Trust Modaraba commenced its operations in 1991. The aim of Modaraba is to play its due role in transformation of countrys financial system in conformity with principles enshrined in the Shariah by providing Riba-free investment and financing opportunities aimed at socio-economic prosperity of the Nation. Trust Modaraba is a perpetual and multi-purpose Modaraba engaged in Murabahah, Musharakah and Ijarah financing, equity investments and trading
It is listed on all the three stock exchanges of the country with authorized capital of Rs. 700 million and paid up capital of Rs. 298 million.Trust Modaraba is managed by Al-Zamin Modaraba Management (Private) Limited. Al-Zamin has proven track record of managing Modarabas in Pakistan
Managed by:Al-Zamin Modaraba Management (Private) Limited
In Arabic it is called Shirkat-ul-Mutanaqisa. Diminishing Musharaka is just a Musharaka with an additional feature of decreasing ownership of one party. This differs from normal Musharaka, Where ownership ratio does not change. The closest term in conventional finance is redeemable capital.
Murabaha is a non-participatory mode of Islamic financing where the FHM sells the asset required by its client to the client on cost-plus profit basis. The asset is purchased by the FHM and carries the risk of any loss or damage to the asset as long as the asset remains under its ownership. Upon sale of the asset, the FHM is obligated to inform the client of the exact cost incurred in the purchase of the asset and the margin of profit incorporated in the sale price. Payment against the purchase of assets by the client may be deferred in which case it would become Muajjal. The selling price once agreed cannot be changed even when the client fails to pay on the agreed date.
‘Ijarah’, a term of Islamic fiqh, means ‘to give something on rent’. Ijarah relates to the usufructs of assets and properties. Trust Modaraba transfers the usufruct of a particular property to another person in exchange for a rent claimed from him. In this case, the term ‘Ijarah’ is analogous to the English term ‘leasing’. Here the lessor is called ‘Mu’jir’, the lessee is called ‘musta’jir’ and the rent payable to the lessor is called ‘ujrah’. In case of Ijarah, the corpus of the property remains in the ownership of the transferor, but only its usufruct i.e. the right to use it, is transferred to the lessee.
At Trust Modaraba, the mode of Ijarah is used to meet medium or long term financing needs of the customer by giving the asset to the customer on rental basis
Trust Modaraba aims to evolve and practice exemplary standards of integrity and proficiency by achieving balanced growth, building quality investment portfolio, maintaining high standards of efficiency and providing good returns to its certificate holders.
Trust Modaraba shall endeavor to maintain a competitive edge in the industry and contribute effectively in promotion of Islamic financial regime. It shall adopt a management culture based on participation, motivation and accountability to achieve professional and personal excellence and growth of human resource. Trust Modaraba shall achieve a balanced texture of being a prudent and progressive organization with a sound image in the market place
Trust Modaraba is a multi-purpose Modaraba and it undertakes following activities
- Equity marketing operations
- Managing portfolios
- Project financing
- Providing long and short-term finance
- Rendering consultancy and advisory services for syndication of leasing and project financing.
- Trading Activites