Diminishing Musharaka


The Board of Directors of Management Company in their Meeting held on 12th September 2008 have declared and approved a final cash dividend @ 21% (Re.1.05 per certificate of Rs.5/- each) for the year ended 30th June, 2008.
Awards & Achievements





In Pakistan the Modaraba as entity   promulgated through law   called “Modaraba Companies and Modaraba (floatation & control) Ordinance 1980 (MCMO)   and Modaraba Rules, 1981. These   Rules and Ordinance provided an opening for establishment of Modaraba Companies as an entity. The thrust was to develop a corporate sector to conduct its business in conformity with Sharia’h financial system.

FHM commenced its business operation in March, 1985 with initial capital of Rs.25.0 million only. It is a multipurpose Modaraba engaged in various Islamic Financial Services like Ijara, Murabaha, Diminishing Musharaka and other Sharia’h compliant financial activities including deposit taking activities through Certificate of Musharkah (COM) and other Shariah complied mode. However, continuing with solid, dynamic and prudent approach now Allhamdollilah, the FHM has a Paid up capital of Rs.1.00 billion and total equity base of around Rs.2.800 billion.

At present FHM  is one of the best performing Modaraba in the Modaraba Sector. FHM being pioneer in the Modaraba and Non-Banking Islamic Financial sector played a very vital role for promotion of Islamic Finance in Pakistan’s Islamic Financial Market

In conclusion, we proudly say that at present the FHM is one of the best Islamic Financial Services Institutions within the non-banking sector in Pakistan. This has also been acknowledged by other reputed counters such as Rating Agency, Modaraba Association Pakistan, Management Association of Pakistan and other stakeholders of FHM.
PACRA's ASSESSMENT

PACRA has assigned a Positive Outlook to these ratings.

The ratings indicate a very low expectation of credit risk emanating from very strong capacity for timely payment of financial commitments.

The ratings denote FHM's ability to sustain its performance in an increasingly competitive financial sectors.

At the same time, the ratings recognize the Modaraba's robust - indeed conservative - Risk management framework as reflected by its very good asset quality.

FHM's ratings have been assigned positive outlook recognizing the Modaraba's well conceived strategy to maintain its leading position in the sector.