Lahore: The First Fidelity Leasing Modaraba, managed by Fidelity Capital Management (Private) Limited, reported a financial loss for the fiscal year ending June 30, 2025. This financial setback comes amid ongoing legal challenges related to investment recoveries. The details were disclosed in the 33rd Annual Report, presented by the Board of Directors.
On November 14, 2025, the management announced that the Modaraba sustained a loss of Rs. 1.633 million for the year. This is a significant improvement from the previous year’s loss of Rs. 23.261 million. The loss per certificate stood at Rs. 0.06, compared to Rs. 0.88 in the previous fiscal year. According to information available from the Pakistan Stock Exchange (PSX), the Modaraba’s operations remained in deficit, with the conversion to profitability hinging on the recovery of major investments in a corporate tower project.
The Modaraba is embroiled in legal proceedings against Enplan (Pvt) Limited and its sponsors, seeking to retrieve funds from the corporate tower project. The Modaraba has filed two cases for the recovery of morabaha finance and contracted profits totaling Rs. 239.0 million. The Modaraba Tribunal and Lahore High Court are currently handling these cases, with upcoming hearings scheduled for December 2025.
In terms of financial performance, the total income for the Modaraba increased to Rs. 13.264 million from Rs. 12.157 million in the previous year. However, expenses also rose to Rs. 20.229 million from Rs. 16.863 million. The financial position revealed total assets of Rs. 335.440 million, with fixed assets valued at Rs. 251.906 million. The certificate holders’ equity decreased slightly to Rs. 297.628 million from Rs. 302.07 million the previous year. The Modaraba did not declare any profit distribution for the year.
The management expressed optimism about future prospects, contingent on the recovery of investments from the real estate project. The potential recovery of decretal amounts from the auction of mortgaged land and buildings could substantially enhance the Modaraba’s financial position.
The annual review meeting to discuss the Modaraba’s performance is scheduled for November 27, 2025, in Lahore. The certificate transfer books will remain closed from November 20 to November 27, 2025, to determine the eligible attendees for the meeting.
The Board emphasized compliance with corporate governance standards, asserting that the financial statements accurately represent the Modaraba’s financial state. Despite the challenges faced, the Modaraba remains committed to fostering a diverse and inclusive workplace, reflecting a wide range of perspectives and promoting gender diversity within its board.