Trading - import and distribution of rice;
Financing -Musharakah, Diminishing Musharakah, Musawamah;
Investments- realized and unrealized gain on investments and dividend income; and
Ijarah- Ijarah financing.

3.16 Earnings per certificate

The Modaraba presents basic and diluted earnings per certificate data for its ordinary certificates. Basic earning per certificate is calculated by dividing the profit or loss attributable to ordinary certificate holders of the Modaraba by the weighted average number of certificates outstanding during the year. Diluted earning per certificate is determined by adjusting the profit or loss attributable to ordinary certificate holders and the weighted average number of ordinary certificates outstanding for the effects of all dilutive potential ordinary certificates.

3.17 Proposed profit distribution to certificate holders and transfers between reserves

Dividend declared and transfers between reserves made subsequent to the reporting date are considered as nonadjusting events and are recognised in the financial statements in the period in which such dividend are declared/ transfers are made.

3.18 Cash and cash equivalents

Cash and cash equivalent are carried in the statement of financial position at cost. For the purpose of the cash flow statements, cash and cash equivalent comprise of cash in hand, balances with banks in current accounts and in profit and loss account and term deposit receipt with maturity upto 90 days.

3.19 Staff retirement benefits

Staff Gratuity Scheme

The Company operates an unapproved gratuity scheme for its employees completing the eligibility period of service as defined under the plan. The scheme provides for a graduated scale of benefits dependent on the length of service of an employee on terminal date, subject to the completion of minimum qualifying period of service.

Provisions are made to cover the obligations under the scheme on the basis of actuarial valuation carried out annually by an external expert, using the ‘Projected Unit Credit Method’. All re-measurement gains and losses are recognized in statement of other comprehensive income as these occur. The amount recognized in the unconsolidated statement of financial position represents the present value of defined benefit obligations. The past service cost, current service cost and interest cost are recognized in the unconsolidated statement of profit or loss when they incurred.

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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3.20 Taxation

Current

The charge for current taxation is based on taxable income at the current rates of taxation after taking into account available tax credit and rebates, if any. Income for the purpose of computing current taxation is determined under the provisions of tax laws. Further, levies are accounted for in accordance with the requirement of IFRIC - 21.

Deferred

Deferred tax is accounted for using the balance sheet liability method in respect of all temporary timing differences arising from difference between the carrying amount of the assets and liabilities in the financial statements and corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and tax credits can be utilized.

Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is charged or credited in the statement of statement of profit and loss, except where deferred tax arises on the items credited or charged to equity in which case it is included in equity or when they relate to items recognised in other comprehensive income in which case it is recognised in the other comprehensive income.

	in which case it is recognised in the other comprehensive income.
			June 30,	June 30,
			2025	2024
		Note	-------------- Rupees --------------
4	CASH AND BANK BALANCES
	With banks in current accounts
	- Islamic Banks / Islamic Window Operations		926,746	874,977
	- Conventional Banks		692,037	486,224
	With banks in PLS accounts		1,618,783	1,361,201
	- Islamic Banks / Islamic Window Operations	4.1	57,298,749	16,351,315
	With Banks in term deposit accounts (TDRs)
	- Islamic Banks / Islamic Window Operations	4.2	75,000,000	75,000,000
			133,917,532	92,712,516

4.1	These saving accounts carry profit at rates ranging from 5.72%	to 9.5% (June 30, 2024: 6.99% to 11.01 %) per
	annum.
4.2	These represents TDRs carrying profit rate of 14.08% (June 30, 2024: 20.5%) and having maturity upto 3 months.
			June 30,	June 30,
			2025	2024
5	SHORT TERM INVESTMENTS	Note	-------------- Rupees --------------
	At fair value through profit or loss
	Shariah compliant
	Listed equity securities	5.1 & 40.1	41,729,535	16,400,060
	Listed Mutual funds	5.2	141,177	20,872,603
	Non Shariah compliant
	Listed equity securities	5.3 & 40.1	486,720	1,526,985
			42,357,431	38,799,648

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

5.1 Investments in ordinary shares of shariah compliant listed companies

Unless stated otherwise, the following holdings are in ordinary shares/certificates of Rs. 10/- each.

Listed equities securities TEXTILE COMPOSITE Nishat Mills Limited NML CEMENT Maple Leaf Cement Factory Limited MLCF REFINERY Cnergyico PK Limited CNERGY Pakistan Refinery Limited PRL POWER GENERATION & DISTRIBUTION The Hub Power Company Limited HUBC K-Electric Limited KEL OIL & GAS MARKETING COMPANIES Pakistan State Oil Company Limited PSO Sui Northern Gas Pipelines Limited SNGP Sui Southern Gas Company Limited SSGC OIL & GAS EXPLORATION COMPANIES Oil & Gas Development Company Limited OGDC Mari Petroleum Company Limited MARI Pakistan Petroleum Limited PPL AUTOMOBILE ASSEMBLER Ghandhara Tyre & Rubber Co Limited GTYR Millat Tractors Limited MTL TECHNOLOGY & COMMUNICATION Avanceon Limited AVN NetSol Technologies Limited NETSOL Octopus Digital Limited OCTOPUS Systems Limited SYS Air Link Communication Limited AIRLINK FERTILIZER Engro Fertilizers Limited EFERT PHARMACEUTICALS Citi Pharma Limited CPHL The Searle Company Limited SEARL CHEMICAL Berger Paints Pakistan Limited BERG Engro Polymer & Chemicals Limited EPCL Biafo Industries Limited BIFO FOOD & PERSONAL CARE PRODUCTS Al Shaheer Corportation Limited Asc At-Tahur Limited PREMA The Organic Meat Company Limited TOMCL Treet Corporation Limited TREET Wafi Foods Limited WAFI GLASS & CERAMICS Tariq Glass Industries Limited TGL	- 1,500 - 7,500 - 37,000 100,000 32,000 - 1,500 - 50,000 10,900 9,000 - 6,500 - 15,000 24,500 9,500 3,500 - 46,000 23,000 2,200 - 1,500 - - 9,000 2,500 - 55,000 - - 900 15,000 - 2,577 4,500 25,000 - 17,000 98,000 - 2,500 - 12,000 25,000 - - 3,000 - 15,000 - - - 15,000 20,000 - - 2,000 June 30, 2025 June 30, 2024 --- Number of Shares ---	- 106,275 - 285,000 - 142,450 3,393,000 742,400 3,393,000 884,850 - 244,620 - 231,500 - 476,120 4,115,077 1,495,890 - 412,555 - 142,200 4,115,077 2,050,645 5,403,720 1,286,015 2,194,115 - 7,827,820 2,693,530 15,425,655 3,979,545 88,638 - 837,990 - 926,628 - - 486,180 332,400 - 2,832,500 - - 376,470 2,289,600 - 5,454,500 862,650 478,265 747,990 2,099,250 - 1,490,900 5,597,760 3,590,150 5,597,760 - 180,125 - 528,240 4,390,500 - 4,390,500 708,365 - 24,210 - 210,150 - - - 233,400 3,693,800 - 3,693,800 467,760 - 233,100 41,729,535 16,400,060 June 30, 2025 June 30, 2024 ------- Rupees -------	- 106,275 - 285,000 - 142,450 3,393,000 742,400 3,393,000 884,850 - 244,620 - 231,500 - 476,120 4,115,077 1,495,890 - 412,555 - 142,200 4,115,077 2,050,645 5,403,720 1,286,015 2,194,115 - 7,827,820 2,693,530 15,425,655 3,979,545 88,638 - 837,990 - 926,628 - - 486,180 332,400 - 2,832,500 - - 376,470 2,289,600 - 5,454,500 862,650 478,265 747,990 2,099,250 - 1,490,900 5,597,760 3,590,150 5,597,760 - 180,125 - 528,240 4,390,500 - 4,390,500 708,365 - 24,210 - 210,150 - - - 233,400 3,693,800 - 3,693,800 467,760 - 233,100 41,729,535 16,400,060 June 30, 2025 June 30, 2024 ------- Rupees -------
			142,450 742,400
			884,850
			244,620 231,500
			476,120
			1,495,890 412,555 142,200
			2,050,645
			1,286,015 - 2,693,530
			3,979,545
			- -
			-
			486,180 - - 376,470 -
			862,650 747,990
			- 5,597,760
			5,597,760
			180,125 528,240 -
			708,365
			24,210 210,150 - 233,400 -
			467,760 233,100
			16,400,060

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

-------------------------- (Rupees) -------------------------- 5.2 Shariah compliant Listed Mutual Funds - 'at fair value through profit or loss' Listed Mutual Funds MCB Alhamra Islamic Income Fund 1,357 200,865 141,177 20,872,603 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 --- Number of units --- ------- Rupees ------- June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 --- Number of units --- ------- Rupees ------- 5.3 Non Shahriah Compliant listed equity securities - 'at fair value through profit or loss' Face value of Rs.10 /-each Refinery National Refinery Limited NRL 2,000 4,500 486,720 1,194,660 Miscellaneous Pakistan Aluminium Beverage Cans Limited PABC - 4,500 - 332,325 486,720 1,526,985 5.4 Unrealised loss on remeasurement of investments at fair value through profit or loss On shariah compliant investments 3,150,742 517,497 On non - shariah compliant investments 1,410,430 30,093 4,561,172 547,590 6 MUSAWAMAH FACILITY - secured Musawamah facility - considered doubtful 19,980,000 20,620,000 Less: provision against potential losses (19,980,000) (20,620,000) 6.1 & 6.2 - - Note June 30, 2025 June 30, 2024 -------------- Rupees -------------- Loss 19,980,000 (19,980,000) 20,620,000 (20,620,000)	-------------------------- (Rupees) -------------------------- 5.2 Shariah compliant Listed Mutual Funds - 'at fair value through profit or loss' Listed Mutual Funds MCB Alhamra Islamic Income Fund 1,357 200,865 141,177 20,872,603 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 --- Number of units --- ------- Rupees ------- June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 --- Number of units --- ------- Rupees ------- 5.3 Non Shahriah Compliant listed equity securities - 'at fair value through profit or loss' Face value of Rs.10 /-each Refinery National Refinery Limited NRL 2,000 4,500 486,720 1,194,660 Miscellaneous Pakistan Aluminium Beverage Cans Limited PABC - 4,500 - 332,325 486,720 1,526,985 5.4 Unrealised loss on remeasurement of investments at fair value through profit or loss On shariah compliant investments 3,150,742 517,497 On non - shariah compliant investments 1,410,430 30,093 4,561,172 547,590 6 MUSAWAMAH FACILITY - secured Musawamah facility - considered doubtful 19,980,000 20,620,000 Less: provision against potential losses (19,980,000) (20,620,000) 6.1 & 6.2 - - Note June 30, 2025 June 30, 2024 -------------- Rupees -------------- Loss 19,980,000 (19,980,000) 20,620,000 (20,620,000)	141,177 20,872,603 June 30, 2025 June 30, 2024 ------- Rupees ------- June 30, 2025 June 30, 2024 ------- Rupees ------- 486,720 1,194,660 - 332,325 486,720 1,526,985 3,150,742 517,497 1,410,430 30,093 4,561,172 547,590 19,980,000 20,620,000 (19,980,000) (20,620,000) - - June 30, 2025 June 30, 2024 -------------- Rupees --------------	141,177 20,872,603 June 30, 2025 June 30, 2024 ------- Rupees ------- June 30, 2025 June 30, 2024 ------- Rupees ------- 486,720 1,194,660 - 332,325 486,720 1,526,985 3,150,742 517,497 1,410,430 30,093 4,561,172 547,590 19,980,000 20,620,000 (19,980,000) (20,620,000) - - June 30, 2025 June 30, 2024 -------------- Rupees --------------
			--- (20,620,000)

--------- 19,980,000	----------------- (Rupees) ---------------------- (19,980,000) 20,620,000	-

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

6.2 This represents musawamah principal amount overdue by more than one year carried profit rate of 10% (June 30, 2024: 10%) per annum secured against hypothecation of current assets, demand promissory notes, personal guarantee of directors and pledge of stocks(raw cotton). M/s Quetta Textile Mills Limited has defaulted in payment at its maturity therefore the Modaraba has filed a suit for recovery of principal and profit in Honorable Banking Court No.II amounting to Rs. 25 million and Rs. 0.68 million respectively.

Further, Modaraba had also filed for registration of criminal complaint against M/s Quetta Textile Mills Limited.

M/s Quetta Textile Mills Limited had filed a suit against Modaraba for the recovery of Rs. 76.898 million along with damages, rendition of accounts, reconciliation of documents, cancellation of documents and other reliefs under section 9 of the Financial Institutions (Recovery of Finances) Ordinance 2001.

During the year ended June 30, 2022, Quetta Textiles Mills Limited approached the Modaraba for out of court settlement. The settlement agreement had been agreed and was submitted to honorable banking court and the respective order dated August 16, 2022 has been passed by the court. Effectively the agreed repayment has been executed and will be received by the Modaraba as per the agreed schedule. During the year ended June 30, 2025 and June 30, 2024 an amount of Rs. 0.64 million and Rs. 1.4 million have been received respectively.

7 PROFIT RECEIVABLE Profit on Sukuk Certificates Term deposit receipt profit Profit or loss savings bank account 8 STOCK IN TRADE Rice 9 LOANS, ADVANCES, PREPAYMENTS AND OTHER RECEIVABLES Loans to staff 9.1 Advances - considered good - Suppliers - Employees 9.2 Prepayments Broker accounts receivable Dividend receivable Sales tax receivable 9.3 Note	115,351 484,479 349,419 1,745,034 - 32,106 464,770 2,261,619 68,258,142 78,661,336 1,252,000 700,000 202,254 129,931 35,000 52,000 789,453 1,029,863 2,952,855 3,129,227 - 18,676 627,519 627,519 5,859,081 5,687,216 June 30, 2025 June 30, 2024 -------------- Rupees --------------

9.1 This represents short term loan given to the senior staff. These are given as per the Modaraba's policy and are secured against the salary and retirement benefit. The maximum aggregate amount at any time during the year is Rs. 1,490,000 (2024: Rs. 700,000).

9.2 The maximum aggregate amount at any time during the year is Rs. 300,000 (June 2024: Rs. 250,000).

9.3 This represents an amount of Rs. 0.63 million (2024: Rs. 0.63 million) on account of sales tax paid on management remuneration to the management company for onward submission to Sindh Revenue Board (SRB). However, the amount is not yet deposited into SRB by the Management Company.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

10 TAXATION AND LEVIES - NET Income tax refundable Provision for income tax for current year Provision for levies for current year Advance tax written off Income tax adjusted / deducted at source 11 LONG TERM DEPOSITS National Commodities Exchange Limited Security Deposit-N.C.E.L.-Office Space Guarantee Margin - MCB Bank Limited Mobile Phone - Pakistan Mobile Communication Security Deposit- CDC Pakistan Limited 12 LONG TERM INVESTMENTS - NET Investment in Associates - Shariah compliant 12.1 At fair value through other comprehensive income Shariah compliant Equity securities-listed 12.2 Mutual funds-listed 12.3 At Amortised Cost Investment in Sukuk Certificates 12.4 12.1 Investment in Associates Opening Balance Share of other comprehensive (loss) / income of associate Share of profit of associate Dividend income		696,045 3,528,462 (1,060,210) (458,106) (2,673,972) (2,791,940) - (4,343,312) 2,133,298 4,760,941 (904,839) 696,045 2,500,000 2,500,000 850,000 850,000 440,000 440,000 12,489 12,489 37,658 35,918 3,840,147 3,838,407 9,406,239 9,835,455 1,175,018 2,719,460 - 13,756,444 1,175,018 16,475,904 5,000,000 10,000,000 15,581,257 36,311,359 9,835,455 9,402,149 (584,523) 21,697 155,307 1,408,584 (429,216) 1,430,281 - (996,975) 9,406,239 9,835,455 June 30, 2025 June 30, 2024 -------------- Rupees --------------	696,045 3,528,462 (1,060,210) (458,106) (2,673,972) (2,791,940) - (4,343,312) 2,133,298 4,760,941 (904,839) 696,045 2,500,000 2,500,000 850,000 850,000 440,000 440,000 12,489 12,489 37,658 35,918 3,840,147 3,838,407 9,406,239 9,835,455 1,175,018 2,719,460 - 13,756,444 1,175,018 16,475,904 5,000,000 10,000,000 15,581,257 36,311,359 9,835,455 9,402,149 (584,523) 21,697 155,307 1,408,584 (429,216) 1,430,281 - (996,975) 9,406,239 9,835,455 June 30, 2025 June 30, 2024 -------------- Rupees --------------
		1,175,018 -
			16,475,904 10,000,000 36,311,359 9,402,149
		(584,523) 155,307	21,697 1,408,584
			1,430,281 (996,975) 9,835,455

12.1.1 This represents investment in associate, the Al-Noor Sugar Mills Limited which is incorporated in Pakistan and listed on Pakistan Stock Exchange. Its registered office is situated at 96-A, Sindhi Muslim Society, Karachi. The principal activities of the associate is manufacturing sugar, medium density fiber (MDF) board, power generation and its sale.

The Modaraba owns 0.54% (June 2024: 0.54%) share capital of the Al-Noor Sugar Mills. However, Al-Noor Sugar Mills Limited is associated company of the Modaraba based on the common directorship. The associate is accounted for using equity method in these financial statements.

12.1.2 The financial year end of the Al-Noor Sugar Mills Limited is September 30. This was the reporting date established when that Company was incorporated. For the purposes of applying the equity method of accounting, the unaudited financial statements of Al-Noor Sugar Mills Limited for the year ended June 30, 2025 have been used to reflect the profit /(loss) for the year. As at June 30, 2025, the fair value of the Modaraba’s interest in Al-Noor Sugar Mills is disclosed in 12.1.3 based on the quoted market price available on the Pakistan Stock Exchange, which is a level 1 input in terms of IFRS 13.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

12.1.3 The summarized unaudited financial information in respect the Al-Noor Sugar Mills Limited is set out below. The summarized financial information represents the amounts shown in the associate’s financial statements for the respective year.

respective year.
Name of Associate	Basis of significant influence
Al-Noor Sugar Mills Limited	Common directorship
	June 30,	June 30,
	2025	2024
	-------------- Rupees --------------
Number of shares held (number)	110,775	110,775
Ownership interest (%)	0.54%	0.54%
	June 30,	June 30,
	2025	2024
	-------------- Rupees --------------
Share capital ordinary shares of Rs 10. each	204,737	204,737
Total assets	20,700,625	22,769,796
Total liabilities	13,638,168	11,810,746
Net assets	7,062,457	10,959,050
Revenue	11,535,860	18,450,563
Profit after taxation	39,975	260,848
Other comprehensive (loss) / income	(108,033)	4,017,963
Cost of investment	1,482,481	1,482,481
Market value of shares	8,745,686	9,415,875

12.1.4 The Company's share of contingencies of associated company based on financial information of associated company is Rs. 55.36 million (June 30, 2024: Rs. 55.36 million).
12.1.5 The Company's share of commitments of associated company based on financial information of associated company is Rs. 1.80 million (June 30, 2024: 1.03 million).

Listed equities securities COMPANY SYMBOL MODARABAS First Habib Modaraba FHAM 5000 10000 First Imrooz Modaraba FIMM 4537 4160 OLP Modaraba (Formerly Orix Modaraba) OLPM 11700 11000 AUTOMOBILE ASSEMBLER Ghandhara Automobiles Limited GAL - 3093 Ghandhara Industries Limited GHNI - 4100 PHARMACEUTICALS The Searle Company Limited SEARL - 500 June 30, 2025 June 30, 2024 --- Number of Shares --- Shahriah Compliant listed equity securities - at fair value through other comprehensive ncome' Face value of Rs.10 /-each	123,550 160,092 831,859 719,680 219,609 149,820 1,175,018 1,029,592 - 540,409 - 1,120,899 - 1,661,308 - 28,560 1,175,018 2,719,460 June 30, 2025 June 30, 2024 ------- Rupees -------	123,550 160,092 831,859 719,680 219,609 149,820 1,175,018 1,029,592 - 540,409 - 1,120,899 - 1,661,308 - 28,560 1,175,018 2,719,460 June 30, 2025 June 30, 2024 ------- Rupees -------
		160,092 719,680 149,820
		1,029,592
		540,409 1,120,899
		1,661,308 28,560 2,719,460

12.2 Shahriah Compliant listed equity securities - at fair value through other comprehensive income' Face value of Rs.10 /-each

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

		June 30,	June 30,	June 30,	June 30,
		2025	2024	2025	2024
		--- Number of Shares ---		------- Rupees -------
12.3	Listed Mutual Funds - 'at fair value through
	other comprehensive income'
	Listed Mutual Funds
	Atlas Islamic Money Market Fund	-	2,308	-	1,161,366
	NBP Islamic Daily dividend Fund	-	111,016	-	1,110,168
	NBP Islamic Government Securities Plan-III	-	-	-	-
	HBL Islamic Money Market Fund	-	84,037	-	8,502,408
	MCB Alhamra Islamic Money Market Fund	-	-	-	-
	MCB Alhamra Daily Dividend Fund	-	-	-	-
	MCB Alhamra Cash Management Optimizer	-	-	-	-
	Meezan Rozana Amdani Fund	-	59,650	-	2,982,503
	Meezan Soveregn Fund	-	-	- -	- 13,756,445
12.4	Two separate investment made in sukuk certificates of Tier II of		AlBaraka Bank Pakistan Limited and Meezan Bank
	Limited carrying profit of six months of KIBOR to	spread of 0.50% to 7.50% (June 30, 2024: KIBOR			to spread of
	0.35% to 1.25%). These will mature by year 2031.			June 30,	June 30,
				2025	2024
				-------------- Rupees	--------------
13	DIMINISHING MUSHARAKAH FINANCING
	- Secured
	Diminishing musharakah financing			1,339,902	7,314,299
	Less: Provision in respect of diminishing musharakah			-	-
	Less: Current portion			1,339,902 (1,213,687)	7,314,299 (6,243,797)
				126,215	1,070,502
13.1	These carry profit rate ranging from 9.22% to 11.00% (2024: 9.22% to 15.40%)			per annum and are	repayable on
	monthly basis over a maximum period of four years. The financing is secured by way of personal guarantees of the
	parties and ownership of vehicles.
14	DEFERRED TAX LIABILITY / (ASSET)
	For the year ended June 30, 2025	Balance at	Charge / (income)	Charge / (income)	Balance at
		beginning of	recognized in	recognized in other	end of
		the year	profit or loss	comprehensive	the year
				income
			----------------------- Rupees -----------------------
	Deferred tax liability arising from:
	- Investment in associate	1,252,946	23,296	(87,678)	1,188,564
	- Intangibles	-	43,728	-	43,728
	Deferred tax assets arising from: - Accelerated tax depreciation - Long term investment - Short term investment - Provision for welfare workers - Provision for gratuity	(328,493) (65,370) (68,449) (42,841) (1,764,991)	(38,566) - (809,170) (22,873) (83,047)	- 6,241 - - -	(367,059) (59,129) (877,619) (65,714) (1,848,038)
		(2,270,144)	(953,656)	6,241	(3,217,559)
	Net deferred tax	(1,017,198)	(886,632)	(81,437)	(1,985,266)

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

1,187,950 59,137 5,859 1,252,946 ----------------------- Rupees ----------------------- Balance at beginning of the year Charge / (income) recognized in profit or loss Charge / (income) recognized in other comprehensive income Balance at end of the year	1,187,950 59,137 5,859 1,252,946 ----------------------- Rupees ----------------------- Balance at beginning of the year Charge / (income) recognized in profit or loss Charge / (income) recognized in other comprehensive income Balance at end of the year	1,187,950 59,137 5,859 1,252,946 ----------------------- Rupees ----------------------- Balance at beginning of the year Charge / (income) recognized in profit or loss Charge / (income) recognized in other comprehensive income Balance at end of the year	1,187,950 59,137 5,859 1,252,946 ----------------------- Rupees ----------------------- Balance at beginning of the year Charge / (income) recognized in profit or loss Charge / (income) recognized in other comprehensive income Balance at end of the year	1,187,950 59,137 5,859 1,252,946 ----------------------- Rupees ----------------------- Balance at beginning of the year Charge / (income) recognized in profit or loss Charge / (income) recognized in other comprehensive income Balance at end of the year	1,187,950 59,137 5,859 1,252,946 ----------------------- Rupees ----------------------- Balance at beginning of the year Charge / (income) recognized in profit or loss Charge / (income) recognized in other comprehensive income Balance at end of the year
(219,712) (316,434) (678,009) (35,112) (1,217,350)	(108,781) - (328,493) 178,002 73,062 (65,370) 609,560 - (68,449) (7,729) - (42,841) (385,095) (162,546) (1,764,991)
	285,957 (89,484) (2,270,144) 345,094 (83,625) (1,017,198) 1,165,166 5,091,382 8,301,528 (635,745) (4,417,125) (6,571,572) 529,421 674,257 1,729,956 529,421 674,257 1,729,956 - - 101,336 (84,918) (393,587) (765,686) 444,503 280,670 1,065,606 1,165,166 5,091,382 8,402,864 (720,663) (4,810,712) (7,337,258) 444,503 280,670 1,065,606 444,503 280,670 1,065,606 39,500 527,677 748,558 (116,763) (278,712) (553,317) 367,240 529,635 1,260,847 1,204,666 5,619,059 9,151,422 (837,426) (5,089,424) (7,890,575) 367,240 529,635 1,260,847 10% 20% Furniture and Fixtures Motor Vehicles Total --- Rupees ------------------------------------- 15.1 1,260,847 1,065,606 June 30, 2025 June 30, 2024 -------------- Rupees -------------- Note	(89,484) (2,270,144) (83,625) (1,017,198) 1,260,847 1,065,606 June 30, 2025 June 30, 2024 -------------- Rupees --------------
			5,091,382 (4,417,125) 674,257 674,257 - (393,587) 280,670 5,091,382 (4,810,712) 280,670 280,670 527,677 (278,712) 529,635 5,619,059 (5,089,424) Motor Vehicles -----------------	----	8,301,528 (6,571,572) 1,729,956 1,729,956 101,336 (765,686) 1,065,606 8,402,864 (7,337,258) 1,065,606 1,065,606 748,558 (553,317) 1,260,847 9,151,422 (7,890,575) Total ----------
			529,635 20%		1,260,847

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

16 INTANGIBLE ASSETS FOR OWN USE Intangibles 16.1 INTANGIBLE ASSETS FOR OWN USE Cost Accumulated amortization Net book value Movement during the year ended June 30, 2024 Carrying amount at July 1, 2023 Additions during the year Amortization charge for the year Net book amount At June 30, 2024 Cost Accumulated amortization Net book amount Movement during the year ended June 30, 2025 Carrying amount at July 1, 2024 Additions during the year Amortization charge for the year Closing net book amount At June 30, 2025 Cost Accumulated amortization Net book amount Annual rates of amortization	225,000 (225,000) - - - - - 225,000 (225,000) - - - - - 225,000 (225,000) - 30% Software --------------------		150,787 - June 30, 2025 June 30, 2024 -------------- Rupees -------------- 88,000 313,000 (88,000) (313,000) - - - - - - - - - - 88,000 313,000 (88,000) (313,000) - - - - 163,013 163,013 (12,226) (12,226) 150,787 150,787 251,013 476,013 (100,226) (325,226) 150,787 150,787 30% Web page design Total ----- Rupees --------------------------	150,787 - June 30, 2025 June 30, 2024 -------------- Rupees -------------- 88,000 313,000 (88,000) (313,000) - - - - - - - - - - 88,000 313,000 (88,000) (313,000) - - - - 163,013 163,013 (12,226) (12,226) 150,787 150,787 251,013 476,013 (100,226) (325,226) 150,787 150,787 30% Web page design Total ----- Rupees --------------------------
		-		313,000 (313,000) - - - - - 313,000 (313,000) - - 163,013 (12,226) 150,787 476,013 (325,226) 150,787 Total -------------------

16.2 Software relate to the accounting and tax software system purchased in 2018.

16.3 Web design relates to website cost of the Modaraba made in the year 2012.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

17 CERTIFICATE CAPITAL

17.1 Authorised certificate capital

June 30,	June 30,		June 30,	June 30,
2025	2024		2025	2024
---- Number of	certificates ----		-------------- Rupees	--------------
40,000,000	40,000,000	Modaraba certificates of Rs. 10 each	400,000,000	400,000,000
sued, subscribed and paid - up certificate capital
June 30,	June 30,		June 30,	June 30,
2025	2024		2025	2024
---- Numbers ----			-------------- Rupees	--------------
20,000,000	20,000,000	Modaraba certificates of Rs. 10 each fully paid in cash	200,000,000	200,000,000
1,000,000	1,000,000	Modaraba certificates issued as bonus	10,000,000	10,000,000
2,100,000	2,100,000	Modaraba certificates issued as bonus	21,000,000	2,100,000
23,100,000	23,100,000		231,000,000	23,100,000

17.2 Issued, subscribed and paid - up certificate capital

17.3 As at June 30, 2025, First Al-Noor Modaraba Management (Private) Limited (the Management Company and a related party) held 4,620,000 certificates (June 30, 2024: 4,620,000 certificates), as required under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980.

18 STATUTORY RESERVE

The Statutory reserve represents profits set aside as per the Modaraba Regulations, 2021 issued by the SECP.

These regulations also required that, if minimum equity requirements are applicable on any Modaraba and are not compliant, such Modarabas may create a reserve fund which shall be credited an amount equivalent to one hundred percent of its annual after-tax profit till such time the minimum equity requirements are complied with. However, the minimum equity requirement does not apply to the Modaraba.

During the current year the Modaraba has transferred an amount of Rs. 482,614 (June 30, 2024: Rs. 78,021). These funds are not available for distribution.

19

Note DEFICIT ON REVALUATION OF INVESTMENTS - net of tax Classified As 'FVTOCI' Market value of investments ess: cost of investments mpact of deferred tax Deficit on revaluation at the beginning of the year Surplus) / Deficit transferred to accumulated losses urplus / (Deficit) on revaluation during the year- net of tax Deficit on revaluation at the end of the year	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 1,175,018 16,475,903 (1,963,401) (17,347,499) 59,129 65,370 (729,254) (806,226) (806,226) (2,215,042) (1,791,350) (1,143,968) 1,868,322 2,552,784 76,972 1,408,816 (729,254) (806,226)	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 1,175,018 16,475,903 (1,963,401) (17,347,499) 59,129 65,370 (729,254) (806,226) (806,226) (2,215,042) (1,791,350) (1,143,968) 1,868,322 2,552,784 76,972 1,408,816 (729,254) (806,226)
		(1,143,968) 2,552,784
		1,408,816 (806,226)

Deficit on revaluation of investments is presented under a separate head below equity as 'deficit on revaluation of investments' in accordance with the requirement of circular No. SC/M/PROD/PRs/2017-259 dated December 11, 2017.

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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20 DEFERRED LIABILITY - STAFF GRATUITY

The Modaraba operates an unfunded gratuity scheme for its permanent employees. The latest actuarial valuation of the plan was carried out as at June 30, 2025 by M/s. Nauman Associates, using Projected Unit Credit Method.

Details of the defined benefit plan are presented below :

	Details of the defined benefit plan are presented below :
			June 30,	June 30,
			2025	2024
		Note	-------------- Rupees --------------
20.1	Movement in defined benefit obligation
	Opening balance		6,536,176	4,931,967
	Expense recognized in profit or loss	20.2	1,455,399	1,311,762
	Remeasurement loss recognized in
	other comprehensive income	20.3	1,429,161	601,947
	Benefits paid		(1,940,000)	(309,500)
	Closing balance		7,480,736	6,536,176
20.2	Expense recognized in profit or loss
	Current service cost		648,303	559,350
	Interest cost on defined benefit obligation		807,096	752,412
			1,455,399	1,311,762
20.3	Remeasurement loss recognized in other
	comprehensive income
	Actuarial losses arising from:
	- Changes in financial assumptions		(165,874)	(51,059)
	- Experience adjustments		1,595,035	653,006
			1,429,161	601,947
20.4	Sensitivity analysis of defined benefit obligation
	Discount rate + 100 bps		7,045,524	5,899,479
	Discount rate - 100 bps		8,683,108	7,269,651
	Rate of salary increase + 100 pbs		8,752,847	7,308,805
	Rate of salary increase - 100 pbs		6,969,560	5,853,320
	The sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In
	practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
	sensitivity of the defined benefit obligation to significant actuarial assumptions the same method			(present value of
	defined benefit obligation calculated with the projected unit credit method at the		end of the reporting	period) has been
	applied as when calculating the liability for gratuity recognized	within the statement of financial position.
20.5	Principal actuarial assumptions used		2025	2024
	Mortality rates		SLIC 2001-2005	SLIC 2001-2005
	Discount rate used for interest Cost in P&L charge		14.50%	15.75%
	Discount rate used for year end obligation		12.50%	14.50%
	Expected rate of increase in salaries		11.50%	13.50%
	Retirement age		60 years	60 years

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

20.6 As at June 30, 2025, the weighted average duration of the defined benefit plan was 10.5 years (2024: 10 years).
20.7 The scheme exposes the Company to the actuarial risks such as:

20.7.1 Salary risk

The risk that the final salary at the time of cessation of service is greater than what was assumed. Since the benefit is calculated on the final salary, the benefit amount increases similarly.

20.7.2 Demographic risks

Mortality risk:

The risk that the actual mortality experience is different than the assumed mortality. This effect is more pronounced in schemes where the age and service distribution is on the higher side.

- Withdrawal risk:

The risk of actual withdrawals experience is different from assumed withdrawal probability. The significance of the withdrawal risk varies with the age, service and the entitled benefits of the beneficiary.

Note 21 CREDITORS, ACCRUED AND OTHER LIABILITIES Accrued expenses Takaful Advances from customers Provision for Worker's Welfare Fund Audit fee payable Others 22 CHARITY PAYABLE Opening balance Add: amount credited during the year Less: paid during the year Closing balance 23 PROVISION FOR CUSTOM DUTY & SURCHARGE Custom duty / surcharges 23.1	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 1,513,739 475,614 13,350 18,400 137,716 239,591 266,007 158,649 877,298 222,298 25,783 25,783 2,833,894 1,140,335 - - 319,762 8,906 319,762 8,906 (319,762) (8,906) - - 4,398,842 4,398,842

23.1 In a suit filed with the Honorable High Court of Sindh in the year 1994 - 95, Modaraba has disputed the amount of duty and surcharge levied by the Collector of Customs on import of 1,901.472 metric tons of edible oil imported from Singapore. The Honorable High Court rejected the appeal and ordered to deposit amount for the disputed amount of duty. The Modaraba has filed an appeal in the Honorable Supreme Court against the decision of the Honorable High Court. The Honorable Supreme Court in its interim order allowed the Modaraba to get release of goods for which Modaraba has provided bank guarantee of Rs. 4.4 million against 10% cash margin and hypothecation charge on current assets until the matter is decided. The Modaraba, however, has fully provided for the duty and surcharge of Rs. 4,398,842, as claimed by the Collector of Customs.

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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24 CONTINGENCIES AND COMMITMENTS

24.1 Contingencies

Details of contingencies regarding Provision for Sindh Workers' Welfare Fund, Musawamah facility litigation against Quetta Textile Mills Limited and Provision for Custom Duty and Surcharge are disclosed in notes 21.1, 6.2 and 23.1 respectively.

24.2 Commitments

There are no commitments as at June 30, 2025 (June 30, 2024: Nil).

25
INCOME FROM TRADING OPERATIONS
Gross Sales - Shariah compliant
Rice Sales
Maize Sales
Sales tax
Net Sales
Cost of sales
25.1
25.1
Cost of sales
Opening stock
Purchases
Less: closing stock
Cost of sales
26
INCOME ON DIMINISHING MUSHARAKA
Income on diminishing musharaka
27
INCOME FROM INVESTMENTS
Shariah Compliant
Gain on sale of securities - net
Dividend income
27.1
Profit on Sukuk Certificates
Profit on investment in Islamic certificates and term deposit receipts
27.1
Dividend income
FVTOCI (shares held at reporting date)
FVTPL

181,662,787
93,768,021
-
10,851,897
181,662,787
104,619,918
-
-
181,662,787
104,619,918
(165,845,137)
(111,377,442)
15,817,650
(6,757,524)
78,661,336
111,377,444
155,441,953
78,661,334
(68,258,152)
(78,661,336)
165,845,137
111,377,442
2,196,949
6,981,569
15,420,212
6,525,256
3,008,018
7,609,399
1,070,896
2,178,970
6,148,757
16,942,047
25,647,882
33,255,672
79,275
93,921
2,928,743
7,515,478
3,008,018
7,609,399
June 30,
2025
June 30,
2024
-------------- Rupees --------------

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

Note
28
ADMINISTRATIVE AND OPERATING EXPENSES
Salaries and others staff benefits
28.1
Rent, rates and taxes
Takaful
28.2
Postage and telephone
Printing and stationary
Fee & subscription
28.3
Legal and professional charges
40.1
Travelling, conveyance and fuel
Entertainment
Repair and maintenance
Depreciation
Amortisation
Advertisement and publicity
Auditor's remuneration
28.4
Commission
Dividend receivable written off
Others

June 30,
2025
June 30,
2024
-------------- Rupees --------------
22,291,415
18,162,262
1,722,226
5,678,770
1,029,583
1,334,302
473,218
353,351
287,285
341,214
2,672,021
2,458,066
896,900
833,100
1,605,530
1,285,550
57,914
32,631
1,069,191
578,266
553,317
765,686
12,226
-
35,650
23,250
792,000
530,000
2,250,919
322,189
18,676
-
732,906
268,755
36,500,978
32,967,392

28.1 This includes Rs. 1,455,399 (2024: Rs.1,311,762) in respect of staff retirement benefits.

28.2 This includes Rs. 420,842 (2024: Rs. 994,626) in respect Takaful for Ijarah & diminishing musharakah assets and Rs. 528,512 (2024: Rs. 93,660) for stocks.

28.3 This includes Rs.355,000 (2024: Rs.400,000) in respect of Directors Meeting Fee.

Note 28.4 Auditor's remuneration Audit fee Other certification Sharia audit Fee Half yearly review Out-of-pocket expenses	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 300,000 300,000 100,000 60,000 200,000 - 110,000 110,000 127,000 60,000 792,000 530,000

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

28.5 The aggregate amount of remuneration charged in these financial statement, including all benefits to officers and employees of the Modaraba are as under:

Salary Bonus Gratuity EOBI Group insurance General services Leave in cashment No. of persons	Officers Other employees Total 2025 10,845,000 6,666,580 17,511,580 435,000 453,471 888,471 485,133 970,266 1,455,399 61,547 127,584 189,131 218,084 436,167 654,251 - 1,003,484 1,003,484 589,099 - 589,099 12,633,863 9,657,552 22,291,415 3 6 9	2024 Officers Other employees Total 9,221,000 5,292,391 14,513,391 575,000 406,000 981,000 1,105,472 206,290 1,311,762 57,330 95,550 152,880 256,093 126,136 382,229 821,000 - 821,000 - - - 12,035,895 6,126,367 18,162,262 3 6 9

In addition the executives are also provided with the Modaraba's maintained vehicles.

Note 29 OTHER INCOME Reversal of provision against Musawamah Facility 40.1 Profit on bank deposits - Shariah compliant 30 FINANCIAL AND OTHER CHARGES Bank charges Guarantee commission	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 640,000 1,380,000 1,991,994 1,340,312 2,631,994 2,720,312 10,852 9,455 8,800 17,600 19,652 27,055

31 MANAGEMENT COMPANY'S REMUNERATION INCLUDING SALES TAX

The Modaraba Management Company is entitled to a remuneration for services rendered to the Modaraba under the provisions of the Modaraba Companies and Modarabas (Floatation and Control) Ordinance, 1980 upto a maximum of 10% per annum of the net annual profits of the Modaraba. No provision for Management Company's remuneration including sales tax has been made during the year.

Note 32 LEVIES Sindh Workers' Welfare Fund 40.1 Income tax under final tax regime Excess of minimum tax over normal tax	June 30, 2025 June 30, 2024 -------------- Rupees -------------- 107,360 81,332 2,673,972 1,141,410 - 1,650,530 2,781,332 2,873,272

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

33
TAXATION
Current tax expense
Prior year tax
Deferred tax expense
33.1
33.1
Relationship between accounting profit and tax expense
for the year is as follows:
Profit before levies (excluding WWF) and taxation
Tax at the applicable tax rate of 29%
Tax effect of income taxable under final tax and separate block
of income
Tax effect of prior period tax
Tax effect of permanent differences
Note

1,060,210
-
-
458,106
(886,632)
345,094
173,578
803,200
5,260,620
3,985,244
1,525,580
1,155,721
(1,166,402)
(410,427)
-
458,106
(185,600)
(400,200)
173,578
803,200
June 30,
2025
June 30,
2024
-------------- Rupees --------------

Income tax assessments of the Company are deemed to be finalized as per tax returns file up to tax year 2024. Tax returns are subject to further assessment under provisions of the Income Tax Ordinance, 2001 ("the Ordinance") unless selected for an audit by the taxation authorities. The Commissioner of Income Tax may, at any time during a period of five years from date of filing of return, select a deemed assessment order for audit.

34 EARNINGS PER CERTIFICATE - BASIC AND DILUTED Basic earnings per certificate Profit after taxation Weighted average number of certificates outstanding during the period Earnings per certificate - basic Note	2,413,070 390,104 23,100,000 23,100,000 0.10 0.02 June 30, 2025 June 30, 2024 -------------- Rupees -------------- ––– Number of certificates ––– -------------- Rupees --------------

34.1 There are no dilutive potential certificates as at the year end.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

35 FINANCIAL INSTRUMENTS

35.1 FINANCIAL INSTRUMENTS BY CATEGORY Financial assets Cash and bank balances Investments Long term deposits Profit receivable Receivable form diminishing musharaka Diminishing musharakah Other receivables Total financial assets Financial liabilities Creditors, accrued and other liabilities Total financial liabilities Financial assets Cash and bank balances Investments Long term deposits Profit receivable Receivable form diminishing musharaka Diminishing musharakah Other receivables Total financial assets Financial liabilities Creditors, accrued and other liabilities Total financial liabilities	FVTPL FVTOCI - - 42,357,431 1,175,018 - - - - - - - - - - 42,357,431 1,175,018 - - - - -------------------- Rupees -------- As at June 30, 2025 - - 38,799,648 16,475,904 - - - - - - - - - - 38,799,648 16,475,904 - - - - FVTPL FVTOCI -------------------- Rupees -------- As at June 30, 2024	At Amortised Cost 133,917,532 5,000,000 3,840,147 464,770 - 1,339,902 4,204,855 148,767,206 2,430,171 2,430,171 ------------ 92,712,516 10,000,000 3,838,407 2,261,619 751,570 7,314,299 3,847,903 120,726,314 742,095 742,095 At Amortised Cost ------------

35.2 Financial risk management, objectives and policies

The Modaraba’s objective in managing risks is the creation and protection of Certificate holders’ value. Risk is inherent in the Modaraba’s activities, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The process of risk management is critical to the Modaraba’s continuing profitability. The Modaraba is exposed to market risk (which includes profit rate risk and price risk), credit risk and liquidity risk arising from the financial instruments it holds.

The Modaraba primarily invests in Ijarah assets, diminishing musharakah, diversified portfolio of listed securities, and Islamic investments instruments. Such investments are subject to varying degrees of risk, which emanate from various factors that include but are not limited to:

Credit risk
Liquidity risk
Market risk

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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35.2.1 Credit risk

Credit risk is the risk of financial loss to the Modaraba if the counterparty to a financial instrument fails to meet its contractual obligations. The risk is generally limited to principal amounts and accrued interest thereon, if any. The Modaraba’s policy is to enter into financial contracts in accordance with the internal risk management policies and the requirements of the Modaraba Rules and Regulations. The carrying amount of respective financial assets represents the maximum credit exposure at the reporting date.

Bank balances and term deposits receipts

Credit risk rating of the banks and their respective balances are given below:

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June 30, June 30,
Rating
Bank 2025 2024
Agency Short term Long term -------------- Rupees --------------
----- End of picture text -----

Al-Baraka Bank Limited	JCR-VIS	A-1	AA-	75,804,747	800,000
Askari Bank Limited	PACRA	A-1+	AA+	41,634	75,092,707
Faysal Bank Limited	PACRA	A-1+	AA	268,392	321,173
HBL Bank Limited	JCR-VIS	A-1+	AAA	17,471	72,946
MCB Islamic Bank Limited	PACRA	A-1	A+	97,569	57,868
Meezan Bank Limited	JCR-VIS	A-1+	AAA	55,862,957	10,737,357
National Bank of Pakistan	PACRA	A-1+	AAA	692,037	486,222
United Bank Limited	JCR-VIS	A-1+	AAA	1,042,695	5,060,177
NRSP Microfinance Bank	JCR-VIS	A2	A-	90,029	84,066

35.2.2 Liquidity risk

Liquidity risk is the risk that the Modaraba will encounter difficulty in meeting its financial obligations as they fall due. Liquidity risk arises because of the possibility that the Modaraba will be required to pay its liabilities earlier than expected or will face difficulty in raising funds to meet commitments associated with financial liabilities as they fall due. The Modaraba’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Modaraba’s reputation. The following are the contractual maturities of financial liabilities:

	June 30, 2025	June 30, 2025	June 30, 2025
Carrying amount 2,430,171 2,430,171 ----------	June 30, 2024 Contractual cash flows (2,430,171) (2,430,171) - (2,430,171) (2,430,171) - Upto 3 months Over 3 months to on year ----------------- Rupees --------------------------
			- - --------
Carrying amount	Contractual cash flows	Upto 3 months	Over 3 months to on year
742,095 742,095 ----------	(742,095) (742,095) (742,095) (742,095) ----------------- Rupees ------------------		- - --------

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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35.2.3 Market risk

Market risk is the risk that the value of the financial instrument may fluctuate as a result of changes in market interest rates or the market price due to a change in credit rating of the issuer or the instrument, change in market sentiments, speculative activities, supply and demand of securities and liquidity in the market. Market risk comprises of currency risk, interest rate risk and other price risk.

(a) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As of the reporting date, the Modaraba was not exposed to any foreign currency risk as all its transactions were carried out in Pak Rupees.

(b) Profit rate risk

Profit rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market profit rates. The Modaraba has adopted appropriate policies to minimize its exposure to this risk The profit rate profile of the Modaraba's significant profit bearing financial instruments and the periods in which these will mature are as follows:

2025 Financial assets - variable rate instruments Cash and bank balances 5.72% to 14.08 3% to 17.5% Investments 11.73% to 21.47% 19.81% to 20.15% Diminishing musharakah 9.22% to 11.0% 9.22% to 15.5% Effective profit rate (%) 2024	133,917,532 92,712,516 57,938,668 75,111,007 1,339,902 7,314,299 Carrying amounts (Rs.) 2025 2024

(c) Other price equity risk

Other price risk represents the risk that the fair value of a financial instrument will fluctuate because of changes in the market prices (other than those arising from interest / markup rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all or similar financial instruments traded in the market. Presently, daily stock market fluctuation is controlled by government authorities with cap and floor of 10%. The restriction of floor prices reduces the volatility of prices of equity securities and the chances of market crash at any moment. The Modaraba manages price risk by monitoring its exposure in quoted securities and implementing the strict discipline in internal risk management and investment policies, which includes disposing of its equity investments before it led the Modaraba to incur significant mark-to-market and credit losses. As of the reporting date, the Modaraba was exposed to equity risk since it had investments in quoted securities amounting to Rs. 43.401 million (2024: Rs. 20.647 million) and investments in mutual funds amounting to Rs. 0.141 million (2024: Rs. 34.629 million).

The carrying value of investments subject to price risk is based on quoted market prices as of the reporting date. Market prices are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may significantly differ from the reported market value. Fluctuation in the market price of a security may result from perceived changes in the underlying economic characteristics of the investee, the relative price of alternative investments and general market conditions. Furthermore, the amount realized in the sale of a particular security may be affected by the relative quantity of the security being sold.

ANNUAL REPORT 2025

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(d) Concentration of credit risk

Concentration of credit risk exists when changes in economic or industry factors affect groups of counterparties whose aggregate credit exposure is significant in relation to the Modaraba’s total credit exposure. Concentration of credit risk indicate the relative sensitivity of the Modaraba’s performance to developments affecting a particular industry.

The Modaraba manages credit risks and its concentration through diversification of activities to avoid undue concentration of risk with individuals, groups or specific industry segments. For this purpose, the Modaraba has established exposure limits for geographical and industrial sectors.

The Modaraba's portfolio of investments is broadly diversified so as to mitigate the significant risk of decline in prices of securities in particular sectors of the market.

Chemicals Construction and Materials Oil & Gas Producers Gas Water & Multi utilities Automobile and Parts Textiles Pharmaceuticals Cable and Electrical goods Food & Personal Care Products Banks Mutual Fund Power Generation & Distribution Modarabas Technology & Communication Glass & Creamics Miscellaneous	June 30, 2025	June 30, 2025	June 30, 2024	June 30, 2024
	Rupees	%	Rupees	%
	4,390,500 9.13% 1,456,355 2.04% - 0.00% 285,000 0.40% 19,802,692 40.66% 6,268,930 8.79% - 0.00% 554,755 0.78% 926,628 1.93% 5,947,221 8.34% - 0.00% 106,275 0.15% 3,590,150 7.47% 5,626,320 7.89% - 0.00% - 0.00% 3,693,800 8.10% 651,640 0.91% 5,000,000 10.40% 10,000,000 14.02% 141,177 0.29% 34,629,047 48.57% - 0.00% 476,120 0.67% 1,175,018 2.44% 1,029,592 1.44% 5,454,500 11.35% 862,650 1.21% - 0.00% 233,100 0.33% 3,879,720 8.07% 3,176,831 4.46% 48,054,185 100.00% 71,303,836 100.00%

Sensitivity analysis

The table below summarizes Modaraba's equity price risk as of June 30, 2025 and 2024 and shows the effects of a hypothetical 10% increase and a 10% decrease in market prices as at the year end reporting dates. The selected hypothetical change does not reflect what could be considered to be the best or worst case scenarios. Indeed, results could be worse because of the nature of markets and the aforementioned concentrations existing in Modaraba's investment portfolio.

				Fair value	Hypothetical	Estimated FV	Hypothetical	Hypothetical
					price change	after	increase /	increase /
						hypothetical	(decrease) in profit	(decrease) in
						change in prices	/ (loss) before tax	OCI
June	30,	2025	Rupees	57,938,638	10% increase	63,732,557	1,440,624	4,353,245
					10% decrease	52,144,819	(1,440,624)	(4,353,245)
June	30,	2024	Rupees	75,111,007	10% increase	82,622,108	3,359,190	4,151,911
					10% decrease	67,599,906	(3,359,190)	(4,151,911)

ANNUAL REPORT 2025

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36 TRANSACTIONS ENTERED INTO AND BALANCES HELD WITH RELATED PARTIES

The related parties comprise of Management Company, directors and their close relatives. Details of transactions with related parties, other than those disclosed elsewhere in these condensed interim financial statements, are as follows:

Transactions during the year ended Management fee - payment during the year ended Management fee - charge for the year Aggregate amount of remuneration charged in these financial statement, including all benefits to officers and employees are as under: Salaries and other benefits EOBI Group insurance Balances outstanding as at the year end Management fee payable Staff Gratuity Scheme	June 30, 2025 June 30, 2024 -------------- Rupees -------------- - - - - 20,858,934 7,169,000 189,131 76,080 654,251 154,259 - - 7,480,736 6,536,176	June 30, 2025 June 30, 2024 -------------- Rupees -------------- - - - - 20,858,934 7,169,000 189,131 76,080 654,251 154,259 - - 7,480,736 6,536,176
		7,169,000 76,080 154,259 - 6,536,176

37 FAIR VALUE HIERARCHY

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Consequently, differences can arise between carrying values and the fair value estimates.

The Modaraba measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

Level 1 : Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Fair value measurements using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).

Following is the fair value hierarchy of the assets carried at fair value:

ANNUAL REPORT 2025

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Financial assets measured
at fair value
nvestments
Listed equity securities
Listed Mutual funds
Financial assets at
amortised cost
nvestments
Sukuk Certificates
Cash and bank balances
Long term deposits
Receivable form diminishing
musharaka
Profit receivable
Diminishing musharakah
Other receivables
Financial assets measured
at fair value
nvestments
Listed equity securities
Listed Mutual funds
Financial assets at
amortised cost
nvestments
Sukuk Certificates
Cash and bank balances
Long term deposits
Receivable form diminishing
musharaka
Profit receivable
Diminishing musharakah
Other receivables

Level 3
Total
FVTPL
FVTOCI
June 30, 2025
-------------------------------------------Rupees-------------------------------------------
Fair value
Carrying amount
Level 1
At amortised
cost
Level 2
-
41,729,535
1,175,018
42,904,553
42,904,553
-
-
-
141,177
-
141,177
-
141,177
-
-
41,870,712
1,175,018
43,055,630
42,904,553
141,177
-
5,000,000
-
-
5,000,000
-
5,000,000
-
133,917,532
-
- 133,917,532
-
-
-
3,840,147
-
-
3,840,147
-
-
-
-
-
-
-
-
-
-
-
464,770
-
-
464,770
-
-
-
126,215
-
-
126,215
-
-
-
4,204,855
-
-
4,204,855
-
-
-
147,553,519
-
- 147,553,519
-
5,000,000
-
Level 3
Total
FVTPL
FVTOCI
June 30, 2024
-------------------------------------------Rupees-------------------------------------------
Fair value
Carrying amount
Level 1
At amortised
cost
Level 2
-
16,641,030
2,719,460
19,360,490
19,360,490
-
-
-
20,872,603
13,756,444
34,629,047
-
34,629,047
-
-
37,513,633
16,475,904
53,989,537
19,360,490
34,629,047
-
10,000,000
-
-
10,000,000
-
9,976,472
-
92,712,516
-
-
92,712,516
-
-
-
3,838,407
-
-
3,838,407
-
-
-
751,570
-
-
751,570
-
-
-
2,261,619
-
-
2,261,619
-
-
-
7,314,299
-
-
7,314,299
-
-
-
3,847,903
-
-
3,847,903
-
-
-
120,726,314
-
- 120,726,314
-
9,976,472
-

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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37.1 Valuation techniques used in determination of fair values within level 2:

Investment in mutual funds are valued on the basis of the closing net assets at the reporting date announced by the Mutual Funds Association of Pakistan (MUFAP) based on the closing net assets of the mutual funds.

Investment in sukuk, issued by AlBaraka Bank Limited and Meezan Bank Limited are valued on the basis of the rates announced by the Mutual Funds Association of Pakistan (MUFAP) in accordance with the methodology prescribed by the Securities and Exchange Commission of Pakistan (SECP).

The Modaraba has not disclosed the fair values for these financial assets, as these are either short term in nature or repriced periodically. Therefore, their carrying amounts are a reasonable approximation of fair value.

38 OPERATING SEGMENTS

As per IFRS 8 - 'Operating Segments', operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision maker. The chief executive officer of the management company has been identified as the chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments.

The Chief Executive Officer is responsible for Modaraba's entire product portfolio and consider business to have a three operating segments.

The internal reporting provided to the chief executive officer for the Modaraba's assets, liabilities and performance is prepared on a consistent basis with the measurement and recognition principles of approved accounting standards as applicable in Pakistan.

The Modaraba's is domiciled in Pakistan. All of the Modaraba's income is from the investments in entities incorporated in Pakistan.

Details of segment revenues, costs, profit, assets and liabilities are as follows:

Segment revenue
Segment results
Unallocated corporate expenses
Other income
Provision for worker's welfare fund
Levies
Taxation
Profit for the year
Segment assets and liabilities
Reportable segment assets
Unallocated corporate assets
Consolidated total assets
Reportable segment liabilities
Unallocated corporate liabilities
Consolidated total liabilities

Trading
Financing
Investment
Total
June 30, 2025
--------------------------------Rupees--------------------------------
15,817,650
2,836,949
25,647,882
44,302,481
15,817,650
2,836,949
21,242,017
39,896,616
(37,160,630)
2,631,994
(2,781,332)
-
(173,578)
2,413,070
68,258,142
1,542,156
57,974,242
127,774,540
147,272,700
257,015,163
-
10,288,846
-
10,288,846
6,438,611
16,727,457

ANNUAL REPORT 2025

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Segment revenue Segment results Unallocated corporate expenses Other income Provision for worker's welfare fund Taxation Profit for the year Segment assets and liabilities Reportable segment assets Unallocated corporate assets Consolidated total assets Reportable segment liabilities Unallocated corporate liabilities Unallocated corporate liabilities Consolidated total liabilities	Trading Financing Investment Total June 30, 2024 --------------------------------Rupees-------------------------------- (6,757,524) 8,361,569 33,255,672 34,859,717 (6,757,524) 8,361,569 34,116,666 35,720,711 (35,786,387) 1,340,312 (81,332) (803,200) 390,104 78,661,336 7,444,230 74,598,511 160,704,077 108,412,742 269,116,819 - 7,650,728 - 7,650,728 5,533,771 13,184,499

39 DISCLOSURE REQUIREMENTS FOR ALL SHARES ISLAMIC INDEX

Following information has been disclosed with reference to circular No. 14 of 2016 dated April 21, 2016, issued by the securities and Exchange commission of Pakistan relating to " All Shares Islamic Index

Description

Explanation

i) Loan and advances

Non-interest bearing

ii) Long term deposits

Non-interest bearing

iii) Segment revenue

Non-interest bearing

iv) Relationship with banks

Modaraba maintains profit based banking relationships with Islamic Banks/ Bank Islamic window operations.

v) Banks balances

All profit yielding bank accounts are maintained with Islamic Banks/ Bank Islamic window operations whereas few of the current accounts are also maintained with conventional banking systems (note no. 4).

vi) Profit on bank deposits

This represents profit, only from Islamic banks/ Bank Islamic window operations.

vii) Breakup of dividend income -classification wise

Disclosed in note no. 27.1.

viii) All sources of their income

Disclosed in note No.12.1, 25-27 and 29.

ix) Gain /loss regardless of realized or unrealized from investments in shares/mutual funds

Disclosed in note no. 5, 19, 25.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

40 General

40.1 Reclassified from component

Reclassified from component
Reclassified to component
Note
Shariah compliant
Non - Shariah compliant
Listed equity securities
Listed equity securities
5
(Current assets - Short term investments)
(Current assets - Short term investments)
Non - Shariah compliant
Shariah compliant
Listed equity securities
Listed equity securities
5
(Current assets - Short term investments)
(Current assets - Short term investments)
Reversal of provision against Musawamah
Facility
Other income
29
(Profit and loss)
(Profit and loss)
Auditor's remuneration
Legal and professional charges
28
(Profit and loss - Administrative expenses)
(Profit and loss - Administrative expenses)
Sindh workers' welfare fund
Levies
32
(Profit and loss)
(Profit and loss)

Rupees
1,526,985
1,286,015
1,380,000
799,200
81,332

40.2 Events after the reporting date

There are no subsequent events that are required to be adjusted or disclosed in these financial statements.

40.3 Number of employees No of employees as at year end Average number of employees	June 30, 2025 June 30, 2024 -------------- Number -------------- 9 9 9 9	June 30, 2025 June 30, 2024 -------------- Number -------------- 9 9 9 9
		9

40.4 Date of authorization for issue of these financial statements

These financial statements were authorized for issue by the Board of Directors of the Modaraba Management Company in their meeting held on September 11, 2025.

40.5 Level of rounding

Unless otherwise indicated, all figures in these financial statements have been rounded off to the nearest rupee.

For Al-Noor Modaraba Management (Private) Limited (Management Company)

Sd/-	Sd/-	Sd/-	Sd/-
Chief Executive Officer	Chief Financial Officer	Director	Director

ANNUAL REPORT 2025

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PATTERN OF CERTIFICATE HOLDING AS AT JUNE 30, 2025

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Certificate Holdings
No. of Total Certificate
Certificate Holders Held
From To
138 1 100 3,194
70 101 500 16,715
120 501 1,000 75,188
167 1,001 5,000 398,790
39 5,001 10,000 268,734
25 10,001 15,000 295,290
7 15,001 20,000 130,170
11 20,001 25,000 258,652
1 25,001 30,000 30,000
6 30,001 35,000 202,438
2 35,001 40,000 72,050
8 45,001 50,000 398,593
3 50,001 55,000 165,000
2 60,001 65,000 123,601
3 70,001 75,000 217,319
1 85,001 90,000 85,998
1 90,001 95,000 95,000
2 95,001 100,000 200,000
1 100,001 105,000 104,030
1 105,001 110,000 110,000
1 120,001 125,000 121,000
1 170,001 175,000 175,000
1 205,001 210,000 209,000
1 210,001 215,000 210,659
1 275,001 280,000 278,850
1 295,001 300,000 297,750
1 300,001 305,000 303,045
1 345,001 350,000 350,000
1 365,001 370,000 368,500
1 400,001 405,000 401,000
1 570,001 575,000 573,342
1 650,001 655,000 653,500
1 665,001 670,000 669,284
1 895,001 900,000 897,000
1 1,030,001 1,035,000 1,031,118
1 1,710,001 1,715,000 1,712,477
1 1,955,001 1,960,000 1,955,850
1 1,990,001 1,995,000 1,990,450
1 3,030,001 3,035,000 3,031,413
1 4,615,001 4,620,000 4,620,000
628 23,100,000
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ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

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CATEGORIES OF SHAREHOLDING AS AT JUNE 30, 2025

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No. of Certificate No. of Percentage
S.No. Shareholders Category
Holders Certificates
1 Directors, Chief Executive Officer, and their spouse and minor
children (to be confirm by Company) 2 2,061,950 8.93
2 Associated Companies, Undertakings and related Parties
(to be confirm by Company) 3 8,224,755 35.61
3 NIT and ICP
4 Banks, Development Financial Institutions, Non Banking
Financial Institutions 4 3,938 0.02
5 Insurance Companies 2 693 0.00
6 Modarabas and Mutual Funds 1 669,284 2.90
7 Share holders holding 10% 2 7,651,413 33.12
8 General Public :
a. local 598 11,475,232 49.68
b .Foreign
9 Others 18 664,148 2.88
Total 628 23,100,000 100.00
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Shareholders holding five (5) percent or more certificates

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No. of Certificate Holding Holding
Name
Holders %age
Al-Noor Modaraba Management (Private) Limited 1 4,620,000 20.00%
Zain Trading Corporation (Private) Limited 1 3,031,413 13.12%
Mr. Zohair Zakaria 1 1,990,450 8.62%
Mr. Masood Ahmed 1 1,955,850 8.47%
Mr. Dinaz Cassim 1 1,712,477 7.41%
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ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

NOTICE OF ANNUAL REVIEW MEETING

Notice is hereby given that the Annual Review Meeting of Certificate Holders of First Al-Noor Modaraba will be held on Thursday, October 23, 2025 at 03:40 p.m. at the Registered Office of the Company at 96-A, Sindhi Muslim Cooperative Housing Society, Karachi, to review the performance of the Modaraba for the year ended June 30, 2025.

By order of the Board

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Sd/Roofi Abdul Razzak Company Secretary Karachi : September 11, 2025

REQUEST TO CERTIFICATE HOLDERS

The individual certicate holders who have not yet submitted photocopy of their valid Computerized National Identity Card (CNIC) to the Modaraba / Share Registrar, are once again reminded to send the same at the earliest directly to Modaraba's Share Registrar, M/ FAMCO Share Registration Services (Private) Limited. In case of non-receipt of the copy of a valid CNIC, the Modaraba would be constrained under section 243 (3) of the Companies Act, 2017 to withhold dividend of such certicate holder(s).
In accordance with the provisions of section 242 of the Companies Act, 2017 and Companies (Distribution of Dividend) Regulations, 2017, it is mandatory for a listed company to pay cash dividend to its certicate holder only through electronic mode directly into the bank account designated by the entitled certicate holder. Therefore, certicate holders are requested to fill in "Electronic Credit Mandate Form"as reproduced below and send it duly signed along with a copy of valid CNIC/NTN to their respective CDC participant / CDC Investor account services.

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(i) Certificate Holder's Details
Name of Certificate Holder
Folio # / CDS Account Number
CNIC Number (attach copy)
Mobile/Landline Number (Active)
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(ii) Certificate holder's Bank detail Title of Bank Account IBAN Bank's Name Branch's name and address

It is stated that the above-mentioned information is correct and in case of any change herein, I/We will immediately intimate the Share Registrar accordingly

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

Notes:

1. Book Closure

The Share Transfer Book of the Modaraba will remain closed from Friday, October 17, 2025 to Wednesday, October 29, 2025 (both days inclusive) and no transfer will be accepted during this period. The transfers received in order at the office of the Share Registrar, M/s FAMCO Share Registration Services (Private) Limited, 8-F, Near Hotel Faran, Nursery, Block-6, P.E.C.H.S, Shahra-e-Faisal, Karachi by the close of business on October 16, 2025 will be considered in time for the purpose of determination of their respective entitlement(s), if any, and eligibility to attend the Annual Review Meeting.

2. Consent for Video Conference Facility

Pursuant to Section 132 (2) of the Companies Act, 2017, Members may avail video conference facility for this Annual Review Meeting provided the Company receives consent from the members holding aggregate 10% or more shareholding at least 7 days prior to the date of meeting at [email protected].

3. Conversion of Physical Certificates into Book-Entry Form

As per Section 72 of the Companies Act, 2017, all listed companies are required to replace certificates issued by them in physical form to book-entry form. Accordingly, all members of the Company having physical certificates are advised to convert their certificates into book-entry form at the earliest with the Central Depository Company of Pakistan Limited. The members may contact the Company or Shares Registrar, M/s FAMCO Share Registration Services (Private) Limited for the conversion of physical certificates into book-entry form

4. Unclaimed Dividends and Share Certificates

The Company has previously discharged its responsibility under Section 244 of the Companies Act, 2017 whereby the Company approached the members to claim their unclaimed dividends and undelivered share certificates in accordance with the law. Members, whose dividends and share certificates are still unclaimed/ undelivered, are hereby once again advised to approach the Company to claim their outstanding dividend amounts and/ or undelivered share certificates.

ANNUAL REPORT 2025

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FIRST AL-NOOR MODARABA

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ANNUAL REPORT 2025

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ANNUAL REPORT 2025

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ANNUAL REPORT 2025

AI assistant

First Al-Noor Modaraba — Annual Report 2025

71975_rns_2025-09-30_efce61a2-ff67-4e61-941d-0c53f42dbc9d.pdf

ANNUAL REPORT 2025

FIRST AL-NOOR MODARABA

FIRST AL-NOOR MODARABA

CONTENTS

COMPANY INFORMATION

BOARD OF DIRECTORS

Non Executive Directors

Chairman

Directors

Executive Directors

Bankers

Auditors

Chief Executive

Shariah Advisor

Chief Financial Officer

Company Secretary

Legal Advisor

Share Registrar (Share Registration Office)

Board Audit Committee - Chairman

Registered Office

Contact Details

OUR VISION

OUR MISSION

FIRST AL-NOOR MODARABA

VERTICAL ANALYSIS

FIRST AL-NOOR MODARABA

HORIZONTAL ANALYSIS

KEY FINANCIAL DATA SEVEN YEARS AT A GLANCE

CHAIRMAN'S REVIEW REPORT

THIRTY THIRD REPORT OF THE DIRECTORS OF MODARABA COMPANY FOR THE YEAR ENDED JUNE 30, 2025

FIRST AL-NOOR MODARABA

Future Outlook

Sustainability - related Risk

Shariah Perspective

The Board of Directors

FIRST AL-NOOR MODARABA

Directors Training & Orientation

Pattern of Certificate Holders

Corporate and Financial Reporting Framework

Composition of the Board

FIRST AL-NOOR MODARABA

Directors' attendance

Remuneration policy for Non Executive / Independent Directors

Auditors

Acknowledgement

FIRST AL-NOOR MODARABA

FIRST AL-NOOR MODARABA

FIRST AL-NOOR MODARABA

FIRST AL-NOOR MODARABA

Independent Assurance Report on Compliance with the Shariah Governance Regulations, 2023 To the Modaraba Management Company of First Al-Noor Modaraba

Introduction

Applicable Criteria

Management's Responsibility for Shariah Compliance

Our Independence and Quality Control

FIRST AL-NOOR MODARABA

Our Responsibility and Summary of the Work Performed

Conclusion

RAHMAN SARFARAZ RAHIM IQBAL RAFIQ Chartered Accountants

Karachi Date: September 26, 2025

GENDER PAY GAP STATEMENT

FIRST AL-NOOR MODARABA

FIRST AL-NOOR MODARABA

THE TERMS OF REFERENCE OF THE AUDIT COMMITTEE

FIRST AL-NOOR MODARABA

THE TERMS OF REFERENCE OF HUMAN RESOURCE & REMUNERATION COMMITTEE (HR&R)

THE TERMS OF REFERENCE OF MODARABA MANAGEMENT COMMITTEE

Terms of Reference

STATEMENT OF COMPLIANCE WITH LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE) REGULATION, 2019 FIRST AL-NOOR MODARABA YEAR ENDED JUNE 30, 2025

FIRST AL-NOOR MODARABA

b) HR and Remuneration Committee

FIRST AL-NOOR MODARABA

INDEPENDENT AUDITOR'S REVIEW REPORT To the certificate holders of M/s. First Al Noor Modaraba

REVIEW REPORT ON THE STATEMENT OF COMPLIANCE CONTAINED IN LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE) REGULATIONS, 2019

FIRST AL-NOOR MODARABA

Karachi

FIRST AL-NOOR MODARABA

FIRST AL-NOOR MODARABA

First Al-Noor Modaraba Annual Report 2025